Property Managers: an owner’s best friend

As more Australians enter the property investment market, how best to manage the new property becomes a major issue. Not everyone has the skills, the time, or even want to manage the property themselves.

That’s where a responsible, trustworthy property manager comes in – to help you avoid the day-to-day worries of rental properties.

A good property manager can easily become one of your greatest assets. But it’s important to choose the right one.

A property manager organises and manages the letting of properties, screens tenants, liaises with tenants and owners, organises inspections, collects rent and follows up unpaid rent, responds to tenant complaints, and even pursues evictions.

As well as being reactive, a good property manager is proactive when it comes to staying on top of ongoing maintenance issues and controlling costs.

Then there’s building insurance to worry about, plus owners corporation rules, smoke alarms, servicing of gas appliances, pool fencing legislation, risk management, council and water rates, the list can seem endless.

Importantly, an experienced manager has a good understanding of the local market and how potential changes could affect your investment, including ways to improve the property that won’t kill your budget, but will make it easier to rent out.

Chances are that you will be working with this person for a long time so it’s a good idea to find someone that you like and respect.

• Look locally. In real estate, local knowledge is crucial, from knowing how to attract tenants, to setting the rent at the right level, and having contacts with trusted tradies, a local property manager gives you a big advantage.

• Get referrals and use word of mouth.

• How does the property manager typically communicate with owners? For example, one phone call a month or quarterly reports; the manager needs to be relied on to handle all issues, not email notifications about every little thing.

As with any investment, property management doesn’t come cheap.

Property Management fees are charged on a percentage basis of the total rent collected plus a one off letting fee for each new tenancy, that is equivalent to one week’s rent. Considering the workload of a good property manager, it’s a small price to pay.

Hiring a property manager makes sense if you have lots of rental units, don’t live near the rental property, are not interested in hands-on management, your time is limited, you’re suddenly inundated with management tasks, and can afford the cost.