Property is usually considered to be a long-term investment and if managed carefully can yield an impressive return. However, relinquishing control of an investment property to a managing agent will typically cost you around 6 percent of this yield and over the years this amount certainly adds up.
Given this, it's no surprise that many rental property owners carefully consider the benefits of self-managing a property rather than using a property agent to do the same.
In the past, one of the major benefits of using a property agent to manage a property was the fact that agents had a host of insider knowledge and tools at their disposal. But this has changed. With products such as RentBook, private landlords now have access to the proper management tools they need to manage rental properties effectively.
With these sorts of tools at their fingertips, self-managed landlords are able to retain more control over their property and leasing arrangements. They can also ensure that their property and their tenants are given priority. Best of all, they need not worry about agent fees or ongoing commitments and requirements.
Self-managing a property allows an owner to exercise greater control over many areas of the management process, with two key areas being tenant selection and compliance. Typically, a property manager looks after many rental properties, limiting the time that can be devoted to these processes.
Self-managing property owners are able to play a greater role in screening and selecting tenants, and can meet with or interview potential tenants to ensure that a good fit is likely. They can also take the time to discuss any issues or problems that may arise during a tenancy, and discuss how these issues might be avoided.
Private landlords can also implement strict bespoke tenancy agreements, so long as these agreements are written in line with the Residential Tenancies Act. These agreements are an effective way of ensuring adherence to particular needs and requirements, and can provide a mutually beneficial arrangement. In contrast, many real estate agents work with boilerplate agreements that may not necessarily be written to reflect the owner's best interests.
Self managing not only improves return on investment by eliminating the agent fee, it may save on other costs too via improved tenant selection and reduced risk of disputes, resulting in happier, longer term tenants.