The Australian property market continues to attract a wide range of investors — from seasoned landlords to first-time buyers dipping their toes into the world of rental income. But one of the most important decisions every property investor must face is: Should I manage my property myself or hire a professional property manager?
While self-managing your investment property can boost your rental yield, it often demands significant time, energy, and a working knowledge of tenancy laws. On the other hand, property managers offer convenience and expertise — but at a cost.
This article explores the key differences between both approaches, the pros and cons, and tips for deciding what suits your situation. We also reference key data from the Australian property market and offer guidance for landlords looking to maximise returns while minimising risk.
Self-Management vs Property Management: At a Glance
| Factor | Self-Management | Property Manager |
| Cost | No ongoing fees, but time-consuming | 6–10% of weekly rent + other fees |
| Time | High – you handle everything | Low – most tasks handled for you |
| Legal Risk | High if unfamiliar with tenancy laws | Lower (if manager is competent) |
| Tenant Relations | Direct (can be emotional or stressful) | Handled by a third party |
| Maintenance | Must organise everything | Trades arranged on your behalf |
| Control | Full control over decisions | Less control – relies on manager performance |
| Best For | Investors with time, knowledge & flexibility | Busy professionals or multi-property investors |
Costs: Hidden vs Upfront
Self-Management: Save on Fees, Spend on Time
The biggest drawcard of self-managing your rental property is saving on management fees, which usually range from 6% to 10% of weekly rent. On paper, that sounds like a smart move — especially in tight rental markets like Brisbane, Perth, or Adelaide, where rental yields are being closely watched.
But these “savings” can be deceiving.
You’ll still need to pay for:
- Advertising on platforms like realestate.com.au or Domain
- Tenant background checks using national tenancy databases
- Landlord insurance, a must-have for any investor
- Time off work to handle issues or attend inspections
Worse, mistakes in tenancy paperwork — such as bond lodgement errors or improper eviction notices — can land you in hot water with state tribunals and leave you out of pocket.
In states like NSW or Victoria, breaching tenancy legislation can result in fines, tribunal hearings, and even compensation orders.
Property Managers: Higher Cost, Lower Hassle
Hiring a professional property manager means paying a management fee, usually based on a percentage of your rent. Here’s a rough breakdown of what you might expect:
| Fee Type | Estimated Cost |
| Ongoing Management Fee | 6% – 10% of rent |
| Leasing/Letting Fee | 1–2 weeks’ rent |
| Marketing & Advertising | $100 – $500+ |
| Inspection Fees | $50 – $100 per inspection |
| Lease Renewal Fee | Flat fee or ~1 week’s rent |
| Admin or Postage Fees | $5 – $10 per month |
In high-demand areas like Melbourne’s inner suburbs or Sydney’s Eastern Beaches, these fees can add up. However, good property managers often help minimise vacancy periods, maintain higher rental income, and provide compliance assurance.
Time and Workload: How Hands-On Are You?
Self-Management: Full-Time Job on the Side?
Managing your own property is not passive income — it’s an active responsibility. You’ll be responsible for:
- Advertising the property
- Hosting open homes
- Vetting tenants and doing reference checks
- Writing lease agreements
- Lodging bonds through your state’s rental authority
- Chasing rent arrears and handling disputes
- Organising urgent repairs or maintenance
- Staying compliant with changing laws
If you’re juggling multiple investment properties, the time burden becomes exponential.
Property Managers: Set and Forget (Mostly)
Property managers are a turnkey solution. They handle:
- All communication with tenants
- Regular property inspections
- Rent collection and arrears management
- Emergency repairs
- Lease renewals and rent reviews
- Compliance with local legislation
While you’ll still need to approve major expenses or review monthly statements, the overall time commitment is significantly lower.
Self-Management: One Wrong Step Can Cost You
Every Australian state and territory has its own residential tenancy laws, and they change regularly. Landlords must stay up to date with:
- Bond regulations
- Eviction procedures
- Rent increase restrictions
- Minimum housing standards
- Entry notice requirements
Failing to comply can mean tribunal disputes, fines, or reputational damage — especially in a market that’s become more tenant-aware post-COVID.
Property Managers: Compliance Built-In
A competent property manager ensures your property remains compliant and acts as a buffer between you and legal issues. But be warned — not all managers are equal.
Low-quality agencies might neglect maintenance, ignore rent arrears, or provide poor communication. It’s essential to choose a manager with strong reviews, a transparent fee structure, and knowledge of the local rental market.
Self-Managed vs Property Manager: Which One Suits You?
Use this checklist to decide:
Self-Management is better if you:
- Have properties close to where you live
- Understand tenancy laws
- Have time and patience for hands-on work
- Want full control over tenant selection and repairs
A Property Manager is better if you:
- Work full-time or travel frequently
- Own multiple properties or interstate investments
- Want less stress and peace of mind
- Prefer a professional to manage compliance
Investing in real estate can be a rewarding long-term strategy — but poor management can undermine your returns. Whether you go it alone or hire a professional, it’s important to weigh the costs, time, and legal risks involved.
If you’re unsure, consider starting with a property manager and gradually taking on self-management as you gain experience.
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