Property Investment Tips: Top reasons to get a property manager

By the resi financial blog team, 21 November 2014

Property Investment Tips: Top reasons to get a property manager

There are many reasons you may choose to manage your own rental property, but there are just as many reasons why you shouldn't. Here we go through the top reasons for letting a professional manage your rental property or investment portfolio for you.

You're new

If you've just bought your first property or are planning to, you may have considered managing the property yourself. Collecting the rent and getting the lawns mowed couldn't be that hard, right?

There are actually quite a few tasks that a property manager performs for you, which is why it is their full-time job. Here is a list of some of the things a landlord or manager would need to do:

  • market the property to potential renters
  • select the right tenants
  • negotiating contracts, including lease terms and rent reviews
  • collecting rent
  • be present at any potential tribunal hearings

This is based on the list provided by the Real Estate Institute of Australia, and is by no means exhaustive. You may decide to hire a property manager, but undertake some of these tasks yourself to learn the ropes.

If you decide to manage your property or at least perform some of the management tasks, you should make sure you have a working knowledge of the legislation in your state that protects both renters and landlords.

As well as this, it is important to know what the market rate is for your kind of property and also being able to identify a good tenant from a bad one, before you sign a contract.

You're not new

If you're a seasoned investor and you know the ins and outs of the market, you could well be tempted to manage your own property.

This could be a way to save money if you have only a couple properties to look after or you are retired and have time to manage a large portfolio.

However, if you're working a full time job as well as holding down your investment portfolio, chances are you don't have time to perform all of the tasks listed above - especially for multiple property holdings.

When investing it's always wise to talk to professionals in the industry and the same applies to your investment finance. If you would like some tips for making the most of your investment finance, have a chat with a resi loan specialist.

Categories: Home Loans, Property Investment