|
Getting your Trinity Audio player ready...
|
If you’re a property owner, you’ve probably asked yourself:
“Should I manage my property myself or hire a company to do it for me?”
It’s a decision that can impact not just your cash flow, but also your time, stress levels, and overall experience as a property owner.
So, what’s the solution?
For many property owners, the answer is simple: hiring a property management service.
But is it worth it?
Let’s explore the key factors to help you figure out what works best for you—and take a closer look at what others who’ve faced this decision have learned along the way.
How to Decide
The choice between self-management and hiring a property manager isn’t one-size-fits-all.
It depends on your specific circumstances, goals, and how much time you’re willing to invest.
To help you make an informed decision, let’s explore five key questions every property owner should consider.
Q1: Do You Have the Time?
Managing a property is more than just collecting rent.
It’s about handling maintenance, screening tenants, ensuring the property stays in good condition, and dealing with unexpected surprises.
If you’re juggling a full-time job or other responsibilities, your time is likely too valuable to spend chasing plumbers or reviewing tenant applications at odd hours.
This is where a property manager becomes your best ally.
A good property manager will:
- Setting Rent Prices: They’ll analyze the local market to ensure you’re charging the right amount—neither too high to deter tenants nor too low to cut into profits.
- Advertising Your Property: They’ll create eye-catching listings and show the property to prospective tenants.
- Screening Tenants: By running background and credit checks, they ensure reliable tenants who pay on time and treat your property with care.
- Take care of maintenance: From minor fixes to major repairs, they’ve got a network of trusted contractors to get things done.
- Collect rent and handle late payments: No awkward conversations about overdue rent; they’ve got it covered.
- Ensure legal compliance: Rental agreements, local regulations, and zoning rules—they’ll make sure everything is by the book.
If your time is stretched thin, hiring a property manager can provide the freedom and peace of mind you need. But time isn’t the only factor to consider.
Q2: How Close Are You to the Property?
Managing a property from afar can be tricky.
It’s not just about finding tenants or collecting rent—it’s about handling the day-to-day issues that come with property ownership.
When you’re far away, even small problems can turn into big headaches.
Coordinating repairs, monitoring the property’s condition, and addressing tenant concerns are much harder when you’re not on-site.
This is where a property manager steps in as your on-the-ground partner.
They ensure your property runs smoothly, handling issues in real time, so you don’t have to worry about long-distance logistics.
But what if you’re new to property management altogether? Let’s explore how experience plays a role.
Q3: What’s Your Experience Level?
Managing a property might sound simple at first, but it comes with its own set of challenges—especially if you’re new to being a landlord.
Being inexperienced in property management can lead to costly mistakes:
- Choosing the wrong tenants can result in late payments or property damage.
- Misunderstanding local rental laws can lead to legal disputes or fines.
- Overpaying for repairs due to lack of connections or negotiation skills.
For new landlords, hiring a property manager is like having a safety net. They handle the complexities so you can focus on enjoying the benefits of your investment.
However, even seasoned landlords need to consider the financial side of things.
Q4: What’s Your Budget?
Hiring a property manager comes with a cost, usually around 8-10% of your rental income.
At first glance, it might seem like a big expense, but the time and stress you save often make it worth every penny.
Think about how much your time is worth.
Could those hours spent managing your property be better used growing your career, spending time with family, or expanding your portfolio?
For many owners, the question isn’t, “Can I afford a property manager?” but rather, “Can I afford not to hire one?”
Q5: Do I Know the Local Market and Laws?
Setting the right rent, writing lease agreements, and navigating regulations can be tricky, especially in an unfamiliar place.
Missing a detail could result in underpriced rent, legal disputes, or fines.
A property manager’s local expertise ensures your property stays competitive and compliant.
They handle everything from market analysis to lease agreements, so you don’t have to worry about staying up to date on laws and trends.
While these five questions are essential, it’s also important to understand the risks of self-management if you decide to go that route.
