When You Should Choose a Property Manager and Why
A successful investment property doesn’t just come as the result of hard work, extensive research and buying in the right suburb.
As many landlords quickly discover, this is a day-to-day proposition rather than something you sign off on, it also isn’t about putting in a tenant and simply collecting the rent. What makes a difference is making sure your investment property is properly managed. It involves constant work that requires time, effort and knowledge.
For most people, employing a property manager improves efficiency as it means having a trained professional looking after their investment. They know all the local market, and the ins and outs of tenancy agreements, in addition, they have streamlined systems in place. Importantly, they effectively offer a middle ground between you and the tenant. And while this comes at a fee for investors, it minimises the stress and reduces the risk of potential problems such as a lengthy vacancy. So, is hiring a property manager the right decision for you?
When you may need a property manager
The benefits of a property manager are wide-ranging but most importantly it gives landlords peace of mind. After all, purchasing an investment property is a big financial step, so you want to know it is being looked after by an organised and experienced professional. There are many incentives as to why outsourcing this job makes sense. Let’s take a look at the key motivators:
1. You don’t want a close tenant relationship
It is perfectly reasonable for you to want to maintain a business-like relationship with your tenant – especially as it involves money. A property manager looks after all of the communication, so as an investor you don’t have to worry about being too personally involved. This removes any awkwardness about missed payments, repairs or ending the lease. Importantly, they are experienced in handling any rental disputes that may arise.
2. You don’t have the time
Managing the day-to-day demands of an investment property, as well as the needs of tenants, can be time-consuming. For some investors, these time demands aren’t practical. By employing a property manager, investors aren’t burdened with managing their property.
3. You don’t live near your investment property
While it may make financial sense to buy an investment property in a regional area or even interstate, it can be harder to look after on your own. Choosing a property manager who works in the local area of your investment can be indispensable, particularly when it comes to repairs and maintenance. They will be able to arrange reliable local trades to fix any problems at short notice. They will also be able to regularly inspect the property on your behalf and keep updated. They also understand legislation for their local market as this can differ between States and Territories.
4. You own multiple properties
Owning an investment property means managing the assets and tenants. In terms of legalities and people, it can be confusing and time-consuming to manage multiple properties. However, a property manager who is skilled and trained can perform all these tasks with ease.
Why a good property manager is an asset to investors
Whether an investor chooses to engage with a property manager before, during or after a property is purchased, there are numerous benefits to be enjoyed. Here are some of the other advantages:
1. Select the right tenants
Property managers know what makes a good tenant. As they have access to a tenancy database, they can also view an applicant’s rental history. This will allow you to avoid renters who have previously broken leases or damaged properties. Using a property manager also reduces the chances of your investment sitting empty, as they will be keen to fill it as quickly as possible. They may even have a waitlist of trustworthy clients waiting for a rental in your area. In addition, they will make sure all the paperwork is filled in correctly and also lodge the rental bond.
2. Find solutions quickly
If anything goes wrong, tenants will contact the property manager so that they can organise repairs. As a local expert, a property manager can easily contact local and trusted trades to fix any issues or quickly provide maintenance-related work. This is key to keeping tenants happy and more likely to renew their lease. Your property manager will be able to advise on how you can also enhance your investment to increase its value and appeal to renters.
3. Receive the right market advice
The real estate market is constantly changing. Some portions of the year might be considered a buyer’s market, while the rest of the year might be labelled a seller’s market. These market fluctuations can directly impact the rent investors can charge tenants.
Property managers understand and navigate these changes daily. By providing advice on when rents should hold, decrease or increase, they always work to help investors achieve the highest ROI.
4. Know how to resolve conflict
A good property manager needs to be empathetic, organised and an excellent communicator. They need to ensure that the laws about choosing and evicting tenants are followed. Property managers can also act as an impartial third party in disputes over issues like wear and tear or accidental damage. Importantly they need to be able to mediate and work towards a solution for everyone.
5. They do more than just collect the rent
As an investor, the last thing you want is to be losing money because of badly organised paperwork. Property managers not only collect money owed but also make tax time easier by maintaining rental records. Your property manager should be able to send you a monthly summary of all the income earned and expenses to keep you on track.
Why you should consider an LJ Hooker property manager
Managing an investment property can be a tedious and time-consuming prospect. Rather than being overwhelmed with rental contracts and screening tenants, turn to a skilled property manager. Our team of property managers at LJ Hooker are waiting to assist you. Offering experience and excellent market knowledge, owning and managing an investment property becomes as seamless as possible.
A little help from the team at LJ Hooker can be invaluable when it comes to managing an investment property. Whether you’re looking for a property manager to share the time burden or to converse with tenants, contact LJ Hooker today for a free rental appraisal.
DISCLAIMER - The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. LJ Hooker will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.
