The value of using a property manager
According to research by Domain, the majority of Australian investors - around 75 per cent, use a property manager to manage their investment property; and there’s 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 when compared to managing a property yourself.
If you’re undecided about the value of a property manager, here are our top reasons for engaging a professional to manage your investment property rather than going it alone.
1. Finding quality tenants
Sourcing and securing quality tenants requires a lot of work and is not as easy as people may think. When it comes to finding the right person for your investment, property managers have the advantage over those managing their own property.
“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 Hockingstuart.
“The other benefit is that property managers often have access to databases and software which allow them to verify tenants and their rental history. Self-managed investment property owners generally won’t have access to this kind of data so are taking more of a risk when it comes to placing a tenant in their property.”
2. Managing maintenance and repairs
If maintenance and repairs aren’t handled quickly and correctly, owners can find themselves left in hot water. As such, this is one key area where a property manager can take away a lot of stress and hassle for an owner.
“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
There are a number of laws that apply to rental properties, investment owners and tenants, which can vary from state to state. It’s imperative that owners are up to date with and across all the fine print when it comes to renting out their property; however, it can be a lot to keep track of, and for many owners 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 as well as their 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.”