You’ve bought your new investment property and are ready to rent it out and watch it grow in capital value over the next decade or two. Can you just leave it and look after it yourself or should you hire a property manager to make sure you’re getting the best possible rental return and to ensure the place is well looked after?
Or will it be a waste of money and just perform tasks that you are happy to fulfill yourself?
Let’s have a look at the arguments for and against hiring a property manager for your investment property:
Property Manager Advantages
If you’re going to manage your property yourself, it means organizing viewings of your dwelling for prospective tenants, taking care of advertising for tenants, and then screening/interviewing tenants for your new property, as well as drawing up new leases.
This can be a lot of work, especially when you’ve got a full-time job yourself so it can be much better to leave all this to a professional whose job is it to look after your property and can give it their total undivided attention.
Once they’ve found tenants for your property they then look after all monetary transactions such as deposits and late fees.
Your property manager can also look after any issues that come up, especially repairs that will need to be taken out on the property from time to time. Seeing as property managers deal with the same issues that come up over and over again they can be an excellent source of knowledge as to how to fix any issues through sheer weight of experience.
Property managers also often have long standing relationships with contract workers that can be relied upon to fix your repairs at a good price and to a high standard.
They can be an invaluable asset if you’re travelling a lot through work, have to move interstate or overseas, or indeed, you have invested interstate or overseas. Your property can be looked after in your absence.
Property Manager Disadvantages
The financial costs of a property manager are an obvious disadvantage. They generally charge two weeks rent to advertise and find a tenant(s), and then usually anywhere from 5-12% of your rental yield thereafter.
The other main disadvantage is that you’re trusting someone else to run your property, and you cease to be the one to control how the property is run. You might like to do things your way when it comes to dealing with people and the issues that arise with your property.
You can ring Perry Finance today to discuss a possible loan structure that is suitable for you and includes this added cost of property management for your investment rental property.