When it comes to managing an investment property, landlords face a key decision: take on the responsibility themselves or engage a professional property manager. Each path offers distinct advantages and drawbacks, depending on factors like cost, time, and expertise.
1. Cost
Handling the property yourself can save money by avoiding management fees, which typically sit between 7–10% of the rental income, along with other possible charges. However, without a solid grasp of property regulations, there’s a risk of making costly mistakes. While employing a property manager involves additional expenses, their professional know-how can help avoid legal pitfalls and potentially boost rental returns.
2. Time Commitment
Self-managing a rental involves significant time and effort, including dealing with tenants, organising repairs, conducting inspections, and managing general upkeep. For landlords with the time to spare, this may be manageable. But for those with several properties or a busy lifestyle, these tasks can quickly become overwhelming. A property manager takes care of daily responsibilities, allowing landlords to focus on other priorities.
3. Expertise
To successfully self-manage, landlords must understand tenancy legislation, property maintenance, and local market conditions. This knowledge is especially important when navigating disputes or legal situations. Professional property managers are equipped with the experience and skills needed to manage these complexities, helping reduce risks for the owner.
4. Tenant Relationships and Control
Choosing to manage a property yourself allows for direct involvement in decision-making and can help build a personal rapport with tenants—something many landlords find rewarding. On the flip side, dealing with difficult situations or tenant complaints can be stressful. Property managers act as a buffer, handling tenant concerns professionally and helping maintain a positive rental experience.
Making the Right Choice
For landlords with the time, interest, and willingness to upskill, self-management can be a fulfilling option. However, for those who prefer a hands-off approach and wish to minimise risk, hiring a property manager may prove to be the more practical solution.
These articles are general in nature and are not financial or legal advice. Please consult your professional financial and legal advisors before making any decisions.
