Being a landlord comes with plenty of responsibilities. To help lift the weight of some of these tasks, many investors choose to have a property manager look after their property.
Being a landlord comes with plenty of responsibilities. To help lift the weight of some of these tasks, many investors choose to have a property manager look after their property for them.
There are advantages to being a landlord actively managing your property or engaging a property manager, but which option is best for you?
Advantages of self managing
One of the main advantages of self-managing your investment property is that you can avoid spending money on management fees. Property managers will charge a percentage of your rental income, so if you cut out the middle man, it will mean more income in your pocket.
Self-managing your property also means you can play a bigger part in choosing a tenant. You can personally look at the application forms and speak with the potential tenants yourself. Also, if you live locally, you will be available to the tenant if they need you.
Advantages of a property manager
Although it may cost you extra, there are several benefits to hiring a property manager. A property manager could save you a lot of time and stress as they handle all of the ongoing responsibilities such as selecting tenants and collecting rent.
Also, a property manager is a professional, so they would hopefully have the experience and expertise to manage your property without any problems. A good property manager should keep up to date with the property market and tenant legislation, ensure the property is well maintained, conduct regular inspections, respond to tenants requests in a timely manner and also keep in regular contact with the landlord. If the property manager is not keeping in contact with you, you cannot be 100% sure of the decisions they are making.
Finally, one of the main advantages of having a property manager is that if any problems arise with the tenant, they can act as a professional, unbiased medium who can deal with the problem without letting personal emotions get in the way.
Deciding whether to self-manage your investment property does come down to how hands-on you want to be. If you are happy to loosen the reins a little, you could save yourself time and stress by hiring a property manager. But if you are keen to save as much money as you can, self-managing may be a good option for you, but you will need to consider the extra workload and responsibility that comes with it.