Pros & Cons of Hiring a Property Manager
Pros and Cons of Hiring a Property Manager for Your Investment Property
When it comes to managing a rental property, opinions are often divided between those who prefer to self-manage and those who see the value in professional property management. Some private landlords handle the process well—others find themselves overwhelmed or unaware of key legislative responsibilities. The decision ultimately comes down to time, experience, and risk management.
The Evolution of Property Management
Property management, as a profession, has come a long way. Originally, administrative staff in real estate offices handled rent collection and basic tenant communication. Over time, as residential tenancy legislation grew more complex, property management became a specialised service. Today, it takes years to truly master the role—and even the most experienced managers continue to encounter new situations. After 17 years in the industry, we still say: there’s always a first time for everything.
The Pros of Hiring a Property Manager
1. Expertise in Legislation
A professional property manager is across current rental laws and compliance requirements. This knowledge reduces the risk of costly errors, such as mishandling notices or breaches, and ensures your property is managed in accordance with the Residential Tenancies Act.
2. Efficient Rent Collection and Financial Management
From setting market-appropriate rents to managing arrears and rent increases, your property manager handles the financial side of things with clear documentation and regular reporting.
3. Time Savings and Reduced Stress
Routine inspections, urgent maintenance, renter communications, VCAT hearings—these are time-consuming and, at times, stressful. Engaging a professional ensures issues are handled quickly and with minimal disruption to your day-to-day life.
4. Value for Money
In Victoria, management fees generally range from 5% to 15% depending on the property and service inclusions. On a property rented at $550 per week, the annual rent equates to $28,680. At a 7% fee, you’re investing just $2,007.60 annually—less than many insurance premiums—for full-service management of a major financial asset.
The Cons of Hiring a Property Manager
1. Cost for Some Owners
While the cost is generally modest relative to the service provided, it may be viewed as unnecessary by some landlords—particularly those managing a single property with reliable long-term renters.
2. Less Direct Control
If you prefer to personally select tenants or handle every repair decision, hiring a property manager means trusting someone else to act on your behalf.
3. Variable Service Levels
Not all agencies offer the same level of care. This is why choosing the right manager—ideally one with experience, local knowledge, and a strong track record—is critical.
Final Thoughts
Your investment property may be your most valuable asset aside from your family home. With that in mind, the question becomes: why wouldn’t you use a qualified professional to help protect and grow that investment? We’ve heard the horror stories, and we don’t want yours to be one of them.
If you'd like to know more about our management services, please get in touch—we're here to help.
Here are our contact details:
Email: [email protected]
Phone: 0401 431 484
https://www.usrealestate.net.au/agent-profile?agent_id=15846