Even if you haven’t started investing in property, it’s really important you are well prepared for when you are ready to dive in. Especially when it comes to how your asset will be managed.
It’s well worth the minimal effort to weigh up whether you are getting the best “bang for your buck” with property management.
Often people invest in property only to realise they have no idea on who is the best person to speak to in order to rent the property out.
Worse still, they get poor advice, or just speak to any local managing agent and end up getting far less rental income for the property than they actually could.
Over the next few weeks, I wanted to share with you some tips I’ve learned over decades of experience with property management.
This week, I wanted to share this video snippet from my online course “Build Your Property Empire”, where I talk about whether you should manage an investment property yourself.
Here’s the most common scenario where things can get ugly:
You have an investment property… and a friend or family member willing to rent it.
Should you just do it yourself, or still hire a property manager?
In my honest opinion:
Hire a GOOD property manager.
You might save a few dollars initially when everything is smooth sailing, but the second anything goes bad (and it usually does at some point), what do you do?
Do you know your rights? The tenants rights?
I’ve seen scenarios like this start all very well meaning and end up being a complicated and expensive mess going through tribunals. It’s just not worth the risk.
Here are some other major reasons NOT to manage a property yourself:
- You can get emotionally attached to the tenant
- You can be too emotionally attached to the property (and not spend money on places that are necessary or will give you the best return)
- It’s very hard to increase rent (as you are not an expert – and often it becomes a personal negotiation rather than a professional one)
- It’s impossible to keep on top of legislation (I’m still not clear on some of the rulings created around COVID)
- If you do have to go to tribunal or court, you are not equipped
- It’s difficult to keep on top of managing bills and other administrative requirements
- It can consume a lot of time to work with issues and repairs
- You won’t have the maintenance or repair network of a professional managing agent
And even though there’s many more reasons, the bottom line is that I think it’s a terrible idea.
Over the next few weeks, I’ll share more property tips on how to make the most from your investment property through engaging the right managing agent.
If you are curious as to whether your property is being managed correctly, or are keen to find out how my properties are managed, I’ll also be hosting a live webinar on property management that you are welcome to attend.
It will be held on March 1st, 2021 at 6pm Sydney local time, but you can join from anywhere in the world.
Click here to register now. Registrations are open right up to the start of the event.
Book a free, confidential mini strategy session with our property expert Luis Lequerica: https://calendly.com/yourempire/15min
Or simply, get in touch with us today on our contact page to discuss your requirements.