Should You Manage Your Rental Property Yourself or Use an Agent?
The Property Perspective is a weekly radio show on 919 FM, airing every Tuesday at 4:15 PM with Al and Lesedi on The Drive Train.
Episode 17 | The Property Perspective with Etchells & Young
If you own one or two investment properties, it can be tempting to manage the rental yourself and save the agency fees.
In Episode 17 of The Property Perspective on 919 FM, Harry looks at what a professional rental agent actually does, what can go wrong when landlords manage alone and which property owners may genuinely be well equipped to handle the process themselves.
In This Episode
Harry weighs up the cost of professional rental management against the time, expertise and risk involved in managing an investment property yourself.
Harry discusses:
What tenant placement and rental management can cost
Why some landlords choose to manage their own property
Screening tenants and identifying fraudulent documents
The importance of a strong lease agreement
Why entry and exit inspections matter
Marketing, rent collection and maintenance coordination
The hidden cost of placing the wrong tenant
Which landlords may be suited to self-management
Watch Episode 17
The Property Perspective airs weekly on 919 FM.
Why Do Landlords Consider Managing Their Own Property?
The most obvious reason is cost.
Harry explains that tenant placement is commonly charged as a percentage of the lease value and can work out to approximately one month's rental, while ongoing management adds a further monthly fee.
For a landlord with one or two properties, those costs can make self-management look attractive - particularly when the tenant pays on time and very little goes wrong.
The real question is what happens when the tenancy stops being straightforward.
The Process Looks Simple Until Something Goes Wrong
A good tenant can make rental management seem effortless.
But Harry explains that landlords often approach professional agents only after problems have already developed - for example, when a tenant has stopped paying rent or the relationship has deteriorated.
At that stage, recovering from the problem can be significantly more difficult and expensive than preventing it in the first place.
Tenant Screening Is One of the Biggest Risks
Choosing the right tenant is one of the most important parts of managing a rental property.
Harry highlights credit checks, affordability, employment verification, rental references and document verification as important parts of the process.
Fraudulent payslips, bank statements and employment documents can also make screening increasingly difficult.
Experienced rental teams process large numbers of applications and may be better positioned to notice inconsistencies that an individual landlord sees only occasionally.
Good Screening Reduces Risk - It Does Not Eliminate It
Harry is careful to point out that using an agent does not provide a 100% guarantee that a tenant will never default or cause problems.
The objective of professional screening is to reduce the risk as far as reasonably possible by verifying the information available and assessing the application thoroughly before a lease is signed.
Don't Underestimate the Lease Agreement
A landlord is handing over the use of a valuable asset for the duration of the tenancy.
Harry therefore stresses the importance of having a properly drafted lease that reflects the transaction, protects the landlord's interests and also respects the rights of the tenant.
If you decide to manage the property yourself, this is one area where professional legal input can be particularly valuable.
Inspections Are Not an Optional Extra
Entry and exit inspections create the evidence needed to establish the condition of the property before and after the tenancy.
Harry explains that landlords who do not understand the inspection process can place themselves in a very difficult position when they later want to claim against a tenant's deposit.
Good inspections should be thoroughly documented and supported by clear photographs wherever possible.
Professional Management Starts Before the Tenant Moves In
Rental management is not simply collecting money every month.
Harry points to professional marketing as an important first step.
A rental property competes with many other listings, so photography, advertising, property platforms and responding quickly to enquiries can all influence how quickly the property attracts a suitable tenant.
That is followed by viewings, applications, screening, lease administration and the inspection process.
What Happens After the Tenant Moves In?
The workload does not end once the lease has been signed.
Ongoing management may include rent collection, following up on arrears, coordinating maintenance, communicating with the tenant and ensuring that the necessary administration remains up to date.
For an individual landlord with another full-time career, these tasks can take considerably more time than originally expected.
Consider the Total Cost of a Bad Tenant
Agency commission is easy to calculate because it appears as a clear cost.
The cost of a bad tenant is less predictable.
Unpaid rent, property damage, legal expenses and extended periods of unlawful occupation can quickly outweigh the amount a landlord initially hoped to save by managing the property themselves.
Harry therefore encourages landlords to compare the management fee with the total risk of the investment rather than viewing commission in isolation.
Who May Be Suited to Managing Their Own Rental?
Harry makes the point that professional management is not necessarily the right answer for every landlord.
An experienced property owner with the knowledge, systems and time to manage the process properly may be perfectly capable of doing it themselves.
The same may apply to landlords with relevant legal or property knowledge, developers with their own internal property teams or larger investors with staff who can handle administration and collections.
The key is having the actual capacity and expertise to do the job properly, rather than assuming it will take very little work.
Managing It Yourself? Get the Basics Right
If you choose to self-manage, Harry highlights several areas that should not be compromised.
Screen the tenant thoroughly. Verify employment and supporting documents. Contact rental references. Use a proper lease agreement.
Complete a detailed entry inspection and keep photographs and records.
Most importantly, treat the property as the substantial investment it is, rather than approaching the tenancy as an informal arrangement.
A Key Takeaway
The decision is not simply about whether you can save an agency fee.
Ask whether you have the time, knowledge and systems to market the property, screen tenants properly, manage the lease, conduct inspections, collect rent, coordinate maintenance and stay on top of the administration.
Some landlords absolutely can.
For others, professional rental management may be a worthwhile cost for protecting one of their most valuable investments.
What Is The Property Perspective?
The Property Perspective is Etchells & Young's weekly property segment on 919 FM.
Each episode explores a different aspect of property - from rentals and property management to buying, selling, legislation, sectional title living and the everyday questions property owners and tenants face.
Follow the series as we unpack more of the issues that matter to Johannesburg property owners, buyers, sellers, landlords and tenants.
Prefer to Leave the Rental Management to Us?
From marketing and tenant screening to lease administration, inspections, rent collection, maintenance and ongoing management, Etchells & Young helps landlords manage their investment properties professionally.
Speak to our rental team about taking the day-to-day management of your property off your hands.
