Self-Managing vs. Using a Property Manager: Which Is Right for You?
Managing your own investment property saves money — but is it worth the time, stress, and legal risk? Here's how to decide.
Property management fees typically run between 7–10% of rental income. On a $550/week property, that's $2,000–$2,860 per year. It's a real cost — and many investors wonder whether they can manage the property themselves and pocket the savings. The answer depends on your situation, your skills, and how much you value your time.
What Property Management Actually Involves
Before deciding, it's worth understanding the full scope of what a property manager does — because many investors underestimate it.
Marketing the property and conducting open inspections
Screening tenant applications and running reference checks
Preparing and executing lease agreements
Collecting rent and managing arrears
Conducting routine inspections (typically quarterly)
Coordinating maintenance and repairs
Handling tenant disputes and complaints
Managing lease renewals and rent increases
Complying with state tenancy legislation
Providing monthly financial statements
Managing vacancies and re-letting
Handling bond lodgement and claims
The Case for Self-Management
Self-management can work well in specific circumstances. The cost savings are real, and some investors genuinely enjoy the direct relationship with their tenants and the hands-on control over their investment.
- • Save 7–10% of rental income annually
- • Direct control over tenant selection
- • Immediate awareness of property issues
- • No communication delays for decisions
- • Can build a personal relationship with good tenants
- • Significant time commitment — especially with issues
- • Must understand state tenancy legislation
- • Available 24/7 for emergencies
- • Emotional decisions can cost money
- • Legal exposure if obligations aren't met
- • Harder to manage remotely
- • Live close to the property (ideally within 30 minutes)
- • Have time available during business hours
- • Are organised and comfortable with paperwork
- • Have a reliable network of tradespeople
- • Are comfortable having direct tenant conversations
The Case for Professional Management
For most investors — particularly those with busy careers, multiple properties, or properties in different locations — professional management is worth the cost. The fee is also tax-deductible, which reduces the real after-tax cost significantly.
On a $550/week property, management fees of 8.5% cost approximately $2,430/year. At a 37% marginal tax rate, the after-tax cost is around $1,531/year — or about $30/week. For most investors, that's excellent value for the time and stress saved.
How to Choose a Good Property Manager
If you decide to use a professional, the quality of your property manager matters enormously. A poor manager can cost you more in vacancies, maintenance delays, and tenant issues than their fee is worth.
- 1Ask how many properties each property manager looks after (under 100 is ideal)
- 2Find out their average vacancy rate and days to re-let
- 3Ask how they handle maintenance requests and what their approval threshold is
- 4Check their tenant screening process in detail
- 5Ask for references from current landlords
- 6Review their management agreement carefully before signing
Disclaimer: This article is for educational purposes only. Tenancy laws vary by state and territory — always check the relevant legislation for your location.
Module 5 covers property management in depth — self-management, tenant screening, maintenance, and maximising returns.