What is the role of a property manager, and why should you use one?
Managing multiple investment properties can be time-consuming, not to mention stressful when things go wrong. The role of a property manager is to take the stress off your hands. From handling tenant issues and maintenance to understanding legalities, this blog covers the main roles and reasons why a property manager makes a world of difference
According to research by Domain, most Australian investors - around 75 per cent, use a property manager to manage their investment property; there are plenty of reasons why.
With numerous responsibilities, laws and regulations applying to investment property owners, outsourcing the management of your rental property saves time and stress compared to managing a property yourself.
A property manager will charge approximately 6-8% of the total rent (though this does vary across states and companies) - a fair price for the headaches they prevent. If you’re undecided about hiring a professional, read on to discover the role of a property manager, and understand the benefits of having someone oversee your investment property, rather than going it alone.
1. Finding quality tenants
Sourcing and securing quality tenants require a lot of time and effort and is not as easy as people think. When finding the right person for your investment, property manager have a strong advantage over those managing their property alone.
“Property managers are experts in their local rental market and typically have a database of verified tenants living in or looking to move to the area. With experience in dealing with multiple types of tenants, they can match the right people to the right property – making for a swifter and more effective process compared to managing it yourself,” explains Melinda Cotton, Head of Property Management and Escapes at Belle Property.
“The other benefit is that property managers often have access to databases and software, allowing them to verify tenants and their rental history. Self-managed investment property owners generally won’t have access to this kind of data so take more of a risk when it comes to placing a tenant in their property.” - Melinda Cotton.
In addition to this invaluable pool of potential tenants and database, property managers will also advertise your property and host inspections on your behalf, ensuring your property is seen by as many people as possible to have a reliable tenant move in ASAP.
2. Managing maintenance and repairs
Property owners can find themselves in hot water if maintenance and repairs aren’t handled quickly and correctly for tenants. As such, this is a key area where a property manager alleviates unexpected stress and hassle, stepping in to deal with the problem quickly and efficiently.
“A property manager also ensures that the trades are suitably qualified and insured to carry out the work required,” says Melinda.
“Without a property manager the responsibility of organising the trades, getting quotes, liaising with the tenant and gaining property access falls to the owner, all of which can take a significant chunk of time”
“Not only that, but trades that work with property managers understand the importance of having maintenance attended to quickly and will generally be a better option for emergency repairs.”
3. Understanding the fine print
Several laws apply to rental properties, investment owners and tenants, varying from state to state, and owners must be up to date with the fine print when renting out their property. This can be a lot to keep track of, especially when new laws and changes are made, and, for many, having a professional take care of the legal side of things is a deciding factor in employing a property manager.
“Property managers are responsible for understanding all the regulations and laws that apply to tenants and investment property owners at a state level and can explain all this to a property owner, so they understand their responsibilities and rights. They also keep up to date with the latest changes to laws and regulations, so their owners don’t have to,” says Melinda.
“Being across all the requirements of the Tenancy Act also makes it easier for property managers to have difficult conversations if they need to, which can be extremely uncomfortable for self-managed investment property owners, especially if they’re not across all the rules."
“The other benefit to using a property manager is that they stay on top of property market movements on behalf of owners. This means you always have an expert in your corner to advise on how to respond to fluctuating market conditions, helping maximise the return on your investment as a result.”
4. Collecting rent and property inspections
Perhaps one of the most important roles of a property manager is maintaining the ongoing (and on time) payment of rent – something that can be tricky when managing alone. Life happens, and your property manager will be the first point of call for tenants who need to notify you of any problems, and they will deal with it accordingly.
On top of this, your property manager will ensure your property is respected and clean throughout the tenancy. This is done through routine property inspections, with inspection reports available to the owner to verify the upkeep.
By now, you can understand the role of a property manager extends far beyond the general upkeep of your property. They are on hand to ensure you and your tenants are happy through regular inspections, quick problem-solving and being a reliable point of contact.
If you’re tired of juggling the admin and maintenance of multiple properties, it may be time to speak with a property manager and regain invaluable time and freedom to focus on what matters most to you.
To find out more about Hockingstuart’s professional property management services please visit our investor page, or speak to your local Hockingstuart office.