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Renting out privately vs Renting out with a property manager

Discussion in 'Property Management' started by poeter, 9th Jul, 2015.

  1. poeter

    poeter Active Member

    Joined:
    2nd Jul, 2015
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    30
    Location:
    NSW
    I currently rent out my properties privately. So far it's been quite manageable and haven't had any problems with my tenants.

    I'm looking at whether I should move to using property managers. So I'm wondering what are pros and cons between both.

    Am I missing out much by renting my places privately?
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    Adelaide, SA
    Heya,

    If it's going fine for you, then keep doing what you're doing.

    However, if it starts turning nasty between you and tenant do you know how to handle that? Do you know how to properly handle the rental arrears process?

    When you get your next property, will you manage that too? And the next and the next? At some point most people come to remember that property is supposed to be a passive endeavor and that delegating tasks (be it management, bookkeeping, tax returns, finance sourcing, etc) is the best value way forward.
     
  3. legallyblonde

    legallyblonde Well-Known Member

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    Location:
    TAS
    I self manage my one IP because it is local, understand the local tenancy legislation AND have a friendly but firm management style. =) My tenants are awesome... So it is really no worry what so ever... If I move interstate or acquire more properties I would reconsider this decision. Whilst it does not take up much of my time it isn't a problem.. Similarly, I also happily do my own taxes (for now).
     
  4. wylie

    wylie Moderator Staff Member

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    I also have always self managed, albeit using PMs to source a tenant occasionally (mostly over the past few years). I find it easy, but learned "at the knee" of my parents. If I didn't enjoy it, I would hand it over. I also know most of the rules, and anything I don't know, I ask the RTA.

    I save thousands doing this, have the time to do it, and feel very much in control.
     
    S.T likes this.
  5. thatbum

    thatbum Well-Known Member

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    This. Frankly, anyone can do an inspection and watch rent come into a bank account - the real test of whether someone can self manage is handling the difficult stuff competently.

    And in my experience, that is quite rare for self managers.

    I think the minimum is an understanding of the rent arrears and breach processes. Possibly also leasing and rent increases too.

    I saw so many purported rent increases end up being invalid back in my tenancy advice days.
     
  6. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Location:
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    I'm happy investing in the (tax deductible) costs to have my places professionally managed.

    I don't service my own car, either.

    Keeps me free to focus on more important stuff and avoids any compliance/legal issues due to me not know everything I should know.
     
    Harro likes this.
  7. drg86

    drg86 Well-Known Member

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    25th Jun, 2015
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    Location:
    Newcastle
    Pro of a PM, they handle all the paperwork and have access to the legal channels if you need them.

    Con, they cost money.

    If you have good tenants I'd keep managing yourself, you can alway engage a PM later on when things change if needed.
     
  8. C-mac

    C-mac Well-Known Member

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    Personally I would never do this. There is just too much that can get... nasty... as others have said!
     
  9. thatbum

    thatbum Well-Known Member

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    Yeah but in my experience, too late to undo some of the damage that incompetent self managing has already done.

    Classic example is the delay in issuing the proper termination notices when there are rent arrears - sometimes for many weeks or even months.
     
  10. wylie

    wylie Moderator Staff Member

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    What about the threads on SS where a PM has allowed the tenant to get really behind in their rent before bothering to issue notices.

    There are good and bad PMs and good and bad self-managers.