More money, better protection for landlords with PMs

The DIY approach to property management might be tempting – but a new study of 500 landlords shows they are more likely to turn a profit if they have a professional property manager.

The BDRC Jones Donald Australian Private Property Investor Study found 46 per cent of landlords with professional property management were making profits, compared to 34 per cent for those who self-managed.

The study also revealed that landlords who used professional property managers were less likely to be exposed to major costs from bad tenants and law suits.

Eight of ten landlords using professional property managers had the peace of mind of being protected by landlord insurance. For self-managing landlords, that fell to less than half.

General Manager, RentCover, Sharon Fox-Slater, said an asset worth hundreds of thousands of dollars should be both professionally managed and protected with insurance.

“On these figures, the landlords who are the most successful at making money are also those professional enough to take out the insurance they need,” she said.

“It’s also worth taking the time to fully compare what various policies offer. A lot of people spend more time choosing a flat screen TV than researching their options with insurance.”

“Landlord policies are not all alike and don’t all cover the same things and certainly don’t all have the same service if you need to make a claim.”

The survey found:

  • More than 77 per cent of landlords involve a property manager in some aspect of their property management, with more than half handing full management to professionals.
     
  • Only one in 20 – six per cent – make enough money from property to give up their day jobs
     
  • More than three quarters feel “positive about being a landlord” and one in five plan to buy property in the next year to 18 months.
     
  • More than a quarter (28 per cent) of landlords intend to raise rents on their properties in the next six months.
The full survey of 500 landlords is available for purchase from the market research firm at www.bdrc-jonesdonald.com.au.