Thursday, February 08, 2018

‘DIY’ landlords… it’s a thing!


These days it is quick and easy. With the click of a button an advertisement goes up and is broadcast to a wide network of potential tenants. The ease of using such online sites is reflected in stats which show that there are over 115,000 Airbnb listings in Australia... and that's just one of the websites!

What some landlords may not realise is finding someone to rent your property is one thing, but conducting the right checks to find the best tenant is much more involved - and is crucial. Research from realestate.com.au's Landlord's Need and Wants Report shows 82% of landlords said getting the best tenant is more important than filling a property quickly.

And it's easy to see why. We have heard many cases where landlords were left horrified at the state of their property from tenants sourced online, many leaving the landlord with extreme costs in damages anywhere from $5,000 to $10,000. A warning to those investors who are using online websites to find potential tenants.

According to figures backed by the Australian Taxation Office, people who rent out their houses through online sites such as Airbnb make, on average, less than half of what they charge. It may be shocking to hear that renting your property through these platforms will make little profit long term! There are a number of reasons contributing to this including; income and capital gains tax when selling the property, cleaning costs, wear and tear costs and any damage.

We are seeing first-hand that when things don't go to plan, landlords are needing an expert to step in. Peace of mind is a big draw card, and our team is seeing an increase of 'DIY' landlords seeking out a managing agent to get things back on track.

So can 'DIY investing' be done successfully? Absolutely. The exception is these landlords have time. Time to complete due diligence on the tenant applications, conduct regular inspections and maintenance, keep on top of rental market trends and can be firm when it comes to rent collection. This will help narrow your exposure to the risks involved.

If you are looking at buying investment properties in 2018 or are a 'DIY' landlord, there is some handy information available on the Consumer Business Services website. Understanding the tenancy landscape will help you balance the risk and ensure you achieve 
the greatest return.


No comments: