Do you have the time or inclination to manage your investment property?
A key element of long term successful property investment lies in the management of your property.
Finding good tenants is essential for any landlord, but keeping them happy can be a challenge. Successful property management is not just down to collecting the rent on time, it’s also ensuring the property is well maintained and that problems are dealt with in a timely manner.
The question is: do you take the job on yourself or bring in the professionals?
Benefits of doing it yourself Without doubt a major draw card for self-managing your property is that you will save money as agents typically charge around five to seven per cent of the monthly rent for their services.
If you live within close proximity to your investment property you may also feel that you’d like to build a personal relationship with your tenants and be available to fix problems when they arise.
If you own a new house or unit there is likely to be less need for maintenance, or if you’re a dab hand with a hammer and saw you may be able to keep costs down on repairs on an older property.
Benefits of an agent But not every landlord wants to deal directly with their tenants and many prefer to hire a property manager.
Some landlords may feel uncomfortable negotiating increases in the rent whereas a property manager can remain detached. A property manager is also likely to be more familiar with market rental rates, which can be reassuring for the tenant when pushing up the rental price.
In addition, a property manager will ensure that there is a structured process to regular inspections, which can help reassure tenants that their interests are also being considered.
And when your tenants decide it’s time to move on, a professional is likely to have access to a bigger pool of potential tenants – which could mean cutting down the time that your property lies vacant.
If you’re seeking a good manager for your investment property, we have some great relationships with local agents, so give us a call.