When you rent out your investment property, you can choose to manage the property yourself or get a professional property manager to do the hard yards for you.
The key benefit of getting someone else to manage your property is the convenience factor. You won’t be the one organising tradespeople if the property floods or the heater blows up.
A professional property manager can help maximise your returns by finding high-quality tenants, conducting thorough background checks, and ensuring their financials are sound, all while minimising vacancies.
Property managers offer a range of services, which may include:
- Rent advice
- Leasing expertise and advertising services
- Management of contracts
- Advice about tenancy legislation
- Inspections and hands-on management of your property.
Here are some tips for choosing the right property manager:
Do your homework
Research which property management companies service the area where your investment is located. You may opt for a full-service real estate agency or use a dedicated property management company.
Make sure you read their customer reviews, even if they’ve been recommended by family and friends. That’ll give you an idea of how others have found their services and what you can expect.
Stick to local professionals
A local property manager is likely to have a solid understanding of the suburb’s demographics, the kinds of tenants you’ll attract and the right rent to charge.
This kind of local knowledge is extremely valuable when it comes to property management and will help you make informed decisions.
Make sure you understand the fees
Most property managers charge a fee based on a percentage of the rent. Others charge a flat fee amount.
There may be administrative fees, leasing fees at the start of a tenancy (usually a couple of weeks’ rent), advertising fees and additional charges for lease renewals.
Make sure you understand the fee structure and what you get for your money.
See how reachable they are
When something goes wrong with your property, you need to be able to reach your property manager fast. Test the waters and see how easy they are to communicate with.
Give shortlisted property managers a call and see how knowledgeable they are and whether they’re pleasant to deal with.
Do they only respond via email or text? Do they take a millennium to get back to you? Does their communication style work for you?
Don’t be afraid to ask questions
There are no silly questions, so ask prospective property managers anything you feel is relevant.
- What services do they provide?
- How do they manage maintenance tasks?
- What sort of properties are in their portfolio and how many?
- How do they manage rental payments?
- How often do they do inspections?
- Will they let you know about legislative changes that could affect your rental?
- Asking lots of questions will help you choose the right property manager for your needs.
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