The best investment property manager should be a priority for anyones property investment strategy. Here are a few things to look out for when hiring a great property manager.
Buying an investment property is a great way to earn a passive income and create a self-funded retirement. Though, the last thing investors want to worry about is the everyday management of their property. Which is completely understandable!
That's where a property manager can come into play. Not only do they save you your much needed time and energy, but you don’t need stay up to date with the latest laws and regulations because they do it all for you! An additional bonus is that you may be able to recoup some of their fees in your end of financial year tax return.
When hiring a property manager, you should always do your due-dilligence.
In this blog we'll explain the role of an investment property manager and share some useful tips that you can use to ensure you’re hiring the right professional. After all, why not make your real estate investing journey a pleasant one from the get-go!
What's a property manager?
Also known as a real estate manager, a property manager is a person or company that’s responsible for the daily rental operations of an investment property, for a fee. When a property investor or landlord decides that they don’t want to attend to the upkeep and management of their property, a property manager will do so instead.
What do property managers do?
These professionals are up-to-date and trained to deal with latest regulations surrounding the daily operation of an investment property. Below is a of duties that real estate managers are responsible for:
- Targeted marketing and advertising to the right tenants
- Rent collection
- Tenant screening
- Coordination of any maintenance and repairs
- Fair housing compliance
- Listing your rental property
- Organising inspections for potential tenants
- Preparing tenancy agreements
- Conducting regular inspections of investment properties
- Address any owner or tenant concerns or queries
- Deliver termination notices
- Prepare and handle contracts
- Manage and prepare regular reports
- Basic accounting
Tips for selecting the best property manager
When buying an investment property, you want to ensure your investment journey is seamless from the get-go! Thus, you should spend some time researching before selecting the right management for your property.
Some points to consider in the selection process include:
Question how many properties your manager is responsible for
At first glance, a manager that looks after hundreds of properties at once may look desirable. This is because they may be considered popular. Ideally, you should be looking at a manager who doesn’t have more than 150-200 properties on their books at one given time.
The greater the properties on their book may correlate to compromised quality of service you may receive for your investment property. If a manager is looking after too many properties, they may not be able to give the right amount of TLC to you or your tenant.
Interview several candidates
As the property owner, you'll want to make sure that it’s in the best hands. To get a good feel for prospective property managers, here are some questions that you may want to ask during your interview selection process.
Know what’s fair in terms of fees and charges
While property management fees may vary in different states and suburbs, a general rule of thumb is that they’re between five to 10 per cent of the property’s rent. Other services like lease preparations are billed outside of that fee.
Look for a local agent
A local agent will have the best expertise on your location’s market. They'll understand factors such as market demographics and how to advertise to the most suitable tenants. Local property managers will also understand applicable laws and regulations within your area as well as relationships with relevant vendors to support in the maintenance that your property may incur.
For more information about buying an investment property
If you’d like to learn about smart property investment, please feel free to reach out to our team on the details provided below. Real Estate Investment Finance provide a holistic and individualised approach to creating a wealth creation strategy that'll help you achieve financial freedom sooner!
For more information on our trusted network of property managers, please get in touch.
Ph: 1300 130 932
Email: clientservices@reif.com.au
