A common mistake that investors make when investing in property is managing their own rental property. To avoid this, it's recommended you hire a property manager
Real estate management requires a specific set of knowledge and expertise that needs to be adhered to. In this article we will explain our 5 top reasons to hiring a property manager to look after your investment property.
Laws and legislation
Professional property managers are across all the latest laws and legislation regarding rental agreements. They're obligated to comply with this. As the market is constantly evolving, they're kept up to date with the do's and don'ts of managing rental properties.
Property managers are governed by legislation that deal with discrimination and the screening of specific tenants. They are also aware of specific guidelines regarding legal eviction processes, should this situation occur.
If you're managing your own investment property you can easily make decisions and take actions that don't comply with specific legislation, especially if you're unaware of the current changes to it. This can put you at risk of legal repercussions.
If you're taking on the real estate management process for your investment property and fail to abide by specific legislation (whether you're aware of it or not) you may be faced with hefty fines. This can defeat the purpose of saving money in the first place. Therefore, it's best to have someone else manage it to begin with.
Marketing your investment property
Professional property managers will look after the marketing of your investment property. Marketing fees are included in your overall property management fees.
Real estate management companies will market your investment across various suitable platforms. They will implement strategies to ensure shorter vacancy periods of your investment and that the property will be targeted to the right tenants.
Tenant selection
Professional real estate management companies ensure that the correct tenant is thoroughly vetted. Property managers spend time finding quality tenants and will assess risk factors to ensure they're minimised. This process is important as you want to know that the prospective tenant will care for your property and fulfil their lease terms.
Handling paperwork and collecting payment
Property management companies have trusted systems in place to make sure that paperwork is signed correctly with the responsibilities of all parties clearly identified. The paper work is legally binding and created by real estate companies. Property managers handle all paperwork with a level of legal compliance.
The same goes for payments. Real estate management companies have trusted and efficient systems that collect rent from tenants in a timely manner. Their automated processes and detailed record keeping systems do all the hard work for you. This means that you don't need to have those awkward conversations with tenants regarding late payments. After all, maintaining cash flow is key as an investor.
Maintenance & inspections
Real estate management companies conduct regular inspections of your property to ensure its maintained correctly by its tenants. They will also be the first point of call if something goes wrong with your property. They then go out to inspect it and organise repairs, if necessary.
Once inspections are completed with your property, they will send you a detailed report. This mitigates all the time and stress that you have to deal with as a property owner.
Check out this video to learn more
Looking for a trusted property manager?
At the end of the day, property managers will take on all the hard work for you. Generally, it's just as cheap to hire a property manager than do all the managing of your rental property yourself. At REIF we have a trusted Real Estate Management company that looks after our investor clients. They ensure they're getting the most return from their property and that it's being well cared for.
If you're interested to learn more about our close management partner, please reach out to us on the details provided below. As for learning about the current investment property opportunities we have access to, please contact us for a free consultation with one of our investment strategists. They will be able to assist you with building wealth for your financial future.
Ph: 1300 130 932
Email: clientservices@reif.com.au
