random grumblings: DIY is not impossible

I get around on the intermenets.  Particularly when it comes to one area of interest – residential property.  Whether it’s about buying it, renovating it, renting it out, managing it, I’ve probably read it.  Hey, I’m obsessive without the compulsive.  At least, most of the time.  And there’s nothing wrong with research.

Anyhow, we’re not here to psychoanalyse my OCD tendencies.  Rather, I want to grumble. <stands on soapbox and clears throat> Why is it, almost everywhere I turn, there are individuals claiming that getting a professional property manager is the way to go? This boggles what little there is of my mind.  In fact, let’s look at some of the common arguments for professional property management, and why they don’t hold water.

1.  ‘They can do it properly.’ Well, that’s lovely – if it’s true.  I have heard some absolute horror stories about poor property managers.  I won’t go into the details, but they include things like drastically under-pricing rents, not bothering about inspections, not removing non-paying ‘guests’ – trust me, the list goes on.

And don’t complain to me about your local equivalent of the Tenancies’ Act.  Seriously, it’s not that hard to understand.  There are always very good plain English guides available, if you don’t want to read the actual legislation.  And if you’re prepared to sign your left kidney away on the ridiculous documentation required for an investment loan, then you should be able to read the Tenancies’ Act.  If not, your problem.  Buyer beware.

2. ‘It’s a tax deduction.’ True.  But honestly, nobody should be going into investment of any description trying to make a loss.  Because you only get tax deductions on losses (ie. outgoings>incomings).  I can sell you any number of pine plantations or second hand cars if you want to make a loss. But if you want to make a profit, then logic dictates that your income should be greater than your expenses.  Financial Accounting 101, not that I ever did it.

3. ‘It saves time.’ Unless you have more than five properties (which in Australia, puts you in the top 0.1% of property investors), then it doesn’t take that much time.  Trust me, I have three, and I do it myself.  There’s a little bit of work at the start, setting up home opens and fielding calls, then installing the tenant; then the regular inspections; then the tenant leaves, so the bond paperwork needs to be done.  In the meantime, the occasional call about maintenance.  But honestly, that’s it.

Of course, this is based on the assumption that you’ve picked decent tenants.  We landlords all want quiet-living people who lawfully abide in our premises.  So far, SO and I have only had one near-disaster, with a non-rent-paying single mum of 19, and her on-again, off-again babydaddy boyfriend, who liked kicking in the front door when he lost his temper.  Since then we’ve been extremely careful.

That said, you have to be on the ball.  I came across this article yesterday which perfectly outlines the rental dilemma. It’s worth a read.

Anyway, to come back to the main issue at hand: don’t whinge about DIY property management.  Give it a go.  It’s a great way to learn about the dark recesses of the human character.