Should You Self-Manage Your Investment Property?

Self-Managing vs Using a Professional Property Manager

Self-manage rental property responsibilities can quickly become more involved than many investment property owners initially expect. While managing your own property can save management fees, it also means taking responsibility for renter selection, rent collection, maintenance, inspections, compliance and Victorian rental laws.

If you’re considering whether to self-manage rental property arrangements or engage a professional property manager, it’s important to understand both the advantages and responsibilities before deciding.

At Verdi Property Management, we regularly speak with rental providers who have previously managed their own properties and are considering professional management. For some investors, self-management works well. For others, the time commitment, legislative responsibilities and complexity of managing a tenancy make professional property management worthwhile.

This guide compares both approaches to help you make an informed decision.

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What Does It Mean to Self-Manage a Rental Property?

When you self-manage a rental property, you take responsibility for the day-to-day management of the tenancy rather than engaging a property management agency.

Depending on the property and tenancy, this can include:

• Advertising the property
• Responding to enquiries
• Conducting open inspections
• Processing applications
• Selecting renters
• Preparing rental agreements
• Collecting and monitoring rent
• Managing the bond process
• Conducting routine inspections
• Coordinating maintenance
• Managing rent reviews
• Issuing notices
• Keeping appropriate records
• Managing arrears and breaches
• Handling disputes
• Staying informed about changes to Victorian rental legislation

If everything runs smoothly, some of these responsibilities may require relatively little attention. The challenge often comes when something doesn’t go according to plan.

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Advantages of Self-Managing Your Rental Property

Self-management isn’t necessarily the wrong choice. There are some genuine advantages.

Saving Property Management Fees

The most obvious benefit is avoiding ongoing property management fees.

For rental providers comfortable handling the work themselves, this can reduce the direct operating costs associated with the property.

However, it’s worth comparing the saving against the time required to manage the property and the potential financial impact of mistakes, extended vacancy or compliance issues.

Direct Communication With Renters

Self-managing allows you to communicate directly with your renters.

Some rental providers value having this relationship and prefer being personally involved in decisions regarding their property.

Complete Control

You make every decision yourself—from renter selection and maintenance approvals to rent reviews and property improvements.

For experienced rental providers with sufficient time and knowledge, this level of control can be appealing.

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The Challenges of Self-Managing an Investment Property

The potential disadvantages become more significant when you consider everything involved in managing a tenancy properly.

1. Understanding Victorian Rental Laws

One of the biggest responsibilities when you self-manage a rental property is compliance.

Victorian rental legislation regulates many aspects of the tenancy, including:

• Minimum rental standards
• Safety requirements
• Rental agreements
• Bonds
• Rent increases
• Entry to the property
• Repairs
• Notices
• Ending a tenancy
• Renter privacy
• Record keeping

Using an incorrect notice, missing a required timeframe or misunderstanding your obligations can potentially create disputes or invalidate actions you’ve taken.

Professional property managers deal with these requirements every day and are expected to keep up with legislative changes.

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2. Finding and Selecting the Right Renter

Finding a renter isn’t simply about choosing the first applicant who wants the property.

Good renter selection requires a consistent application and verification process.

This can include reviewing:

• Rental history
• Employment
• Income
• References
• Identification
• Application information
• Overall suitability for the property

The objective isn’t simply to fill the property quickly. It’s to secure a suitable renter while following applicable legal requirements.

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3. Setting the Correct Rent

Rental providers understandably want to maximise their rental income.

However, setting the rent too high can increase vacancy, while setting it too low can reduce the property’s annual return.

Professional property managers regularly monitor:

• Comparable rental properties
• Recently leased properties
• Competing listings
• Local enquiry levels
• Property features
• Current market conditions

This helps establish a realistic market rent rather than relying solely on an online estimate or advertised prices.

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4. Managing Arrears

Rent arrears can quickly become stressful when you’re personally managing the renter relationship.

You need systems for identifying missed payments, communicating with renters and taking the appropriate action when necessary.

There are also legislative requirements around notices and tenancy processes.

A professional property manager provides separation between the rental provider and renter while managing arrears consistently and professionally.

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5. Coordinating Repairs and Maintenance

Maintenance is one of the most time-consuming aspects of managing an investment property.

A maintenance request can arrive at any time.

You may need to:

• Determine how urgently the repair needs to be addressed
• Contact appropriate trades
• Arrange access
• Obtain approval or quotes
• Follow up contractors
• Check the work has been completed
• Maintain invoices and records

Experienced property managers generally have established relationships with contractors and systems for coordinating these jobs efficiently.

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6. Conducting Routine Inspections

Routine inspections aren’t simply an opportunity to check whether the property is clean.

A thorough inspection should help identify:

• Maintenance concerns
• Water leaks
• Mould or moisture issues
• Deterioration
• Damage
• Safety concerns
• Items requiring preventative maintenance
• Potential tenancy issues

Professional inspection reports also create an ongoing record of the property’s condition.

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7. Managing the Emotional Side of the Tenancy

This aspect of self-management is sometimes underestimated.

