G'day all,
There is an old chinese proverb that goes something like this......."Man that have 1 foot each in 2 boats, soon sinks"
What are we trying to be here? Are we property investors or property managers.
For most people, self managing rental properties is a disaster, I have seen it time and time again.
For the measly amount that one has to pay to get proffessional management, is it really worth self managing.
The tenancy acts and regulations are a minefield for the inexperienced and unless one has the time and the inclination to totally familiarise oneself with the requirements of the acts, then one is heading for trouble especially if one happens to get one of those tenants that seems to have a hotline to a local tenants union or association.
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I am a licensed Estate Agent and I believe I have a very good working knowledge of the relevant acts, but I still entrust the management of my property portfolio to a property manager.
A property manager does this for a living, they spend their working week "managing properties" day in, day out.
Part of their job includes keeping up with all relevant changes to the acts and the associated forms and paperwork that goes with it.........do we really want to be bothered with all this rubbish and red tape?
I for one, have better things to do with my time, like...
reading the real estate sections of newspapers,
checking out the online real estate sites,
dropping in and having coffee with estate agents,
driving around areas of interest,
playing the playstation with the kids,
sleeping,
...........boy I have a busy life, don't know where I'd find time to do this property management thing.
Last financial year I paid over $21,000 in letting fees and collection commission to my property managers office,
I can guarantee that with the extra time I had, it enabled me to make at least double this amount........and that's being ultra conservative.
By all means go out and self manage if that's what you want to do, but remember we all have the same amount of time available to us, how profitably we use our time is up to us......What is the best use of your time?
regards