It can be tempting to manage your investment property yourself. After all, why not save a little money in the process? However, the reality is that self-managing an investment property can quickly become a legal and financial nightmare. At MANA Real Estate, we’ve seen firsthand how expensive this decision can be for landlords. The risks are high, and the consequences can be severe. Let’s break it all down for you here.
The Appeal of Self-Management
On the surface, self-managing an investment property may seem straightforward: find tenants, collect rent, and handle any maintenance issues that arise. In theory, you’re saving money on property management fees and keeping more of your rental income. But beneath the surface, there are many legal obligations that come with being a landlord in New South Wales, and failing to meet these can lead to serious problems.
We totally understand why you might be tempted to self-manage to save a few dollars. But the savings might not be worth the potential financial loss that you might face if things go wrong. A well-managed investment property isn’t just about rent collection (although it might seem that way). Managing an investment property is about protecting your asset, maximising your overall returns, and ensuring you’re compliant with state laws and regulations.
When Things Went Wrong
This is a real-life case showing the consequences of self-managing your property.
We recently had a client who had been self-managing their investment property. Things took a turn when the tenant stopped paying rent, and over time, the situation escalated. The tenant, once a renter, essentially became a squatter—living in the property without paying rent and refusing to leave. The landlord had no idea how to handle the situation asked us to step in to take over managing the property and the complexities of evicting their tenant. We stepped in and eventually ended up at the New South Wales Civil and Administrative Tribunal (NCAT). NCAT “can hear and decide tenancy and social housing disputes between landlords and tenants in NSW.”
While we successfully assisted the landlord in removing the tenant, the process was time-consuming and expensive. Unfortunately, because legal processes hadn’t been followed correctly from the beginning, the landlord couldn’t recover all the lost rent. This case highlights a common problem when landlords try to handle things on their own—one simple mistake can have far-reaching consequences.
But most of all, it’s important to do these with proper preparation. You should start gathering evidence which includes residential tenancy agreement, rental bond number, termination notice, and witness statements or affidavits when disputes arise (NCAT, 2024).
The Importance of Legal Compliance
Managing an investment property is much more than making sure rent is paid on time. It involves understanding and adhering to a range of legal requirements. From preparing compliant lease agreements to conducting thorough ingoing condition reports with supporting photos and/or videos, every step is important to protecting your property and your financial interests. A common oversight is not issuing legally compliant rent receipts, which can cause significant issues down the line.
In New South Wales, there are strict regulations around every aspect of tenancy. Failure to comply with these rules puts you at risk, legally. For instance, not correctly handling bond lodgement or not addressing maintenance issues within a reasonable time frame could lead to penalties. Moreover, should a dispute arise with your tenant, you’ll need to ensure every part of your process holds up in front of the NCAT.
At MANA Real Estate, our team has a deep understanding of tenancy legislation, making sure everything is compliant so that you don’t have to be stressed or confused. We act quickly and efficiently when problems arise, making sure your property is well-maintained, tenants are paying their rent, and you’re staying on the right side of the law.
Why You Should Hire a Property Manager
A professional property manager does more than handle the day-to-day tasks of your investment property, they provide you with peace of mind. With a deep understanding of the local market and extensive knowledge of New South Wales tenancy law, MANA Real Estate ensures your property is managed with care and compliance.
By appointing a qualified property manager, you are:
- Minimising risk: Professionals handle legal processes correctly, reducing the risk of costly mistakes.
- Saving time: Managing a property can be a full-time job, especially if issues arise. A property manager takes this burden off your hands.
- Get the maximum return of your investment: A well-managed property means happier tenants, fewer vacancies, and consistent rental income.
When working with us at MANA Real Estate, you can expect high-quality service and support at every step. Our property management team takes a hands-on approach, ensuring you are kept in the loop without having to deal with the teeny-tiny details.
The Bottom Line
Self-managing an investment property might save you some money in the short term, but the potential for things to go wrong is far too high. Avoid the headaches, the legal risks, and the financial stress. Let the professionals take care of it.
At MANA Real Estate, we are here to make your property investment as smooth and profitable as possible.
Book your rental appraisal now and see how our property management team can help protect your investment.
