As seen in The West Real Estate
We all like to save money where possible. When it comes to property investment, some landlords choose to manage their property themselves, often seeking to save on management fees. However, sometimes the desire to save money can be costly.
That was the case for the eastern states-based owner of an Ardross property who was fined $8,500 and received a spent conviction for breaching the Residential Tenancies Act.
The breaches were straightforward: asking for more than two weeks rent in advance at the start of the tenancy, trying to increase the rent during the tenancy, not lodging the bond properly, and providing the tenant with the property condition report several weeks late. The landlord may not have been aware of WA’s legislation but, as the magistrate said, ignorance isn’t an excuse.
This isn’t the first time we’ve seen cases like this, and it won’t be the last. Property management is heavily legislated and the Commissioner for Consumer Protection’s advice to landlords is clear: familiarise yourself with the laws or delegate the responsibility to a property manager.
Property managers are required to undergo yearly professional development to ensure they understand the legislation and are aware of any changes. Yes, you pay a fee for their service, which is tax deductible, but their knowledge can save you a lot of money.
However, the benefits of using a property manager go beyond their knowledge of the law. They can save you time, stress and reduce risk, maximising the performance of your investment.
They understand market conditions such as local tenant demand and rent prices and can reduce periods of vacancy. They can advertise the property for you, conduct home opens, screen applications, can check tenants history via national tenancy databases, conduct regular inspections, identify and deal with maintenance issues, organise tradespeople, and liaise with your tenant (they get the after hours phone calls about hot-water systems, not you). They have systems in place to ensure nothing slips through the cracks, such as making sure rent is received on time, bills are paid and lease renewals are negotiated when they are due. They manage issues before they escalate into something significant.
Having been in property management for over 35 years, I’ve seen how quickly things unravel when they’re not handled properly, and how much smoother it is when someone who knows what they’re doing is managing your property.
If you have a strong understanding of the law, and plenty of time, you may be able to manage your investment yourself. But if you don’t, and most definitely if you live overseas or interstate, you should use a REIWA property manager.
