Mortgage brokers in Rockingham have seen the area’s focus shift over the last few years. When Baldivis became known as a “hot suburb,” it began to attract small property investors. Many are using their superannuation funds to purchase single family homes in family-friendly communities.
There are many financial advisers who advise this as a “safe” investment that produces a superior return on investment (ROI). However, the process of renting properties can be arduous and time-consuming. While a lot of investors thrive, others don’t always do so well.
The Duties of a DIY Landlord
There is only one benefit to being a DIY landlord: you can save money. Many fledgling investors feel that they should cut costs and manage their property themselves. If a person only has one property, this may be “doable,” but even then there is a lot of work involved.
How much work is it to be a DIY landlord? First, you have to research the market to find out how much you can reasonably charge for rent. Then, you have to advertise the property to find prospective tenants. Then you have to screen them. At the very least, you need to check their references, run a credit report and interview them. This process must be repeated for each prospective tenant.
Next, you have to come up with a lease, fill out your half and give it to the tenant. You then have to collect rents and deposit them into your account. If the tenant is delinquent on rent, it is you who has to call them and listen to their excuses. When maintenance needs to be done, you are the person who has to take the 3 am phone call.
If you can handle all of this yourself, great but if you want to be a professional property investor, hire a professional property manager.
Call (08) 9527 1800 for a home loan and professional financial advice.