Why Not To Use A Property Manager!
June 23rd 2020
In most cases we are able to improve the return on your investment, by matching rents to comparable properties, creating an extensive and focused marketing campaign to attract better quality tenants, and lower vacancy rates. With our dedicated letting agents we are able to assess all applicants to determine the best tenant for your property. Your time isn’t tax deductible, but the management fees are. So in most cases you will have more money in your hand, more free time, and can claim expenses!
Before we offer a tenancy to any applicant, we pass all the information by you and check you are satisfied with the prospective tenant. If you want to continue with some minor maintenance, that is arranged with notice to the tenant the same as any other repairs required.
The first step in avoiding those problems is with tenant selection. That is where we put a large amount of time and effort, we also don’t want tenants causing the trouble described!
- * See Ruby Housing Tenant Selection Guarantee - we stand by our decisions!
- * Private Landlords: before you accept a new tenant check out these red flags
- * How to avoid horror tenants
Secondly, only the tenants named on the agreement are allowed to live in the house, and we have very tight terms and conditions to cover any risk of subletting or other people moving in.
Third, we do regular and detailed property inspections, starting with the ingoing inspection, then one month after the tenants move in, then three monthly after that. At any stage if there is concern the inspection frequency can be increased to every four weeks, and 14 day letters and follow up inspections to address any issues identified. You receive an emailed copy of each inspection, with numerous photos and any regular maintenance or other matters are noted.
It’s true that experience goes a long way with managing rental homes.
However with the changes in legislation, penalties against landlords, and tenants being well informed as to their rights, landlords must dedicate a lot of time and effort to ensuring they are meeting all current requirements. For a number of years the RTA and surrounding aspects of tenancy management were fairly static.
However since 2015 alone there have been numerous changes in tenancy law and the tenancy landscape.
- 1) The Osaki case resulted in a new Practice Note, which has been partially overturned; there are ongoing amendments to the RTA; meth damage and liability rules have changed; the Healthy Homes Standards, effective 1st July 2019 and Dec 2021 (previously 1st July 2021) must be met. All of these aspects have the potential for exemplary damages against the landlord, with large fines awarded to tenants.
- 2) Add to this insurance providers changing their risk assessment, EQC cover changing, the Privacy Commission setting out new rules for assessing prospective tenants, and long years of experience just aren’t enough any more.
Ruby Housing takes away all that tension of whether you’re meeting rental compliance, it’s our job to stay ahead of what is happening in the rental market, keep you informed, and mitigate your risks. At $4000 breach penalty directly against landlords, signing with Ruby Housing instead can save you a whole lot of money and stress.
What is your time worth? If your hourly rate is worth more than a coffee and muffin a day, then the small charge for management fees gains you so much more; no more interruptions to your work or weekend life, tax deductibility on expenses, easy to read inspections and remittance statements, and best of all, peace of mind.
Even if you’re not concerned about cost, the freedom to do whatever you enjoy out of work is hugely valuable, whether it’s family time, community activities, sport, volunteering, or travel.
As one of our owners said “ the rent is paid, the house is looked after, we don’t have any late night calls or stress, why wouldn’t you sign with Ruby Housing?”
If you are a full time investor, what is the cost of lost opportunities with future deals, when you are spending your time showing tenants through homes or chasing rents?
Instead of small returns from rents, you could be negotiating new purchases or coordinating renovations, to add thousands of dollar value to your portfolio.