Becoming a landlord can be an exciting step on the road to financial prosperity. But the purchase of an investment property is just the beginning. You also need to ensure you find tenants who will not only pay the rent (and in turn your mortgage) but who will respect your investment and help you maintain, and even maximise its value.
This is where a Property Manager comes into the picture, and where many property investors go horribly wrong.
The right property manager can find you the perfect tenant, keep your rent payments on time, ensure any maintenance issues are addressed before they become an expensive problem and maximise the return on your investment. They act as a true business partner, not just a service provider.
The wrong property manager can cost you your financial future.
According to Think Property, 96% of landlords don’t research the best property management service or rates available to them because they choose the agency they bought their property from. As a consequence a whopping 83% of landlords are unhappy with their current property management company.
So how can you guarantee that your Property Manager is looking out for you and your investment? It’s very simple. Do a little research, ask lots of questions and you’ll find someone willing to be a valuable contributor to your financial success.
Signs that your Property Manager is not the right one for you:
– Rents are rarely reevaluated. Your Property Manager should be assessing the market at regular intervals to see where rents are going and when it’s appropriate to increase rent. If they don’t you could find yourself missing out on thousands each year. Even having your property at $30 below market value costs you over $1500 in missed rent per year.
– Disputes with tenants are frequent. Tenants want to live in a house where all the available amenities are working, they feel safe, and get what they are paying for. If a tenant is constantly asking for the air conditioning to be fixed and your Property Manager doesn’t get it fixed until the end of summer, resentment builds and tenants are far less likely to respect your property or pay rent on time, if at all.
– Inspections are infrequent. Property inspections are not just an opportunity to “check up on the tenant”. They are an opportunity to check the condition of your property thoroughly, ensure they are no major repairs pending, ensure the tenants are looking after the place and any small issues are addressed immediately.
So now you know who to avoid, what should you expect from your Property Manager?
Some basic expectations could include:
– At least 1-2 routine inspection per year, with photos taken and a report submitted for your information
– A negotiation for the renewal of the tenancy agreement well before the lease expires so both you and the tenant are prepared
– An annual rent review with supporting proof as to why the rent should go up/down/stay the same
– A recommendation for maintenance (scheduled, non-urgent and improvements)
– A written agreement of exactly what level of service they will provide. Don’t be afraid to add your own KPI’s to the agreement to see if they are comfortable standing by their level of service
But don’t stop there. You should also ask plenty of questions including
– Do they use a rent payment system?
– How long do they take to notify you if the rent is late?
– Are they an expert in the area where my property is located?
– When can I inspect my property?
– What are the recommendations for the growth of my asset?
– How many properties do they manage and how many Property Managers do they have? This is a very important question, as it will demonstrate if the staff can adequately manage the number of properties they have on their list.
– What are their selection criteria for new tenants?
– What channels do they use to advertise for new tenants?
At the end of the day you need to feel confident that your investment is protected and that you have a professional working for you who is just as motivated as you are in making your property investment a success. If you don’t bother to shop around for the best you could find yourself out of pocket and wishing you’d never bothered to invest in the first place.
When you buy an investment property with the assistance of Innovative Property Advocates, we ensure that only the best property management company is chosen to look after your asset. We will negotiate the most favourable fees on your behalf and ensure the property is leased within the quickest possible timeframe. This is just another service offering that make Innovative Property Advocates the best choice for buying and selling homes.
Contact us now on 0411522233 or info@innovativeproperty.com.au
