So you've bought an investment property in Bunbury and are looking to rent it out – congratulations!
No doubt a huge amount of consideration and planning has gone into this decision so far, but there's at least one more major choice. Should you hire a local property manager, or look after the real estate yourself?
Here are the main pros and cons of each call to help you make this last big decision.
Managing your own rental property is the best way to keep a very close eye on the unit or house, and really get to know your tenants. It will therefore ensure you create relationships with the people living there and may be better able to create trust between you both.
Naturally, doing it yourself may save you money as you won't need to pay anyone else to do it. Fees will usually sit at around 5-10 per cent of your monthly rental income per month.
Easily the largest con of doing it yourself is the time it will take to rent the space, talk to potential tenants, accept applications, choose your tenants, and simply manage their issues. This can all take up a huge amount of time – especially if you've never done it before – and may end up costing your more in valuable time than hiring a property manager would cost you in cash.
Another downside is having to learn to manage disputes and issues. Some people simply won't be inclined to evict tenants or make other tough decisions, and the legal aspects of the job can take some learning.
The largest benefit here is by far the time, effort and stress that you won't have to deal with. A property manager does everything from advertising the space, to finding the right tenants, and resolving issues as they arise. You'll be notified if and when anything major crops up, but otherwise you won't have to worry about your investment at all.
Also, you can have confidence knowing that an expert is on the case in case of any difficult legal or financial issues with the tenants.
There are few cons to hiring a property manager.
The costs of management are small, and certainly negligible compared with the benefits you gain, but this may be seen as a negative by some.
You will also have less involvement in the property itself, so having a property manager make decisions – such as which tenants to accept – may be a downside if you're looking to have total control over such choices.
To find out more about what property management can do for you, call Ray White Bunbury for a discussion about your property.