It’s not an uncommon occurrence: A tenant calls in a panic because the bathroom has flooded.
What does the tenant do?
Well, that depends on who is managing the property on behalf of the owner and tenant.
Generally, there are two ways to manage a property – self-managed and professional property management.
If you want to manage your property by yourself, that tenant will call you (even at three in the morning). If you’re using a property management service, that tenant will get in touch with them.
So, it begs the question: should you self-manage your property or hire a professional property management agency?
Like any financial decision, it makes sense that you look at ways you can reduce what you spend to save money.
As an owner with a property for rent, one option is to self-manage. That means you go it alone and deal with issues like the one mentioned above by yourself.
The other option is to handball the management of your property to people who do it for a living and have the expertise and experience to handle everything in relation to your property.
Let’s deep dive into self-managed and professional property management so you know the best option for your situation.
What is self-managed property management?
As you can guess, a self-managed property is one that’s overseen by the owner themselves.
If that sounds fun to you, great! But remember that means you’re responsible for things like:
- Marketing your property on several listing websites
- Finding a pool of possible tenants
- Interviewing applicants to find the best one
- Contacting references so you know you made the right choice
- Handing maintenance requests
- Collecting (and chasing) rent
- Dealing with legal issues if they arise
Factor in you will probably need to visit your property regularly to deal with the tenant, check fittings or fixtures and conduct inspections and you suddenly have another full-time job on your hands.
In the end, deciding if self-managing a property is the right choice depends on your individual experience, knowledge, and willingness to invest time and effort in managing your property alone.
It is important to carefully consider the pros and cons before deciding whether to self-manage your property as you will be the “go-to” person on all occasions.
What is professional property management?
Professional property management refers to the operation, control, and oversight of real estate assets, such as residential property, on behalf of the property owner.
Conversely, the role of a property management agency is to manage all aspects of a property on the owner’s behalf (i.e. all those tasks mentioned earlier).
That means a professional property manager will:
- Find and screen good quality tenants (and call references)
- Collect rent
- Contact tradespeople for repairs
- Ensure compliance with local regulations
- Remain up-to-date with relevant legislation
When you look at it like that, paying a percentage of the monthly rent to a property management agency makes sense.
A property management agency can help property owners maximise their returns by ensuring that the property is well-maintained, that tenants are satisfied, and that rent is collected on time.
Professional property management is an important aspect of real estate investment, and a good property management agency can be an invaluable asset to property owners, providing the expertise and support needed to manage their property effectively and efficiently.
Self-managed versus professional property management
Ask yourself: Do you really want to get up in the middle of the night and travel to your rental property because of a burst water main?
While that example is the worst-case scenario, as a self-managed property manager you have to be prepared for it.
That said, managing a property by yourself is possible and deciding whether professional property management is better than self-management depends on various factors, including the size and complexity of the property, your experience and knowledge of the rental market, and the amount of time and effort you’re willing and able to invest in managing the property.
That’s why we believe professional property management can be beneficial for property owners who do not have the desire to manage their property themselves.
While a professional property management agency might cost more initially, the reduced stress (and frustration) of handling all inquiries and issues by yourself will save you time and money in the future.
Get in touch with our property management team to discuss your options to help you make the best decision for you.