A lot of property owners don’t understand just how much a good property manager takes responsibility for. They’re not just there to put your ad up on realestate.com.au, collecting rent and making sure tenants haven’t trashed your place.
Despite what you may think, property managers need to have knowledge on a wide variety of topics on top of tenancy legislation. These include (but aren’t limited to):
- Owner’s corporation rules
- Pool fencing legislation
- Smoke alarms
- Dispute resolution
What distinguishes a good property manager from a great one is being able to genuinely help a landlord create wealth through property investment. The best property managers will talk to their landlords about their medium-long term plans and can recommend strategies and put them in touch with the right people who will maximise the value of their investment.
Be proactive, not reactive
Being proactive about monitoring the market is a critical duty of property managers. You shouldn’t need to wait for a lease to end before you think of putting up the rent if demand is increasing. Great property managers are keenly aware of the local market and will be able to let you know when they think the market permits a rental increase.
The reverse is also true. It shouldn’t be after your property has been sitting vacant for 2 months when your property suggests you lower the rent. What would you rather: have a tenant pay $10 less per week or not have any rent coming in for weeks or months? Experienced agents are realistic and know that markets don’t continuously rise – sometimes you need to accept the market is softening and prices are going down.
Maintenance is another key area in which being proactive is extremely beneficial. Being able to pick up on aspects of wear and tear on a property early can save a landlord lots of money down the line. Many items that endure general wear and tear can end up breaking and causing bigger and more problems than if they were fixed as soon as signs of damage are present.
Keeping tenants happy
We know… as a landlord, you’re paying a property manager to primarily look after your interests. However, it’s important to remember that looking after the tenant is part of that role too. Happy tenants will respect and look after your property which will cause less grief in the long run. Being able to keep on good terms with tenants makes everyone’s lives much easier.
Ensure your property manager has good people skills and can appropriately handle and issues or conflict that may occur.
Can you really know how to be a good property manager without being a landlord yourself?
The short answer is no. Buying a property is a significant investment, and it’s hard to appreciate just how important and stressful being a landlord can be unless you are or have been one yourself.
One of Place’s leading property managers says “until you actually became a landlord, I just do not think you can fully see what it looks like until it is your own investment.”
Property management typically has a high turnover rate and many lack the experience necessary to effectively carry out the responsibilities required of them. So when you’re looking for your next property manager, make sure you ask them whether they own investment property as well as about their experience. If you need some tips, check out this video on finding the best property manager.
Get your investment property reviewed and keep your tenants longer with the Red & Co rentals team. Contact us here for your free appraisal.