When your money and investments are on the line, it pays (quite literally) to understand how to choose a property manager who can help maximise your profits. Managing a property can be hard work. You need to be available 24/7 to address all kinds of queries from leaky taps to broken dishwashers. You need to manage all the paperwork and ensure your property and paperwork adhere to any changing legislation in your area.
As a property manager, it falls on you to ensure your property is safe and secure for your tenants. That includes maintaining the structure of your property, ensuring all installations are running, and addressing any issues that could affect your tenants, like gas leaks, pest infestations, or mould.
Looking after your own property means that you’ll have to go through the process of advertising your property, screening new tenants, conducting all the necessary checks, and managing rental payments and bond. This is all assuming that you actually live in the same area as your property.
Think about it – would you rather be bogged down in paperwork managing a property, or working hard on investing in your next one?
Why You Need a Property Manager
A good property manager can be an absolute lifesaver. They can save you valuable time, money, and, best of all, the aggravation of managing tricky issues yourself. They can manage:
- Tenant disputes
- Legal tenant checks and reference checks
- Bonds and security deposits
- Property repair and maintenance
- Keeps track of paperwork and ensures compliance with any legal requirements
Not every landlord realises it, but proper property management also requires adherence to the ever-changing regulations in place for landlords.
Above all, property managers ensure that you’re keeping profits high and any outgoings low so you can maximise profits from your investment. After all, that’s the whole point of leasing your property. Find out more about why you need a property manager here.
How to Choose a Property Manager
Ultimately, all of our needs are different, so the right property manager for you might not be right one for someone else. But, when you’re looking for a property manager, there are a few key things to consider.
So, how do you choose a property manager? Here’s what to look out for.
1. Industry experience
Your dream property manager needs to have experience – and not just in the real estate industry. Real estate agents aren’t necessarily property managers – and vice versa! Contrary to what some agents might tell you, property management is a distinct industry requiring a specific set of skills and knowledge.
Legislation and regulations for landlords often changes, but great property managers are well versed in the laws in each Australian state or territory. These laws might mean that you may be eligible for rebates or may have to adhere to certain legal requirements. This knowledge will, in the long run, mean your investment is more profitable – and it won’t land you in any legal strife! Don’t be afraid to ask questions of any property manager you interview. Find out how long they have been in the industry, what their processes are, and how they select tenants and resolve disputes.
2. References and referrals
Ask other investors for a referral to a property manager. Or, if you’ve already found one, ask for their references from other clients. A strong and experienced property manager should be able to provide several verified references. Better yet, ask for their client’s contact details so you can speak to them directly.
3. Cost – including any hidden property manager fees!
When thinking about how to choose a property manager, cost should be a major consideration. But you need to make sure you understand all the fees and charges involved before you sign on the dotted line. For instance, are there any extra fees or charges if your manager has to deal with unexpected emergencies?
Also, remember that price isn’t the only factor you need to consider. After all, if you choose a good property manager, they should be saving you money over time by minimising property disputes, keeping on top of any rebates that might be due to you, and staying on top of any maintenance issues before they turn into a bigger (and more costly) problem.
4. Personal connection and communication style
Keep in mind that you might be liaising with your property manager regularly so you need to be able to get on with them – and so, too, do your tenants! If you’re interviewing a property manager who doesn’t seem personable, there’s a chance that they might have issues with tenants.
It can also help to find a property manager with specific experience in your city or even your local area. While not absolutely essential, it can make choosing tenants easier and means that they will be close by if anything needs to be resolved at your property.
We hope this blog has helped you understand how to choose a property manager to suit your specific needs. At Boutique Property Agents, we have an entire property management team who can assist landlords in managing their properties. Some landlords live out of the area, but many simply don’t have the time or expertise to manage their property portfolio on a long-term basis. If you’re considering engaging a property manager, contact us to find out more. Or, if you’d like to learn more about property investing, discover more here.