Should I use a property manager?

Discussion in 'Property Management' started by Mindless_Historian_5, 18th Jul, 2021.

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  1. Mindless_Historian_5

    Mindless_Historian_5 New Member

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    I recently bought and fixed up a rental property which I am planning to rent out. This is my first rental property and I live pretty close (less than 15 minutes away) and I've already developed a list of contacts of trades from my initial remodel so ongoing maintenance would not really be an issue for me.

    However, I am wondering if it would be worth to have a property manager advertise, screen and find tenants as they would have a good knowledge of the local area, and if so, would it be worth to have them handle future repairs etc? One factor holding me back from DIY property management is lack of experience handling tenants and young age (early 20s) as I might feel like I am intimidated by tenants older than me.
     
    Mindless_Historian_5, 18th Jul, 2021
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes
     
    Terry_w, 18th Jul, 2021
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  3. D.T.

    D.T. Specialist Property Manager Business Member

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    Yes
     
    D.T., 18th Jul, 2021
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  4. Dan Wood

    Dan Wood Well-Known Member

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    Peace of mind, yes.

    Just make sure you screen your PM as well. Nothing worse that having a PM that isn't doing their job...
     
    Dan Wood, 18th Jul, 2021
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  5. datto

    datto Well-Known Member

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    Yep.
     
    datto, 18th Jul, 2021
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  6. Ryan23

    Ryan23 Well-Known Member

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    Yes (but in italics)
     
    Ryan23, 18th Jul, 2021
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  7. Sackie

    Sackie Well-Known Member

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    Yes. Its a no brainer.

    Are you planning on getting landlord insurance?
     
    Last edited: 18th Jul, 2021
    Sackie, 18th Jul, 2021
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  8. Michael Mitchell

    Michael Mitchell Property Manager Business Member

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    Yes.
     
    Michael Mitchell, 18th Jul, 2021
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  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    yes

    Coz like most things in life, its never a problem till it becomes a problem.

    ta
    rolf
     
    Rolf Latham, 19th Jul, 2021
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  10. Tom Rivera

    Tom Rivera Property Manager Business Member

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    I *AM* obviously biased here by saying you should get a Property Manager, but I also wanted to suggest you make sure you do your due diligence with them like you would with any other aspect of the property- look for recommendations, discuss how they approach the business and stay engaged. Although you don't want to be a micromanager, you do want to stay involved so you can feel confident that the appointed agents are doing the job you want them to.
     
    Tom Rivera, 19th Jul, 2021
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  11. Scott No Mates

    Scott No Mates Well-Known Member

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    No (just to be the voice of dissent :oops:) - unless you are well versed in the residential tenancies act, have the balls to kick a tenant out in accordance with the regulation, are a great record keeper (rent received, payments made, condition reports etc), have access to tenant databases, are able to handle not viewing your property without giving notice, have access to template forms, prepared to self-represent at tribunal when things turn to pot. Oh! that means yes.
     
    Last edited: 19th Jul, 2021
    Scott No Mates, 19th Jul, 2021
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  12. wylie

    wylie Moderator Staff Member

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    I self managed over 40 years (I'm 61). I learned from my parents when I was 15. In all that time, between my parents and our IPs, we had less than a handful of problem tenants.

    We were hands on, responsive landlords and knew the rules and our responsibilities and obligations.

    Maybe 15 or so years ago we found a local PM who would do a "let only". Back then we didn't have a way to get on re.com. So we couldn't reach the potential tenants, like we can now.

    When my son was working as a PM he said if I'm not doing regular inspections and a problem arises, my insurer might not cover me for damage. I didn't do regular inspections, but knew our tenants well and how they lived. We did see inside the houses regularly with little maintenance jobs, letting plumbers in during work hours etc, but that is not the same as documenting a regular property check as proof of regular inspections.

    When we had to lift two houses and do our townhouse build, we had one house badly affected by the build. In order to have an intermediary to handle any "why is there a builder toilet in my back yard" type of questions, we had the management arm of that group look after the management. We reduced the rent to compensate for the intrusion and this was documented, but still it kept us one step removed from potential problems.

    With the build finished, we had four new properties to let at once, and decided it was time to take a back seat and, while I know I was a good property manager, I'm enjoying having someone else do it.

    Long story, but unless you are prepared to learn what you must know, and manage it properly, you should hire a PM.
     
    wylie, 19th Jul, 2021
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  13. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    If you need to ask this question, then the answer is that you do need to employ a property manager. You don't know what you don't know (and there is a lot to know).

    If this is your first investment property, definitely get a PM. You'll learn a little via observation and be in a better position to make this decision.
     
    Peter_Tersteeg, 19th Jul, 2021
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  14. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    There are several reasons, and one is risk.
    By using a property manager you have someone to blame if things go wrong. They are insured for this too.

    I recall one case where the tenant sue for negligence and the property manager wore it because they were the one that ordered the handyman to fix the issue.
     
    Terry_w, 19th Jul, 2021
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