Managing an investment property can be a full-time job and one that many investors don’t have time for. One way to streamline property management is to work with an experienced property manager who will ensure your tenants are happy, all rental payments are collected, and that your property remains in tip-top condition. Read on to find out more about the vital role property managers play in maximizing the potential of your investment property.
Why Work With a Property Manager?
Property managers are professionals specialising in overseeing and managing rental properties on behalf owners. Their responsibilities include marketing the property, screening potential tenants, ensuring rents are paid on time, and handling repairs and maintenance. Because they understand current market conditions and are familiar with rental legislation, they can also help you price your rental property competitively and ensure you remain compliant.
Here are some of the other advantages of working with a property manager:
- Expertise and experience: If you’re new to property investment, learning as you go could lead to expensive mistakes. Property managers possess valuable knowledge and experience, including a thorough understanding of the real estate market and rental regulations and laws which them to effectively market your property, find qualified tenants, and navigate legal requirements.
- Saving you time and stress: Managing an investment property requires a significant sacrifice of time and energy. Phone calls from tenants, chasing up outstanding payments, arranging repairs and maintenance, can all be time-consuming. By collaborating with a property manager, you can off-load many of these time-consuming tasks, freeing up your own time and relieving you of the stress.
- A buffer between you and your tenants: From vetting and screening to ongoing communication, finding and keeping reliable tenants is one of the most important roles a property manager plays. Not only will a property manager screen potential tenants, verify references, and handle tenant onboarding, but they’ll also deal with conflict resolution that minimizes potential disputes and helps reduce vacancies.
- Handle maintenance and repairs: Property maintenance and ongoing repairs are an inevitable part of owning an investment property. With a network of reliable contractors and vendors, property managers are often well-placed to promptly address repairs and maintenance issues, minimizing disruptions for tenants and helping maintain the value of your property.
Why Choose to Do It Yourself?
Working with a property manager isn’t for everyone and there are some investors who choose to go it alone and handle all aspects of property management themselves. Cost is usually the biggest factor deterring investors, as property managers charge a fee for their services which may not be financially viable for all types of rental properties. Other reasons include:
- Lack of involvement and loss of control: Investors who prefer to be involved in every decision usually find it difficult to work with a property manager. From meeting and choosing tenants, to setting and collecting rent, these investors prefer to be hands-on at all times.
- Finding someone they trust: Investors who find the process of finding a reliable property manager challenging, or who may have been let down in the past by a disreputable property manager, may choose to manage their property on their own instead.
How to Choose a Property Manager?
Finding the right property manager requires researching and reviewing potential candidates. Check references, credentials, and certifications, and carefully review the property management agreement to ensure it aligns with your expectations. To make an informed decision, try asking some of these questions*:
- What are your qualifications?
- Are you a specialised property manager or a real estate agent who also does property management?
- How long have you been a property manager in the area?
- Do you invest in the area?
- How many staff do you have? What are their roles? Do you have staff that are just responsible for finding good tenants?
- Are you a member of a professional body with a code of ethics?
- How do you manage properties over holiday periods?
- How many properties does your business manage? How many are currently vacant?
- How long does it normally take to fill a vacancy in the area?
- What kind of insurance coverage do you have?
- Can I see an example of a monthly reporting package?
- Have you appeared in Tenancy Tribunal cases? If so, what happened?
- How do you keep up to date with changes in renting law?
Work With a Property Manager Today
Working with a property manager can significantly enhance your experience as a property investor and landlord. However, it’s important to find the right one. Partner with a reputable property management company – such as Mortgage Express’ sister company Harcourts – and find out first-hand why more and more investors consider property managers an essential part of a property investment strategy.
For all your finance needs relating to property purchase for investment, contact a Mortgage Express branded financial adviser.