Managing a property yourself is a tedious job because it is an umbrella of a series of steps; it will turn you into an advertiser, interviewer, a basic accountant, and an inspector. Besides, you will be the one who will deal with legal matters. Yet, still if you want to do it yourself, here a precise guidelines for you.
Advertise it
You can get tenants when they know about your property. For this, you have to visit real estate agents, join groups, and Google to find the price range of the properties that are similar to yours. You can even utilise different platforms to market your property.
- Advertise it online on social media
- Join tenants and local groups (socials and WhatsApp)
- Advertise it in local newspapers
- Consult the real estate agent to get a casual letting offer
- Download signage
- Make your address prominent so the tenants can see it
When you are following any of this, ensure to add further information in the advertisement
- Weekly, monthly, and annual rent
- Bathrooms and bedrooms
- Condition of the place
- Proximity to amenities and shops
- Availability of furniture
- Situation of the locality
You must ensure to sell the features; reaching out to tenants is more like reaching out to the clients, and it only works when you know how to sell.
Set the right price
It’s the most tricky part for which you need to roam around the area, talk to people, and find out the ongoing rental rates in the location. Based on that, you can keep the price of your place. Ensure you do this whole process with an alert mind and keep a realistic and affordable price. Do not ignore the minus points of your place. Include both plus and minus points, and then set a price.
Select a tenant carefully.
Finding the right tenant responsible enough to pay on time is hard to find after going through a rigorous process if you manage the property yourself. For this, initially, you must be aware of tenancy laws because they keep changing, and following them is necessary. Secondly, you need to prepare your property to welcome tenants. Thirdly, you must screen the applicants. During this process, you can create an application form to collect the following information:
- identification card and income proof
- Rental history’s references
- Details of their employment
After collecting all the information, you must verify their employment details and call their previous landlords to learn more about them. The verification part will help you identify if they will pay rent on time or they will create a mess and break things.
After this procedure, shortlist the potential tenants and interview them, in which it is important to identify the red flags and make a decision on whom to select. Always select a person or a family, or a group of people who meet each criterion of your criteria. Ensure to sign the lease from RTA and lodge the bond within 10 days. It is crucial to thoroughly read the agreement and write the current rental amount and other details.
Follow the legal procedure.
It is important to adhere to established laws and procedures once you get a tenant to oversee your property and ensure everything is fine. Here are a few things you must know:
- You and the tenant should sign a residential tenancy agreement, and you must put a condition report that you have signed. You can attach pictures of your property with it, or you can share digital ones with them to give the whole idea.
- The bond must be lodged with the authority, and you are required to keep the receipts of all rents the tenant has paid.
- Send a friendly reminder to the tenant about rent if they are late. Please, don’t insult or harass them.
- If the tenant has not paid the rent and they have damaged the property, seek help from the RTA of your state. If the problem cannot be rectified, you can consult a tenancy tribunal to terminate the agreement and repossess the property.
- In case your tenant won’t leave your home at the end of the contract, do not force them to evict the place yourself. Instead, go to the tenancy tribunal and ask them to terminate the agreement. Besides, get a warrant from the Sheriff of your state.
Compute everything
You cannot manage your property perfectly if you are unable to handle documentation and financial information. It is crucial to issue receipts, keep a track of rental payments, and maintain its record to identify the expenses and earnings you have made.
These processes are very complex; therefore, always seek help if you are not aware of how to handle them. Help from an accountant can save you from the loss that you could face because of your lack of knowledge.
Increase rent when required.
The rent you have set must be within the range of that community, and it must meet your expectations because you cannot increase it after a few months till the renewal of the tenancy agreement, which will happen after six months or a year. Once the agreement is renewed, it is important that the updated rent is according to the market conditions. For this, you need to update yourself about the market trends, and if you want to increase the rent, send them a written notice in a timely manner.
Inspect your property regularly.
You can oversee your property four times in a year, but you must send a notice to your tenant seven days prior to the inspection. It is the responsibility of the tenant to maintain the property, and if something gets damaged, they must report it to you promptly.
You must ensure to read the laws about property inspection and how many times you can do it. It will help you stay within boundaries and keep yourself from facing the music.
Conclusion
Self-managing the investment property can become easy when you get the hang of it, but before this, it will definitely exhaust you. You are required to be aware of the tenancy law before jumping into this unpaid job. You must do all things to prepare the property and pick the right tenant after doing an HR-like job for your property. Once you find the tenant, you must sign the lease and lodge the bond with all details written on it. Make sure everything is set as per your expectations because you cannot decrease or increase the rent before the renewal date.
Hus, it takes a huge effort to maintain a property, and you can only realise this when you jump into this pool. If you are a multitasker and a people manager, go for it.
FAQs
How to find a good tenant?
Well, it is very tricky. You can find it if you know how to verify the information the applicant has sent you. You must use each and every connection of yours to find out if the tenant is good or not. A good tenant has a secure job, ensuring that they will pay the rent on time. They have a history of making timely payments to their previous landlords. They maintain the property and won’t damage it much.
On forms, everyone tries to sell themselves; it will be your inspection skills that will help you find the right tenant for your property.
What if my tenant won’t leave the property once the agreement ends?
It’s a very tough situation, but do not take this matter into your hands. Instead, consult the RTA to seek advice or go to the tribunal to terminate the agreement. You can even go to the State Sheriff to get the warrant. Forcing them to evict the place yourself will put you in danger, due to which, you can even face courts and police.
How to inspect a property yourself?
Well, it is simple. Send the notice to your tenant seven days before the inspection. Once the date arrives, go there and see every nook and cranny to ensure all is maintained. If anything requires repair, do it urgently.
