If you own an investment property, you may be wondering: can you manage your own rental property? The short answer is yes. Australian landlords can choose to manage their rental property themselves rather than appointing a professional property manager.
However, self-managing a rental property involves more than collecting rent and organising repairs. From finding and screening tenants to staying across legislation, inspections, maintenance and rent reviews, there are a number of ongoing responsibilities to consider.
What does managing your own rental property involve?
When you manage a property yourself, you take responsibility for the day-to-day running of the tenancy. This can include:
- Advertising the property and responding to enquiries
- Organising inspections and selecting tenants
- Preparing and managing lease agreements
- Collecting rent and following up arrears
- Arranging repairs and maintenance
- Conducting routine inspections
- Communicating with tenants
- Managing lease renewals and rent reviews
- Keeping accurate financial and tenancy records
- Understanding and complying with relevant tenancy legislation
For some landlords, particularly those with one property who live nearby and have plenty of time, this can be manageable. For others, the ongoing workload can quickly become difficult to fit around work, family and other commitments.
Do you need a property manager?
There is no requirement to use a professional manager, but it is worth considering how much time and responsibility you are taking on before deciding to self-manage.
Tenancy legislation can be detailed and varies between states. Landlords are responsible for understanding their obligations around areas such as rental agreements, entry requirements, repairs, bonds and ending a tenancy.
There is also the practical side of managing tenants. A maintenance issue does not always happen during business hours and following up an overdue rental payment can be uncomfortable when you are dealing with the tenant directly.
Professional property management can take these responsibilities off your hands while providing systems and processes for managing the tenancy.
If you are weighing up whether professional management is worthwhile, our guide on why hire a property management company looks at some of the key considerations for landlords.
When might self-managing make sense?
Managing your own rental property may suit you if you have the time, live close to the property and are comfortable dealing directly with tenants and trades.
It can also give you greater involvement in decisions about your property and remove the need to pay ongoing management fees.
However, it is important to consider the value of your own time. If managing the property means responding to calls during work hours, attending inspections, chasing rent or spending evenings organising repairs, the time commitment can add up.
Local knowledge matters
Rental markets and legislation differ between locations, so local knowledge is important when managing an investment property.
For example, landlords looking after a property in Queensland may benefit from working with a team that understands the local rental market and tenancy requirements. PMC provides property management in Brisbane across a range of Brisbane suburbs.
For NSW investors, local market knowledge can be just as important. PMC provides newcastle property management as well as property management in the Northern Beaches.
So, can you manage your own rental property?
Yes, you can manage your own rental property, but the better question is whether self-management is the right fit for your circumstances.
Consider how much time you have available, how comfortable you are with tenancy legislation and tenant communication, how close you live to the property and whether you want to deal with maintenance and administration yourself.
For some investors, self-management works well. For others, having a professional property manager handle the day-to-day responsibilities provides more convenience and peace of mind.
The right approach will depend on your property, your circumstances and how involved you want to be in its ongoing management.