- Managing your own property.
There are two obvious dangers with private landlords. Firstly, they probably lack the experience needed to manage a property. This means they may not have the communication skills to liaise with tenants and they don’t have the network of tradespeople and access to economies of scale.
Secondly, and just as importantly, private landlords are likely unfamiliar with the relevant legislation governing property managers. Many private landlords think that the rules don’t apply to them, when in fact the governing body for property managers can be tougher on private landlords because they’re less experienced and less qualified. Good agents and property managers know the Residential Tenancies and Rooming Accommodation Act inside and out and keep up to date with relevant changes in legislation.
A good property manager makes the job look easy (it’s not!) and makes your life as a landlord worry free!
- Signing up with multiple agents.
It seems logical that if you hire more than one agent, you’ll get your property rented quickly and you can subsequently hire the agent who was successful in finding your tenant (because they got there the fastest). The problem with this is that agents competing against each other can mean they compromise the quality of tenants and the rental price. It’s too easy for one agent to offer a lower rental price in order to reduce vacancy.
We do know it’s important to reduce the vacancies in your property or properties, but having a poor quality tenant can actually be worse than having no tenant at all.
See our article on “What a property manager should do for you” to see what makes a good property manager.
- Choosing the wrong agent.
There are property managers out there who will offer you much cheaper fees. However, as the saying goes, you get what you pay for! It’s wise to be wary of deals that seem too good to be true, because they often are.
Agents who charge less probably don’t have the experience required to be a good property manager, nor do they have the understanding of the market and industry.
You should also be aware that if agents are charging an excessively low management rate, they may have countless other hidden fees. It’s never a bad idea to meet with an agent before you engage their services and ask them questions about their rates, fees and services to clear up any uncertainties you may have.
Presenting your property in the best light is really important and can have a significant impact on your prospective tenant pool.
It’s vital to invest in effective marketing, such as professional property photos, well-written text to accompany photos and solid advertising on property portals. You should also ensure that the house or apartment and outdoor areas are tidy and clean when running inspections because first impressions can last.
In short, a well-advertised property = better tenants = fewer problems.