Real estate agent fees are one of the main expenses of owning an investment property.
Investors who manage their own property might be able to save thousands per year, but is it worth it?
Depending on your state, agent management fees generally range between 5-12% of your weekly rent income. In Tasmania, 43% of investors are self-managing, with agent fees reaching up to 12% of weekly rent. In New South Wales, agent fees average to be about 7% of rent and less than a quarter of investors choose to self-manage.
Being a self-managing landlord can save you a lot of money, but before rushing to fire your agent, consider whether the obligations of being self-managed will be sustainable for you.
Managing your own rental property takes up a considerable amount of time. You’ll have to deal with repairs and maintenance, cleaning, negotiating, advertising and sourcing tenants, which you’ll have to do quickly not to lose rent.
Property managers also deal with complex issues like disputes and breach notices, which can be stressful. Sometimes tenants also prefer dealing with agents as they are often perceived to be more experienced and knowledgeable in all areas of leasing.
Whether self-managing your property or hiring an agent is right for you also depends on how many investment properties you have and your lifestyle.
If you have multiple properties and work full-time, finding the time to manage them can be challenging. If you go on holiday regularly, you may not want to be disturbed by something that needs repairing in the middle of your trip.
Some self-managing landlords choose not to hire an agent to save on fees and to have more control over their property and interaction with their tenants. You can consider which option is best for you based on your abilities, time and values.