Unsure Whether to Use a Property Manager or Self Manage Your Rental Property?

Before making the decision about whether to manage your rental property yourself or hire a property manager, carefully weigh up the pros and cons of each option.

The Solo Approach

There is no question that a personal landlord approach requires significant involvement to be successful. As a landlord you need to approach every issue from a business perspective. This includes anticipating revenues and needs to maintain the property, including emergency and unplanned issues that will come up.  Do your homework when it comes to setting rent and subsequent reviews to ensure you are getting the best price for your investment.  You should also be aware of tenancy agreement legalities as they apply to your state.

There is a cost benefit to managing your own rental properties as there are no property management fees, however you do need to weigh up your own cost (time, consultants etc) to ensure that you are actually making savings.

Typical Self-Management Property Duties

Your personal duties will begin before you have tenants. You will need to ensure that your property is up to a rental standard. Then you will need to screen potential tenants to make sure you get good clients that are responsible, won't damage your property, and pay on time. It sounds simple, but many a landlord will cry a story about getting stuck with a cheapskate and the long legal process trying to evict him or her.

On the cost side you will have regular and unplanned maintenance issues required through your rental agreement to make sure the property meets a certain level of standard.

The Property Manager Approach

Alternatively, you could turn all of the landlord work over to a property management company. Their role is to take care of all the daily management work so that you can enjoy the income without the work involved from renting out.

Services That Should be Expected from Property Managers

Your chosen property manager should know the local market so they can regularly fill your property with tenants. After all, no one gets paid without tenants.

Since you are placing the protection and responsibility of your property in them, a property management company should have a well-proven tenant screening system. 

The property management staff should be proactive on maintenance of the property, protecting its value and ensuring fixes occur quickly to prevent larger or serious damage.

In using a property manager for your investment property, you also gain the benefit of their experience in setting the correct rental for your property, when and how to review rents, legal aspects involved with tenancy regulations and their contacts in the rental property market. 

Each Situation is Case by Case

Both self-management and property management companies have their pros and cons, and the right answer between the two depends on a property owner's personal motivation, level of time commitment, willingness to deal with the legal aspects, and management savvy. Being a landlord is not for everyone, and many wish to have income without the messiness of managing the process. Thus there is an option for both.

To discuss how a property manager can benefit you in more detail, email or give us a call on (03) 9001 1559.