Taking on the services of a proficient, proactive and professional property manager is the best financial decision any novice (or experienced) investor can make. Property managers ensure that owners reap the maximum return on their investment property with minimum to no fuss.
Although on first glance it appears that managing your investment privately is straight forward enough, it will soon become apparent there is a lot more to it than simply collecting rent and fixing a few leaky taps. Property managers have a sound knowledge and understanding of the area your property is in, and they know how to advertise and market your investment. They put on open for inspections, screen potential tenants, and deal with all the legalities and contracts.
Property managers act as the intermediary between you and your tenant. They collect rent, conduct regular property inspections, organise and source trades people for repairs and maintenance and even handle the payment of various bills. On the off chance that things turn sour, the property manager deals with late payment, damaged property, termination of tenancy and any legal issues that may arise.
Agency fees can vary state by state. According to New South Wales Fair Trading, generally property managers charge a letting fee of one week’s rent and a management fee based on a percentage of the gross weekly rental – usually between 5 to 12% – plus other fees set out in the agreement.
When looking for a property manager, find someone who has a willingness to do what it takes to ensure their client is looked after and their needs addressed, with a strong background in customer service and problem resolution. Ultimately, investment properties are a business transaction. Keeping someone in the middle who is managing the situation for you and with whom you have a good rapport is ideal.