Self-management of investment properties is all fun and games…until it goes wrong.
Before you decide if self-managing your investment property is the right decision consider the following 6 reasons why having an agency manage your valued asset can save you heartache and money.
With today’s fast paced lifestyle it feels like we are expected to do more with less, so the idea of self-managing your property can seem attractive; but have you considered what managing your own property will require of you? And the issues that you may face by not hiring an agent?
Consider these 6 reasons why managing your own property may not be the best for you
1. Your lifestyle
Do you have family, work or personal commitments which leave you with limited free time? If you do you need to know that depending on your property type, age, lease agreement condition etc. you may need to set aside up to 20-30 hours per week of your time to manage your property – and this is when everything is going right!
2. Legal requirements
Are you familiar with or up to date with the relevant property and tenancy legislations? Are you confident that you know the rights and obligations for both yourself and your tenant?
3. Marketing your property
Are you familiar with the rental market in your local area and what a fair market value is for your property? That you can minimise vacancy periods without cheating yourself on the rent or pricing your property out of the market altogether? Every week your property sits vacant at a higher rent means less annual income for you!
4. Choosing the right tenant
An agent will find the right tenant through detailed reference checks and access to agents only national databases such as T.I.C.A which list defaulting tenants.
5. The stress factor
Property management isn͛t easy! You are never ͚off͛ the job and you must be accessible to your tenant 24 hours a day, 7 days a week, 365 days a year! Also would you be comfortable debt collecting your tenant for late payments or even having to evict them?
6. Tax deductions
Hiring a property manager is a tax deductible expense!
It’s often right to bring in an expert
Finding a great property management/real estate company can be an easy and stress-free experience and can result in rewarding working relationship built on trust and honesty.