Self manage or property manager?
Question from Johanna updated on 28th October 2012:
How easy is it to swap from having a property manager to managing my own rental property? My (very good and easy) tenants are staying on for another six-month period and I'd like to renew but take over managing the property myself? What are your thoughts and advice on this?
Our expert Ron Hoy Fong responded:
Hi Johanna If you are not happy with your current rental manager then simply advise them in writing that you are terminating your contract with them, this however does depend on your contract with them if any and it may require a months notice or more. Before considering the management roll of the property yourself be sure you have the time and patience to deal with tenants. Do not alway assume that because tenants are very easy that your life will also be easy. It may very well be that you have an extremely efficient Property Manager and if you take on the management roll without the knowledge and experience, things could turn to custard, ie have you dealt with the Tenancy Tribunal before? When I previously managed my own properties I found it very hard to increase rents periodically and in the long term lost potential rental income, because I was too emotional and sympathized for the tenants. I suggest instead to renegotiate the management fee charges, ask for the rents to be forwarded to you and a weekly basis, and be sure that the rent is at market value as I have found many property manager don't review rents often enough or high enough. Ron Hoy Fong www.ronovationz.com
Ron loves to share his passion for property and his coaching course provides one-on-one mentoring and support that will empower you with tools, strategies and valuable insights so you can achieve investment success and become a property master.