While managing your own investment property may seem like a simple way to keep more rental income flowing toward the mortgage, there’s much more involved than simply collecting rent and ensuring the property remains in good condition.
Self-managing a property can appear straightforward — you find a tenant, collect rent and monitor your investment. It can also save money and may suit owners who have the knowledge, experience and time required to manage a property effectively.
Understanding the Responsibilities
If you have a reliable tenant who pays market rent and you understand both landlord and tenant rights, your investment may run smoothly.
However, there are important legal and administrative responsibilities to consider before taking on the role of property manager yourself.
There is extensive legislation designed to protect both tenants and landlords. Without a clear understanding of these laws, self-managing your investment could become complicated and costly.
Managing the Paperwork
Self-managed landlords are responsible for handling lease agreements, rental payment records, bond lodgement forms and property inspection reports.
If disputes arise, the proper handling and implementation of these documents may determine the outcome at a tenancy tribunal.
Marketing the Property
Professional property managers also help market the property to attract quality tenants and achieve competitive rental returns.
Some renters may feel more comfortable dealing with a professional property manager rather than directly with the owner, which can make the property more appealing.
Is Professional Management Worth It?
While self-management works well for some investors, others may benefit from having a professional and trustworthy property manager handle tenant enquiries, maintenance issues, damages or broken lease situations.
Ultimately, the right choice depends on whether you can commit the time, effort and expertise needed to properly manage the property while also protecting the rights of your tenants.
