5 Dangers of Self-Managing Your Rental

Self-managing your investment property is a very tricky and time-consuming task some take on. There are 5 big dangers of self-managing a rental, these are;

  1. Choosing a bad tenant,
  2. Befriending tenants,
  3. Legal issues,
  4. Expensive repairs and
  5. Not generating passive income

Choosing a bad tenant

This is probably the biggest danger of self-managing an investment property. Choosing a bad tenant could result in property damage, unpaid rent, poor communication, the list goes on. There are so many things that could go wrong from selecting a bad tenant.

A property manager ensures they go through a thorough tenant selection process. From conducting background checks, calling references and looking at rental history. These are a few ways we ensure we select the best tenant for your property.

Befriending tenants

Becoming friends with your tenants can turn problematic pretty quickly! From letting a few small things slide, such as late rent. this can snowball into much bigger problems, leaving you as the landlord out of pocket. Keep your relationship with tenant’s professional to avoid this.

Legal issues

There are many legal protocols when it comes to managing tenants. From onboarding a tenant, vacating a tenant, breaking a lease. Self-managing landlords need to know these laws inside out.

Expensive repairs

As property managers, we have a list of trades and are able to get the best price possible for maintenance. For someone self-managing a property, you might not be able to find the best price in town for the repair.

Bonus tip: Always use a licensed professional to do maintenance repairs. It can be tempting to get a friend or relative to do the job for you. Sometimes this can lead to further maintenance down the track, which could be even worse than the original problem! Some maintenance might also be covered under warranty. (Which will only be valid if a professional does the job!)

Not generating passive income

Self-managing a property is hard work! You will be your tenants first point of contact, need to tend to all maintenance, sort out all the paperwork and heaps more! This will be like spending your time for money. As many self-managing landlords manage their properties on top of their full-time work, it can also be difficult to have a good balance of home and work life.

These are our top 5 dangers of self-managing an investment property. There are many benefits of hiring a property manager to look after your property on your behalf. To help you avoid these dangers. Click here to read 8 reasons why you need a good property manager.

Feel free to reach out to our team to organise a FREE rental appraisal for your Adelaide property. For more information about our property management services click here. Call us today for an obligation-free chat on 1300 846 956 to find out more or Get Started Now.

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