When you own the property personally, disagreements about rent, maintenance, damage or bond claims can become emotional.

A property manager acts as an intermediary.

They can communicate professionally with renters while providing the rental provider with objective advice based on the tenancy, available evidence and applicable requirements.

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8. Handling Vacates and Bond Claims

The end of a tenancy can be one of the more complicated stages of property management.

You may need to:

• Process notice requirements
• Arrange the final inspection
• Compare entry and exit condition reports
• Distinguish damage from fair wear and tear
• Calculate outstanding rent
• Obtain repair quotes
• Manage bond claims
• Negotiate disagreements
• Prepare evidence if a dispute proceeds further

Detailed documentation throughout the tenancy becomes particularly important at this stage.

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9. Managing Your Property When You’re Unavailable

Ask yourself what happens if a maintenance issue occurs while you’re:

• At work
• Travelling
• On holiday
• Sick
• Spending time with family
• Otherwise unavailable

Investment properties don’t always require attention at convenient times.

Professional management provides an ongoing point of contact for renters and contractors without requiring the rental provider to personally coordinate every issue.

How Much Time Does Self-Management Take?

There isn’t a fixed number of hours.

A good tenancy with minimal maintenance may require relatively little attention for periods of time.

However, workload can increase significantly when:

• The property becomes vacant
• Applications need processing
• Rent falls into arrears
• Maintenance increases
• A renter vacates
• A bond dispute occurs
• Legislative requirements change

This unpredictability is one of the main reasons investors choose professional management.

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Is Paying a Property Manager Worth It?

This depends on your circumstances.

Rather than looking at the management fee in isolation, consider the value provided through:

• Reduced administration
• Professional renter selection
• Market-based rent reviews
• Vacancy management
• Routine inspections
• Maintenance coordination
• Arrears management
• Record keeping
• Compliance support
• Professional renter communication

For many investors, the primary benefit isn’t simply saving time. It’s having someone responsible for proactively managing the property.

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Who Might Be Suited to Self-Management?

Self-management may suit a rental provider who:

• Has substantial knowledge of Victorian rental legislation
• Has enough time to manage the property
• Is comfortable dealing directly with renters
• Has reliable trades available
• Maintains detailed records
• Can remain objective during disputes
• Is prepared to keep up with legislative changes

If you’re comfortable with those responsibilities, self-management may be a reasonable option.

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When Should You Consider a Property Manager?

Professional management may make more sense if you:

• Have limited time
• Own multiple properties
• Live away from your investment property
• Don’t want to manage renter communication
• Aren’t confident with Victorian rental laws
• Want assistance managing maintenance and compliance
• Prefer professional separation from renters
• Want detailed reporting and routine inspections

It can also be worth considering professional management after experiencing difficulties with a self-managed tenancy.

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Frequently Asked Questions

Can I Self-Manage My Rental Property in Victoria?

Yes. Rental providers can manage their own rental properties. However, self-managing means taking responsibility for complying with the applicable Victorian rental laws and managing the tenancy correctly.

Do I Need to Understand Victorian Rental Laws If I Self-Manage?

Yes. Self-managing rental providers need to understand their obligations relating to matters such as minimum standards, repairs, entry, rent increases, bonds and notices.

Can I Change From Self-Management to a Property Manager?

Yes. You can appoint a property manager after previously managing the property yourself. The agency can then help transition the management and establish the appropriate systems and records for the tenancy.

Can a Property Manager Take Over an Existing Tenancy?

Yes. A property management agency can generally take over the management of a property that already has renters in place. The handover typically involves obtaining the tenancy documentation and records and notifying the relevant parties of the management change.

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Considering Professional Property Management?

Choosing whether to self-manage your rental property ultimately comes down to how much time, knowledge and involvement you want to dedicate to managing the tenancy.

Self-management can save management fees, but it also means accepting responsibility for leasing, renter communication, maintenance, inspections, compliance, arrears, documentation and disputes.

At Verdi Property Management, we provide dedicated property management services to rental providers throughout Geelong. Our approach is proactive and personal, with a focus on protecting your property, maintaining clear communication and making investment property ownership simpler.

If you’re currently self-managing and wondering whether professional management could be worthwhile, contact Verdi Property Management for a confidential discussion about your property and what’s involved in transferring the management.

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Frequently Asked Questions

Are Property Management Fees Tax Deductible?

Property management fees associated with earning rental income may be deductible in certain circumstances. The applicable tax treatment depends on your individual circumstances, so confirm this with your accountant or registered tax agent.

Can I Claim Repairs to My Investment Property?

Some repairs may be deductible, while improvements, replacements and capital works can be treated differently. The nature and timing of the work can affect its tax treatment, so retain your invoices and seek professional taxation advice.

Do I Need a Depreciation Schedule?

Not every property investor will benefit equally from a depreciation schedule. A qualified quantity surveyor can assess your property and determine whether preparing one is worthwhile.

What Should I Give My Accountant at EOFY?

This will depend on your circumstances, but commonly requested records include your property management EOFY statement, loan interest information, rates, insurance, maintenance invoices and details of other property-related expenses.

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