“Oh, I can easily collect rent myself and fix up the place so why would I need a property manager?”. This common question that rings in the minds of many property investors deserves a proper response. Unless you are clear on what exactly is involved in property management, it becomes difficult to appreciate the value of hiring a property manager to take care of your asset.
So why should you hire a property manager? How do you hire a property manager? What are the considerations before you hire a property manager?
The reality is this. Looking after your investment can often be a lot more effort than most people realise. That is why engaging the services of a property management company can help you take the hassle out of owning and maintaining your rental property.
At times, all it takes is one problematic tenant and you will have significant financial and legal issues. What’s worse is that most property owners lack the knowledge, experience and skills, the time or patience to deal with these issues properly.
Property Managers, conversely, are trained to handle these issues. From the daily running of the property to managing the tenant relationship, they also ensure that compliance and legal obligations are fulfilled on both ends.
Here are some compelling reasons why you should hire a property manager for your investment property in Perth:
Fact 1 You will know the right rental rates
Given that professional property managers are expected to know local property trends, what the local rates are, you can expect to benefit from their industry experience and expert knowledge on setting the right market-related rent. This is an important balance so that you can optimise your returns by maximising rent levels and minimising vacancy rates.
It is advisable to conduct regular rent reviews every year or when the property changes over. This will ensue that your yield continues to reflect increases in prices for property maintenance.
Fact 2 You will have true experts at marketing your properties for rent
In order to attract the right tenant pool which is most suited for your property, property managers are skilled at advertising and promoting your asset. In addition, they usually own a database and will use their extensive network to capture the right target market as well promote through communication channels and tools at their disposal.
Fact 3 You will find the best tenant possible because they are familiar with the selection process
As we all know, the type of tenant and quality thereof is absolutely vital to the well-being of your property. This is a make or break scenario. Because a professional property is trained in the tenant selection process, they know how to use a wide range of proven tools and screening techniques. For example, tenancy database checks, personal and professional reference checks, rental history, interviews and where necessary, social media checks.
At the end of the day, finding a trustworthy tenant and providing that quality tenant to look after your property is part of the property manager’s skill set. If you had to find your own tenants directly, how sure could you be that the references they provided were accurate and above board?
Fact 4 You get professional ongoing services in managing tenants
From daily enquiries or complaints as well as actions to resolve these complaints, property managers handle all the everyday aspects of the Owner- Tenant relationship. They manage all daily operational aspects of the tenant/landlord relationship, handle any enquiries or complaints and take steps to resolve any conflict as quickly and efficiently as possible within the parameters of the lease agreement and according to the law. They also ensure rent is collected in full and on time, they handle all property inspections, co-ordinate any tenant queries and ensure that all issues are resolved quickly, efficiently and satisfactorily.
Fact 5 You can be rest assured that your property meets legal compliance
As part of being a body of professional property managers in Western Australia, there are continuous professional development programmes to ensure that the industry is regulated and that changes in the regulations is communicated to the industry. Property managers are required to keep up-to-date by attending training sessions, playing key role in ensuring compliance and helping avoid legal actions and if necessary, assisting in any legal proceedings.
Fact 6 Any repairs and maintenance issues are handled promptly and professionally
An apparently small maintenance neglect can end up a huge problem and even affect your neighbours. Do you have the resources to handle emergencies promptly. Properties age over time and need the right type of maintenance in order that it is well looked after in the long term.
As a property manager takes care of the day-to-day operation of your property, you can do what you do best, leaving them to handle the management of your property for you. By using their expansive network of proven and skilled contractors and tradesmen to secure the best prices for the service, they will oversee any work that needs to be done on time. A good property manager will go one step further and proactively suggest preventative maintenance work, all aimed to save you money and increase your return on investment.
Fact 7 You can leave them to carry out a detailed property inspection
Property managers have an eye for detail. They have trained eyes to carry out a high-level, detailed inspection of your property. This is particularly important when performing checks prior to tenants moving in and preparing the Property Condition Report (PCR), sometimes known as the incoming inspection. Equally important, Property Managers need to perform the outgoing PCR when the tenants vacate. Down to the marks on the carpet or flooring, they will know what exact condition the property was in before the tenants take possession and ensure that this is recorded. They will also relate maintenance expectation of the property. If the property is not maintained to standard or expectation, they will intervene to ensure that this is rectified and to a manner which you are satisfied with.
Fact 8 Your property has less vacancy rates and better tenant retention
The bane of Property Owners, vacancies are often a loss of income and a stretch on the cashflow. They are costly. Every good property manager will take proactive steps to ensure that the likelihood of vacancies are minimal through effective marketing. In addition, by determining the right rental rates and conducting tenant selection process, you can be assured that your investment is well looked after.
Fact 9 You can smile during tax time as they will provide you with detailed records for claims
The administration of a property is not to be taken lightly. There are various reports and accounts to be prepared - Property Condition Report (PCR), Quarterly Inspection Reports, Outgoing PCR, Financial Accounting Records for tax purposes, the level of detail and meticulous report writing with photographs attached will ensure that everything is well covered. Having a property manager who keeps accurate reports and records will provide you a huge relieve and time savings!
Fact 10 You can add value through recommended superficial renovations
The trend of tenants in WA have evolved. Many tenants who are in Fly-In-Fly-Out (FIFO) shifts from the Eastern States are keen on an easy lock-and-leave solution. So, having a low maintenance home has a strong appeal for the Western Australian renters.
Properties in Perth will benefit from a cosmetic refresh – from adding a fresh coat of paint to an uplift in the landscaping or simply changing the carpets. Sometimes this can make a world of difference to the property. It is also advisable to use neutral or light colours for the walls and finishing around the house. By making your property seem brighter, more spacious and modernised, you will find tenants readily attracted to calling your property their home.
With years of experience and accomplishments behind us, our team of property managers are excellent at advising investors on how best to spend their money when it comes to renovations. In terms of immediate return of investment, a simple cosmetic refresh can be invaluable. Some cost-effective tactics that can make a world of difference include painting walls in neutral or light colours, respraying old bathroom tiles, swapping out the bathroom vanity and sink, improving the lighting and replacing any tired carpet. By making the property seem brighter, more spacious and modernised, you can attract a premium rent and definitely cut down on vacancy rates.
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 managers are equal. Read our blog articles on how to choose the right property management company and how to go about asking the right questions before you hire a property manager.