Should you manage your investment property?


Managing your investment property could be an excellent way to save on expenses and have additional funds put onto the loan. However, before deciding to manage your investment property, there are a few things to consider, as it isn’t as easy as collecting rent.

Self-managing your investment property may seem like a pretty simple process: find a tenant, and they pay rent, while you keep an eye on the property. This may sound like an excellent idea if you’re looking for cost-effective solutions. However, self-managing your investment property can be quite time-consuming, so it is important to consider if you have the necessary time to maintain your asset. There’s every chance your investment will run smoothly if you have a reliable tenant and you understand how to protect your rights as well as your tenant’s rights. Although, before considering to manage the property yourself, there are a few aspects you may need to think about.

There’s a lot of legislation around protection for tenants and landlords. Unless you’re willing to familiarise your self with this legislation, you could run into some problems down the track from your end of the books. On the other hand, a professional property manager will have an understanding of the law and will be able to handle any breaches or other issues for you.

A property manager will manage lease agreements, bond lodgement forms, rental payment authority and property inspection reports. Things can go wrong, and it is essential that all required documents are executed accurately. Not having the correct implementation of documentation could mean a loss at the tenancy tribunal rather than a win.

Additionally, property managers can market the property to in a more professional manner, which some renters may prefer to be managed by the real estate, not the owner. Some renters will shy away from rentals handled by the landlord as they prefer to deal with the middleman.

Self-managing your investment property works well for those who have the time to dedicate to the investment and ensure the property is well-maintained as well as understanding the rights of your leasing tenant. On the other hand, a professional property manager will be able to deal with all enquiries, any damage caused or a broken lease. If you would like to know more about self-managing your investment property, feel free to get in contact with us. We’re here to help.