If you own an investment property in New South Wales, one of the first decisions you’ll need to make is whether to manage it yourself or engage a professional property manager. Both options have their pros and cons, and the right choice depends on your lifestyle, experience, and tolerance for risk and responsibility.
Here’s a breakdown to help you make an informed decision:
Self-Managing Your Property
Managing a rental on your own might seem appealing, especially when you consider the potential cost savings, but it comes with serious responsibilities.
Pros of Self-Management
- Lower Costs: You can avoid monthly management fees, leasing commissions, and other agency-related expenses.
- Hands-On Control: You get to personally select tenants, set terms, and make decisions about repairs, inspections, and rent increases.
Cons of Self-Management
Time Intensive: You’ll be handling everything—from advertising and tenant screening to rent collection, repairs, and routine inspections.
Stress & Emotional Toll: Dealing with difficult tenants, late payments, or maintenance emergencies at odd hours can become overwhelming.
Hiring a Property Manager
A property manager acts as the buffer between you and your tenants, handling day-to-day issues, maintenance, legal compliance, and more.
Managing a rental property on your own may seem like a cost-saving move, but many landlords quickly discover that the risks, legal responsibilities, and time commitments can outweigh the benefits. A qualified property manager can not only help avoid stress but also safeguard your investment. Here’s how they assist with the most common landlord headaches:
Rental Arrears & Rent Default
When tenants fall behind on rent, it can create immediate financial pressure. Property managers use automated systems to track rental payments and act swiftly when arrears occur. Under the Residential Tenancies Act 2010 (NSW), a termination notice can be issued when a tenant is more than 14 days behind in rent. A good manager understands these timelines and ensures notices are issued correctly to protect your ability to recover possession or debt.
Property Damage, Pet Damage & Excessive Wear and Tear
Distinguishing between fair wear and tear and actual damage can be legally complex. Property managers conduct routine inspections (typically every 6 months), supported by detailed condition reports and photos. These are essential when claiming damages from the bond or insurance.
Vacancy Periods
Every week your property sits empty, you lose money. A skilled manager minimises vacancy through proactive advertising, tenant database matching, and well-timed lease renewals.
They handle property showings, pre-screen applicants, and advise you on setting competitive rent, all to keep your cash flow uninterrupted. They also navigate the minimum notice periods required under NSW law when advertising or ending a lease.
Tenancy Regulations & Tribunal Representation (NCAT)
The NSW Residential Tenancies Act 2010 is strict and ever-changing. Non-compliance can result in fines or lost tribunal cases. Property managers keep your lease documentation, notices, and procedures aligned with the law.
Interest Rate Hikes, Negative Equity & Mortgage Pressure
Interest rate increases affect your mortgage, but not always your rental income. A property manager helps you adjust rent appropriately (in line with market value and lease rules), ensuring your return keeps up. They can also help with timing lease renewals, so rent increases are permissible under legislation (e.g., once every 12 months for periodic agreements under Section 41 of the Act).
Maintenance and Repairs
Tenants are entitled to a safe and habitable property under Section 63 of the Residential Tenancies Act. Delayed repairs can lead to compensation claims.
Insurance Claims & Landlord Protection
Insurers often deny claims if the landlord hasn’t met their obligations—like timely inspections or proper documentation. A property manager maintains evidence trails (e.g., ingoing/outgoing reports, rent ledgers, notices) that can make or break your insurance claim. They also understand how to navigate the Product Disclosure Statement (PDS) for common landlord insurance policies.
Bond Recovery Issues
Disputes around bond deductions can quickly become emotional and costly. Property managers know how to prepare a strong case, backed by inspection reports, receipts, and legislation (like Section 160 of the Act, which covers the landlord’s right to compensation). They lodge claims through Rental Bonds Online (RBO) and manage disputes through Fair Trading or NCAT if needed.
Compliance Risks (Smoke Alarms, Safety Checks)
Properties must meet strict compliance standards. Under NSW law, landlords must install working smoke alarms, ensure safe balcony railings, blind cords, pool fences, and more.
Strata Disputes & Strata Fees
If your investment is part of a strata complex, disputes can arise over noise, renovations, parking, and by-law breaches. Property managers liaise directly with strata managers, attend meetings if needed, and represent your interests. They also monitor strata levy payments, which can affect your property’s financial performance.
Economic Downturns
During slow markets, self-managed landlords often struggle to attract tenants or determine the right rent.
Land Taxes & Budgeting
While property managers don’t manage your tax directly, they can provide annual summaries and statements that make it easier to claim deductions and forecast land tax obligations in NSW. Their insights help you prepare for costs rather than being caught off guard.
Ingoing & Outgoing Reports
These reports are the foundation for claiming against the bond or insurance. A property manager completes detailed ingoing and outgoing condition reports, usually with date-stamped photos and itemised notes, ensuring you have legal proof in case of damage disputes.
Pet Damage
With changes in tenancy law encouraging more pet-friendly rentals, property managers help you structure leases with pet clauses and appropriate pet references.
Tenancy Tribunal Representation
If you’ve ever been to NCAT, you’ll know how intimidating it can be. A property manager prepares all necessary documents, attends on your behalf, and handles mediation or hearings, maximising your chances of a favourable ruling and saving you hours or even days of your time.
What’s Right for You?
If you have the time, patience, and solid understanding of tenancy law, self-management might work for you. It can be rewarding and cost-effective, but it’s not without risks.
If, however, you value your time, want peace of mind, or simply prefer a professional to handle tenant and legal matters, hiring a reliable property manager could save you time, stress, and even money in the long run.
Tip: Whether you go it alone or with a manager, always make sure your lease agreements, bond lodgements (via Rental Bonds Online) and notice periods comply with NSW legislation. You can learn more at NSW Fair Trading.
Need help deciding? Feel free to reach out to us at Murray Property. We’re here to answer your questions, walk you through your options, and support you in making the best decision for your property.