According to research by Domain, the majority of Australian investors (around 75 per cent), use a property manager to manage their investment property.
While managing your investment property on your own may sound appealing, mostly because it will save you a little cash, a property manager can save you a lot of headaches, as essentially, they act on your behalf to manage all your responsibilities as a landlord.
If you’re deciding whether you need a property manager, here are the top reasons a property manager is worth your while.
Finding quality tenants
Sourcing and securing quality tenants is not as easy as you may think. A lot of work goes into finding someone that is well suited for a particular property and property managers have a lot of advantages over those who are managing their own properties.
Property managers know the areas they are working in extremely well, and typically have a database of verified tenants who have been living or looking in the area. This means they are able to find quality tenants much faster than a self-managed property.
The other benefit is that property managers often have access to databases and software which allow them to verify tenants and their rental history. Self-managed landlords often don’t have access to this kind of data so are taking more of a risk when it comes to placing a tenant in their property.
Managing maintenance and repairs
If maintenance and repairs aren’t handled quickly and correctly, landlords can be left in hot water. That is where a property manager takes a lot of the pressure.
Property managers deal with maintenance and repair requests daily. They have preferred and qualified contractors that they know they can rely on to respond to requests quickly and with high quality.
A property manager also knows how to ensure the landlord is getting the best value for the maintenance services and will always do the due diligence of asking for a number of quotes before commissioning work.
Basically, without the property manager, all of this back and forth and research would come down to the landlord, and it can take a significant chunk of time if those networks of reliable people aren’t in place.
Understanding the market and its regulations
There are a number of laws and agreements that govern tenancy, and they vary from state to state. It is imperative landlords are across these sanctions to ensure the landlord and tenant are both upholding their end of the agreement; however, it can be a lot to keep track of.
Property managers are across regulations, government sanctions and agreements that are relevant to their state and their landlords, so they stay across all legal requirements and regulations so that landlords don’t have to.
Being across the tenancy act, also makes it easier for property managers to have difficult conversations if they need to, which can be extremely uncomfortable for self-managed landlords, especially if they’re not up to date with the rules.
The other benefit to having a property manager is that they stay on top of the movements of the property market on behalf of their landlords. This means, in cases like what is currently happening with COVID-19, as a landlord, you have an expert in your corner who can help you respond to fluctuating market conditions and come out the other side.
