Should you manage your property yourself?
Some investors consider the possibility of managing their own properties rather than engaging a property manager, however this can be a major distraction and headache.
Saving money vs investing in expertise
While managing your own properties can save money, hiring a good property manager is an investment in your success. Property investing should be treated like a business. Unless you are a qualified property manager with experience in that area, it is not a good idea to take on that role.
Property Management is time consuming
It is possible to rent a property out yourself, but it is not necessarily sustainable. There are a lot of day-to-day activities that come up when managing a property, from dealing with tenants to repairs, contracts, rental and tenancy issues – all of which take time. This burden grows exponentially with every property added to your portfolio making it easy to get bogged down in day-to-day issues rather than focusing on investment growth.
Insurance Issues
An important note on this issue is that most landlord insurance do nomt cover self-managed properties, as they are seen as high risk. This alone is a significant consideration for engaging a property manager.
Industry systems & experience pay off
Well trained, reputable and experienced property managers are an asset to an investment. Good quality property managers have lower vacancies, lower rental arrears and higher cash flows, while also removing the burden and stress of looking after tenants. Consider something as simple as finding a reliable tenant, and how difficult that could be without the right resources.
Find the right people
From an investment perspective, time and energy is better spent finding the best local people on the ground to manage your properties. Taking due diligence in selecting good property managers will ensure the best possible outcomes for your investments, allowing you to focus on the growth and success of your portfolio.
