Having a property manager can be a great, hands-off way to take the stress out of property investment while still ensuring that everything is running seamlessly. But if you’re going to go down this route, you need to be aware of the most common do’s and don’ts of property management!
But first, how does property management work? Essentially, a property manager is paid a fee to look after everything associated with a rental property; property maintenance, liaising with tenants, managing repairs when needed and collecting rent. This can be especially helpful for property owners who live far away from their rental properties or otherwise aren’t able to conduct these tasks themselves. Sometimes a real estate broker can also operate as a property manager.
If you’re looking into property management for your investment property, there are a few crucial things to consider to help you find the right person for the job. After all, you want to ensure that your investment income isn’t jeopardised by mismanagement, or the selection of nightmare tenants who haven’t been properly vetted! Discover our top property management tips below.
DON’T: Underestimate what’s required in property management
Property management sounds easy, but in actual fact, it requires specialist skills. Property managers aren’t just glorified rent collectors. They also need to be expert negotiators, be incredibly perceptive when it comes to selecting tenants, be diligent with property maintenance and have in-depth knowledge about the local property market. They also need access to the best local tradespeople. This can enable them to source a locksmith at the dead of night or a plumber on a Sunday morning!
DO: Learn your responsibilities as a landlord
First-time landlord? Our biggest property management tip is to understand all your legal obligations, especially if you’re only just dipping your toes into property management. A property manager can help you navigate the muddy waters of being a landlord. They’ll also ensure you’re fulfilling all your obligations as per the Residential Tenancy Act.
As a landlord, you’ll also need to advertise for, screen and vet tenants, check references and, when you’ve decided on tenants, provide sufficient paperwork. Once you’ve settled on tenants, you’ll need to undertake long-term property maintenance. All this takes time! It’s easy to see why many people prefer to delegate this to a property management team.
DON’T: Try to do everything by yourself
Unless you don’t have other employment, property management can eat away at your time. Trying to do it all yourself can lead to disaster! You essentially need to be the main point of contact for your tenants. You’ll need to be available 24 hours a day in case of emergencies like a broken tap or lost keys.
Property management teams have the resources and the expertise to be on-call round the clock. They’re also experienced in handling tricky tenants and difficult situations with professionalism.
DO: Do your due diligence
When looking for a property manager, ensure that you have full disclosure of all fees that may be applicable. But fees aren’t everything; in the long run, it’s better to have a team that won’t overlook problems with your property. Yes, even if it means paying a little extra. The wrong tenants or repairs left unattended could cost you far more money in the long run.
Ideally, look for a property management team that is freely available, responsive and professional. Be sure to examine reviews or references for the team you’re considering. A team that is stretched to capacity with multiple properties may not have time to properly look after yours.
Selecting the right property management team will not only give you peace of mind, but it will also free you up to expand your property portfolio further. Your investment in property could easily be one of the largest you ever make in your lifetime. Why not place it in the right hands?
At Boutique Property Agents, we treat every property like it’s our own. We understand that you need a trusted team of experts to look after your property, which is why we’re proud to offer high-level property management services.