Why You Should Never Manage Your Own Investment Property
Thinking about managing your own investment property? Think again. Property management is a tough job that encompasses a lot more skills and duties than simply collecting a check each month.
Managing properties is a full-time job. A property manager should understand property deposit protection, adhere to government mandated safety protocols, effectively market the property to find fitting tenants, and know how to legally vet the tenants for occupancy.
Without the proper time and qualifications, managing your own property can go terribly wrong, resulting in property damages and financial losses. It’s a job best left to a professional property management company.
If you still don’t believe us, take a look at these horror stories that shed light on some of the things that can go wrong when owners without property management skills try to manage their own properties.
In 2016, a landlord filed a claim that when tenants vacated the property, they took the entire kitchen with them – sink and all. According to Carolyn Parrella, executive general manager of Terri Scheer Insurance, theft from investment properties is common.
The landlord could have avoided this huge loss if they had used a property manager to conduct regular and exit inspections as well as to vet the tenants and see potential red flags before they surfaced.
Secret Drug Lab
In another instance of forgotten property inspections lies a property in St. Leonards, Victoria, which had been used to front a methamphetamine lab. The men who rented the property used fake IDs to apply, and the landlord failed to conduct background checks.
Not only did this incur expensive cleanup costs, but it also recedes the property value for future tenants, since they now could be exposed to chemicals.
Professional Property Managers Keep You Safe
In addition to the wild stories above, there are plenty of small errors an inexperienced landlord can make that result in bad tenants, late payments, losses, and property damages.
Think about all of the things you have to do to manage a home – maintenance, finances, marketing your listing, vetting applicants, frequent checkups, updates, exit interviews, and more. Are you really ready to keep your investment property safe and its value appreciating?
There are professional property managers in nearly every city. For example, The Real Estate People are leading property managers in Toowoomba. If you’re in our area and think you can benefit from our property management skills, call us on 07 4633 8899 to learn more.