hi guys hopefully some one has had simmilar experence?i have got a investment property with a agent the property is going very well it gets looked after better then i can look after a property very tidy tenets great people i know them through friends so i have some trust there with them!!! my question is has any one been in a situation like this they felt they could trust the tennet enough to deal staright with them with out the realestate it would compound my money more frequently and i would save $60 a month which is $720 a year extra cashflow i would recive and ive talked with the tenets there happy to do this no dramas at all and just put the rent straight into my bank acc !!!!! al the agent has to do on that proerty is transfer my money and a rouiteen inspection every couple of months and when a few small things go wrong they take ages geting it sorted i think i could do better!!!!! has any one got any tips of this situation thanks alot
Yep i do it now, my tennant is a family friend, all is going well but i will say its hard when they ask for a little extension on the rent, i allowed it knowing they will catch up later. Mutual respect. Plus i can drop by and have a look and a coffee whenever. So far so good!
thanks pagey i was leaning to that same aproach all the best mate have u got insurence on the property aswell like damege property and stuff like that regards dan
Hi Daniel
This approach is fine when all is going well – but the minute something goes pear shaped you'll see that $60 per month was worth it.
Just bring yourself up to speed with tenancy laws in your state and document everything. If rent is ever a couple of days late – get on top of it quickly.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I actually did this with 2 of mine. Only because the property managers were hopeless.
I didn't know the tenants personally. I had met them. Both had been in the properties over 2 years. Never heard from them, always paid on time.
One stayed for another 2 years. No problems.
Other is still there 3 years later. Never missed a payment. Problem is though that I have met the woman now a few times. Single lady and I feel reluctant to put the rent up.
With an agent it's not personal.
I think in your case (personal attachment) I would not do it. What if they lose their job, can't afford the rent one week? Will they ring you up and try to take advantage of the situation?
Some great points there
I have been abit worried about increasing the rent
but I do feel Iam getting fair market price rent
but thinking on concreteing the drive way which will cost around 5-6k so will ask for extra rent as this will cost me and benifet them
if I went down the path has anyone got any info on insurences ?
regards daniel
Hi Daniel
You should have some form of landlord insurance regardless of whether it's self managed or managed via a PM. Do some searches on the forum for some recommendations and make sure that they cover self managing.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks Jaimie
Horses for courses. If you have the time and patience with dealing with people when they are harassing you with IP issues, then it may work out doing it yourself.
I on the other hand don't have the time so a property agent is invaluable. Anything comes up (especially in older properties), one phone call to me and I make a quick decision and they take care of the rest (in most cases).
Cheers
Tom
If you have the time and a basic knowledge of the tenancy act in your local jurisdiction it is doable.
I would keep the relationship strictly business as your Tennant is actually a business partner not a friend.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
A good property manager is worth their weight in gold any day. If you are a nice person, especially if you are friends with the renter, you definitely need someone neutral and detached from the situation. Otherwise, you will be prone to giving the renter a break or renting for less than market rent. I manage a ton of my own properties because I have been doing so for over 25 years now but I now do it with the twist of not disclosing that I am the owner. It works much better that way and I can paint the owner to be a real jerk if I need to in order to get the true skinny or the rent paid. In markets where I am not present, I hire and pay a manager 10%. I usually work the leasing remotely myself as I shoot video of most of what I own and can screen tenants over the phone. I give my local manager a % of 1st month recent based on how many times they had to show it before it rented. If you are able to keep your money & your heart separate at all times, you might be ok trying it yourself if you are local and on the scene. Otherwise, save yourself the headaches and get a PM.
Catalyst wrote:I think in your case (personal attachment) I would not do it. What if they lose their job, can't afford the rent one week? Will they ring you up and try to take advantage of the situation?
I would have to agree here, while it all appears good now, the personal attachment may make it very sticky and unhappy should something happen, and you will lose an acquaintance/friendship.
ChrisA1
Persistence is 'to keep on keeping on, no matter how hard the going may be'
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