Private Lease Agreements - Questions for Landlords
We are putting our property up for rent and just wondering how much work it is to manage your own rental property without using an agent?
I have nothing against using an agent, and up until now it was the plan. A part of me would prefer to use an agent as it is one less hassle, but is it really worth the fees if I am willing to do the work?
We know a lot of people looking for rentals at the moment in our area, and we would easily be able to do ref checks on them. I would also make sure I did all the paperwork for bond and lease agreement, so it was all legal.
Honestly, from people who did it privately for over 2 years, and then finally got wise and put the property through an agent, i would have to say AGENT 100%!!!!
Its not so much just about the work, but also it can be a HUGE nightmare say you have tenants (like the ones who we just had) in your property who you need to take to VCAT or etc. Our agent was a godsend here, as there was no way i would of had the time, (or really knew the guidelines etc) to have achieved the outcome she did.
Also, how would you be if the rent is late? do you feel you ca handle chasing the rent? and then if the rent is not given doing all you need to do after that??
Take it from me, i chased rent from some bad tenants nearly every month, for over a year (when we did it ourselves) and it was hell. Especially with how busy i was....
Yes, it costs. But if you shop around you can get them at a great price. And, most of the time- (if you get a good agent) they are worth EVERY dollar.
We are selling this property, so no longer renting it out as we want a quick sale, however, when we have more in the future, we will be agent all the way.
If for nothing more, because managing rental's/investment properties can get VERY messy, and when they do, the support/advice and the work the agent puts in make every cent worth it!!!
TIP: just include the agent fee's/landlord insurance into the rent.
I am currently renting our house through an agent. Like you, I didn't really want the hassle (especially from overseas) of having to deal with potential dodgy tenants.
Turns out we have some VERY good tenants, and the agent is pretty rubbish! I still have to chase her up to do things, and when I ask questions via email, she always walks around the houses and never gets to the point of what I'm actually asking. We recently had to have some maintenance done on our deck outside and it took her 9 weeks to get a quote to me with the cost. She wanted to just spend our money without letting us know the cost first, with the comeback of "well it's tax deductable"....yes LOVE but their rent isnt' covering our mortgage payments so we need as much as we can get!!!. Annoying!
SOooooo my advice is YES, use an agent as they can deal with things that could possibly be 'hairy' but really shop around for one with good fees and a good reputation.
My experience was similar to minimax. Our tenants were great payers so agents did not need to do anything there.
But they did not look after the house and we had to totally repaint, do the floor boards and replace cooktop. Agent should have seen these things at each 6 monthly inspection but noooooooooooooo. they thought they were doing a fantastic job as they negotiatied a settlement for us instead of going to VCAT but it only covered materials and not labour cost.
So my advice - go for an agent but attend every inspection with them so you can be sure the tenants actually are looking after the property.
Private Lease Agreements - Questions for Landlords
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