A good property manager can be invaluable, with a high level of expertise and experience and an extensive list of services. The most important thing is that they save you time, something that is without doubt highly valuable!
Here are just a few of the many ways a Property Manager adds value:
They have local market knowledge and a local presence:
As the local market presence they are your eyes and ears and their knowledge is key when setting your rent. They will know how much comparable properties are renting for in the same area and also the current vacancy rate. If rental demand is high and your rent is lagging behind competing properties then your property manager should let you know and give you the confidence to raise the rent.
They have relationships with local tradesman and suppliers who they use regularly. They ensure tradesmen hold relevant licences, are reliable and complete quality work. They also have local contacts for advertising your property for new tenants.
They will deal with all aspects relating to the tenant:
- Securing a new tenant
- Undertaking reference checks
- Undertaking the move in and out inspections and the conditions report
- Mediating between the client and tenant
- Be on call for the tenant
They will handle all aspects of property repairs and maintenance
- Contact tradesmen and suppliers
- Provide quotes for your approval
- Take photographs if necessary
- Organise access to the property
- Sign off on the quality of the completed work
- Pay for the work and adjust this amount from your rent payments
To make this process even more streamlined you can even setup pre-approval so your property manager can proceed with any work under a certain amount without the need to contact you. This method saves you on delays and greatly reduces the disruptions you will have.
With standard annual services, such as checking the smoke alarms, they will be organising this across multiple properties that they manage and be able to negotiate better rates.
They have the expertise to deal with property legal and financial areas to:
- Administer the lease
- Register the bond
- Provide income and expense analysis for the property
- Handle all the finances including banking income to client
- Handle arrears and refunds
Just like insurance – you question its value until you come to make a claim – knowledge of the legalities of being a landlord is only necessary when things go wrong, and here’s where you can be really thankful that your property manager will be 100% across the tenancy legislation in the state where your property is situated. Most of the time tenants do the right thing but in circumstances when you need to take legal action, your property manager will handle everything until it gets resolved
So don’t even think about managing your own properties! Your time is generally better off spent doing other things. Property Managers take the burden off the investor. The work they perform is well worth the management fees you pay.
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property