Do I need a property manager?

By Carolyn Parrella | Published 22 November 2024 | Last Updated 19 October 2026

A property manager may offer convenience and experience by helping with tasks such as finding tenants, collecting rent, coordinating repairs and managing tenancy paperwork. However, property managers cannot remove all risks or guarantee particular outcomes.

For landlords who prefer a hands-on approach and have the time, knowledge and confidence, self-managing a rental property may also be an option.

This article provides general information about what property managers commonly do, what they may cost and key factors landlords may wish to consider.

What does a property manager do?

A rental property manager oversees the day-to-day administration of a rental property on behalf of a landlord. Their role extends beyond simply finding tenants and collecting rent. They help keep the property running smoothly while meeting legal and administrative requirements. There are few things you could consider before employing a property manager, which are highlighted in our article: what to consider when choosing a property manager.

Advertise rental properties and find tenants

Property managers advertise rental properties, create listings and show the property to prospective tenants. These activities are intended to attract applicants and may help reduce vacancy periods, although outcomes can vary depending on market conditions and the property.

Conduct open homes and screen tenants

Managing inspections can be time-consuming. Property managers organise open homes, review applications, complete background and reference checks, and use screening processes to assess applicants against relevant criteria. These processes may assist with tenant selection, but they do not eliminate all tenancy risks.

Handle lease agreements and paperwork

From preparing lease agreements to helping ensure documentation is completed correctly, property managers may assist landlords with administrative requirements and tenancy processes. Landlords should still understand their own obligations and seek independent advice where needed.

Collect rent and manage arrears

Property managers monitor rent payments, follow up overdue amounts and manage arrears processes when required.

Coordinate maintenance and repairs

When maintenance issues arise, property managers can arrange tradespeople, coordinate repairs and help ensure problems are addressed promptly.

Communicate with tenants and resolve issues

Property managers act as the main point of contact for tenants, responding to enquiries, facilitating communication and helping resolve concerns before they escalate.

Potential benefits of using a property manager

Time savings

Property managers handle many of the day-to-day responsibilities that can otherwise consume a landlord's spare time, making them particularly valuable for busy investors.

Expertise and compliance

Experienced property managers are generally familiar with tenancy legislation, common rental scenarios and industry processes. This may help landlords understand and manage some administrative and compliance obligations, but it does not remove the landlord’s responsibility to comply with applicable laws.

Tenant screening

Screening processes, including background and reference checks where permitted, may help assess whether applicants meet relevant tenancy criteria. They cannot guarantee tenant behaviour or prevent every issue from arising.

Pricing and market knowledge

Property managers often have detailed knowledge of local rental markets and can provide guidance on setting competitive rental prices that balance occupancy and returns.

Can you manage your own rental property?

What self-management involves

Self-managing a rental property means handling the tenancy tasks yourself, such as finding tenants, collecting rent, managing repairs, keeping records and staying up to date with rental rules.

Benefits of managing a rental property yourself

• Lower ongoing costs by avoiding management fees
• Direct control over tenant selection, maintenance decisions and rental pricing
• Closer involvement in the operation of your investment property.

Challenges of managing a rental property yourself

• Significant time commitment for inspections, administration and tenant communication
• Legal and compliance obligations that vary between states and territories
• Tenant management responsibilities, including managing disputes, vacancies and arrears
• Maintenance coordination, which can require quick decision-making and access to reliable tradespeople.

Situations where landlords may compare property management options

Limited time or availability

Landlords with limited time, competing commitments or rental properties located away from where they live may compare the practical demands of self-management with the services offered by a property manager.

Lack of legal knowledge

Rental legislation can be complex. Landlords who are unfamiliar with tenancy laws may benefit from professional assistance and guidance.

Renting to unknown tenants

When leasing to people you do not know personally, screening and tenancy management processes may provide additional information to support decision-making, subject to applicable laws and the limits of those processes.

Considering rental pricing and occupancy

Property managers may assist with rental pricing, market insights and tenant selection processes. These inputs can support decision-making, but investment performance depends on a range of factors, including market conditions, property features, costs and tenant circumstances.

How much does using a property manager cost?

Property management services typically involve ongoing management fees, often calculated as a percentage of the weekly or monthly rent collected. Additional costs may include:

• Letting or leasing fees for securing a new tenant
• Advertising and marketing expenses
• Routine inspection fees (where applicable)
• Maintenance coordination or project management fees for larger works

When reviewing these costs, landlords may wish to compare the fees charged with the services provided, such as:

• vacancy management
• tenant screening
• regulatory knowledge, and
• time savings.

The suitability of self-management or using a property manager will depend on the landlord’s objectives, experience, availability and the property’s circumstances.

Property manager vs self-managing: Key differences

How to choose a property manager

Experience and reputation

When comparing property managers, landlords may wish to review relevant experience, client feedback and examples of managing similar properties.

Knowledge of the local market

A manager with local market knowledge may be able to provide information about rental demand, pricing and tenant expectations, noting that local market conditions can change.

Fees and services included

Compare management agreements carefully to understand what services are included and whether additional fees may apply.

Communication and responsiveness

Landlords may wish to ask how often updates are provided, what communication channels are used and how urgent tenant or maintenance matters are handled.

What are the risks of managing a rental property yourself?

While many landlords successfully self-manage their properties, there can be risks associated with handling everything independently:

• Legal and compliance risks if tenancy obligations are misunderstood
• Poor tenant selection due to inadequate screening processes
• Delayed maintenance issues that may lead to larger repair costs
• Increased time commitment and stress, particularly during disputes, vacancies or emergencies.

Why landlord insurance still matters

Whether a landlord uses a property manager or self-manages, they may wish to consider whether their insurance arrangements are appropriate for a rental property.

Typically, standard home and contents insurance policies don’t cover specific risks and events that many landlords may face. These risks or events can include:

• tenant-related damage, where covered by the policy
• loss of rent due to a tenant leaving without notice, and
• legal liability.

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