Whatever type of property you’ve chosen to invest in, it’s going to need ongoing management to make sure everything runs as smoothly as possible. You can either take on this responsibility yourself or hire a professional property manager.
The DIY approach can save you money, as you don’t have to pay for a third party to manage your property. It can be an incredibly rewarding experience, but it can come with downsides if you’re a little time-poor.
You’ll need to make sure you’re meeting the legal obligations that are required from you as a landlord, such as organising any repairs that need to be carried out.
You’ll also deal directly with your tenants and will be responsible for organising property viewings and reviewing tenant applications, drawing up contracts and condition reports, performing inspections and chasing up any overdue rent, among other things.
Hiring a property manager will give you the benefit of local knowledge and experience. You’ll likely pay a fee of around 7% of the rental income, but you’ll save time and stress knowing that your investment is being looked after.
A good property manager will be able to advise you on how much rent you can expect to charge and may also be able to recommend a tenant who has the best application.
They will also handle all the tenant-facing aspects of the lease, such as:
- Drawing up a contract
- Creating a detailed condition report
- Organising open houses and reviewing potential tenant applications
- Arranging property inspections
- Collecting and depositing the rent payments into your bank account
However you choose to manage your investment, it is important to inspect the property yourself periodically to give you the assurance that your investment is safe in the hands of your property manager or your tenants.