While hiring property managers has some definite upsides, including passing off every aspect of management duties to a third party, don’t discount the appeal of self-management. It’s easier than you think.
If you own a rental property, there will always be many aspects to concern yourself with. For example, you’ll need to find tenants and ensure rent is collected on time. However, if you’re not interested in having a professional control all of the details of your rental, know that managing your own investment property is possible. If you want more transparency, prefer direct communication, or just want to save a little bit of money, then self-management is your best bet.
Still not convinced? Here are five reasons why you should consider managing your own rental property:
You Save on Fees
If you’re paying a property manager to handle your investment property, you can expect to pay anywhere from 5-12% in fees in Australia. While the amount varies from state to state, it’s a lot of money to leave on the table. It’s also a sum that’s easily saved when you choose to self-manage. By handling your property yourself, from day one you’ve already accrued at least 5% more a year on your investment. Over time, this can really add up.
You Have More Control
Since you are the one managing the property, you get to design your own ads and interview your own tenants, giving you more control over who ultimately leases your property. You can also set bond terms (within the boundaries of the law), rent amounts, and payment schedules, and you’ll find you won’t have to wait as long to collect your cheques as money flows directly from the tenant to you.
You Know Your Tenants
Because you’ve chosen your tenants, and you deal with them directly, you can get to know them a bit better. If they have maintenance concerns, or if you have to do a repair or schedule an inspection, you don’t have to go through a third party to communicate. You can even decide to negotiate a renewal on the lease with the tenant when the time comes. The best part: without a third party communicating on behalf of the landlord and tenant, it’s less likely there will be any kind of miscommunication.
You Can Hire Your Own Tradespeople
Typically, property managers have relationships with their own tradies, meaning no matter what the fix is, you’re stuck paying their fees. Houses rented out by owners, however, have the flexibility to hire their own tradespeople. Even better, if you are well versed in a trade, such as electricity or plumbing, you can handle the work yourself. This has the potential to save you money. It also allows you to better control the quality of work done to your investment property.
Digital Resources Make it Easier Than Ever
While managing a property traditionally requires a lot of organisation and admin, modern technology is making it easier than ever for anyone to manage every aspect of their rental home. Resources like Instarent, for example, connect tenants, landlords, and tradies in one place.
The app is an A-Z solution that allows landlords to:
- List properties
- Find tenants
- Receive rent and pay invoices
- Organise documentation
- Generate financial statements
All of the features can be accessed anywhere from one central location. The technology aims to simplify every aspect of property management to make managing no-agent properties accessible to everyone.
By self-managing your assets, you’re able to have more transparency and control over who rents your properties and the terms of the agreement. What’s more, self-managing saves you money. Managing your property doesn’t have to be intimidating. If fact, with the help of time-saving tech, it’s more accessible and easier than ever.
Instarent can help make managing your investment property a breeze. Ask us how!