Achieving Success as a Landlord
After purchasing a property, it is necessary to decide whether managing it yourself, or engaging a professional, is the right choice for you as a landlord. Months or years of saving for an investment property doesn’t mean the hard work is over, unfortunately.
Do I manage my own investment property, or hire a professional?
A lot more work goes into being an effective property manager than just collecting rent. A good property manager needs to stay on top of property maintenance, tenant liaison, and dealing with any disputes or concerns that arise during the term of a tenancy.
As with any decision, there are pros and cons to managing a property yourself or using an agent, and it’s not always simple to decide which will work best for you.
Some benefits of managing a property yourself:
- Money-saving is the number one benefit of self-managing a property, as all professionals will charge a fee. These fees will vary between agencies, but anything from 5%-12% of the weekly rental income is to be expected.
- Taking into account the location of the property compared to your primary place of residence is important, as self-managing an investment property effectively will require you to perform common household maintenance tasks, and check for necessary repairs. Living close to the property will make these requests easier to deal with when they come along, and allows you to work with your tenant more efficiently.
- While carrying out basic repairs and maintenance requests yourself may be time consuming, it has the potential to save you hundreds of dollars a year, if not more. This is generally not an option you are given if hiring a property manager.
Using a property manager:
- Hiring a property manager can have great benefits too, and makes a big difference when handling tenant disputes, rental increases, or other sensitive issues. There is the added bonus of not having to be in contact with tenants if you choose.
- Property managers also have a broad understanding of market trends, allowing them to give informed advice on read more…