Often, as a real estate agent, I am asked to take over rental properties from Private Landlords. Most of the time when this occurs, the reason that I am taking over is that the private landlord has fallen into trouble with the tenant and needs some professional assistance.
Common mistakes private landlords make include:
- RENT ARREARS – it can sometimes be stressful and difficult as a private landlord asking your tenant for the rent monies when they are going through financial hardship. Often private landlords get relationships with their tenants, or they are friends to begin with and the emotional attachment they have to their tenants makes it difficult to be stern. This can leave the landlord in a difficult position themselves financially. We once took on a property where the private landlord had let the tenant get 7 months behind in their rent!
- ERRORS ON LEASE DOCUMENTS – Real Estate agents are specially trained and updated by the REIQ every year on legislation changes. The lease document is key to getting the tenancy off to a good start. Many times we see landlords who have made critical errors in this document and it can cost them money down the track. Some of the mistakes include – writting the tenants name under lessor and putting illegal special conditions on the lease.
- LOW RENTAL RETURN – professional Asset Managers are up to date every day with current market conditions, and always know exactly how much a rental property should be returning. Private landlords can sometimes undervalue their homes, or at the opposite end of the scale, overprice their homes and have a very high vacancy period. We have taken on a number of homes that are under-priced, and some as much as 30%. Your agent can set you a rental increase plan so that the rent regularly increases in accordance with the market. By pricing the home appropriately and exercising the rental increases at appropriate times, you will maximise your income.
- TENANT SELECTION – Private landlords do not have access to national tenancy databases, like TICA, as do agents. These databases carry valuable information about tenants who have defaulted in the past. Often Private landlords are targeted by these undesirable tenants, as they know the landlord will not have access to their past information.
In summary, Private Landlords are every day people. Many of them do a fantastic job self managing their properties, and some have even made a second job of it! However, many do not have the professional skills and knowledge to handle the many situations they may find themselves in, and no access to the appropriate software, databases and programs that agents do. Real Estate Agents manage properties every day, and have experience in all areas of the job.
On average, in our local area, it costs $20.40 per week to have your property professionally managed. For the money you will save, the hassles you can avoid, and the extra money a professional service can make you, why would you do it yourself?
Private Landlords – Beware!
Often, as a real estate agent, I am asked to take over rental properties from Private Landlords. Most of the time when this occurs, the reason that I am taking over is that the private landlord has fallen into trouble with the tenant and needs some professional assistance.
Common mistakes private landlords make include:
In summary, Private Landlords are every day people. Many of them do a fantastic job self managing their properties, and some have even made a second job of it! However, many do not have the professional skills and knowledge to handle the many situations they may find themselves in, and no access to the appropriate software, databases and programs that agents do. Real Estate Agents manage properties every day, and have experience in all areas of the job.
On average, in our local area, it costs $20.40 per week to have your property professionally managed. For the money you will save, the hassles you can avoid, and the extra money a professional service can make you, why would you do it yourself?