Self-managing your investment property will do away with pricey management fees, but it's important to go into it with eyes wide open.
DIY property management must be treated as a job, not a hobby - that includes conducting yourself professionally when liaising with tenants, marketing your property, coordinating maintenance and repairs, carrying out property inspections, accounting and chasing non-payment of rent.
Typically a professional property manager will pocket between 5-9 per cent of your weekly rental income - so it's easy to see why the lure of DIY property management is strong. If you live in the same area as your rentals and can respond within a reasonable timeframe should they need you, self-management could save you thousands of dollars each year.
Even if your property's located in another state, the advent of the internet means it's possible to manage your rentals remotely - although the obvious flipside is you won't be on hand to do any quick and easy repairs as and when needed.
Savvy self-managing landlords must ensure they're up-to-date on their legal obligations. If you're not interested in doing the necessary groundwork to ensure a hassle-free tenancy, then appointing a professional property manager is probably a better option for you.
Hands-on property management also requires a level of tact and diplomacy that may take some getting used to. Resolving issues and disputes in a timely manner can be stressful, time-consuming, and confusing - if your people skills are lacking, both you and your tenant may be in for a bumpy ride. Similarly, if organisation isn't your strong suit, self-managing your rentals will be the ultimate crash-course in time management.
As your experience as a landlord grows, you'll learn to tell when a tenant's genuinely in need and when they are simply trying it on. Late rent, bounced payment, property damage, and evictions will occur from time to time - that's the reality of a landlord's life. However, with a thorough screening process, your judgement will become better and you'll learn to spot every landlord's Holy Grail: the great tenant.
The information contained in TenancyCheck.com.au website is general information only and does not constitute legal, financial or compliance advice. As the laws relating to tenancy agreements may have changed we recommend you check with the relevant State or Territory government department. We also recommend that you obtain your own independent legal advice about matters relating to landlord obligations, tenant rights and any legal disputes you may have with a tenant(s).