Landlords who use the services of a property manager are 15 per cent more likely to earn positive rental returns compared to those who try to self-manage, new research has found.
It may be something the industry is confident about, but now there is strong research to prove that Australian landlords are better off when they use a professional property manager according to a study by research consultancy group, BDRC Jones Donald.
The BDRC Jones Donald Australian Private Property Investor Study is the first of its kind in a decade.
The national study surveyed 500 Australians who own one or more rental properties, to identify their outlook on the market, intention to buy or sell, overall profitability and use of financial and insurance products.
According to the study, 51 per cent of landlords with professionally-managed properties earn positive rental returns, compared with just 36 per cent of those who self-manage.
“The Australian Private Property Investor Study found that the majority of private investors rely on the professional advice and support of real estate agents to maximise their investment returns,” BDRC Jones Donald managing director, Dr Roger Donbavand said.
“When you consider that Australian investors have seen five changes to the official cash rate in the last two years and the poorest super returns since 2007, it’s no wonder landlords are reaching out to professionals to ensure investment success.”
The study also showed that landlords are receiving positive financial returns with 26 per cent breaking even on their investment, 35 per cent supplementing their normal income from their rental returns and six per cent living solely off rental income.