A highly skilled Property Manager is a highly desirable position in the property investment business. But how many people really know what the work of a property manager entails? What exactly do they do, and how can you tell if one is doing a good job or not?
If you’re hiring a property manager, here’s what you need to screen for:
A Property Manager is an individual who coordinates and supervises the business affairs or rental function of a given property. A highly trained PM will become a trusted professional in your life that can run your property for you, without needing to speak to you, as the owner,on a daily basis.
The longer you work with the right manager for your property the more you will start to trust that they can handle all situations that arise from owning an investment.
These are the key areas that you should be looking for when selecting the best property manager for you and your property.
Setting the Market Rent
The property manager will research the rental market in your area and ensure that try and secure the absolute highest price in the market at the point in time. Too often the rent doesn’t get reviewed and the same price is just re-listed.
That is just downright lazy and it’s time to change managers.
Just as house prices increase and fluctuate, so does the rental market. Look for a property manager that is on the ball and always attempting to get the rental amounts on the upper end of the market.
Highly skilled and motivated Property Managers can oftentimes fill vacancies faster, negotiate higher rents and better terms, or even find you more money-making opportunities than you can on your own.
Skilled at Reaching the Highest Number of Tenants.
A highly skilled Property Manager is the key element to having the right tenants placed into your property. Whilst you can make all the phone calls and write all the ads, someone still needs to find those tenants, negotiate for you, and having that local, on-the-ground knowledge, is paramount to getting this whole process right.
The Property Manager uses their connections, knowledge of other property owners and capitalizes on word of mouth advertising through social media sites like Facebook, Twitter & LinkedIn.
It’s not quite as simple as listing your property on www.realestate.com.au or domain.com.au. You need the skilled individual to debate and attract the right outcome from each prospective tenant that shows interest in the property.
Once You Get Tenant, Screening Them To Make Sure They’re Right
Property Managers also have to do some background checks on the tenant. It’s important because a Property Manager can collect valuable information that may indicate if a potential tenant is creditworthy or not, and then negotiate with the prospective tenant to meet your needs.
Highly skilled Property managers will go above and beyond this step by even going as far as finding out what type of person they are – their habits, attitude, personality, financial position, changes to their current and former work/life, to ensure that we understand the tenant and how they will be to work with at this current point in their life.
Situations change, and moving into a new property can be a result of a change of one’s circumstance, so it’s critical that, as a good property manager, we understand all the factors before approving the first application that may come along.
Retaining Good Tenants By Being Good Communicators and Treating The Tenants with Respect.
Nothing will remove your profits quicker than having an empty property. Managing tenant concerns on your behalf and communicating the process effectively to the tenants is one of the areas where a PM business receives the most complaints. The tenants have paid fair market value to reside in your investment, but it is their home, and ensuring that the property is in good working condition and always kept in the manner how they rented the property will cut down on the vacancies and be a sure-fire way to retain those good tenants.
Having a System or Being Good at Keeping all the Financial and Property Records Up To Date.
Ensuring that as a landlord you are claiming all of your tax deductions and expenses that relate to each investment starts from having all the information kept in a platform or an easy-to-locate system so that you can forward all the relevant information to your accountant at tax time. At Locate, we use the Managed Cloud-based software, easy to access, tech-friendly, and easy to export to your accountant when the time comes.
Conduct Regular Inspections
There is no better way than to physically inspect the property on a regular basis to ensure that the landlord’s investment is being cared for as if it was the tenant’s own home. It’s one thing to assume the tenants are playing their part in the princess irts another to see that they are.
Managing Day To Day Affairs Like A Ninja
A good property manager won’t be the on the phone to you each and every day with every little thing, and there should be little or not communication about how and when the rent is being paid. This should be an automatic process where the money just appears and the system / emails / statements spell it all out for you.
The focus of a good property management business are relationships and ensuring that all parties know what is happening with the property at all times whatever the issue may be
When Australians think about what goes into managing a rental property, we mostly tend to think about keeping the property maintained and merely collecting rent not the actual property manager themselves.
However, in reality, it can be a complex headache that bogs down the uninitiated. This is where a property manager can step in and ultimately save the day.
