Should you use a property manager or not?
You have purchased your investment property, now you need to decide if you will employ a property management team or whether you’ll manage it yourself. Here is a look at 10 key benefits a property management team can offer you.
Benefit 1 – Fewer problem tenants
Having experienced property managers can reduce the likelihood of problem tenants. Capable property managers see hundreds of prospective tenants and are experienced at screening tenants, completing reference checks and reviewing each applicant’s rental history to ensure you receive high quality tenants. The final selection of tenant, however, is yours to make.
Benefit 2 – Avoid unpleasant confrontations
Property managers act as a intermediary between you and the tenant. They will help deal with problems which may arise during the tenancy such as late rental payments right through to damaged property.
Benefit 3 – Tenants have someone to talk to right away
Property managers are more accessible to address problems all hours of the day. Also their long-standing tradesman relationships ensure you get the best price on maintenance jobs.
Benefit 4 – Decrease tenant turn over
Good property managers know how to keep their tenants happy and happy tenants are more likely to want to stay and renew their lease.
Benefit 5 – On time rent
Experienced property manager’s work to ensure your tenants pay the rent on time. Rent collection and arrears management are the keys to receiving rental payments on time and they will enforce legislative procedures if payments aren’t received.
Benefit 6 – Across strict legislative requirements
Landlords are bound by the same legislative requirements as property managers when dealing with tenants. If you choose to manage the property yourself you would need to stay up to date with constantly changing legal requirements. So choosing a property manager to manage your investment can be a wise decision as it may save you time and money in the long term.
Benefit 7 – Comprehensive Insurance
You’ll also find that landlords who enlist the help of a property manager may be eligible for more comprehensive insurance cover and other advantages.
Benefit 8 – Reduce your risk
By engaging a property manager you reduce the chance of having a vacant property therefore lowering your risk of lost income. Also reduced risk of damage with regular inspections and detailed reports to you. Allowing you to maintain the condition of the property in a managed time frame.
Benefit 9 – Many service fees are tax deductible
A property manager costs approximately 7-10% of your total rental income, however the services and expertise offered by a experienced property manager is worth much more than this fee, plus in many cases the agents service fee is tax deductible.
Benefit 10 – Maximising your return
Property managers will work to keep you up to date with market rentals and will communicate when your property could be increased. They can also assist in keeping your tenants in fixed term leases, giving you security.
Our property management team are available to discuss all of your property management needs. Contact our friendly team on 02 4782 1888.