Do it yourself or use an agent?

It’s possible to manage your investment property yourself and save a management fee of around 5% of the rent. However, there is a lot more to property management then simply collecting the rent.

A good property manager will:

• Market your property to minimise vacancies and maximise rental income
• Screen and select suitable tenants
• Deal with the legalities of leases and the rights of tenants
• Keep up to date with tenancy legislation
• Lodge the bond with the relevant authority
• Ensure the property is well maintained
• Handle and coordinate routine repairs as well as emergency repairs
• Respond to tenant requests and deal with problem tenants
• Regular inspection
• Rent reviews
• Track expenses and income
  

Property managers will also have up-to-date information on what’s happening in the market, what comparable properties are renting for and what tenants are prepared to pay for a particular property. A good property manager will also have prospective tenants on their books and the expertise to market for new tenants.

Landlords often under-estimate the role of a property manager. The peace of mind that a property manager can provide is quite often more than worth the cost. A property managers fees are also tax deductible.

When selecting a property manager ensure you check the following:

• Do they work within a team of property managers? It is preferable that they work within a team as if your property manager is ill or goes on holiday there is a team member who can take over in their absence.

• How many years of experience do they have in real estate and in particular property management? It goes without saying that the more experience they have the better.

• How many properties do they look after? Look for an agency that is not over loaded with properties. You want them to give your property individual attention.

• Is the property manager available to show your property to prospective tenants Monday through Saturday? A property manager should be available to show a property at a time that suits a prospective tenant.

• Do they subscribe to a major tenancy database to allow them to check the credit worthiness and past rental history of prospective tenants? This is an essential tool to assist property managers in securing suitable tenants.

Make sure you choose your property manager carefully and do not choose them on fees alone. A good property manager can increase the return you receive on an investment property and make your property investing experience more enjoyable!