If you’re a property manager, you may be thinking of saving some money by managing your own properties. But one PM has warned against self-managing.
“I don’t manage my properties, my team do,” says Lisa Indge, managing director and founder of property management firm Let’s Rent.
Ms Indge says keeping yourself emotionally separate from your properties is better for both yourself and your tenants.
“You need that barrier between yourself and the tenant, not just for yourself but the tenant reacts quite differently to another party compared to the owner of the property,” she told The Smart Property Investment Show podcast.
“I think that’s really important because that creates a separation between myself and my tenants, which allows them to negotiate rent increases without an emotional factor coming in, which I have certainly experienced in the past.”
It can be tempting for PMs to manage their own investments as all investors want the biggest return on their investment and saving money in property management will increase returns.
However, when the property is your own, you could allow emotions to get in the way of your judgement. This could affect how you react to tenant requests or it could lead you to set a rent that is too high.
Tenants are more likely to respect a PM who is separate from the property, and using another manager will stop you from becoming too involved in your tenants’ lives.
Keeping your business and your investment separate, and enlisting another PM to manage your property will ensure you avoid the pitfalls of self-management and get the best results from your investment.