How a Good Property Manager Protects your Investment, but a Great Property Manager Enhances Your Investment.

Investing in real estate can be one of the most rewarding ways to build wealth, but owning an investment property is far from passive. Once you’ve bought the property, you become a landlord and are responsible for finding tenants, chasing rent, staying compliant with legislation, and maintaining your asset. If this sounds like a lot of hard work, then that’s where a good property manager makes all the difference. They can take all this day-to-day management of owning an investment property out of your hands.

A skilled, professional property manager is more than a rent collector—they will be your partner in protecting and growing your investment.

A Good vs a Great Property Manager.

A common misconception is that property managers simply organise tenants and collect rent. But in reality, their role can be much broader, and a great property manager can be part of your investment “dream team”

Finding a really good property manager is dependent on whether you understand what to look for when employing one! A good property manager will:

• Present and market your property effectively – A good manager will make your property look attractive when listed, arrange for professional photos, and advertise on multiple channels to secure a large tenant pool.
• Screens tenants thoroughly – Conducting reference checks, employment verification, credit checks, and rental history analysis to reduce the risk of arrears or property damage.
• Manage lease agreements – Drafting leases that comply with current legislation, setting clear conditions, and lodging bonds correctly.
• Handles rent collection and arrears – Setting up direct debits, issuing reminders, and taking swift action when rent falls behind.
• Coordinates maintenance and repairs – Using vetted tradespeople to handle repairs promptly, keeping your property in good condition, and ensuring safety compliance.
• Conducts regular inspections – Providing detailed inspection reports with photos, noting any wear and tear or breaches of lease conditions.
• Stays on top of legislation – Keeping up with changes to tenancy laws, safety requirements (like smoke alarms and pool fences), and fair housing standards.
• Provides financial statements – Supplying clear monthly and end-of-year statements to simplify your tax returns.

In short, a good property manager protects the value of your investment while freeing up your time.

Now, how about a great property manager. A great property manager is hard to find, and they should be keeping up to date on the local market trends, property prices, and rental prices and proving you with an update on your asset and how the local market is performing.

A great property manager will be raising the rent to the best yield you can achieve, keeping on top of maintenance before it can turn to worse, and being ahead of the market.

Why Quality Matters, You Get What You Pay For!

When comparing property management fees, it’s tempting to focus only on the lowest rate as you will want to get the highest return possible from your investment which means keeping management costs low. But with property management—like most professional services—you really do get what you pay for. A cut-rate agency may handle twice as many properties per manager, leading to rushed inspections, delayed repairs, or poor tenant screening. These issues often cost owners far more in the long run through rent loss, property damage, legal disputes, or vacancy periods.

A reputable property manager may charge slightly higher fees, but they’ll likely secure better tenants, reduce vacancy, and maintain your property at a higher standard—all of which protects your long-term return on investment. In property management, quality almost always outweighs a small saving on fees.

Risks of Hiring a Bad Property Manager

Just as a good property manager can enhance your investment, a bad one can severely damage it. Common problems with poor management include:

• High tenant turnover – Due to poor communication, slow maintenance, or inadequate screening.
• Rental arrears – Weak rent collection procedures can lead to long-term unpaid rent and costly tribunal proceedings.
• Compliance breaches – Failing to lodge bonds correctly, provide mandatory disclosures, or follow eviction procedures can result in fines and legal liability for the owner.
• Property neglect – Skipping inspections or ignoring repairs accelerates wear and tear, reducing your property’s value.
• Poor communication – Owners left in the dark about arrears, vacancies, or upcoming expenses.

In extreme cases, bad management can result in a vacant property, a damaged asset, or legal penalties. Choosing the right manager is therefore a critical decision.

Choice to self-manage your investment. Pros and Cons of self-managing.

Some investors choose to self-manage their properties to save on management fees or because they enjoy being hands-on. This approach can work for some people, but it carries its own set of responsibilities and risks. Here’s a breakdown:

Aspect	Using a Property Manager	Self-Managing
Tenant Screening	Access to professional tenant databases and processes.	Must rely on your own checks; higher risk of unsuitable tenants.
Legal Compliance	Manager keeps up to date with tenancy laws and deadlines.	Owner must research and comply with all legislation themselves.
Time Commitment	Minimal. Manager handles day-to-day tasks and emergencies.	High. Owner must handle calls, inspections, disputes, and repairs.
Maintenance & Repairs	Manager has network of reliable tradespeople and can negotiate prices.	Owner must source and coordinate trades and ensure compliance.
Rent Collection & Arrears	Automated systems and formal processes to handle arrears.	Owner must chase tenants and handle tribunal proceedings.
Fees	Management fees (usually 6–10% of weekly rent in Australia, plus leasing fees).	No fees, but higher time cost and risk exposure.

Benefits of Using a Property Manager:

• Professional expertise in tenant selection, legislation, and maintenance.
• Saves time and stress, especially for investors with multiple properties.
• Often results in lower vacancy rates and fewer disputes.

Drawbacks of Using a Property Manager:

• Management fees reduce your rental income.
• Quality varies between agencies, so careful selection is essential.
• Less direct control over day-to-day decisions.

Benefits of Self-Managing:

• Save on management fees.
• More direct control over tenant selection, rent setting, and repairs.
• Can be rewarding for owners who live close to the property and have time to manage it.

Drawbacks of Self-Managing:

• Time-consuming, especially if something goes wrong.
• Higher risk of non-compliance with complex tenancy laws.
• Potential emotional involvement in disputes with tenants.

For most investors—especially those with other jobs or multiple properties—a professional property manager is the safer, more efficient choice.

Key Attributes of a Good Property Manager

When evaluating property managers, look for these indicators of quality:

• Low portfolio size – Managers with fewer properties per person can give each property more attention.
• Transparent fees – No hidden charges, clear schedule of fees for leasing, advertising, inspections, and renewals.
• Strong communication – Quick responses to calls and emails, proactive updates on maintenance or arrears.
• Proven tenant screening process – Ask what databases they use and what their arrears rate is.
• Regular training – The agency invests in staff training to stay ahead of legislation changes.
• Positive reviews and references – Online reviews, investor forums, or recommendations from other landlords.
• Detailed inspection reports – With photos and time-stamped notes.

Choosing a property manager with these traits significantly reduces your risks and maximises your returns.

How a Great Property Manager Protects and Enhances Your Investment

A skilled manager does more than prevent problems—they actively add value. A great property manager is expected to set market-appropriate rents and negotiate timely rent increases, resulting in a boost to your rental income. By conducting thorough entry and exit inspections, they ensure any tenant-caused damage is documented and rectified. By arranging preventative maintenance (like gutter cleaning or pest control), they reduce costly repairs in the future. And by staying on top of compliance requirements, they shield you from fines and legal exposure.

This proactive management helps your property retain its value, keep good tenants longer, and maintain steady cash flow—key ingredients for a successful long-term investment.

As a landlord, you should consider a good property manager as an investment, not an expense. They’re employed to protection your asset and improve its performance. While self-managing might seem attractive to save on fees, the time, effort, and risk involved are significant. More importantly, a bad property manager—or no manager at all—can cost you far more in lost rent, damage, and legal troubles than you save on fees.

You truly get what you pay for in property management. By selecting a reputable, experienced manager, you gain peace of mind and ensure your investment property is handled professionally, legally, and profitably.

****