Many landlords don’t think about the immediate dangers of self-managing their own investment property and sometimes think it’s as simple as collecting rent from their tenants.
This couldn’t be further from the reality of what it takes to manage the tenancy of an investment property. Are you prepared or willing to afford to take the risk?
When you self-manage a property, you can leave yourself open to many risks – including litigation or even losing control of your own investment!
How can this happen? It can be as simple as not having a lease in place, which can lead to the tenant actually squatting and not paying you rent. Even if you request them to move out, the tenant can possibly continue to live in your investment property and without a lease in place, you cannot terminate the tenancy. For a landlord this can be extremely stressful.
Also knowing current legislation and what notice periods you need to give a tenant for an inspection or termination are extremely important. Without this information, you could find yourself at the Tribunal if these periods have not been followed and implemented.
Do you know if your investment is compliant? Owners can leave themselves at risk of litigation if their property does not comply with current standards. For example; ensuring blinds are compliant so a child cannot strangle themselves, ensuring all smoke detectors are certified, that balconies are certified as structurally sound and that new pool fencing requirements (effective as of April 29, 2016) are adhered to.
If you’re not across these laws, heavy fines can be forced upon you.This may sound a little over the top, but the truth is there are landlords facing such litigation risks due to tenant injuries or death from what has been considered uncompliant for occupied tenancy.
Our advice is – don’t risk it!
You’ve worked hard to become a property investor and you want to receive the well-earned returns, so don’t leave yourself open to risk. Engage the assistance of a professional property manager and take the stress out of owning an investment property.