The Risks of Self-Management
While managing your property yourself can save money upfront, it comes with risks:
- Vacancies Take Longer to Fill: Without local market knowledge, you might price your property too high or advertise in the wrong places.
- Legal Compliance Issues: Missing out on Bali’s rental laws could lead to fines or disputes.
- Burnout: Handling everything on your own—especially from abroad—can quickly wear you down.
If you’re considering self-management, online tools like TenantCloud or Buildium can help you manage tasks like rent collection and tenant communication.
But even with these tools, self-managing can feel like a full-time job—especially if you have a busy schedule.
So, if self-management feels daunting, hiring the right property manager can make all the difference.
But how do you ensure you’re choosing the best one?
How to Choose the Right Property Manager
Property Management: Tertata Jelas Management (TJM)
Choosing the right property manager is crucial to your success as a landlord. Asking these questions will help you identify the best fit:
1. What experience do you have managing properties like mine?
Experience with similar properties means they understand your needs. Look for someone who has managed villas or rentals in Bali, especially for overseas owners.
2. How do you determine rent prices?
Setting the right rent maximizes income and minimizes vacancies. Ask about their process for analyzing market trends and pricing competitively.
3. How do you screen tenants?
Tenant screening reduces risks like late payments or property damage. Ensure they conduct thorough background and credit checks.
4. What’s your process for handling maintenance and repairs?
Efficient maintenance saves time and money. Look for managers with a trusted network of contractors and a clear process for approvals.
5. How do you communicate with property owners?
Clear updates build trust. Ask how often they’ll update you and what tools they use to keep you informed.
6. What happens if there’s a vacancy?
Minimizing downtime is key to steady income. Ensure they have effective marketing strategies to fill vacancies quickly.
7. What’s your fee structure?
Transparency matters. Most managers charge a percentage of the rent (usually 10%) but clarify if there are additional costs for repairs, advertising, or other services.
8. Can I approve expenses over a certain amount?
Approval thresholds keep you in control. Confirm they’ll consult you for large expenses and provide detailed invoices.
By doing your homework, you can find a property manager who aligns with your goals and provides the support you need.
For more information on finding the best property manager to work for, read this short guide on How to Find a Great Property Manager for Your Bali Villa.
When You Might Skip Hiring a Property Manager
In some cases, self-management could make sense:
- You Have the Time and Live Nearby: Being local and available makes self-management easier.
- Your Units Are Easy to Manage: Long-term tenants and low-maintenance properties are simpler to handle.
- You Want to Save Money: If you’re willing to trade time for savings, self-management can be an option.
But for most property owners managing from afar, hiring a property manager is often the better option.
Looking Back: Was It the Right Move?
Many property owners who tried both options said hiring a property manager was the best decision they made.
The key is to do your homework:
- Interview potential managers thoroughly.
- Set clear expectations for communication and approval of expenses.
- Start with a trial period if you’re unsure.
And if you’ve been managing the property yourself but feel like you’re losing too much time or energy, then maybe it’s time to find help.
The Bottom Line
Deciding between managing your property yourself or hiring a company is personal—it depends on your time, your goals, and your comfort level.
But remember: your property is an investment, and how you manage it affects not just your profits, but also your quality of life.
Want to take the hassle out of managing your Bali property?
At Ilot Property Bali, we specialize in helping property owners like you manage their investments seamlessly from abroad. We offer:
- No Hidden Fees
We handle all the details—taxes, maintenance, and daily operations—with 100% transparency and no administration fees. You’ll know exactly what you’re getting without any surprises.
- High Occupancy Rates
With over 20 years of experience, we ensure your villa stands out in Bali’s market. Our properties average 82% occupancy, meaning more bookings and more income for you.
- 5-Star Guest Service
We offer 5-star hospitality, from personalized concierge services to top-notch housekeeping. This means happy guests, great reviews, and repeat bookings, keeping your villa profitable.
Your time is valuable, and your property deserves the best care.
Let us handle the details so you can focus on what matters most—enjoying the rewards of your investment.
If that sounds valuable to you, contact us below to have a chat with our property expert.
