Tempted to self manage Residental Property

Agree 100%

 

The landlords with good PMs don't whine
The self managers with good tenants don't whine
My point is hiring a professional won't make all your problems disappear. In some cases the PM will be worse than the tenant!

Agreed there are good PMs. If you snag a good one, that's great!

Personally, I don't self manage to save a few bucks. I self manage to save myself from the hassle of dealing with PMs. In the time I self managed in Melbourne, I spent less time managing my tenants than my parents spent managing their PMs and I got a better outcome too. That's because they had bad PMs and I had good tenants.

Each to their own. I just don't like to see people being mocked for choosing to self manage. I don't mock people who choose to have a property manager. It's up to them. But if their property manager is incompetent then I encourage them to try to find a good one.

 

Agree with all of what you say...self manage or PM, what ever works. However, unless I'm missing something I don't think there was any mocking of self managers going on. My comment was merely suggesting that I am not inclined to self manage (I just don't have the time) and couldn't be bothered for the sake of saving a few dollars and that I would rather use a PM (a good one). On to bigger issues, hey

 

I would say so.

You raise a good point though. If you choose to hire a PM, don't rip yourself off by paying an incompetent PM to manage your property badly. Take the decision seriously (like a business) and hire a great PM who will actually do a good job.

 

I am very blunt with PMs and clearly set out what my expectations are. If they fail to meet those expectations I move on very quickly and don't give them a second chance. As you say...it's business and I don't pay for second rate service. I've been through a few PMs and am very fortunate to have secured a very good PM and we work together very well. A good PM can make a world of difference.

 

I like acting quickly when things go wrong with properties too. Most of my issues with properties have been finalised by close of business the same day. That's the kind of service I want for my tenants.

 

Haha yeah sacked myself pretty quickly.

 

Completely agree, there is no point paying someone to do a job if you have the time to do it and can do a better yourself. Key here is being what will give you the best time money effort balance is what we all want.

Its all about leverage in my opinion. We all leverage our cash-flow, assets and time differently but really this is our business. I think of PM's are employees in this business. If you have an employee who is making you money and is consistently adding value to your business then it makes sense to have them around. If they are costing money, or zapping your time & energy then you want them gone. Personally I think a good vetting process, understanding how the agency and their PMs work helps keep these suito-employees on track.

Personally I think its fine to self manage if you have the right things in place to make it work but as your portfolio grows you need to look at:

a) Do I have the time to spend on this if things do go pear shaped at some stage? - some people have enough time to self manage as long as nothing ever goes wrong

b) Do I have systems in place to ensure I can do as good of a job as good property managers? - there are some great self managers out there but lets not compare ourselves to bad PMs, that cant be the standard to compare yourself to avoid using a PM

c) If I am not using a PM, what tools can I use to leverage my time better and make things run smoothly?

d) As the portfolio grows what is your plan to keep up - are you leaving your 9/5 job to have more time as an example? I would say without a real long term plan in place if you are growing the number of properties you intend to own and self manage, you may risk burning out and making costly mistakes which do not have to be related to your properties (could affect life, love or your 9/5 also) but will still effect you drastically.

 

Yes and the service cost is offset with tax refund

 

There are different options for everyone.
Very important to not let the inspection schedule slide with good tenants...we have seen things change quickly in between inspections for a multitude of reasons ...

 

A quick one for the agents/PM's that own ip's in other states....Do you have other people manage your property?

 

I self manage one prop (former PPOR in Sydney leased to friends), everything else is managed regardless of if its 1km or 10,000km away

 

I self manage my two NSW ones.
It's actually less work than some PMs!

 

Property inspections would be the hardest to carry out if you self manage, when working as a PM I felt the resentment of the tenants when I had to inspect the property and I was working the North Shore in Sydney at the time and a lot the tenants were in expensive homes.

 

Last inspection I did in Melbourne, I was on my way somewhere else with half my family in the car. When the tenant saw them he insisted on going out and inviting them in for a cup if tea. They chatted while I did the inspection. I wasn't feeling any resentment

 

Hi Wylie

It was a pleasure And, we learn every day too!

 

Hi

Great question Shady!

Martin and I own four IPs out of Brisbane and indeed we have four PMs manage each of the properties as they are located throughout Queensland with one interstate.

 

Hi Shady,

Yes definitely. I have properties throughout Australia in 5 states and overseas and it would be impossible for me to "self manage" from afar, even if I was completely up to speed on the state's regulations and procedures.

As with anything, you have to have oversight and fortunately my knowledge of PM in general is an advantage but I still provide the PM with the respect they deserve as that is why I have engaged them.

- Andrew