As we approach the end of the year, many homeowners start considering their next move. Whether you're upsizing to accommodate a growing family or downsizing now that the kids have flown the nest, perhaps you're relocating to another suburb, city or country - there's one question that keeps popping up: What should you do with your current home?
The answer isn't always selling. With Brisbane's rental market remaining strong and property values continuing to climb, holding onto your current property as an investment can be a smart financial move. But before you hand over the keys, it's important to understand what rental property management actually involves.
Like any investment strategy, it's important to chat to your financial planner or accountant to understand the long-term implications for your tax or pension and how this impacts your situation.
Why Keep Your Property?
There's something reassuring about keeping your existing home as an investment property. You know the property inside and out, you understand the local area, and you've likely built up equity over the years. Plus, with rental demand staying consistently strong across Brisbane's inner suburbs, your property could generate solid passive income while continuing to appreciate in value.
However, managing a rental property is a different beast entirely from simply living in the property.
The Five Hidden Challenges of DIY Property Management
We often see people who downsize, perhaps semi-retire and aspire to manage their own property. Most first-time landlords underestimate just how much time property management demands.
1. Time Commitment (It's More Than You Think)
Between advertising the property, coordinating inspections, responding to tenant enquiries, arranging repairs, and handling administrative tasks, when you're changing tenants you're looking at several hours each week at a minimum.
And here's the thing: tenants don't operate on a nine-to-five schedule either. That leaking tap or broken lock doesn't wait for business hours, and neither do tenant questions or concerns. If you're already juggling work, family, and the stress of moving to a new home, adding property management to the mix can quickly become exhausting.
2. Compliance and Legislation (It's Complicated)
Queensland's rental legislation is comprehensive, and for good reason. It protects both landlords and tenants. But keeping up with the Residential Tenancies and Rooming Accommodation Act 2008, understanding your obligations around smoke alarms, pool safety, repairs, and rent increases, bond lodgements, and ensuring all documentation is completed correctly requires ongoing attention and expertise.
Get something wrong, and you're not just risking frustration. You could face fines, legal disputes, or find yourself unable to take action when you genuinely need to. The legislation changes periodically too, so what you knew two years ago might not be current anymore.
3. Handling Emergencies (They Always Happen at the Worst Time)
A burst pipe on Christmas Eve, a failed hot water system during a winter cold snap, or storm damage on the weekend you're away interstate. These aren't hypothetical scenarios, they're the reality of property ownership.
You can't just ignore these issues until Monday morning. You need to respond quickly, coordinate tradespeople, ensure the work is done properly, and keep your tenants informed throughout the process. Without an established network of reliable contractors who'll respond at short notice, you can be left scrambling.
4. Inspections and Repairs (The Details Matter)
Regular property inspections aren't just good practice, they're essential for protecting your investment. But knowing what to look for, documenting issues properly, and understanding the difference between fair wear and tear and actual damage takes experience.
Then there's coordinating repairs and maintenance. What seems like a simple fix can quickly spiral into a larger project, or take longer than expected to resolve if you struggle to find quality tradespeople. Plus, you need to understand which repairs are urgent, which can wait, and how to balance tenant comfort with cost-effectiveness.
5. Choosing and Managing Tenants (Your Biggest Decision)
Finding the right tenants can make or break your rental experience. But tenant selection isn't as simple as picking the first person who can pay the rent. You need to conduct thorough reference checks, verify employment, understand rental history, and assess applications objectively while staying within anti-discrimination guidelines.
Once tenants are in place, ongoing management is crucial. This includes handling rent increases appropriately, addressing concerns promptly, managing lease renewals, and unfortunately, sometimes dealing with rental arrears or disputes. These situations require diplomacy, clear communication, and a thorough understanding of proper procedures.
The Leasing Process: What to Expect
If you decide to lease your property with a property manager, here's a snapshot of what the process typically involves:
Preparation Phase: Your property needs to be rent-ready, which means addressing any outstanding repairs, ensuring all safety compliance is met (smoke alarms, pool fencing, electrical safety), and presenting the home in its best light. Once this is done, professional photos and a detailed property description help attract quality tenants.
Marketing and Tenant Selection: Your property is listed across major rental platforms, open inspections are coordinated, and applications are carefully vetted. This includes employment verification, rental references, and credit checks.
Lease Agreement: Once suitable tenants are found, a comprehensive lease agreement is prepared, entry condition reports are completed, and bond money is lodged with the RTA (Residential Tenancies Authority).
Ongoing Management: Regular inspections occur (typically every three months), maintenance requests are handled promptly, rent is collected and paid to you, and any issues are addressed quickly.
End of Tenancy: When the lease ends, an exit inspection is conducted, the property's condition is assessed against the entry report, and the bond claim process is managed.
Why Professional Property Management Makes Sense
At Penrose Real Estate, we've been both landlords and tenants ourselves, and we've managed extensive rental portfolios over the years. That real-world experience has shown us exactly why professional property management isn't just convenient, it's essential for protecting your investment and maintaining your peace of mind.
The difference between a rental property that generates steady income and appreciates in value versus one that becomes a source of stress and unexpected costs often comes down to management.
A good property manager brings an established network of reliable tradespeople, comprehensive knowledge of current legislation, proven systems for tenant selection and management, and the time to handle everything promptly and professionally. They're available when emergencies happen, they know how to navigate disputes, and they ensure your property is properly maintained and compliant.
Perhaps most importantly, exceptional negotiation skills are what separate good property managers from great ones. Issues invariably arise during any tenancy, whether it's maintenance disputes, lease renewal negotiations, or resolving concerns about property condition. A skilled property manager knows how to find common ground, communicate with clarity and empathy, and achieve outcomes that protect your interests while maintaining positive tenant relationships. This ability to smooth out conflicts before they escalate saves you from stress, potential legal costs, and helps ensure your tenants stay longer, reducing vacancy periods and turnover costs.
More importantly, they free you to focus on settling into your new home and enjoying this next chapter of your life, rather than juggling tenant calls and maintenance issues.
Making the Decision
Keeping your current home as an investment property is a smart financial move when it's managed properly. As you plan your move into 2026, whether upsizing or downsizing, take the time to consider not just whether to keep your property, but how you'll manage it effectively.
If you're considering your options and want to discuss property management with someone who genuinely understands both sides of the rental equation, we're here to help. After all, this is more than just a property decision. It's about building your financial future while protecting the home that's meant so much to you.