If you’re a homeowner in South Australia considering renting out your property, you may be asking yourself: Do I need a property manager? While some landlords prefer to manage their property independently, others rely on the expertise of a property manager. To help you make an informed decision, this guide explores the pros and cons of both options and highlights the key responsibilities and legalities involved in renting out your home.
What Does a Property Manager Do?
A property manager handles every aspect of leasing your property, ensuring a stress-free experience for landlords. Here are some of the key services property managers provide:
- Marketing your property: Listing your property on major rental platforms and attracting potential tenants with a strategic marketing campaign. (See the photos below for the impact of professional photography).
- Tenant screening: Conducting thorough background checks to find reliable tenants.
- Legal compliance: Preparing legally binding tenancy agreements and ensuring adherence to South Australian rental laws.
- Rent collection: Managing payments and chasing arrears when necessary.
- Maintenance coordination: Organising repairs and upkeep to maintain property value.
- Routine inspections: Conducting regular inspections to ensure tenants meet their obligations.
- Bond management: Lodging and handling bond disputes in compliance with Consumer and Business Services (CBS).
The Legal Responsibilities of Landlords in South Australia
Whether you hire a property manager or manage the property yourself, landlords in South Australia must comply with strict legal obligations:
- Training and registration: Anyone managing residential properties, including agents, must complete specific training and register with CBS.
- Rent bidding prohibition: Landlords and agents cannot invite offers higher than the fixed rent amount stated in the tenancy agreement.
- Tenancy agreements: Agreements, whether verbal or written, are legally binding. It’s recommended to have written agreements to avoid disputes.
- Bond lodgement: Security deposits must be lodged with CBS and cannot be accessed by landlords during the tenancy.
- Advertising sales intent: If you plan to sell the property within three months of a new tenancy agreement, this must be disclosed in advertising.
Failing to meet these legal requirements can result in significant penalties, making professional management a safer choice for some landlords.
Navigating South Australia’s Rental Market
South Australia’s rental laws balance the rights and responsibilities of both landlords and tenants. For example:
- Tenants must receive a copy of the tenancy agreement within 21 days of signing.Landlords must keep a copy of all agreements for at least two years after the tenancy ends.
- Bonds are securely lodged with CBS and only used for legitimate costs like cleaning, repairs, or unpaid rent.
Understanding these regulations is essential for successfully managing a rental property, whether you handle it yourself or hire a property manager.
DIY Property Management: Is It Worth It?
According to Realestate.com.au, approximately 33% of Australian landlords manage their properties independently. While this approach can save money, it comes with challenges and responsibilities:
Benefits of DIY Management
- Cost Savings: Avoid paying management fees, which typically range between 6% and 12% of your rental income.
- Direct Involvement: Build direct relationships with tenants and address issues firsthand.
Challenges of DIY Management
- Time-Consuming: Managing tenant inquiries, repairs and legal compliance can be demanding.
- Legal Risks: Ensuring compliance with South Australian rental laws can be complex without professional support.
- Limited Market Reach: Professional property managers have access to larger networks for tenant sourcing.
- Vacancy Losses: A lack of marketing expertise may result in longer vacancy periods, reducing your rental income.
Key Questions to Ask Yourself
Before deciding whether to hire a property manager, consider these questions:
- Do you have the time to manage tenant inquiries, inspections and repairs?
- Are you confident in navigating South Australia’s rental laws?
- Can you handle potential conflicts or disputes with tenants?
- Is your property high-value, requiring meticulous tenant selection and care?
If you answered “no” to any of these questions, hiring a property manager might be the right choice for you.
Why Hiring a Property Manager Can Be Worth It
Expert Knowledge
Property managers are trained professionals registered with CBS, ensuring compliance with all legal obligations. Their expertise can save you from costly mistakes and ensure your property is managed efficiently.
Time-Saving Convenience
By outsourcing day-to-day tasks, you can focus on other priorities while your property is professionally managed.
Maximised Returns
With market insights and effective tenant screening, property managers can secure higher-quality tenants and reduce vacancy periods, ultimately maximising your rental income.
Making the Right Choice
Deciding whether to hire a property manager ultimately depends on your individual circumstances. While self-managing can save on fees, it requires time, effort and a solid understanding of South Australian rental laws. On the other hand, a professional property manager offers peace of mind, legal compliance and expert support, making it a worthwhile investment for many landlords.
If you’re ready to take the stress out of managing your rental property, our experienced property management team is here to help. Contact us today for a consultation and discover how we can protect your investment and maximise your returns.
