In May this year, a Sydney investor reached out to us after things had gone south with his rental property. He’d been self managing his apartment for some time and initially thought that saving on management fees would mean higher returns. Unfortunately, what started as a cost saving exercise ended up becoming an expensive lesson.
The property, located in the inner city suburb of Sydney, had been rented directly by the owner to a tenant he selected himself. On paper, everything seemed fine – until the rent stopped coming in.
When Things Started to Unravel
The tenant began falling into arrears, making promises to catch up that never materialised. The landlord tried to work with her directly, but the boundaries quickly blurred. Daily text messages, personal excuses, and emotional appeals made it increasingly difficult for him to enforce payment.
Without the veil of professional management, the relationship became tangled. The tenant became too comfortable, and the owner found himself in an awkward position – acting as both landlord and counsellor. By the time he contacted us, he was months behind in rent and stressed about how to handle the situation.
To make matters worse, he didn’t have landlord insurance. So any damage, unpaid rent, or legal costs would come straight out of his own pocket.
Our First Steps: Taking Back Control
The first thing we did was to regain control of the situation. We issued the appropriate notices, initiated the termination process through NCAT, and supported the landlord through what can be a daunting legal process for a private owner.
When the tenant finally vacated, the true extent of the problem became clear. The apartment was left in poor condition – dirty, damaged, and in need of significant work before it could be leased again.
We documented everything thoroughly, arranged professional cleaning, coordinated repairs, and got the property ready for a fast turnaround.
The Reality of the Costs
Here’s a breakdown of what the landlord faced after taking back possession of the property:
| Expense | Cost (AUD) |
|---|---|
| Cleaning | $1,815 |
| Plumbing (blocked toilets and drains) | $280 |
| Pest control | $209 |
| NCAT application and hearing fees | $132 (approx.) |
| Repainting and touch-ups | $1,200 (approx.) |
| Advertising and letting fees | $750 (approx.) |
| Unpaid rent arrears | $7,000 |
Total out-of-pocket cost: around $11,400
Had the landlord taken out landlord insurance earlier, most of these costs — including the $7,000 in lost rent and damage repairs – would have been covered. We immediately organised a policy for him at just $450 per year, providing peace of mind for the future.
Rebuilding and Re-Leasing
Once the property was repaired and cleaned, we prepared a full marketing campaign.
Fresh professional photography and a targeted listing went live on the main rental portals, supported by our internal tenant database.
The response was immediate – strong enquiries and qualified applications within the first few days. The property was leased within the week to quality tenants who passed thorough background and employment checks.
Not only did we help the owner recover from a stressful situation, but the property also returned to the market at a stronger weekly rent – a genuine turnaround in both value and stability.
What This Case Highlights
There’s a common misconception among some investors that self managing a property will save them money. But in reality, the risk and emotional strain often outweigh the savings. This case demonstrates the value of professional management – not just in handling paperwork and rent collection, but in providing a crucial buffer between landlord and tenant.
Here are a few key takeaways from this case:
- Keep your landlord – tenant relationship at arm’s length.
A professional property manager enforces the terms of the lease without emotion or personal involvement. This helps maintain respect and ensures obligations are met. - Always have landlord insurance.
Even the best tenants can default or cause damage. For a few hundred dollars a year, you can protect yourself against thousands in losses. - Document everything.
We see many self – managed owners who don’t keep proper inspection reports or rent ledgers. In a dispute, this makes it nearly impossible to recover costs or succeed at tribunal. - Don’t delay action.
The earlier rent arrears are addressed, the better the outcome. A good agency has clear systems for reminders, notices, and communication that protect both landlord and tenant. - Invest in presentation.
After restoring the property’s condition and investing in professional marketing, the owner achieved a stronger rent and better long-term tenants.
A Fresh Start for the Owner
Today, the property is fully tenanted, insured, and producing consistent income again. The landlord told us he now “sleeps better at night” knowing the property is being handled professionally — and that if anything goes wrong, his insurance and our systems have him covered.
What started as a costly and stressful experience turned into a valuable lesson about the importance of proper management and protection.
Final Thoughts
Managing a property isn’t just about collecting rent – it’s about risk management, communication, and accountability. When you self-manage, you wear every hat: landlord, negotiator, maintenance coordinator, and sometimes even mediator.
By having a professional property manager, you gain a team that acts as your advocate, protects your investment, and ensures every part of the tenancy runs smoothly.
If you’ve been self-managing and want to explore how professional management can safeguard your investment, reach out to us for a confidential chat.
Metro Realty – Done Well. Done Right.
