Managing a property, how hard could it really be? I’m sure many investors have thought this at one time or another. If you have great tenants and they look after the property and pay their rent every week, this may be the case, but if things go pear shaped that’s a whole new ball game.
There are so many reasons you need a professional to manage your property. I like to use the analogy if your car broke down would you try and fix it yourself? Or would you take it to a mechanic? Same goes for property management, renting a property is governed by a legal minefield of legislation which the average landlord just doesn’t have the time to master.
So here are our top ten reasons you should use a professional property manager:
1. UNDERSTANDING THE LAWS AND LEGISLATIONS
A professional property manager is across the latest laws and legislation and keeps up to date with changes as they happen. With a growing trend towards litigation, a professional property manager will be able to keep a landlord updated on any potential legal issues and address them as they arise. For example not fixing a maintenance issue that could potentially provide personal injury to a tenant, is just one example in a growing number of cases. This ultimately provides peace of mind for an investor.
2. MARKET ADVICE
A property manager will be able to give an independent assessment of the achievable rent for a property. Many first time investors who aren’t locally based will tend to overestimate the weekly rent they should charge resulting in lost income through a high vacancy period.
3. TENANT SELECTION
Without relevant background checks on potential tenants landlord’s are at risk of enduring a tenancy with a ‘blacklisted’ tenant. This usually results in a lot of work, heartache and ultimately loss of rent. A qualified tenant with diligent reference checks will pay rent on time and look after the property. Some of the background information on tenants is exclusive to an agency.
4. VIEWING THE PROPERTY
Showing prospective tenants through a property takes time. Sometimes this may be weekends or after hours, and really if you want to secure a suitable tenant, you need to be available to show them the property. For a private landlord with restrictions on time, this may result in the property being vacant for longer.
A property manager has access to the best websites to promote and advertise your property, this is where 95% of enquiry for rentals comes from. They also have other potential tenants at hand, who may have missed out on a similar property.
A property manager will ensure all the correct paperwork signed with all parties rights and responsibilities clearly outlined. It is easy to miss parts or sections, giving tenants an easy out clause to a binding agreement.
7. TENANT RETENTION
Keeping a good tenant is crucial to a sound investment strategy. A property manager can foster a relationship with tenants, ensure things like maintenance are addressed on time, and that communication is prompt. One of the main reasons tenant leave is due to poor service, this increases vacancy periods and reduces rental return.
8. MAINTENANCE ISSUES
A professional property manager will conduct regular property inspections, generally up to four times a year, and make sure a property is well maintained and address it promptly if that is not the case. Maintaining the value of the investment is critical for investors.
9. VACATING A PROPERTY
Problems can often arise when the tenant wants to vacate a property. Sometimes they fail to give correct notice or wish to terminate for no legitimate reason. A property managers job is to make sure the agreement is terminated correctly and the tenant leaves the property in the same condition it was in when they rented it.
10. PROFESSIONAL RELATIONSHIP
The relationship between a tenant and a property manager should be professional. When a private landlord develops a friendship with their tenants, all sorts of boundaries get crossed, making it difficult to navigate should it turn pear-shaped. By strictly maintaining a business relationship the investor is much more likely to benefit financially.
At the end of the day, a professional property manager can save you a whole lot of time and stress. Property managers take care of dealing with the nitty-gritty of managing your investment, ultimately freeing up your time to continue to build your portfolio.
For more detailed information on the property market and managing your investment, our iThink Property Real Estate Agents and Property Mangement Team in Ipswich and Toowoomba would be happy to assist.
iThink Property has a team of real estate agents in Ipswich and Toowoomba offering property sales and property management services. With a passion for people and property, iThink Property was conceived with the notion of building a team of good people to work in a real estate brand that did things differently. iThink Property focuses on transparency, communication, innovation and teamwork and has become a leading independent brand with unique points of difference. So whether you are thinking of buying, selling or renting, think iThink Property.
07 3203 3040
Starting out with a career in the media, Kylie brings a wealth of communication and marketing skills to the team at iThink Property. She helped launch and develop the company’s rent roll several years ago and has organically grown the business with iThink Properties rental network now spanning Ipswich, greater Brisbane, Toowoomba and the Gold Coast.
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