When most people purchase an investment property, they ask themselves, should I hire a property manager for my property? Property Managers Melb takes us through the benefits and the costs of hiring a property manager for your investment property.
Owning and renting out a property in Australia can be a good way to invest your money as it can be extremely profitable through rental income, and capital growth. However as profitable as it can be, it is also a challenge to maintain it. Even if you have the nicest and the most reliable tenants in the state, as there demands, requests maintenance and queries can be a stressful, annoying and a time costly process. If you find that this is too hard to manage as you have family and work commitments, then consider hiring a property manager who will help eliminate all your headaches and problems.
In the next few sections, Property Manager, Elizabeth Riba will discuss; what is a property manager and what do they do, how to find a property manager, and the advantages and disadvantages of employing a property manager.
What is a property manager and what do they do?
A property manager is a person who acts as an intermediary (middle person) between the landlord and the tenant. A property manager will do a number of things for you, depending on what is written in the contract, however they are normally responsible for the following:
- Advertising your property for leasing
- Finding prospective tenants while the house is empty.
- Assessing potential applicants that is suitable for the property. Which involves background checks, obtaining references, etc.
- Collecting rent, and chasing up any late rent.
- Regular property inspections (once every six months) and providing regular condition reports.
- Always staying in contact with the landlords and tenants about any queries, hiring any tradesman for repairing and maintaining the property.
Best way to find a property manager and how much do they cost?
When trying to find a property manager, it is a good idea to find one that is local to the property that you wish to rent out, as they will have great knowledge of the surrounding area, they will be able to inspect the property more regularly, they have a good idea of the amount of rent to be charged and so on. With the internet accessible to us, it is a good idea to search property managers in the local area, at the reviews that they have had from other landlords can indicate whether they will be good or not, you can also use Word of Mouth Online or productreview.com to find the best property manager in the local area. If you have any family or friends that have investment properties, then ask them if their property manager has been helpful, if they have been, consult them and set up your first appointment.
The standard rate for a property manager in Australia, is roughly between 7 to 10% of your monthly rental income. Most people will find this quite expensive, and therefore might not hire a professional manager, however the amount of work that a property manager does for you is quite significant and will save you a lot of time.
The advantages and disadvantages of a property manager.
While hiring a property manager might not be for everyone, it is important that you do consider the advantages and disadvantages of hiring a property manager. As self-managing your investment property involves staying on top of legislations and regulations.
- They have expertise and great knowledge of the local area.
- With their knowledge, they are able to provide great advice and have contacts with tradesman if a problem arises.
- They will save you time and effort in finding tenants and managing the property.
- They have access to a number of tenants, meaning they are able to select the best applicant for your property, and will be able to find someone in a short time frame so that rent money is coming into your pocket.
- They are not emotionally attached to the property, meaning that they will make decisions based on logic rather than emotion.
- As a landlord, you are able to save a lot of money, as you do not have to pay for management fees.
- Property managers manage a number of properties, this might mean that your property isn’t at the top of your list, meaning they do not care for the property as much as you do.
- There is the possibility that you will receive a property manager who is inexperienced and is not able to meet the standards that you wish.
For an obligation free chat on what Property Managers Melb can do for your business please leave your details on this form or call us direct on 1300 00 MELB.
By Elizabeth Ribarsky