This is one of the most common questions landlords ask — and the honest answer is that it depends entirely on your situation, your experience, your time availability and your risk tolerance. This guide breaks down the real costs, responsibilities and risks of both approaches so you can make an informed decision.
The Case for Using a Property Manager
A professional property manager handles everything: tenant sourcing and screening, lease preparation, rent collection, inspections, maintenance coordination, compliance, disputes and VCAT representation. For landlords who value their time, live interstate, own multiple properties or simply do not want to deal with the complexity, property management is genuinely worth the cost.
What Does a Property Manager Cost?
In Victoria, property management fees typically range from 7% to 10% of weekly rent plus GST. On a $500/week rental property that is $35-$50/week or $1,820-$2,600/year. There are usually additional fees for leasing (one to two weeks rent), lease renewals, VCAT appearances and routine inspections.
The Case for Self-Managing
Self-managing landlords keep the management fee, retain full control over their property and can respond directly to tenants without a third party in between. Modern software tools make self-management more accessible than ever. However, self-management requires a genuine time commitment, strong knowledge of your legal obligations and the ability to handle difficult situations including disputes, arrears and maintenance emergencies.
What Does Self-Management Cost?
A basic self-management software stack costs approximately $50-$100/month. You will need to invest time in understanding VIC landlord legislation, condition reports, entry notices, rent increase processes and bond lodgement. Mistakes can be costly — a VCAT dispute or a poorly managed vacancy can easily cost more than a full year of management fees.
Key Comparison Table
| Factor | Property Manager | Self-Managed |
|---|---|---|
| Annual cost (on $500/week rent) | $1,820-$2,600+ | $600-$1,200 (software + tools) |
| Time required | Minimal | 5-10 hours/month |
| Legal expertise required | Manager handles | Landlord responsible |
| Tenant disputes | Manager handles | Landlord handles (VCAT) |
| Maintenance coordination | Manager handles | Landlord coordinates |
| Best for | Busy, interstate or multiple properties | Local, experienced, single property |
Frequently Asked Questions
Can I switch from a property manager to self-management?
Yes. You need to give proper notice under your management agreement (usually 30-90 days), ensure the tenant is informed and take over all compliance and management responsibilities. The Collings landlord CRM can help you transition smoothly.
What are the biggest risks of self-managing a rental property in Victoria?
The biggest risks are failing to meet compliance obligations (safety checks, entry notice requirements, bond lodgement) and mishandling tenant disputes. Both can result in significant financial penalties or VCAT orders against you.
Does Collings offer a self-managed landlord platform?
Yes. The Collings landlord platform gives self-managing landlords access to rent collection tools, compliance tracking, maintenance management and investment analytics. Visit collings.com.au/portal to learn more.
The Bottom Line
If you have the time, the knowledge and the temperament for self-management, it can save you $2,000-$3,000 per year per property. If you value your time, own multiple properties or are unsure about your legal obligations, professional property management is almost certainly worth the cost. Either way, the Collings platform can help you manage your portfolio more effectively.
Manage your own rental, the smart way
Collings self-managed property management gives landlords the tools, automation and compliance support to manage their own rentals with confidence. Explore self-managed property management.
