Five common pitfalls of privately managing your rental property

Investing in a residential rental property can be a great financial decision, but it also comes with a lot of responsibilities, such as finding and managing tenants, dealing with maintenance and repairs, and handling legal and regulatory issues.

Some property owners prefer to manage their rental properties on their own, but this approach can be complicated, time-consuming, and may lead to under-renting the property. No investor wants that.

In Queensland, managing a rental property privately can be even more complex due to the added layer of regulations and guidelines set by the Residential Tenancy Authority (RTA).

These rules cover everything from tenant screening to lease agreements, and compliance with them is crucial to avoid legal and financial consequences.

Principal of Ray White Maroochydore Dan Sowden says some of the most common pitfalls of privately managing a rental property in Queensland include:

• Lack of time and availability: As a property owner, it’s important to be available to respond to tenant requests, handle maintenance and repairs, and deal with emergencies. This can be challenging if you have other responsibilities that demand your time. Hiring a professional property manager can help free up your time and ensure that your property is being managed efficiently.
• Limited knowledge and experience: Managing a rental property involves many tasks, such as marketing the property, screening tenants and handling lease agreements. Without experience and knowledge in property management, it can be challenging to navigate these tasks successfully. Mistakes in tenant screening or lease agreements can lead to unreliable tenants or even legal troubles.
• Legal and regulatory compliance: Managing a rental property involves complying with various legal and regulatory requirements, including those set by the RTA. Professional property managers are familiar with these requirements and can ensure that your property is compliant with all relevant laws and regulations.
• Limited resources: Managing a rental property requires access to various resources, including maintenance personnel, contractors and legal professionals. If you manage your property privately, you may not have access to these resources, which can make it challenging to handle maintenance and repairs effectively.
  It can also be challenging to address any legal issues that may arise.
• Under-renting: One of the most significant pitfalls of privately managing a rental property is under-renting the property. Many property owners lack knowledge about the current rental market, which can lead to setting rental rates that are lower than what the property could command.

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