Professional property management v private property management
This might seem obvious to most investors, but the statistics show that there are many investment properties that are not managed by professional property managers. When things are going right, it may seem easy to manage your own investment property. If maintenance tasks are few and and far between, rent is paid on time and the tenants take care of the property, you may find that managing your own property is relatively easy and even fulfilling. However, what happens when things go wrong?
The most important part of having professional property management as an integral part of your team is ensuring that you are working with people who have the experience, legal knowledge and ability to handle tenancy problems when they arise. We have all heard the horror stories of bad tenants who never pay the rent on time and create problems from day one. However, one thing most investors fail to consider is that even the best long term tenants can turn into difficult tenants very quickly for unexpected reasons – such as divorce, medical issues or sudden unemployment.
Whilst a good property manager will have an element of compassion and understanding, their job first and foremost is to protect your investment. If you are managing your own investment property, are you completely familiar with the requirements of your states residential tenancies act when it comes to rent arrears, property damage or eviction? Do you have the personal time, knowledge and capability to represent yourself at a tribunal and carry out the necessary steps to deal with such problems? And can you remove the emotions when problems arise, can you be professional?
Aside from the familiar day to day management service that a property manager provides, you are also getting a professional level of service to protect you and act on your behalf if/when problems arise. This is when a property manager really shines, as until a landlord has been through it, it is hard to describe how invaluable this service really is. Compared to professional services in most other industries, employing a professional property manager is inexpensive (not to mention tax deductible) and is an extremely cost effective way to help protect your investment.
Food for thought…..