Who manages the property?

No, it is not mandatory but it is important to note that private owners are still bound by the same legislative requirements that apply to real estate agents. If a private owner were to commit a breach of the Residential Tenancies Act [they could be subject to the same fines and disciplinary action that would apply to real estate agents.

So, while it is not mandatory that properties are managed by real estate agents, the vast majority are. There are a number of reasons for this. Here are just a few:

• Private owners are bound by the same legislative requirements when dealing with tenants as apply to agents, so an owner needs to be fully conversant with these ever-changing legal requirements.
• As an intermediary between the property owner and the tenant, the agent can often prevent ill feeling over repairs or rental arrears.
• Management fees paid to an agent are tax deductible.
• A private investor needs to honestly consider if they have the detailed knowledge required to handle the variety of legal paperwork and scenarios, e.g. serve notices if the rent is unpaid; if action has to be taken to obtain vacant possession; to corrently complete leases; to handle neighbour complaints, etc., and to consider if they will have the time and disposition to investigate and follow the requirements of each when the time comes.
• Disputes over late or non payment of rent can be very difficult and emotional when the communication is directly between the owner and the tenant. Agents can often diffuse these difficult situations.
• Professional real estate agents are usually able to negotiate more attractive rates with tradespeople. They also generally have more "influence" with tradespeople due to the volume of work they give the tradesperson. This influence can be very handy when something has to be attended to urgently or after hours.
• Agents are always in touch with current market conditions and rental prices and are able to negotiate the best rent with a tenant.
• Agents naturally attract a greater number of tenants due to a brand name, reputation, location, media advertising, Internet presence and advertising profile. On the other hand, a private investor may need to spend additional funds advertising to find a tenant.
• If properties are damaged and it is necessary for an owner to appear before a Tribunal you will benfit from having an experienced agent handle the matter on your behalf and/or by your side. A lack of experience can result in unsatisfactory outcomes and extra expense if you have to seek legal assistance from a solicitor.
• Generally speaking, quality landlord protection insurance policies are not available to private investors.