Managing your own investment seems like a good, money-saving idea, until you’re stuck up a ladder in the dark trying to fix a leak because the tenant from hell insists it’s an ‘emergency’.
Some people boast that they have saved $1,200 a year by managing the property themselves because it’s easy to manage – and yes it can be. But if you’ve got 5–10 properties you won’t want a phone call at midnight about a broken toilet or some other $50–$100 decision that you’re going to have to agree to anyway! What’s the point of you leaving your well paid job or having your leisure time disrupted to deal with a mundane problem?
When you’re investing in property at a young age, money is tight and you may not be able to afford a property manager. But if you’re a high income earner and you’re building a reasonable portfolio, you’ll need to delegate because you’ve surely got better things to do with your time.
A good property manager is in the market 24/7 and has a better idea of what rents are achievable so they are more likely to get you a higher rent when the market changes. They are more used to scrutinising tenant applications and not putting up with lame excuses for the rent not being paid.
Many property investors have sold profitable properties only because they are fed up with dealing with tenants. Why sell an investment that makes you $100k p.a. when you can get rid of any tenant hassles for just over $2,000 a year?