Who Needs a Property Manager Anyway???

Hi Matt,

Yes it does get tempting at times, to think… hmmm I could save “X” amount every week by doing the management myself…

But then when you build up to having a few properties, or 10 or 20, you soon realise that your time is MUCH MORE VALUABLE than saving $10 or so dollars a week on mgmt.

Property Managers (good ones) pay for themselves 100 times over, when the s^%t hits the fan! They are qualified and experienced to deal with tenants problems day and night! (or middle of the night)…

Don’t get bogged down with the boring stuff. Spend your time searching for that next deal, and get your “business empire” as automated as you can make it from the start!

Good luck,

Del [biggrin]

Matt,

Focus your time on creating value. Don’t sweat on the small stuff.

I think you would soon come to the realisation if you were to have a few issues, that a PM is definitely worth having. In addition there is a requirement to have a solid knowledge of the relevant legislation. Sometimes, an inadvertant error can cost you.

On the whole, IMO, they are worth their money.

James

Just for what it is worth, I have owned investment propert/ies since I was about 19 (25 years ago) and have never paid to have them managed. I had a bad experience last year, but insurance looked after minor damage and I was out of pocket less than $1000 (excess plus bits and pieces).

I have sometimes asked agents to find tenants in exchange for one week’s rent, but they don’t ever bother because they know they will not be managing the rental. Twice, real estate agents have found me a tenant. One was fine but one was a prostitute who had done time. I prefer to find my own.

I think it comes down to what you know and feel comfortable with. I was 15 when my parents bought their first investment house, so I have grown up with it and feel very comfortable. I have helped renovate 26 houses but don’t feel comfortable being part of the sharemarket. Horses for courses.

What I am saying is that don’t be put off by doing it yourself, but if it becomes a hastle, an agent will gladly take over.

Wylie,

I’m with you. Glad to hear some people have been doing it by themselves for a long time. Of course, I’ve spoken with many older people who have managing by themselves quite large portfoilio’s for donkeys – but aren’t computer literate so you seldom hear from them on forums such as this.

Seven years ago my wife and I arrived at a property we bought in pristine condition the year before to find it trashed. We received a report overseas the month before to say the property was excellent and the tenants were paying their rent and looking after the garden well.

When we inspected the house was trashed, the garden was extinct and there were 3 dead cars upturned on their roof in the front yard. 3 unemployed young guys using the house as a chop shop for $ 50-00 cars. The PM standing next to us was speechless. No comment was offered. The reports sent to us previously were obviously outright lies.

Anyway, enough of me whingeing, problem fixed by running the PM off.

At the end of the day there is only one person who is interested in your wealth.

Now that the wife is a PM – I know first hand how much attention owners get for their money. I’m staggered at how much faith most forumites have in their PM’s ??

Wish I could find one who even showed the remotest of interest…

Cheers,

Dazzling

“Go hard or go home”

I think a bit of both is the best way. Get a PM – but monitor them. Know the law. Write breach notices yourself when you know tenants are behind.
PMs often don’t understand the relevant legislation at all. They also often don’t do even the minimum inspections they’re supposed to, as Dazzling has recounted. I recently met a woman in exactly the same position as Dazzling found him/herself, she’s decided to go the PM in the Consumer Trader Tenancy Trib (NSW) Residential division to get her out of pocket costs back.
I haven’t seen PMs work hard for their money.

Hi Matt

We prefer to have PM’s as saves the hassle of having to worry about the day to day matters and we don’t have to have any direct tenant contact. If there’s a leaky tap or broken window etc we know the PM will take care of it with a couple of phone calls.

If you have lots of time up your sleeve, then you can try and give it a go. But you need to consider by doing it yourself, you’re building a relationship with the tenant – what do you do when things get sticky? Are you able to do what needs doing or would you feel guilty about increasing the rent or evicting them if they fall behind in their rent?

It all comes down to what type of person you are and whether you like dealing with conflict situations – if you don’t, then definitely get a PM!

Good luck!
Jenny

Hey Cruiser
Sorry you haven’t seen any PM’s work hard for their money, means you haven’t seen any good ones in action. But they’re out there, and having been a solo PM myself, I know the good ones are all underpaid considering the personal risk, flak, stress, level of responsibility, hours, skills required, knowledge required, hell – they deserve every lousy dollar they get. If it was easy, everyone would be managing their own properties.
cheers [wink3]
thecrest