When the subject of investment property arises, many people are quick to find reasons why they think they shouldn’t buy. Underlying almost all of these reasons is fear. Fear that something could go wrong, that they could end up making a mistake, and not make any money. Fear of looking foolish, or of not being able to find a tenant.

One of the fears potential investors face is the fear of actually becoming a landlord. What if I get bad tenants? What if something happens to my house? What if someone gets hurt at my house? What are my rights as a landlord? What if I have a vacancy? Questions, questions and more questions!

These fears are very real and very scary. Think back to when you were a child and every fibre of your being told you that the shadow outside your window was a monster. Even though now you know it was just a shadow, that doesn’t make the fear that you felt back then any less real and any less terrifying. It’s only with knowledge that we can dispel fear. Once you found out that monsters weren’t real, you weren’t scared anymore, correct?

So, here are some answers that should help you dispel the fear of investing in property by giving you some insight into one area of perceived risk. After all, property ownership is the Great Australian Dream. So why should you miss out just because of the monsters in your nightmares?

When you become a landlord, there are two immediate options open to you. You can either appoint an agent to manage the property for you, or you can manage the property yourself. As the owner of the property, you are responsible for ensuring that the tenancy is conducted in accordance with the Residential Tenancies Act 1987. One of the requirements of this is that you make sure your tenants receive a copy of the Renting Guide before they enter into a tenancy agreement.

Naturally, as part of the McCarthy Group service, we take care of your property for you. Some of our duties include:

• Finding suitable tenants
• Ensuring the tenancy agreement is completed correctly and signed
• Lodging the rental bond with Fair Trading
• Managing the tenancy for you on a day-to-day basis, including:
  o Arranging repairs to the property
  o Collecting the rent and maintaining accurate rent records and receipts
  o Conducting property inspections
  o Handling disputes that may arise.
• Paying the rent to you less any costs and agency fees

If you chose to manage your property yourself, you need to be sure to comply with the Residential Tenancies Act 1987.

You need to provide your tenant with a lease agreement, a list of all entry costs and lodge any rental bond money with Fair Trading within seven days.

You also need to make sure that the premises are clean and have a smoke alarm installed. You need to maintain the property, making any repairs that are required. You also need to issue your tenant with a receipt of every rent payment you receive.

One of the biggest advantages of using a specialist property management company is that it enables you to invest in locations that are in cities other than where you live. This means that you can gain entry into the most attractive markets, rather than being limited to your own doorstep through wanting to manage the property yourself.

Property management companies also remove the ‘hassle factor’, taking care of all the essentials, and leaving you free to enjoy the returns.

So, if you’re still facing fears about property investment, the best antidote is knowledge. You will be surprised at how easy it is to overcome your fears once you understand how to conquer them.

If you would like to learn more and discuss how McCarthy Group can assist you, click here.