The Importance of Inspections and Disclosure in Real Estate Law

Whether you are buying or selling real estate, it is critical that you have the property inspected and that you disclose any issues that are required by law to disclose. For example, you may be legally required to disclose lead, asbestos or other toxins in the home. Failure to do these things can result in fines or other issues. However, it isn't always easy for real estate buyers and sellers to know what they need to do. Hi, my name is Mary. I have been investing in real estate since the week after I left uni. I love it, and I have learned a lot along the way. I want to help and inform others so I decided to make this blog. I hope you find it useful.

Should You Hire A Property Manager For Your New Investment Property?

Real Estate Blog

Buying a dwelling as an investment property is a popular financial choice for many Australians. Investment properties accounted for over $13 million in the total property market from July to August in 2015. If you've recently bought an investment property, then you are probably wondering whether to manage the property yourself or hire a professional property management company, such as Verse Property Group, to do it for you.

Managing your property yourself can save you a small amount of money each week, which may give you a slighter higher return on your investment. However, if you don't live near your investment property and need to travel for inspections or to meet new tenants, or the time required to manage the property will eat into your work hours, then this saving will probably be negligible. It may even end up costing you more than hiring a property manager. Here are some things to consider:

What do you get for your money?

Most property management companies will charge you a fixed percentage of the rental price for their services. Services may vary slightly from company to company, but there are standard services that every property management company will provide.

They are responsible for rent

Property managers will be responsible for setting a rental price that meets market expectations and also provides you with a suitable return for your investment. They will also be responsible for collecting the rent from the tenant on a weekly or fortnightly basis and passing it on to your chosen bank account.

If the tenants don't pay the rent on time, the property manager will be responsible for the legal process for resolving arrears and the application of late fees. They will also advise the tenants of any rent changes, which generally occur at the end of a lease period and reflect inflation rates and the changing rental market value.

They are responsible for tenants

Property managers will advertise your property and find suitable tenants. They are responsible for processing applications, checking references, background checks, criminal histories, and prior rental history. They have access to the national rental database to ensure that tenants have not defaulted on rent or damaged rental properties in the past.

Generally, property managers will process the applications and then pass on the details of suitable applicants for you to look over. You can then make the final choice from these applicants about who will rent your property.

They are responsible for your property

Before your property is tenanted, a property manager will complete a full entry report. This includes details of what is included in the property such as fittings, fixtures, appliances, and furniture. It also includes the conditions of all these things and should include photos. They will also complete an exit report at the end of a tenancy and make sure that any damage caused by tenants is paid for and repaired.

Property managers will also complete periodic inspections of the property to ensure the tenants are looking after it. They will also handle any maintenance or repairs that are requested by the tenants if they are required.

It's well worth hiring a property management company for your new investment. Not only will your property be well cared for, but you will also have a team of professionals who are well versed in rental property law who will ensure that both you and your tenants have your rights respected.

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4 November 2015