When it comes to managing your investment property in Australia, the decision between self-management and hiring a property manager is a crucial one. While both options have their merits, there are numerous benefits to taking the reins yourself. With Kavaho, the all-in-one property software for landlords, self-management has never been easier or more efficient. Let’s explore the pros and cons of each approach.
The 'set-and-forget' approach
Hiring a property manager can provide convenience and peace of mind. They handle tenant screening, property maintenance, rent collection, and other administrative tasks, freeing up your time. This comes at a cost, as property managers typically charge a percentage of the rental income, which can add up over time.
The DIY Property Management Approach
Self-management offers greater control and financial savings. By using Kavaho, you have access to a comprehensive property management software that simplifies the entire process. From easy to use digital leases, to managing rent payments and maintenance requests, Kavaho streamlines every aspect of property management.
Self-management empowers you to have direct communication with tenants, fostering a better landlord-tenant relationship. You can address concerns promptly and make decisions that align with your investment goals. By being hands-on, you gain valuable insights into your property’s performance and can make informed decisions to maximise its potential.
By utilising Kavaho, you can easily navigate the DIY property management landscape. The software offers a user-friendly interface that consolidates all essential tools and features in one place. From financial reporting and expense tracking to tenant communication and document management, Kavaho simplifies every aspect of property management, saving you time and effort.
Let's be clear - it's cost effective!
One of the key advantages of self-management with Kavaho is cost-effectiveness. With traditional property management, you pay fees continuously, regardless of whether you require their services every week of the year. Often landlords make the fear-based decision to continue using agent services – “What if things go wrong or I have a bad tenant?”. Well, there are two strong counter-arguments:
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Your approach: Due diligence at the start, undertaken during tenant screening, will significantly improve your chances of awarding the tenancy to decent human beings who will be respectful and look after your investment property. The start sets the tone. Continue during the tenancy, honouring the commitment to regular inspections and attending to maintenance matters quickly, and you’ll soon have made a positive impression and developed a good rapport with your tenants.
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Software tools: So much of the management work is now automated that most times there remains little work to do. Choosing a good software tool can make all the difference. One which feels like ‘having an agent in your pocket’ is best. The tool should do most of the management work and give you the support (notifications) and outputs (statements) that you need along the way.
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Artificial Intelligence (AI): If any problem arises for which you need expert input, you no longer need to call an agent. Through a series of smart prompts in any of the popular AI tools e.g., ChatGPT, Gemini, Claude, you can obtain excellent advice on any situation.
For a balanced argument, we should consider the argument against engaging a property manager. Things can and do go wrong with agents. The internet is littered with reports of neglectful agents who make poor tenant selection decisions, fail to undertake routine condition inspections and then refuse to provide the support needed when destructive tenants leave behind more than their fair share of wear and tear. There are no guarantees in their professionalism, but again with proper research behorehand, including testimonials, independent ratings and references, you could minimise the risk of engaging a bad agent.
Only You Can Decide
So, how can you make the decision? Write a list of your objections to DIY Management and against each write what risk mitigation measures now exist. Consider also how you feel about the regular payments of commission to your agent when, during most months, they do nothing other than take your payment. Finally, and if you like the numbers, present the additional costs of these luxury payments i.e., the agents’ fees, in terms of additional months or years on the mortgage. If you back yourself and your ability to use the tools now at your disposal, you could today make an outsized difference to your future wealth.
Summary
Self-managing your investment property in Australia with Kavaho provides numerous benefits. You have full control over your property, foster better tenant relationships, and with the savings in property management fees you pay off the investment loan faster. With Kavaho’s intuitive software, everything you need to effectively manage your property is at your fingertips. So why not take advantage of this powerful solution and embark on a rewarding journey as a self-managed landlord?