Hiring A Property Manager Vs Self-Management
One question we get asked a lot by landlords is “Should I self-manage my rental property or should I find a property management agency to do it for me?” and the answer we usually give is “It depends”. If you as a landlord have an interest in the field and you’re willing to invest your time, energy and resources into learning how to be a landlord and how to do it properly then I encourage you to take that path.
With that being said, it is important to understand that there are benefits to working with a professional property management company and self-management may not always be worth it, just to save the fee. Take the time to consider the following:
A property management company is the emotional buffer between the property owner and the tenant. That distance can be extremely valuable, especially if there is a situation where you have to enforce the rental agreement. Sometimes you’ll be in the position as a landlord where the tenant will ask for an exception to the lease. Maybe they need an extension on a rent payment and they need an extension or exemption on the terms and possibly the fees.
As a landlord you’re then put into the position of making 2 choices: Allow the exception and potentially open the door to additional requests in the future, or, decide not to allow for any exceptions and enforce the lease. That can damage the goodwill you have built with your tenant even though you are just enforcing the rules that the tenant agreed to upon signing the lease. When you have a property management company in place, it removes the relationship that forces the landlord and the tenant to work directly with each other and it places an impartial party between the two. That can help preserve the relationship which is really important when it comes to having that tenant renew their lease.
Assistance When Required.
As a property manager our job is to help you navigate the landscape of being a landlord. In being a landlord there is liability and best practices to adhere to. When you hire a professional property management company you get the benefit of all that experience and their well-oiled systems. This will help to document the property status and manage any situations that may arise. Having somebody with property management experience to create a policy that is going to be effective, not just at your property but other properties as well, and be within the standards of what is normal within the industry.
The 3rd reason is that when you employ a property management company, you are insuring yourself or at least buffering yourself against a certain degree of liability. There is a certain amount of liability that property managers are accountable for. As a professional management company our job is to make sure we are following the rules and guidelines which require a certain standard of care with the property and how we deal with the tenants.
If you don’t have the time or you’re not interested in investing the energy and effort to learn how to properly manage a rental property, then your best option is to find a property manager to manage your investment on your behalf.
At Loth Estate Agents we treat your property as if it were our own so, if you’re looking for an active agency with a hands on approach, the team at Loth Estate Agents will be pleased to discuss your requirements and answer any of your questions. Contact our friendly staff on (07) 3366 1764 or email us directly at: firstname.lastname@example.org