Managing a rental property business isn’t a passive income dream, it’s a business. From legal compliance and rent collection to emergency repairs and screening tenants, every aspect demands your time, money, and attention. At some point, every investor faces the same fork in the road:
Should you manage your property yourself or hire a property manager?
Having managed multiple investment properties across different Australian states, I’ve wrestled with this decision. I’ve tested different providers, evaluated costs, and experienced both top-tier management and poorly handled situations. In this article, I’ll walk you through everything I’ve learned — step-by-step.
What Does Managing a Rental Property Actually Involve?
Before you decide whether to self-manage or outsource, it’s critical to understand what property management really entails:
- Rent Management: Ensuring correct rent is paid on time, issuing receipts, and maintaining the rental ledger.
- Tenant Issues: Addressing problems like unapproved pets or damages, and managing difficult conversations.
- Lease Agreements: Creating, managing, and renewing leases in accordance with tenancy laws.
- Maintenance Coordination: Diagnosing issues, getting quotes, hiring tradespeople, and confirming job quality.
- Inspections & Viewings: Conducting routine inspections, managing condition reports, and holding viewings.
- Compliance: Staying up to date on tenancy laws and requirements across different states.
“I’ve had instances where the rent for some reason was just changed in the middle of a cycle. Someone ended up transferring less rent for a week, and that sort of thing needs to be spotted and corrected by a property manager.”
This is the kind of detail people miss until something goes wrong. A good manager keeps things compliant and smooth, a bad one, or no one at all, turns small issues into major headaches.
Self-Managing vs Hiring a Property Manager
Let’s break down the real pros and cons of each approach.
Self-Managing Your Rental Property
✅ Pros:
- Save money on management fees
- Full control over tenants and property
- Direct communication with tenants
❌ Cons:
- You’ll be contacted at inconvenient times
- Must stay legally compliant yourself
- Risk of emotional decisions with tenants
- High time cost for tasks like quotes, inspections, and disputes
“It’s all fine, until it’s not. I’ve seen self-managed properties go from no work to massive issues in days. That’s the danger — you won’t always see it coming.”
For landlords with only one or two local properties, and the time and confidence to handle the law and logistics, it can work. But be cautious, especially with things like insurance.
“Not all landlord insurance providers will insure you if you’re self-managing. You need to check that before committing.”
Hiring a Property Manager
✅ Pros:
- Saves you time and stress
- Expert at tenant screening and dispute resolution
- Handles everything from maintenance to lease renewals
- Lower vacancy rates and better rent outcomes
❌ Cons:
- Costs can range from 5.5% to 9.9% of rent + extra fees
- Quality varies significantly across agencies
- Still need to monitor their performance
“I’ve had a cheap manager miss rent entirely. Tenants were angry because I asked for repairs to be quoted, but it took days to even get the quote. I ended up switching to a more expensive manager, and it was the best move.”
When done right, a good property manager isn’t a cost, it’s an investment.
“The property manager I use now is all over it. They raise issues immediately, take initiative, and I know everything’s being handled. The tenants are happier too.”
How Much Does a Property Manager Actually Cost?
Let’s look at the real numbers:
| Service | Typical Fee |
|---|---|
| Leasing Fee | 1–1.5 weeks’ rent + GST |
| Ongoing Management Fee | 5.5%–9.9% of weekly rent |
| Advertising & Marketing | $250–$400 |
| Photography (for listings) | $150–$250 |
| Lease Renewal Fee (if charged) | ~0.5 weeks’ rent |
| Additional services (sheriff, tribunal, etc.) | Case-by-case fees |
“I usually pay around 7% for management. In WA, I’ve seen up to 10%. But I always ask can you do better on the rate? You’d be surprised how often they say yes.”
Even if you’re spending $2,000–$3,000 a year on management, consider this:
“I could be missing out on $50,000 in business revenue trying to save two grand. I’d rather focus on growing my business than answering emails about a leaky tap.”
How to Choose the Right Property Manager
This is where most people go wrong, they assume all managers are the same. They’re not.
Here’s what I’ve learned the hard way:
- Don’t go with the cheapest option. They often lack systems, staff, or care.
- Ask for recommendations from your mortgage broker or buyer’s agent.
- Speak to three local agencies before deciding — compare not just rates, but communication style.
- Look for initiative. Are they proactive? Do they flag issues? Or are you chasing them?
“The worst managers made me feel like I was still self-managing, I had to follow up constantly. A good one owns the problems and comes with solutions.”
Final Decision – What Should You Do?
There’s no universal answer. But based on years of experience, here’s how I see it:
You should self-manage if:
- You have the time and interest to learn tenancy law
- Your property is local and easy to access
- You want full control and direct involvement
You should hire a property manager if:
- You have other commitments (job, business, family)
- You own multiple properties, or they’re in different states
- You want to reduce stress and maximise returns
- You value your time at more than $30/hour
“For me, it’s simple. I’ve always chosen to hire a manager. Could I manage it myself? Probably. But I’d do it worse, it would distract me, and it’s not where my skills lie. It’s just not worth saving a couple grand when the opportunity cost is so much higher.”
Final Thoughts: Don’t Try to Be a Hero Landlord
If you’re trying to run a business, grow a portfolio, or simply avoid late-night repair calls, then hiring a manager is often the smartest move.
“You don’t need to be the landlord, the handyman, and the property expert all at once. You just need to build a good team.”
So, should you manage your rental property business yourself or hire a professional? For most people the answer becomes crystal clear the moment something goes wrong.
Key Takeaways
- Understand all responsibilities before self-managing.
- Property managers charge fees, but can increase profits overall.
- Not all managers are equal, interview them like employees.
- Use your time where it adds the most value.