The Real Estate Institute of Victoria (REIV) is recommending investors leave their rental property management to professionals, as its study shows there can be many pitfalls if investors handle them themselves.
REIV warned that if investors think they can save money by avoiding the paid services of brokers, then they are facing a wide range of long-term problems.
REIV chief executive Enzo Raimondo added that without the necessary training, landlords may find difficulty in the legal complexities of renting a property.
The study also described property management as a "complex and demanding role" that requires training, expertise, and the most up-to-date knowledge.
For example, the REIV stated that health and safety are just two of the areas where knowledge needs to be up to the required standard. Specific information such as smoke alarms to gas appliances falls under the landlord's remit.
The study also recommended that for investors to pick the right market, using a mortgage broker
to secure finance for a rental property may be the way to go. This has the potential to offer strong returns, it said.
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