The Role of Self-Management in the Current Rental Market
How to confidently navigate the current rental market through technology and self-management.
Empowering Landlords: The Role of Self-Management in a Challenging Rental Market
The rental market in Australia in 2023 has posed escalating challenges, marked by soaring costs, historically low vacancy rates, and a widening power imbalance. In this demanding environment, property owners have an alternative solution at their disposal to manage their property - Self-Management.
Empowering landlords to take control of their rental properties, self-management offers a way to navigate the complexities of the rental market during during difficult times while maximising profitability and maintaining positive tenant relationships and we'll talk a bit more about that below.
Let's talk - The role of the Property Manager
Property managers play an important role in managing the relationship between landlords and tenants, although their primary duty is to act in the best interests of the property owners.
Based on our own experiences and as a business through speaking with thousands of landlords and tenants over the years, we’d say that the roles and responsibilities of a property manager can be somewhat unclear. Sometimes there is a conflict of interest in the property manager's role, particularly around rental increases, where the increase in rent actually increases their fees, so they are in effect, negotiating their own income.
We've heard plenty of stories about property managers believing that they were protecting landlords by not bringing maintenance and repairs to their attention, simply to avoid the cost. Ultimately this impacts the landlord, the tenant and the quality of the asset (the investment property).
That's why we believe there's something to be said about cutting out the middleman and fostering a direct relationship between landlords and tenants. When you see your tenant as a customer who pays for a service, it changes the whole dynamic. Suddenly, you're empowered to make decisions that improve that service, and communication becomes more transparent than ever.
There is also a cost angle worth exploring here. We know that rental prices are primarily driven by supply and demand but when considering a rental increase it’s often also related to cost increases e.g. interest rate rises and their own cost increases.
Approximately 17% of the costs related to an investment property can be controlled and we find self-managing landlords can save a minimum of around $2k a year on agent fees.
Ultimately, if you choose to self-manage it can lead to a better experience for everyone involved. You'll enjoy more open communication, keep more money in your pocket, and ensure your investment property receives the care and attention it deserves.
Looking to switch from your agent? Download the Switch Kit here.
Taking Control and More Flexibility
One of the key advantages of self-managing is the ability for owners to have greater control and flexibility over their rental properties. With a hands-on approach, landlords can directly interact with their tenants, fostering open communication, understanding their needs, and addressing concerns promptly.
By establishing direct relationships, property owners are able negotiate rental terms that work for both parties which will ultimately result in a mutually beneficial agreement. This direct involvement allows you to tailor your approach based on your own specific circumstances, whether its setting rental rates, managing the lease renewal, or addressing maintenance issues efficiently.
Maximising Rental Income
In a world with ever-rising costs, every dollar counts. Self-management provides an opportunity to maximise rental income by eliminating the commission fees associated with the traditional agency model.
Instead of sharing a portion of their profits, owners can retain the full rental amount, enabling them to mitigate the financial impact of rising costs, such as property taxes and interest rates. This financial autonomy allows for more strategic decisions to ensure the rental property remains profitable even in challenging economic conditions.
Read more - 3 Simple Ways to Maximise Your Investment Property Returns.
Building Positive Tenant Relationships
Self-managing means that you’ll have the opportunity to foster stronger connections with your tenants and by being directly involved in the rental process, you can demonstrate a personal commitment to having happy and long-term tenants.
Proactive communication, prompt response to maintenance requests, and fair and reasonable rental agreements contribute to a positive tenant experience. Happy tenants are more likely to renew their leases, take care of the property which reduces vacancies and leaves you with a steady income stream.
Utilising Online Resources and Platforms - Hello RentBetter!
The rise of technology has significantly simplified the process of self-management for owners. Online platforms like RentBetter which are tailored for self-management offer tools and support to streamline various tasks involved in renting out a property.
This technology provides access that is typically usually only available via a real estate agent for a much higher cost, such as rental applications, tenant checks, lease agreements and online rent payment systems, making the entire rental process more efficient and organised.
Using technology, landlords can easily advertise their properties, screen potential tenants, and manage rental payments through one user-friendly system. This digital transformation is aimed to empower owners with the necessary resources to effectively self-manage their properties, without extensive experience.
Want to find out more? Register for a demo of the RentBetter platform.
A Solution for Empowered Landlords.
With the complexities and challenges associated with renting out a property, self-managing landlords have greater control and flexibility in making decisions that align with their specific circumstances Managing your own property eliminates the costs and fees typically associated with property managers and agencies, allowing owners to maximise their rental income during a time when financial stability is crucial.
With the support of online platforms like RentBetter and resources tailored for self-management, landlords can confidently navigate the rental market and take back control of their investment.
