Six reasons why the majority of Australian investors use a property manager
A tenant calling about a blocked toilet at 9pm on a Friday can either be a quick way to ruin a landlord’s weekend, or a minor hiccup that gets solved smoothly.
If you are among the 75% of landlords who use a property manager, they will arrange an emergency plumber to fix the issue without you having to lift a finger.
But if you are part of the remaining 25% who take a DIY approach, you are in for an evening of wrangling tenants and tradies and figuring out who foots the bill.
A property manager does more than just advertise for tenants, and these are some of the ways they can make a landlord’s life easier.
1 Making maintenance a no-brainer
The above scenario occurs every week in real estate agencies across the country. In fact, if you are managing your investment property by yourself, you would likely be in for a one-on-one confrontation with your tenant in figuring out whose responsibility to fix the problem. Instead, if you have a property manager then they can have those difficult conversations and furthermore navigate the expectations of both the landlord and the tenants and apply the lease conditions fairly.
2 Taking control of tricky conversations
It is advantageous to have a buffer between landlords and tenants. This means issues can be addressed in a less personal manner. It’s also a time issue as it can be quite time-consuming to arrange maintenance and inspections. If you want to manage your property well, it makes sense to appoint a property manager to do it for you.
3 Hiring top tradies
Having a good relationship with good tradies is also key to smooth and timely repairs.
Your property manager should have a group of tradies that has worked with for many years. Knowing that they are reliable and will do a good job is your property manager’s aim. Instead of paying premium landlord prices, good property managers will always aim for quality service for a reasonable cost.
4 Staying across rights and regulations
In the case your tenant damages your property and you don’t have the expertise to manage those issues, they can escalate unnecessarily and landlords will find themselves at the tribunal. A property manager can save a landlord time and money.
A professional property manager knows the fine details of the regulations that govern tenancy agreements and are also required to keep up with regulation changes via newsletters, advice bulletins and training.
The average landlords don’t always know the ins and outs of the law. It is better to leave it to someone who is familiar with the processes and understands what’s involved.
5 Choosing the right tenant
It is paramount to choose the right tenant in the first place for the success of tenancy. A landlord can go on a gut feeling to choose the right tenant but there is so much due diligence that needs to go around that. Property managers have access to tenancy databases which allow them to avoid tenants with a bad rental history that might include breaking a lease, failing to pay rent or damaging a property. They also likely to keep their own database of prospective tenants for the area they service so that they can lease a property very quickly.
6 Understanding market movements
A property manager can also be your barometer for the state of the market. Property managers are exposed to the whole of the market in their district, so they have got a pretty clear indication of rates and can advise when rents should hold, go up or go down. Your property manager can help you set the right rent and show you how to present your property well.
Article originally appeared on www.domain.com.au