How To Choose The Best Property Manager Made Easy
In order to maximise the return on your investment property, it’s imperative that your property is being well managed. Choosing the wrong Property Management Agency to manage your investment property could end in disaster. High rental arrears, poorly managed property maintenance and prolonged vacancy rates will drastically hurt your bottom dollar.
So, how do you choose the right Property Management Agency for your investment property?
You’re not the first person to ask. So, we’ve prepared this Landlord’s Checklist for you to ensure your investment is in safe hands. If you’re not satisfied that a Property Management Agency meets all of your requirements, then perhaps it’s time to consider shopping around…
1.Are they experienced?
How long have they been managing properties for? New agencies come and go, you need to ensure these guys are going to stick around!!
2.Are they up to date with legislation and best practice to ensure my property is compliant?
It’s integral for a Property Management Agency to invest in training their team to ensure they are up to date with the latest legislative requirements and best practice policies to guarantee your property is compliant.
3.Are they invested in providing a high level of service?
To successfully manage an investment property it takes dedication and focus, you must be confident in their ability to deliver a high level of service, taking the worry out of investment property ownership.
4.Do they care?
Is your property manager’s primary focus to ensure that they are maximising your income and optimising capital growth on one of your most valuable assets? Are they helping you achieve your investment goals, while offering a high level of service to maximise their return on investment while also minimising risk?
5.Communication – attentive, responsive & keeping you updated
All enquiries, from tenants and landlords should receive a response within 24 hours. Your agent should also take the care to provide you with accurate, clear and concise documentation regarding your property and process all documentation to comply with RTRA legislation.
6.How do they minimise vacancy and maximise return on investment
Price, Presentation and Promotion are the three factors that come into play when advertising a property. A vacant property is not worth a cent to anyone, so it’s essential your property manager knows how to get these three P’s right. Are they aware of the current market conditions? Is your property listed on the major portals as a premier listing using professional photographs as an inclusion of the management? Exposing your investment in the best possible light attracts high quality tenants.In conjunction with refined marketing procedures, a live database of hundreds of active prospective tenants and a rigorous application processing system should be in place to ensure that your property is rented to high quality, qualified tenants in the quickest possible time, minimising your property’s vacancy.
7.How do they select quality tenants?
The selection process should begin at the inspection, meeting prospective tenants and establishing a rapport should be a high priority for your property manager. From here prospective tenants should be screened, checked on multiple tenancy databases and be assessed for suitability for the property. This information should then be passed onto the landlord to ensure they are able to make an informed selection.
8.Do they pay all invoices/rates for you? Making it easy for EOFY
Much of the stress and worry out of having an investment property, by choosing a management that pays all invoices and rates on your behalf allows for easy reconciliation at tax time. You should then receive a detailed end of financial year statement outlining income, expenses, GST on expenses and balance.
9.How many properties per property manager?
Often, at discount agencies property managers are overworked and overloaded with a large portfolio to manage on their own. Speak with your agent to find out how many properties they’re managing, ask if they have a leasing agent, or they’re also required to do the leasing.\
10.Will I receive detailed Routine Inspection reports
Your property manager should complete regular routine inspections at least 4 times per year providing you with a detailed photo condition report outlining required, preventative and future maintenance items.
11.Do they go to court for you?
If a tenancy dispute cannot be resolved via dispute resolution through the RTA (a free voluntary service which is legally required in some circumstances) or self-resolution attempts within the agency are unsuccessful, your agent should attend tribunal on your behalf for a legal resolution.
12.Value for money. How do they justify their fees?
If your investment is not managed effectively it could be costing you thousands of dollars every year and leave you exposed to unnecessary and potentially costly risks. Ultimately, if you feel your current manager isn’t managing your property as well as they should be, this in turn can impact your return on your investment.
13.Do they know the market?
Your agent should be conducting regular rent reviews to maximise your income and ensure your property is sitting in line with the current market. Are they able to discuss with you the current market trends, and how that will affect your investment?
14.Trades people – licensed, rapport, competitive pricing
Does your agent use licensed, high-quality, competitively priced contractors? It’s important that your agent has also verified their licensing and insurance documentation.
15.Retention of good tenants
Tenants are clients too. Establishing a rapport with your tenants is integral to maintaining a positive relationship to retain good tenants in your investment property.
16.Is there a director/owner involved in the day to day running of your property management team?
The benefits of having a Principal take a hands on approach to the management and every day running of the company are integral to ensure their staff are supported. To ensure each team member benefits from collective experience, regular weekly meetings and internal and external training should be conducted.
17.Does your agent do anything in terms of corporate social responsibility or local community?
Part of a real estate agent’s role is to be a vital contributor to the building of our neighbourhoods and to bring people and communities together. Your agent should see their role as an opportunity to nurture community growth and development by giving back to the communities in which they do business!
If you have a property in Brisbane that you would like to consider engaging in a new property management team for, please feel free to contact the friendly team at Calibre Real Estate (07) 3367 3411. Otherwise, we hope you have found this article about how to choose the right property manager for you helpful.