Selecting and knowing how to wisely use a Property Management Company will ensure that Investors save precious time and money. Which is why, most turn to professional property management companies to help them: choose the right tenants, ensure compliance to local regulations, decide on value-added property enhancements and be advised on the best rental rates possible for their property.
In selecting the right property management company for you, here are some considerations.
1. Local Reputation and References
As the real estate agency will be handling your rental collection, you would want to ensure that they are trustworthy and proven over time in the local market that they serve.
Be careful on what you read on Internet Reviews – evaluate the nature of the negative review, from whom it comes from, what the disputes are about as well as the response of the Agency.
2. Market Knowledge
This is exactly why you want to hire a local Perth Property Management company as they will know the local rent rates best and advise you on rent revisions periodically in line with market changes.
3. Test of Time
You would want to have a reliable company, trusted by the industry and the people of WA, that has proven the test of time as systems and procedures have been solidly put in place to deliver the best possible outcomes. A company with a long history also understands economic and market cycles better.
4. Turnover of Property Managers
You would want to build a long-term professional relationship with your Property Manager and this is important so that they can know you and serve you best. Enquire on the turn-over of the Senior Property Managers that are assigned to Owners.
5. Management Contracts: Fees & Service
Consider what value you will be getting for your fee:
- What is the property management fee? Do remember that the cheapest fee may not be optimal as there are compromises made in order to deliver lower prices. Also find out what these fees cover and do not cover.
- What are their inspection fees and report charges?
- How thorough are their reports especially the Property Condition Report (PCR)?
- Do they outsource any of their functions or are they all done in-house? The risks and dangers of outsourcing property management functions are detailed in our article here.
6. Customer Service Response Time
What are their customer service response time to Owners and Tenants? As certain repairs are critical, it is wise to choose a company that has a quick response time to their Owners and Tenants, prioritizing communication at all times and is willing to go the extra mile.
7. Clear Outline of Responsibilities
Ensure that the contract clearly defines who is responsible for what exactly. Consider what you would like to do yourself, be involved in and what jurisdiction you would like to give the Property Managers outright. For instance, the Owner can authorize repairs at a specified spend level and the repairs can be immediately effected without delays whereas those expenses with a higher spend limit need prior approvals.
8. Regular Financial Reports
As an Owner, you should have regular accounting reports that include Income and Expenses. More importantly, this would help you immensely during Tax Time so that all claims are made appropriately.
If you would like to know more about the finer details of selecting a property management company, feel free to contact our courteous and professional Property Managers based in Perth, who would be more than happy to assist you with your enquiry.