Do-It-Yourself Renovation shows have hit Australian TV by storm and many property investors are now looking into old properties to “flip” around by adding property upgrades. Others are investing into apartments in order to create a multiple property portfolio with steady cash-flow.
With the uprise of these trends, property investors are considering if it is really worthwhile hiring a property management company or perhaps they should just DIY in order to save costs. Before they know it though, they become overwhelmed and exhausted managing the nitty-gritties on top of their usual every day job.
When Would Hiring a Property Manager Be a Must-Have?
- When you own multiple investment properties
- When the properties are geographically dispersed
- If you are inexperienced in managing properties and knowing the legalities thereof
- If you have a full time job or other time-heavy commitments
What’s In It for You?
1. Expertise in Tenant Management
One of the most time consuming roles in Property Management is corresponding with Tenants and ensuring that their requests are looked into in a timely manner. It is critical that they are kept satisfied so that there is the opportunity to keep the tenant in a long term lease. This reduces vacancy rates and costs associated with change in tenants. Refer to our content: Happy Tenant means Long Term Return.
2. Prompt Rental Collection
Good property management companies have zero tolerance to arrears with systems and procedures in place to ensure delivery that these rents are paid on time, every time.
3. Repair and Maintenance Management
Common investment wisdom states that 1% of the property value should be set aside as a maintenance budget annually. For example, for a $500,000 property, $5.000 per annum should be budgeted for as a buffer. These maintenance costs are categorised as preventive, corrective and investment types. Here’s where property management companies can add value – true in both commercial property management as well as residential property management – from minor repairs to preventive maintenance ensuring that future issues are avoided in order that your long term investment is protected.
4. Value-based marketing and advertising
Due to market knowledge, Property Management companies know where to best advertise your property in a way that the best possible tenant pool can be attracted to it. And they also know how to design and write up the best advertisements to this end. This is a significant advantage to help reduce vacancy rates and optimise on rental prices.
5. Quality Tenant
From property viewings and interviews as well as an extensive Tenant’s Database, Property Management companies have access to the National Tenant’s Database to verify the quality of tenants that Property Owners may expect. References may also be requested and security checks are conducted.
6. Excellent Record Keeping
From preparing thorough Property Condition Report, Quarterly Inspection Reports to Financial Accounting Records for Tax Purposes, the level of detail and meticulous report writing with photographs attached will ensure that nothing is missed out. What a huge relieve and time savings this will proof to the Investor.
Less stress, less hassle, more time, peace-of-mind and greater financial freedom are a few more reasons why you should invest in a property manager, but obviously not all property manager are equal. It is not a place to cut corners. Choose a Property Management company that has proven itself through a test of time and economic cycles in Perth and who truly knows Perth property management market.