As a property investor you can choose to either manage your investment property yourself or engage a specialist property manager to manage the property on your behalf. If you choose to self manage your property it is essential that you understand your legal responsibilities, as looking after a property can not only be time consuming but emotionally upsetting.
The main benefit of self management is that you can save paying property management fees which are normally between 5% - 8% of the gross rent and letting fees which are payable for finding new tenants and are approx one weeks rent for every new lease arrangement entered into. However as a landlord you have certain obligations to your tenants in relation to organising property bonds, collecting rent if in arrears, accessing the property and dealing with your tenant complaints regarding any repairs required to your property which you may not necessarily agree with.
The other option is to utilise a specialist property manager who is experienced in dealing with investment properties and tenants and are well aware of all the associated regulations in place to protect both landlords and tenants.
Normally the job of your property manager can include undertaking the following duties;
- finding the right tenant and checking their references
- organising the bond
- collecting rent
- conducting regular property inspections
- organising any maintenance on the property.
Landlord insurance is also another option to protect your investment property and is widely available from most insurers. This insurance provides protection for any damage to your building or contents under certain circumstances and can also include coverage for loss of rent and tenant damage and is strongly recommended for property investors.
No matter which option you choose to manage your investment property you need to remember the original reason you purchased the investment property in the first place which hopefully was to make money. As with any investment you will have associated costs and if your income from the asset exceeds your costs then hopefully you will be profitable albeit capital appreciation or depreciation of your property can also determine how profitable your investment property will be in the long run.