Whether to use a property management company for your property comes down to individual circumstances.
- How busy your life is
- Your location
- Your experience
- Whether you are actually willing and able to do the work yourself
can all come into play.
Proximity to the Property
Are you close enough to arrange inspections, carry out regular checks on the property and respond in a timely manner to tenant requests?
Location doesn’t have to be an issue, but it can make things a little harder if you aren’t close by or have someone to do the necessary ‘in person’ checks.
Do You Have Sufficient Time Available?
Some tasks can take up a considerable amount of your time.
- Reference checks
- Getting things fixed
- Dealing with late rent payments
- Answering tenant queries and
- Running open house visits.
If you work long hours or have to manage multiple properties it may be a better use of your time to outsource property management.
Working out what your time is worth to you, and whether you see more value in doing something else with your time is an important consideration.
Does It Make Financial Sense?
If you are on a very tight budget, or the cost of your mortgage has gone up, then it may make financial sense to look after the property yourself.
However, it may still be a more efficient use of your time to outsource, as more time can provide the opportunity to generate income from other sources.
Do You Have Experience in Managing Property?
If you have property management experience then it could be wise to manage the property yourself.
Otherwise, there are lots of advantages of using a property management company including the following:
Setting the Rental Price
You will need to set the rental price to a level that both minimises vacancies and allows you to choose the best tenants.
A property manager would have the experience and knowledge to set an appropriate price.
You will need to determine which tenants are most likely to:
- Pay rent on time
- Look after your property
- Stay in your rental property on a long-term basis
- Maintain a stable income
Making Sure the Rent Is Paid on Time
Property Management companies are generally strict about the rent being paid on time.
They will have processes in place to minimise lateness, for example: charging late fees.
They also have a good understanding of the rental law: they will know what steps to follow if there are any issues with the tenants paying their rent or any other issues related to the property.
An important consideration is the marketing of the property.
This may include:
- The property listing itself, and describing all the important aspects that a prospective tenant may need to know
- Photography that represents the best that the property has to offer
- Displaying the listing on various property websites to ensure the listing gets the most possible views
- Managing the enquiries
Choosing whether to manage the property yourself or seeking the services of a property management company will depend on your situation and whether you are able to invest the time in doing it yourself.
If you are interested in speaking with us in regards to property management, please call Leda our property manager on 0431 018 486.