Manage my property: what self-managing involves

What manage my property covers

realestate.com.au describes self-management as a do-it-yourself path for property investors. Its research found that 33 per cent of landlords in Australia handle their own properties. Those landlords save between 5 and 12 per cent a week on agency fees, the same research says.

Being a landlord without an agent can save thousands of dollars in agency fees, realestate.com.au notes, but it could take up a lot of personal time and cause emotional stress. The site suggests crunching the numbers and weighing the pros and cons before choosing self-management.

A landlord who self-managed a Melbourne unit for more than a decade told realestate.com.au that most agents charged about 5 per cent in management fees. She said her husband was handy, so they preferred not to pay a fee for a tap repair.

The tasks a landlord takes on

After finding a tenant, realestate.com.au says DIY landlords should be prepared to arrange a bond through the proper legal channels in their state, complete a condition report, chase any unpaid rent and talk about rent increases when the occasion arises. They also organise maintenance and deal with disputes.

Landlords will need to learn the rules that apply in the state where the property sits, the same coverage notes. Beyond the paperwork for a tenant application, a bond and a lease, rules cover how often a landlord can visit, raise the rent or ask someone to leave.

realestate.com.au quotes the president of a buyer's agents association saying the compliance and paperwork can take up so much time. That person said a property manager handles it daily, and knows the right steps, contacts and forms.

Weighing time and savings

The trade-off between time and savings can be a false economy, according to the president of a buyer's agents association quoted by realestate.com.au. That person warned that for someone in a professional job, managing a property could be a waste of their time when someone else could do it.

The same person said the fee paid to an agent is small next to the commercial risk of going without a professional. The problems that can arise can cost far more than the tens of dollars a week a property manager charges, she said.

A landlord who self-managed a Melbourne unit for over ten years told realestate.com.au that she and her husband did not increase the rent as much as they could have. She said a good long-term tenant outweighed the stress of a little extra rent.

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Questions

What is manage my property?: The phrase is not defined by realestate.com.au, which covers self-managing an investment property. In that arrangement, a landlord takes on tasks that a property manager would usually handle.
How does manage my property work?: Tasks can include securing a bond, completing a condition report, chasing unpaid rent, organising maintenance and dealing with disputes. realestate.com.au says self-management involves learning the legislation that applies in the state where the property is located.
How many Australian landlords manage their own property?: realestate.com.au research found that 33 per cent of landlords in Australia handle their own properties.
How much can self-managing save?: realestate.com.au says landlords who manage their own properties save between 5 and 12 per cent a week on agency fees.
What do landlords weigh when self-managing?: realestate.com.au reports that the trade-off between time and savings can be a false economy. The president of a buyer's agents association quoted by the site said the fee paid to an agent is small next to the commercial risk of going without a professional.