It's safe to say that most investors seek long-term financial goals from their properties. While this may seem straightforward, managing a property to maximise profit is an endeavour that costs time and resources. If being a property investor is not your full-time job or if you have properties across locations, employing a property manager may just provide you with an easy alternative to achieving those long-term goals.
Here are six reasons why majority of investors use a property manager.
Expertise of the local market
If you’re a first-time investor, choosing a reasonable rental price to attract a tenant for your house while maximising profits can be challenging. Investors therefore often turn to property managers for their strong working knowledge of the market. Property managers provide their expertise and knowledge of the local area and surrounding suburbs to help determine a realistic price for the house.
Marketing the property
A crucial part of finding the right tenant is to market the house to the correct demographic. A property manager is better equipped to put in place an advertising campaign to attract a good number of applications. They are experts at highlighting the liveability of the house and area to perspective tenants. Property Managers also have the time and resources to vet applicants, follow up referees and choose a tenant that best fits your criteria. On the off chance that you have a break lease, a property manager will move quickly to re-advertise the property for you. This decreases the chances of the property sitting vacant for an extended period and you losing the rental income it would otherwise generate.
Maintenance of the house
Tenants expect a point of contact that can address issues promptly and handle repairs efficiently. From minor leaks to major property damages, property managers oversee and organise repairs by contacting the right tradesperson and for a reasonable price. They conduct routine inspections to ensure the property is being maintained to a reasonable level by the tenant.
Collection of Rent
As mentioned above, a good property manager will carry out a thorough screening of potential tenants by conducting reference checks. By checking rental histories of tenants, property managers are able to find tenants who are financially secure and most likely to adhere to timely rent payments, minimising your risk of losing rental income through non-payment. Additionally, they also prepare the rental agreement and other paperwork should any conflicts arise between tenants and owners thus helping the owner avoid any hassles.
Navigating through laws
Property investments are often subject to legal obligations. Keeping track of law changes or revisions over time can be difficult! A property manager keeps the investor updated of latest developments from landlord rights to zoning regulations with an aim to protect the landlord from any legal exposure. Furthermore, property managers also inform landlords about changes in the market and accordingly, help monitor rental prices.
Decreasing tenant turn over
A key responsibility of the property manager is to effectively communicate between the tenant and the owner. As a mediator, they can deal with difficult conversations diplomatically and facilitate fair negotiations to ensure the satisfaction of both parties. Consequently, this increases the likelihood of tenants renewing their lease and saves the trouble and expense of finding new tenants.
For typically ten percent of your rental income, a property manager can be a worthwhile investment for hassle-free management while saving you a considerable amount of time. Property managers are definitely worth their weight in gold, to any busy landlord. Still undecided? Read our article on the pros and cons of property management for further information.
Looking to invest in property? Call us on 1300 123 463 and speak to one of iBuyNew's Property Consultants to learn more about how we can help you with your investment property journey.