Being the owner of an investment property, you face the decision to either self-manage or engage the services of a property manager. There are a number of pros and cons for both, so it important to consider both options before making a decision.
What are the benefits of a property manager?
A property manager can save you a lot of time and stress as they handle landlord responsibilities such as choosing tenants, collecting rent and addressing maintenance issues.
One appealing aspect of engaging a property manager is that they can oversee issues that may arise with the tenant so that the owner does not have to deal directly with the day to day needs of the property. This is particularly important if the property owner does not live close to the property. Professional property management can do the hands on work while the investors reap the profits.
Remember, if you do engage the services of a property manager, they will make critical decisions on your behalf, so it’s very important you choose the right firm, one you have confidence in and feel comfortable that they have your best interest at heart.
What are the benefits of self-management?
One of the main reasons owners choose to self-manage rather than engage a property manager, is to cut out the middle man and save money on property management fees. While the benefits seem attractive, the main consideration is whether you have the time, knowledge of relevant regulations and expertise to effectively manage the property yourself.
As a private landlord you are in a position to screen potential tenants and respond to enquiries and maintenance requests personally. This strengthens the likelihood of a good relationship between you and the tenant.
However, there are some possible disadvantages if you do not live near the property. For example, you may not be able to respond to enquiries promptly and won’t have the advantage of knowing local trades people. This could potentially damage your relationship with the tenant.