If you have a Greater Springfield investment property (or you are thinking of buying one), you might be tempted to think about managing it yourself. But if you do, it’s important to understand all the risks involved.
Ineffective property marketing
Ineffective property marketing can reduce your rental income through:
- Uncompetitive pricing: Setting the right rent to maximise your investment return in Greater Springfield requires thorough local market knowledge and up-to-date data analysis.
- Longer vacancy periods: Without access to high-traffic rental platforms, your property might take longer to lease.
- Slow turnaround times: Preparing a property for new tenants can be delayed without professional coordination.
The latest figures from realestate.com show that our Purple Cow property management team achieved rental yields for our landlord clients that are an average of 11% higher than competing Greater Springfield agencies.
Tenant screening challenges
Finding and keeping the right tenants is crucial to a successful rental experience, but DIY property managers often lack the tools and expertise to conduct thorough tenant screenings. The risks include:
- Inadequate background checks: Without access to industry-standard databases, it’s harder to verify a potential tenant’s credit history, rental references or criminal records.
- Potential problem tenants: Poor tenant screening processes increase the chances of late payments, property damage or disruptive behaviour.
Our professional property management team at Purple Cow uses detailed tenant screening processes and tools to identify and retain the best available tenants for our landlord clients. We reduce the risk of costly issues happening.
Ongoing and time-consuming tasks and responsibilities
Managing a rental property requires ongoing time and effort, and many DIY landlords underestimate the commitment involved. Key ongoing tasks and responsibilities include:
- Rent collection and follow-up: Chasing any overdue payments can be stressful and time-consuming.
- Property inspections: Regular inspections are vital to ensure the property is well-maintained.
- Responding to tenant concerns: From maintenance requests to general inquiries, tenants expect prompt responses. Good communication is the key to hassle-free property management.
Balancing these tasks with your own personal and work life can quickly become overwhelming.
Legal compliance and liability
One of the biggest risks of DIY property management in Greater Springfield is navigating the complex and regularly updating Queensland residential tenancy laws. This includes:
- Correctly handling rental bond payments: Mishandling bond deposits or returns can lead to disputes or penalties.
- Complying with notice periods: There are legal notice periods for property management tasks including ending a tenancy, inspections, and arranging open houses and viewings.
- Dealing with evictions if necessary: An improperly handled eviction process can result in legal repercussions.
Failing to meet these legal obligations not only puts your property at risk but also exposes you to fines or even lawsuits.
Reactive and costly property maintenance and repairs
Keeping a rental property in top condition is essential for ensuring tenant satisfaction and maximising its value. However, DIY and reactive property management can complicate repairs and maintenance issues via:
- Higher costs: Without established relationships with local tradespeople, you might pay more for repairs.
- Delayed repairs: Lack of a reliable network can result in slower response times for urgent issues.
- Sub-par workmanship: Hiring unvetted contractors could lead to shoddy work and additional expenses.
At Purple Cow, we have a network of trusted tradies to handle rental property repairs and maintenance work efficiently and cost-effectively for our landlord clients.
Conflict resolution
Handling any tenant conflicts in Greater Springfield requires tact, experience and a good knowledge of Queensland’s residential tenancy laws. DIY landlords risk:
- Escalating disputes: Emotional responses or lack of expertise can make situations worse.
- Damaged relationships: Poorly handled conflicts can sour the landlord-tenant relationship, leading to a high turnover of tenants, increased vacancy periods and a lower return on investment.
Experienced property managers like our team at Purple Cow act as impartial intermediaries for our landlord clients, resolving disputes professionally to protect your interests.
How our Purple Cow property management team can help you
If you have an investment property in the Greater Springfield area (or you are thinking of buying one), we would love to manage it for you. Or if you are keen to buy one, our investment team can help you to find the right property and tenants to maximise your return.
Contact us today to find out how we can help you.
