Managing a rental property may appear simple on the surface – all you have to do is find a tenant and sit back and collect the rent – however there is much more to the process which is why more than 75% percent of investment property owners engage agents to manage their asset.
Managing your own rental property does offer some benefits, and with research you can avoid many of the pitfalls that working with a trained agent protects you against.
Property managers take on a number of responsibilities outside of just finding a tenant, such as collecting rent, carrying out property inspections, booking trusted tradespeople to make repairs, and helping you claim damages in the case of a bad tenant.
Most agents charge between 7% and 10% for their services, as well as a set up fee when they find your first tenant.
Those who choose to self manage usually do so for the following positives, and we have also listed the potential negatives of taking on the responsibility yourself.
Instead of paying up to 10% of your weekly rental payments to an agent, you can keep the amount, which for some rentals, adds up at the end of the year.
Your Property, Your Standards
An agent will assess all tenant applications based on income, employment, and rental history, however if you like to know the person renting your property this is the best option. Meeting with your tenants also allows you to ask questions an agent may not.
Managing a property can take up a lot of time between booking and holding inspections, interviewing tenants, and dealing with maintenance and repairs. Imagine being woken in the middle of the night to an emergency such as a burst pipe, lost keys, or similar.
Legal and Legislation
How confident do you feel knowing where you stand as a landlord in regards to late rent payments, bond deposits, evictions and property damage.
Being Too Attached
Sometimes it is hard to let go of things you have worked hard for, especially in the case of an investment property. Tenants are afforded a number of rights under Australian law and it is easy to overstep what is allowed as an owner/landlord.