It was Dale Carnegie who once said, “When dealing with people, remember, you are not dealing with creatures of logic, but creatures of emotion.”
As a property owner, if you’re torn between the decision to self-manage or hire a property management service, then this quote is one to remember. Within real estate, you will always have to work face-to-face with an assortment of people and the intensely personal matter of their homes.
With this in mind, we’re taking an objective look at the pros and cons of a DIY approach to property management. Let’s unpack this together.
Self-Manage vs Rental Property Management
It’s worth noting that there is no universally accepted right answer to this dilemma; each property owner must make decisions based on their own needs. Some have chosen property as an investment vehicle and prefer a hands-off approach, while others view property management as their job.
Those new to property ownership have a steep learning curve ahead of them. Rental legislation, marketing, and maintenance are a few of the considerations that feature in rental property management.
A self-managed path allows for exciting education and growth. On the other hand, plugging straight into the existing infrastructure of a property management company means that you don’t have to figure stuff out as you go. It removes the possibility of expensive mistakes or frustrating oversights.
Property management requires an extensive network of partners and service providers, including the following:
- Pest control
- Credit and criminal screening
- Marketing and advertising
- Accounting and payments
- Attorneys and conveyancers
- Mortgage brokers
If you are well-connected, then you’re off to a great start. If not, then gathering a collection of tried and true property partners will serve you well in the long term.
Both commercial and residential property management companies will have a preapproved list of vendors with contracts and service level agreements in place. Their reliable team has been finely tuned to reduce risk, offer excellent service, and provide sound value.
Property owners who are new to the industry may be a little blinkered or emotionally attached to their property. Understanding its real worth and how it ranks alongside similar properties in a fluid market is essential information.
Property managers deal with this information daily. They understand the moods of the market, how to get the most out of a rental, and what the immediate future of the industry holds.
The topic of tenants is a big one. Marketing, screening tenants, and conducting criminal and credit checks are the start of a long-term relationship. The management of monthly payments, maintenance requirements, damages, and the emotional toll of evictions are additional challenges.
If you’re content with this role, prefer personal relationships, and have systems in place to facilitate smooth transactions, then you’re in a great position. Does this make you uncomfortable? If so, a management company has practices in place that streamline these processes.
The decision to self-manage often comes down to costs. Landlords who are comfortable performing the duties associated with rental management can save a good deal of money.
Nevertheless, the paperwork, legislation, time, and administration associated with rental properties can be prohibitive. This makes the option of hiring a property management company an attractive one to many time-poor individuals.
Weighing Up the Options
As you can see, the decision to self-manage or work with a rental agent hinges on a host of factors. Costs, control, relationships, and industry knowledge are key considerations when choosing the right path in this exciting business.
We’re sure that you have questions, and we are happy to answer them. Please feel free to get in touch with our professional team for more information.