DIY Property Management - Why it's a no-no

It seems like the simplest thing in the world, doesn’t it? You have a vacant property, and a friend or ‘friend of a friend’ who’d like to lease it from you directly. Why bother going to the fuss and cost of using a property manager? Why, indeed? In today’s C&G blog, we do all we can to dissuade you from attempting DIY property management – the risk of financial cost and heartache simply isn’t worth any minimal savings you might make. Here’s why.

‘The best-laid plans of mice and men, often go astray.’ So it goes with leasing your property independently of a property management professional. Initially, a situation may seem ideal. You’ve a friend who wants to lease your property at a fair rate: you cut out the ‘middleman’ and decide to lease it yourself. Within a month or two, your tenant is texting you and apologising that rent might be late. Perhaps you discover they’ve a sub-tenant (or two) living in the space unbeknownst to you. Maybe the property is broken into and they demand you pay for the replacement of their valuable items. What to do, what to do?

DIY property management is full of complications and pitfalls which are not immediately apparent. One of the biggest issues for those trying to save money by going ‘DIY’ are the legal implications of risk management. Unless you are fully versed on tenancy legislation and all necessary paperwork, you’re putting yourself (and your investment) in harm’s way by attempting to manage your property independently. 

Other issues also need to be concerned – if you have a personal relationship with your tenant, it might be difficult to know how to effectively chase them up on rental arrears, unwelcome sub-tenants, pets and property maintenance (think lawns that haven’t been mown in six months). Here’s where property managers come into their own: as a barrier between you and a tenant (even if a known tenant), they will follow up arrears and deal with any tenant infringements using the letter of the law.

In short, if you don’t know what a condition report is (let alone how to create an effective one that could be presented favourably before VCAT should you require reparations for property damage from your tenant) or how to lodge a bond with the RTBA – we recommend meeting with one of our friendly, informed property managers to discuss protecting you, your asset AND your tenant with appropriate management structures.

Don’t risk it!