For people considering moving into property investment or landlords who manage their own rental portfolio, it is important to understand the benefits a property manager can bring.
There are several different types of property management companies out there. Some will provide more services than others. The key is to find the right one that fits you and your needs. Here are 10 reasons why a good property manager should be considered by investors who manage their own properties, or even investors who don't yet have any experience in real estate.
1. Thorough maintenance and inspections
One of the key duties a property manager will provide is to organise thorough maintenance and inspections. The property manager will ensure buildings are in good, working order, make sure vital repairs are carried out on time, and inspect the premises regularly.
Many landlords think they can do their own maintenance work themselves however, this takes up valuable time and may not be compliant with industry guidelines or requirements. There may also be a skills gap, meaning the landlord will need to hire professionals for maintenance.
A property manager can maximise the return on your investment by dealing with problems and carrying out repairs directly, without having to wait until a tenant complains. The issues will have already been addressed before they even become an issue!
2. Reduce tenant turnover
Regular inspections and communication will help a property manager reduce the possibility of tenants looking for a new home or from moving out altogether. Regular contact can also be used to check there are no problems with utilities, damage or other issues that may lead to a tenant looking for an alternative home.
A good property manager will use their market knowledge to avoid problems with application fraud or other illegalities and make sure that all future tenants are approved by the landlord before the tenant moves in.
Taking control of tricky issues is something a great property manager will do naturally. Not only does this take away the stress away from the tenant, but the landlord or property investor no longer needs to get caught in the middle which saves time and reduces stress.
3. Reduce rent arrears
A great property manager will work to ensure your tenants pay their rent on time. They enforce lease policies if payments are not received, and they will collect rent on a regular basis. Being able to keep both landlord and tenant happy, ensures the tenant is more likely to want to stay and avoid any costly issues.
4. Taking control of tricky issues and confrontations
When a landlord manages their own property portfolio, they are responsible for handling all issues and maintenance. This not only can be inconvenient when you wish to take a holiday for example, but it also puts the landlord directly in the firing line when a tenant is upset. A great property manager will prevent the landlord from being involved in day-to-day issues. Instead, they will handle all issues between the tenant and landlord and make sure that both parties are happy. This can reduce rent arrears and prevent tenants from leaving due to difficult situations.
And, who doesn't want to be able to take a holiday, without interruption?
5. Up to date knowledge of rental laws and regulations
Renting a property can be complex, especially when you need to consider the different laws and legislations between states, whilst ensuring the rights of both tenants and landlords are preserved.
Property managers have up-to-date knowledge of the rental laws, and can help guide landlords so they avoid costly mistakes when handling situations that can lead to a breach of a tenant's rights.
6. Local market knowledge and trends
Property managers have a thorough knowledge of the areas in which they work, and can give landlords advice on how to best market their property. The more senior property managers may also help you prepare for possible changes in the rental market, so you get your investment as much exposure as possible.
With Cairns experiencing low rental vacancy rates, an increasing population and a construction boom, it is important to have someone who can not only find you a reliable tenant who's likely to stay in Cairns, but will help you get the most from your investment.
7. Marketing advice
When placing your property on the market, it is vital the best potential tenants hear about your property. With social media quickly evolving, getting your property seen on Facebook and Instagram is increasingly challenging. But a great property manager will have a range of strategies to get your property seen.
A detailed property description and high-quality photos will help attract the right tenants to the inspection, plus aide those out of town who are looking to move to Cairns.
8. Professional relationship between tenant and manager
Often, we find that when a landlord manages their own property portfolio and tenants, the relationship can become more personal. This is great for rapport, but makes it very difficult when it comes to dealing with tricky issues.
A property manager will maintain a professional working relationship with the tenant, as they manage the property as a business. Typically, tenants take more responsibility when they know an experienced property manager is there not only to help them, but also to control and resolve any issues. In addition, it prevents them from taking advantage of the landlord.
9. Property managers reduce stress and save time
You can relax safe in the knowledge that a property manager is across every detail of your investment. They not only know the legislation, but they strictly enforce it – ensuring tenants can't get away with breaking rules. Being a central point of information, legislation and market trends, saves you time and money when it comes to any changes in the market place or the law.
10. Financial Reporting
A property asset manager will work with you to ensure your investment properties are operating at peak performance and generating the maximum yield. Naturally, you will need to be kept up to date with regular statements and balance sheets.
These are just ten reasons why your investment will benefit from a property manager however, the list goes far beyond this. Above all, it’s important to make an informed decision and understand what makes a good agent before you decide who is best for you. Sometimes, this can depend on the location of the property manager and others, it can boil down to their communication style or frequency of contact. Make sure you read reviews so you can get a feel for whether they are consistent.
When investors live out of town, or when you have multiple properties, a property manager streamlines the process even further, but we'll maybe save that for another topic.