New to being a landlord, use a PM or do it myself with software?

[daveoi]

Hey guys,

Just wanting to get some opinions on the best way to approach becoming a landlord. Ideally I would love to do it myself, but I'm a bit nervous about what could go wrong, so I'm considering using a property manager for the first year or so to get a handle on things.

Or is it worth just giving it a crack?

[BigDreamer]

Use a rental agency. Especially since it seems like you just started.

[andyp2010]

Depends on you, If you're strong at running the business side of things, have a good handle on the legal side and are a good judge of character, it's a great way to get a feel for what people are actually looking for from the product you're providing. I've never used an agency, not had any problems I cant handle so far (touch wood!).

[Rosco]

I would always recommend you use a property manager. There are lots of rules and regulations to get your head around. I also prefer to be a passive investor, so don't calls at night about property issues, or items that need fixing.

If you were going to be a property manager yourself, and especially being new to it, I would suggest only do this if you have a better level property that will get better tenants. Also join the local property investor association so that you get discounted credit checks and can discuss best practice with other landlords.

Ross

[artemis]

Do you already have a rental property? If so you'll need to get up to speed fast so suggest a property manager and an accountant for now.

If yet to own a place, suggest you put time and effort into educating yourself first on landlord rights and responsibilities. This site is a good place to read and ask questions. Join your local Property Investors Assoc and ask questions. Read the DBH website and the Residential Tenancies Act thoroughly, also the IRD publications on Rental Income, and Depreciation. Get books from the library.

[daveoi]

Hey guys,

Cheers for the advice. I'm confident that I'll be fine with the business/law side - my concerns are around choosing the right tenants, what to do if tenant is in arrears, debt collection etc. I think a good way to start will be to use a rental agency - and just try to learn as much as possible over the first 6 months or so.

Thank you!

[Wiz]

I'm with andyp2010 - if you are confident in your own financial and interpersonal abilities, then have a go at it yourself. You will know right from the off who you are letting to, and so long as you follow the norm in ref checking, credit checking and meeting the prospective tenants yourself, then you're halfway there. Loads on here to help out, and it means you know exactly what it is all about should you get to the stage when you use a PM in the future - no one is going to be able to take you for a ride. Just like anything, educate yourself and take it on the chin if you cock it up, learn from it, and move onwards and upwards. Good luck with it.

[PTILoveYou]

Learn the tenancy act, and know what notice & notice periods etc are required.

Also how to vet tenants, what types of check to check etc.

but I would recommend use a good pm, and focus your time and energy to buy more properties.

[Maccachic]

Hey guys,

Cheers for the advice. I'm confident that I'll be fine with the business/law side - my concerns are around choosing the right tenants, what to do if tenant is in arrears, debt collection etc. I think a good way to start will be to use a rental agency - and just try to learn as much as possible over the first 6 months or so.

Thank you!

The law side - answers your concerns, suggest you do some reading http://www.legislation.govt.nz/act/p.../DLM94278.html if you do go it alone

[iwik]

OP - The old adage of as a landlord your work will "Start and Stop at tenant selection"
in experience is so true.

Follow your gut not what potential tenants think you want to hear.

Personally I prefer to use a property manager (my girlfriend in my case - cheap and good )

My time is money, to much a conflict of interest in my book doing it yourself, get to
close to tenants can be harder increasing rent etc, better security if you end up with a disgruntled tenant.

[Wayne]

my girlfriend in my case - cheap and good

Ouch - calling your girlfriend cheap in a public forum

[Perry]

Either way, some luck helps. The number of
threads on this forum to do with PMs - good
and bad - is legion. For DIY LLs in strife, the
count could well be similar!