The property manager—a professional who runs and oversees your property portfolio on your behalf—is, in many ways, often the unsung hero of the property investment market. Without an experienced property manager, there’s a possibility that your property investments could go to waste and you could find yourself at a severe disadvantage.
However, some people are understandably wary of bringing in a third party, particularly when a property manager could cost you up to 10% of your regular rental income in Australia. However, aside from tasks such as calculating property-related costs, resolving tenant issues, and collecting rent, there are many other things a property manager can do that should make hiring one worth it, such as the ones below.
1. Prepare the Property for Viewing and Rental – Leasing a property is a little more complicated than just purchasing it and rolling it out into the market. The property must first be inspected and then prepared for viewings—a duty which can be delegated to your property manager. The advantages of doing so include your property spending less time on the market and possibly increased rental value.
2. Prepare and Process Lease Documents and Agreements – Property managers can also handle the job of preparing the necessary lease documentation and agreements for the protection of both the property owner and the tenants. He or she will also make sure that these documents are compliant with industry standards and up-to-date. The property manager can also add a few more special clauses that will give added protection to the owner when needed.
3. Check Health and Safety Compliance – Under Australian law, the health and safety of a rental property is the responsibility of the landlord. This means a thorough legal compliance check must be carried out on the property in order to keep your tenants safe. A property manager will take care of this for you, eliminating the additional hassle and making sure your property is managed to the letter of the law.
4. Advertise and Process Tenancy Vacancies and Prospects – Some property rental markets in Australia are crowded while others suffer from a lack of options. This means the right advertising approach and proper strategies are required to attract tenants. And when you do attract possible tenants, it’s necessary to run background checks and screen them. This is essential since, despite fluctuating fortunes for investors in the market, a property is still likely to be the most valuable asset that you own.
A property manager can do these things for you, making sure your rental properties are advertised properly while saving you from the time-consuming task of doing background checks and screening on potential tenants. When a property becomes vacant, it is up to the property manager to bring in a tenant as quickly as possible, minimising any time that the property lies idle.
5. Attend Hearings or Tribunals – In cases where there are disputes between the tenants and the owner, a property manager can attend hearings or tribunals. He or she will represent the owner and argue the case for the owner as necessary.
6. Conduct Regular Checks and Maintain Property – Malicious property damage is quite uncommon but is still a significant issue in Australia. 4.8% of Australian households fell victim to some kind of malicious property damage between 2015 and 2016. The Australian Institute of Criminology found that this sort of damage is more likely to happen in areas with a high concentration of rental properties. Your property can also fall prey to unscrupulous tenants who may not look after it and general wear and tear over time.
However, making regular checks and making sure that a robust structure of property assessment, examination, and maintenance is followed is just not possible for many of us, especially those who own more than one buy-to-let investment property. A property manager can do these things for you and prevent your property from falling into disrepair and becoming unliveable.
7. Process and Provide Updated Financial Statements – Collecting rent is just one part of the financial side of managing your investment properties. You also have to prepare updated financial statements which show the income and expenses for your properties. You can assign this task to a property manager, saving you time and effort and helping you keep track of your property’s financials. Your property manager will also regularly send you the financial statements so you’ll always be updated.
Want to build up a serious property investment portfolio or gain key insights about making the right investment decisions? Talk to our experts at Clever Finance Solutions. We offer property investment tips, knowledge, and guidance to help take your portfolio to the next level.