Investment Property: Should I Use A Property Manager Or Self-manage?
A Property Manager is the person who manages your properties
, maintains and upgrades them whilst acting as a liaison between you and the tenants.
The question often comes up about whether we self-manage our properties or use the services of a Property Manager. We made the decision to have a Property Manager for all of our properties. Yes, this is a service we pay for, however in Australia, the costs associated with engaging the services of a Property Manager are tax deductible.
Here are some of the tasks they complete:
- Collection of rental payments.
- Conducting regular property inspections with written reports and recommendations.
- Arranging maintenance and quotes from tradesman.
- Payment of property expenses for example rates, insurance, body corporate fees, maintenance.
- Preparing rental and financial statements.
- Conducting rent appraisals and setting rent appropriate to the local market.
- Processing rental applications and tenant selection.
- Lodging and applying for rental bonds.
- Minimising loss of rent through change of tenancy.
- Maintaining a professional open-communication relationship with the tenant.
- Managing the process when a tenant vacates the property for example cleaning, yard maintenance, return of keys.
- Managing the dispute resolution process if a tenant is in dispute of their bond.
- Instigating and managing the process if the tenant becomes in breach of the agreement.
The reality is all of these tasks need to be completed by someone, for you to have a well-managed property portfolio. The question is do you have the time, expertise, contacts and interest in completing these tasks, or do you pay a Property Manager to do them for you?
The Property Manager is acting on your behalf to ensure the tenants care for your investment. They also ensures the property is achieving the maximum return possible in the specific market.
On our property investment journey, we have not experienced any challenges with our tenants that have directly affected us. Yes, a number of situations have occurred including tenants not paying rent, hot water systems dying in the middle of winter, tenants with disabilities requiring additional support, termites and the consequent barrier protection treatment, plus other stories. Our Property Managers have managed each situation, whilst keeping us informed along the way on the action being taken. Their expertise, time and contacts have seen each situation resolved smoothly.
I believe the decision on whether to self-manage or pay for a Property Manager, is a personal decision dependent on your personal circumstances.
by: Suzie Crawford
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