As a property investor you can choose a hands-on approach and manage the property – and the tenant, yourself. Or you can opt to use a professional property manager. It’s a decision you need to weigh up carefully because while a DIY approach can be a money saver, there are also important legal responsibilities you must meet as a landlord, and it is critical to get these right.
A professional property manager will usually charge a management fee of 7% of gross rent though this is normally negotiable. In return for this, the manager will take care of the majority of work involved in running the property.
These duties include:
The bottom line is that some investors get a great deal of satisfaction from managing their own rental property. But if you are a first-time investor or you are pressed for time, it can make sense to use a professional property manager. For the management fee that you pay, you’ll have the benefit of a hassle-free investment and you won’t have to deal directly with your tenants, which is the option many investors prefer.
Aussie does not provide any financial or investment advice. This document has been prepared as a factual guide only. It does not take account of your objectives, financial situation or needs. Aussie recommends that you seek independent financial advice and obtain your own professional legal and taxation advice before making an investment decision.