You can save money by self-managing your property. The average property management fee is about 8% of the rent. Whilst this could be considered a dent in your return, the pros of letting the experts look after it for you are:
- It’s tax deductible and the agent will keep on track of your CPI increases (the additional $10 per week, per year that add up)
- Agents have access to a pool of tradies who look after their properties. As such the tradies are on call and you generally get better rates than if you hired them yourself.
- You will not have to worry about being called at 3am due to a plumbing issue at the property. Having an agent means they will handle emergencies for you.
- Agents do the legwork for vetting a tenant on your behalf. They also deal with those horrible issues such as tenancy disputes.
- Agents provide a summary of the financial position of the property at the end of the year for tax. Throughout the year they account for all income and expenses on the property. This makes tax time a bit more bearable and you aren’t the one hunting around for those receipts.
Speak with your friends and colleagues about the experiences they have had using self-management vs using an agent to help make your decision.