PMs know property investors should use their services but not everyone agrees. Here, a successful investor reveals why he thinks he can do it better than the professionals.
Eighty-six per cent of investors use a property manager, according to a recent REA Group survey, but what can PMs learn from the remaining investors who don’t?
Investor Julian Lancey says he is a convert to self-managing.
“I think everybody should manage their own property,” Mr Lancey told The Smart Property Investment Show podcast.
“If you’re capable of doing that, physically capable and smart enough, and have the time and have the skills then you should,” he said.
Mr Lancey said he uses apps to help him market and collect rent for his investments. He also ensures his tenants have everything they need.
“I’m constantly making sure that they’re OK... every year I’ve got new tenants to put in or something to fix,” he said.
Mr Lancey’s experiences with self-managing could provide lessons for PMs who want to attract more clients.
He lists being time-poor and dealing with the unexpected as the top concerns of self-management – both areas where PMs can improve an investor’s experience.
Investors looking for value for money are more likely to be attracted to PMs who have more experience with reducing tenant vacancies and dealing with rental arrears.
Investors who own several properties may also see value in using a PM.
Mr Lancey admitted that only being able in invest in one area is a downside to property self-management, especially as investors are encouraged to diversify their portfolios.
Removing the concerns of owning property in other states will also appeal to investors, and PMs who minimise unnecessary contact and paperwork are highly regarded.
Mr Lancey also shared his horror stories on the podcast, including finding a stripper pole in a studio flat and being expected to pick up rent in the middle of the night, experiences many investors would happily leave to their PM.