How the public perceives a property manager's role is outdated, since ever-changing legislative requirements and tenant expectations make it more complex and demanding than people assume.
According to the Real Estate Institute of Victoria (REIV), Australians love to take a “DIY approach”, and one area in which investment property buyers sometimes think they can save money is by managing their property themselves.
However, the REIV said property management is not as easy as some might think.
“The notion that a property manager's role basically involves handing out keys, making a few phone calls to check references and calling a plumber in an emergency is outdated,” the REIV said.
“Legislative requirements and tenant expectations mean this is now a complex and demanding role, requiring training and up-to-date knowledge.”
Property managers must also comply with the latest privacy legislation when dealing with landlord and tenant information.
“The days when the receptionist handed out keys in between taking phone calls are gone, with professional property managers requiring extensive training to keep up to date with what is required and the many potential pitfalls,” the REIV said.
“That's worth keeping in mind when negotiating your manager's fee.”
Ireviloution founder and managing director Jo-Anne Oliveri said property owners who have chosen to self-manage their investment properties usually contact a licensed agent at some point during the management process.
“Unfortunately, it is usually at the point when it is too late and they have suffered major financial loss and damage to their properties,” she told Residential Property Manager.
“In trying to save money by evading property management fees, they usually end up losing more than if they’d engaged a licensed agent to begin with.”