In the world of property investment, every dollar counts. It’s natural for landlords to look for ways to maximise their returns, and one of the most common considerations is whether to self-manage a property to save on management fees. On the surface, it seems like a straightforward way to boost your bottom line. However, a recent case from right here in WA highlights how this attempt to save money can backfire spectacularly, costing far more in the long run.

A Cautionary Tale from Ardross: The $8,500 Mistake

Think about this: an investor, based in the eastern states, thought they could manage their Ardross rental property from afar. Their goal was simple – save on fees. The result? An $8,500 fine and a spent conviction for breaching Western Australia’s Residential Tenancies Act.

The errors weren’t complex or malicious; they were fundamental mistakes that a professional property manager would never make. The landlord:

• Demanded more than two weeks’ rent in advance at the beginning of the lease.
• Attempted an illegal rent increase during a fixed-term tenancy.
• Failed to lodge the tenant’s bond with the official Bond Administrator correctly.
• Delayed providing the Property Condition Report (PCR) by several weeks.

As the magistrate noted, ignorance of the law is no excuse. This case is a stark reminder that property management is a profession governed by complex, ever-changing legislation. The Commissioner for Consumer Protection’s advice is unequivocal: either dedicate yourself to thoroughly learning the law or entrust your investment to a professional who already has.

Beyond the Law: The Comprehensive Value of a Property Manager

Avoiding hefty fines is a compelling reason to hire a professional, but the benefits extend far beyond simple legal compliance. A skilled property manager is your partner in maximising your investment’s performance while minimising your stress and personal time commitment.

Here’s what a dedicated property manager brings to the table:

• Deep Market Insight: We live and breathe the local market. We understand the nuances of tenant demand, can advise on optimal rent pricing to attract quality tenants quickly, and can strategically market your property to reduce costly vacancy periods.
• Rigorous Tenant Screening: Forget sleepless nights worrying about your tenants. We have access to national tenancy databases and employ a meticulous screening process to check rental history, references, and affordability. This is your first and best line of defence in protecting your asset.
• Streamlined Operations & Maintenance: Your property manager is the single point of contact. They handle the after-hours calls about a broken hot water system, so you don’t have to. They conduct regular inspections to identify maintenance needs before they become major, costly problems and have a network of trusted, qualified tradespeople ready to respond.
• Ironclad Systems & Financial Management: Professional agencies operate on robust systems designed to ensure nothing falls through the cracks. From ensuring rent is paid on time, every time, to managing bills and negotiating lease renewals well in advance, these processes are built for efficiency and security.
• Conflict Resolution & Risk Mitigation: When issues arise, and they inevitably do, a property manager acts as a professional intermediary. They are skilled in negotiation and can de-escalate potential conflicts before they become significant disputes, saving you from the stress and potential legal costs of a tribunal hearing.

The Smart Choice for Your Investment

It is very clear how quickly a situation can deteriorate when handled improperly. It is also evident how seamless, profitable, and stress-free the experience can be when professional management is in place.

If a landlord has an expert-level understanding of the Residential Tenancies Act and an abundance of free time to dedicate to their investment, self-management might be a viable path.

But for those who value their time, their peace of mind, and the long-term security of their asset—and most certainly for those who live interstate or overseas—the smart choice is clear. The fee paid for a professional property manager is not just a cost; it’s a tax-deductible investment in expertise, protection, and performance.

Don’t learn the hard way. Landlords ready to experience the peace of mind that comes with expert property management can contact us today for a confidential discussion about their investment property!