Self-managing your investment property vs employing a property manager
Purchasing an investment property can be a huge achievement in one’s lifetime. Getting to the point where you can begin to build a property portfolio can be hugely rewarding and help to set you up for retirement.
Purchasing property are likely to be the biggest and most expensive purchase you will make. Whether it is your principal place of residence or an investment property, you need to look after them so they will look after you in many years to come.
Here, Nexhome Finance, the Gold Coast’s multi-faceted mortgage broking and home loan company, discuss whether self-managing your investment property or employing a property manager is the best way to manage your investment property.
|Can hand select tenants||Need to have extensive knowledge of tenancy laws|
|Can customise tenancy agreements||Has to represent self in any tenancy disputes and court action.|
|Save money on property management fees||Time consuming|
|Collect rent directly||Need to conduct all inspections yourself|
|Issues are directed straight to landlord, not via a third party||Need to advertise for and vet all prospective tenants|
|Emergency repairs need to be organised by you|
|Has access to database of blacklisted tenants||Resolving issues can be time consuming if dealing with a busy landlord|
|Advertises for and vets all tenancy applications||Rent is collected and transferred to landlord at end of each month after expenses deducted|
|Has experience with tenancy tribunals and represents the landlord in court||Engaging a property manager who is not conscientious|
|Management fees are tax deductible|
|Conducts regular inspections for you|
|Repairs including any emergency ones organised by property manager|
|Issues can be dealt with via the property manager who acts as an intermediary|
As you can see there is benefits to both sides, so it may just come down to personal choice or simply time that sees you engage a property manager or not.
If you’re wanting to invest in a Gold Coast and/or Brisbane property, Nexhome Finance can help you find the right investment loan and with our property sourcing service, can find the right investment property for your situation.
You may not be aware that investment loans can have a stricter eligibility criteria and may require a larger deposit. Interest rates can also be slightly higher than standard home loan rates, so it best to seek qualified information.
With access to over 30 lenders, Nexhome Finance can source the best investment loan for your next investment property, so all you have to worry about is who will manage it!
Call Nexhome Finance today on 0412 525 706. We are a multi-faceted mortgage broking and home loan company specialising in a full suite of finance products.