After you have bought yourself an investment property, which by the way is one of the best ways to build wealth over the long haul, you might be thinking do I manage this thing myself, or do I get a professional property management company to handle it. Who I should rent my property to is also a question that may confuse you.

On the surface, self-managing properties seem like the obvious money-saver. But the reality is way more complicated than it looks, especially in a place like Melbourne, where real estate rules are tight, and things move pretty quickly.

What Does Self-managing Actually Look Like?

When you self-manage a property, you take on absolutely everything, including marketing the property, choosing tenants, collecting rent, sorting out maintenance, conducting inspections, and staying across compliance … the list is long. 

For some property owners, being this hands-on feels good. You are in the driver’s seat, you know exactly what is happening, and you reckon you are saving a few bucks. 

But here is what people usually underestimate: the time it takes to manage the property can be costly. Moreover, sorting out the legal stuff could be a challenge. Managing a property in Australia is not much different from running a small business. You have got to keep up with Victorian rental laws, respond to tenant messages promptly, manage repairs promptly, and make sure rent is actually paid on time.

And friend,  issues don’t clock off at 5 pm. Emergencies never pick a convenient time. As per property management on your own, what starts out feeling totally manageable can turn into a proper headache, especially when you are trying to balance work, family or a few different properties.

The Case for Bringing in the Professionals

Now, when you get property management companies involved, all that responsibility shifts to people who do this stuff for a living. A property manager is expected to handle tenant screening, sorting leases, conducting inspections, collecting rent, coordinating maintenance, and ensuring everything is legal while doing such things. They are the middleman between you and your tenant.

This doesn’t just free up your time – it takes the emotion out of things, which honestly can be one of the trickiest parts of managing your own place. Try chasing someone for late rent when you have been dealing with them directly for ages. It is awkward to say the least.

Time is Money 

One of the biggest wins with professional management is getting your time back. Yeah, management fees are a thing, but so is your time – and it’s worth something. Think about all those hours you would be spending answering e-mails, lining up tradies, chasing overdue payments, dealing with maintenance dramas, even at odd hours.

When you actually think about what else you could be doing with that time and the opportunity cost, suddenly the money you are “saving” by self-managing your property/ies may not look so impressive.

Staying on the Right Side of the Law

Victorian tenancy laws are no joke. They are exhaustive and change frequently, and even small errors in this legal rigmarole can land you in legal disputes, fines, or your place losing tenants.

Professional property managers are trained to handle these challenges. They are expected to know how to obtain the leases correctly, issue the appropriate notices, and handle matters properly. For landlords doing it themselves, keeping up with legal changes related to property management while juggling everything else can be genuinely tough – and getting it wrong can cost them big time.

Finding the Right Tenant Makes All the Difference

A good tenant makes owning a rental property feel like a breeze. Rent comes in like clockwork, they look after the place, and everything just works smoothly. A dodgy tenant, on the other hand, can cause stress, missed payments, potential damage, and a whole lot of sleepless nights.

This is where experience really counts. Professional property managers use proper screening processes – employment checks, rental history, calling up references, etc, to really scan the applicants. They review applications every single day and know exactly which red flags to watch for that might not be obvious to you.

Maintenance: Easier Said Than Done

Even well-maintained properties need ongoing attention. Things break, stuff wears out, and many things need servicing. If you are managing property on your own, you have to find tradies, get quotes and schedule the work if something in your property needs renovation or repair.

Expert property managers are expected to have a solid network with tradies and can get quicker service at more affordable prices. Prompt renovation and repair of your property can make your tenants happy and also safeguard your property before small issues snowball into expensive affairs.

Awkwardness of Chasing Rent

Even at the best of times, chasing late rent is uncomfortable. It can adversely affect relationships with tenants, especially if you have been working with them for months or even years.

A property manager saves you from such uncomfortable situations, protects your cash flow, and keeps things respectful with the tenant. 

Finding Tenants at the Right Price

If you have bought a property to earn money, then every week your property sits empty is a potential loss. Getting the price right, marketing it well, and running smooth inspections are crucial for minimising the gap between tenants. Getting the right rent is a tricky affair, as for a given real estate South Yarra rent may be high, while for a real estate of a similar level, the rent in a modest locality may be much lower.

If you want to find tenants for your property quickly and at the best price possible, property management companies have the tools to make it happen. They have the market data, are aware of the market trend and have presentation strategies to attract high-quality tenants.

Landlords going it alone might struggle to price their property accurately or market it effectively, leading to longer vacancies and lost income. And that can quickly wipe out whatever you are saving on property management fees.

Talk About Cost

Cost is usually the main reason people think about self-managing. Management fees are right there on paper, while the costs of doing it yourself are latent. 

But avoiding management fees doesn’t mean there aren’t costs – you are just shifting them around. The time you spend managing, potential legal slip-ups, longer vacancies, dealing with maintenance as it happens rather than preventing it, and tenants not sticking around – all of these can eat into your returns.

Often enough, a good property manager actually improves your bottom line by boosting rental income, reducing vacancy, and preventing problems that didn’t need to happen.

When Self-managing Might Work

However, self-management of property can work in some situations. If you live close to your rental, have a solid handle on tenancy law, actually enjoy being hands-on, and have the time to spare, it might be manageable – particularly if it’s just one property.

Choosing the Right Property Management Partner

If you decide professional management is the way to go, picking the right company matters. You need clear communication, transparency, proper local market knowledge, strong tenant screening, and proactive maintenance. 

We at Besser & Co have been successfully working with property owners across South Yarra and greater Melbourne, and we provide property management tailored to our clients’ and potential clients’needs. We know that every investor’s situation is different, which is why we keep things personal, proactive, and grounded in local know-how.

The Bottom Line

At the end of the day, choosing between self-managing and getting a property management company comes down to how you value your time, how much risk you are comfortable with, and what your long-term investment goals look like.

If you want control and you are happy to put in the time and energy it takes, self-management might be your thing. If you would rather have a professional perspective, less stress, and the confidence that your property is being managed by professionals, bringing in a property management company is usually the smarter call.

Still tossing up which way to go? Have a chat with an experienced property manager. Why not call us to have a word?

FAQs

Should I self-manage my rental property or hire a property manager?

One can go for self-managing of property/ies if one has the time, legal knowledge, and patience to handle real estate-related issues from time to time. But if you have less time to spend on property matters and want fewer headaches, it is pragmatic to hire a good property manager to manage one’s property/ies.

Will I save money by managing my rental property myself?

You may save on management fees, but managing your property on your own may cost you time, and may lead you to more mistakes and longer vacancies. 

How much time does self-managing a rental property take?

Self-managing a property can take several hours a month if the going is smooth but it may take a lot more time when some property-related issues emerge unexpectedly. 

What risks do I face if I self-manage my rental property?

Legal mistakes or blunders, poor judgment in the selection of tenants and delayed maintenance are some of the biggest risks while self-managing your rental property.

When should I hire a property management company?

One should hire a property management company when for him/her time spent on self-property management, its stress or legal complexity outweighs the savings accrued from self-management of the property.