Tips & Advice | Self-Managed vs Professionally Managed
We want to provide you as much value as possible, which is why with our vast experience and knowledge in the apartment sector it makes M/Property the natural choice over self-management.
The feeling that you can keep an eye on your property and save money by managing it yourself is often overshadowed by considering the true cost of management, the responsibilities and skill involved in the job, and if it’s worth your while financially.
Bear in mind that management fees are a tax deductable cost plus the cost of your time. That seems a very slow way to make money and is a gross underestimation of the value of your time. Add to that the fact that you aren’t trained with a Property Management License and that you don’t have access to a national database of information about tenants and their histories and so are at risk of unwittingly choosing the wrong tenant.
The benefits of managing your property personally include:
- Cost savings as no management fees will be deducted from your rent
- It won’t take too much time if you only have one property to manage – as long as you have a good tenant who pays their rent on time
However, the drawbacks include:
- Once you start to accumulate more properties, you may not have the time to manage all of them
- You may lack full understanding of the laws applying to landlords and tenants including inspections, acceptable communication timeframes, tribunal disputes, emergency repair timeframes and documentation
- The savings in costs are usually not worth the cost of your time
- Interviewing tenants and uncovering their financial and rental histories may be difficult
- The requirement to appear in court if a tenant defaults on rent or requires to be evicted
- Relationship boundaries with tenants
The costs of professional management may be a small price to pay when you place a true value on the time you may spend yourself and your peace of mind.
Managing rental properties professionally is what we do. Our services and expertise allow you to focus on your personal time and enjoy life without all the hassles that come with rental property self-management. Talk to other rental property owners who have done it, and get an idea of whether you are ready to take on the challenge of self-management.
Whether you are ready to talk about our management services or you are simply looking for additional resources, please contact us. We’d be happy to talk you through each option, and help you come to the decision that’s best for you.
For more information please contact Deanne Almond via the below details:
Deanne Almond
Property Consultant
0408 068 158
appraisal@mpropertymanagement.com.au
