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Insight

DIY property management – do you know what you are getting into?

By Lia de Sousa on

There are pros and cons for landlords who manage their own properties as opposed to landlords who employ a property manager to look after their affairs. Are you better off managing your property yourself or do you stand to save more than you spend by paying a property manager to wrangle the tenants for you?

It really comes down to time: how much you value your time and expertise.

Like any field of expertise, the idea is that you pay a little more upfront for greater savings down the track. This holds particularly true for properties that form part of a strata scheme (generally two or more lots on the one title).

Owning a property in a strata scheme gives rise to an array of additional issues pertaining to living in close proximity with your neighbours, and adds another layer of complexity to property management.

Issues may include;

  • Conflict resolution with neighbours
  • Issuing of levy notices
  • Valuations and quotes for insurance
  • Collecting levy contributions
  • Preparing agendas and notices for all meetings
  • Preparing and lodging insurance claims

Appointing a Strata Manager or Property Manager can relieve you of these responsibilities.

Not everyone has the time or experience to deal with these matters.

This is not to say that landlords and property owners should avoid self-managing their investment properties. However, if you do, you need to go into it with your eyes wide open and educate yourself on the amount of work involved before you choose that path. Whitbread have an information library of articles available on our website that may assist you as a property owner.

So, for DIY property management, landlords should consider the following:

  • What are the insurance requirements for an investment property? If it’s part of a strata scheme, do you have Strata Insurance?
  • If your investment property is tenanted, what are you going to do if the tenant defaults on rent or leaves the property uninhabitable. Do you have Landlords Insurance?
  • Do you have the time and/or experience to do background checks on potential tenants?
  • What will you do if the tenant has emergency issues during the night or while you’re on holidays? What’s your management plan and who will you call on at these times?

If you need a quote for Strata Insurance or Landlord Insurance, please contact Whitbread on 1300 424 627.

 

This Whitbread insight article is not intended to be personal advice and you should not rely on it as a substitute for any form of personal advice. Please contact Whitbread Associates Pty Ltd ABN 69 005 490 228 Licence Number: 229092 trading as Whitbread Insurance Brokers for further information or refer to our website.

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