What’s so complicated about managing a property? And how does hiring a property manager simplify it?
A property manager will manage the aforementioned tasks for you, so why not take advantage of the training and experience they have to offer.
Understanding and Keeping up With the Law
Are you familiar with the Residential Tenancies Act? Have you studied it comprehensively? It might be worthwhile letting someone who knows what they’re doing, handle it for you!
New legislations are introduced, while existing ones are amended all the time, a property manager’s job is to stay in the loop at all times. Detailed and working knowledge of the law will protect you, your property, and your investment.
A property manager will act as a valuable buffer between you and your tenants. From the very first step of finding the right tenant who will pay on time, and enhance the value of the property by taking care of it, to stickier scenarios revolving around disputes and breach notices.
A property manager will ensure you create goodwill and good relations with your tenants, whilst not having to engage personally with every single resident.
Repairs and Maintenance
It feels easy enough on paper, practically it’s an entirely different story. You need to have experience when it comes to tackling such problems, and frankly, most of us don’t have that.
It is far more likely that a Property Manager not only knows the best crew in the immediate area to efficiently repair and maintain your valuable property but will also get you the best price for it.
Property Managers are an invaluable asset, and completely worth the extra cost.
Number of Properties
If you have multiple rented properties that need looking out for, hiring property managers becomes a requirement. It is impossible for a single person to take care of multiple properties.
A property manager is no longer a luxury, it’s a business decision that ensures efficiency and profitability.
Property Managers Cost
Most Property Managers in Australia will charge a tax-deductible percentage fee on your rent earnings for your property management.
Which is totally worth the trouble, in fact, you end up saving money if you factor in the amounts saved by getting reliable repairs, maintenance and good tenants.
A property manager will take care of everything for you, starting with advertising the rented space, employing background checks on prospective renters, collecting rent on your behalf, maintaining the property, repairing as required, and handling all the complaints in an efficient manner.
Hiring a Company is Better Than an Individual Property Manager
You want a company working for you that is tried and tested. A company that has a dearth of experience to offer, lower prices and better management of rented properties. Your prize investment deserves an expert looking out for your best interest.
Suzana Wade, Locate Property CEO, on what it takes to be Brisbane’s Best Property Manager
Property Management is highly demanding and takes a unique set of skills. Between finding the right tenants, ensuring low vacancies and high returns, keeping up to date with maintenance, and communicating between the different parties, there’s a lot to juggle. If the fundamentals are not in place, it can become a nightmare for owners and tenants alike.
So what is the secret? How do you juggle all those demands while keeping both the owners and tenants happy? We went straight to the source to find out.
As an expert in the field and one of the most competitive and highly respected Property Managers in the Brisbane leasing arena, Suzana Wade discusses what it takes to be Brisbane’s best Property Manager.
Knowledge and experience
The best Property Managers are backed by significant experience, a strong knowledge base, and glowing reviews from past clients. Local market knowledge is required to guide owners on maintaining and (sometimes) increasing the value of their properties. In addition to this, a strong understanding of local council regulations and relevant state laws is required. This ensures both the owners and the tenants are protected.
Remember all the things a Property Manager has to juggle? You will constantly have things on the go. With multiple properties requiring communication with tenants, owners, and potential third-party maintenance personnel, you need to be an excellent multi-tasker.
Without being organised, managing so many things at once can quickly turn messy. Start with a detailed database with all the relevant information for owners, tenants, and the properties. Write everything down and invest in a good calendar. This allows you to stay abreast of the important dates such as rent due dates, maintenance, lease reviews, extra bills such as water, inspections, and repairs.
Excellent communication and transparency
Trust is paramount to the process. The best Property Managers know the gravity of managing someone’s investment and can communicate with their clients in a way that fosters confidence. One way I build trust is to have a completely transparent approach with open communication. I keep owners informed throughout the process and encourage direct feedback to ensure that there are no surprises at the end. I also have an open line of communication with tenants. Gauging the expectations of all parties involved is imperative to matching the best tenants with the best properties and keeping them leased.
Just remember, the client should be at the heart of what you do. If you have happy clients, this promotes more business and success. So above all, aim to always exceed the client’s