20 Jun Why you should hire a property manager?
If you want to invest in real estate, but don’t know the first thing about property management, hiring an experienced property manager can be the right choice for you. Learning as you go can become very expensive.
If you’ve owned income property for any length of time, you’ll know that managing a rental can be financially rewarding. At the same time, you’ve also likely discovered that property management requires a lot of elbow grease, time and expertise. However, many rental property owners are hesitant to hire a property manager, believing it’s expensive and unnecessary.
Why you need to hire a property manager?
The hard truth is that if you want to remain someone who has the time to acquire property, you can’t spend all of your time fixing and maintaining every rental property you own. Make the decision on how you manage your rental property based on your ultimate goals. In the property game, pragmatism often goes a long way.
Furthermore, contracting the skills, expertise and professionalism of a property manager does not mean you have to hand over full control if you don’t want to. As the owner of the property, you can retain as much or as little responsibility for the management of your property as best suits your situation.
Here are 10 good reasons why you should hire a property manager and let an experienced property management company take the hassle out your hands:
Property Management Knowledge and expertise
Property managers look after properties day in and day out. It is their job. With that comes knowledge and experience. Chances are that they’ve faced most situations that can occur with a rental property and have been able to resolve them for the benefit of everyone. Having access to that expertise is extremely valuable.
The distance between your home and your rental property, even if it is just one property, can be the most important factor when making the decision to hire a property manager. When you’re your own property manager, you’re geographically confined to invest in properties you can reach quickly, which could limit your investment opportunities. Having a property manager means you can take advantage of buying and owning a rental property in areas that may be more affordable or provide a better return on investment, even if you’re nowhere near.
Keeping you sweet with the residential tenancy law
How much do you really know about the laws and regulations that apply to tenanted properties or tenant and landlord rights?
One of the biggest advantages of hiring a property manager is their ability to help you avoid or minimize any legal hassles. A property manager will ensure that you and your rental property complies with all the necessary regulations.
Setting the right rent for the property
When it comes to setting the rental rate for your property, you may think it’s simply a matter of browsing through the local classifieds or online property listings to compare your property with similar ones and you’re done. This might be a good enough method to get an approximate rate. A property manager, however, has access to market research and a much better understanding of how to evaluate the distinct elements of your property to be able to set the optimum rental. When determining the rent for your property, what you’re aiming for is a rent that maximises your rental income while reducing your vacancy rate and attracting good tenants who stay longer.
Marketing your rental property
A property manager is responsible for getting tenants into an unoccupied property. An unoccupied property is a liability on your balance sheet. Rates, repairs and maintenance all cost money, and if there is no rental income then those costs aren’t being offset by anything and your regular income will have to go towards it.
A property manager knows exactly the best way to use all available avenues to market your property for lease – and they’re good at finding and screening tenants quickly.
Screening rental property tenants
Effective tenant screening is integral to finding a tenant who meets your expectations and standards for your rental property. It goes without saying that you need to select a tenant who not only can afford to pay the rent, but is also responsible enough to pay it on time, every time. You also want someone who reflects the qualities you believe an ideal tenant should have. Perhaps you’re looking for someone who doesn’t party too much, has a full-time job, or is fine with your no-pets policy.
If you’re not absolutely sure about your ability to find the right tenants for your property, hire a property manager to do the job. Property managers are trained in the process of vetting prospective tenants, so they know the exact qualities and red flags to look out for.
Property management red tape and rent collection or late rent recovery
Tenancy applications, lease agreements, bond payments, property reports and tenant screening, including background and credit history checks and verifying employment and references – when you hire a property manager they have to deal with all the red tape.
If you’ve ever had to collect money from clients, you’ll know how time-consuming and frustrating it can be. Property managers have their own efficient ways for collecting rent on time and dealing with late-paying tenants so your cash flow stays regular and predictable.
Managing property tenants
Dealing with property tenants doesn’t end once your property is filled. Property managers will conduct regular inspections to ensure your tenants are looking after your property so it retains its value.
They will also handle any problems that arise, saving you time and headaches. However, while a property manager will relieve you of the constant hands-on involvement, they will keep you posted on everything that requires your attention, so you’ll still be the one who has ultimate control over your property.
Rental property maintenance
Picture this: Does a 2 am call from a grumpy tenant asking you to fix a problem with something in the house sound like fun? Unless you really love fixing things (at any time of the day or night) and dealing with disgruntled tenants, then you will definitely appreciate having a property manager at a time like this.
Property managers have relationships with maintenance services and emergency trades people and are set up to deal with ensuring routine maintenance or emergency repairs gets done, all without having to wake you at 2am.
Their network of relationships with maintenance workers, tradesmen, contractors, suppliers and vendors is almost impossible for an independent landlord to duplicate. Not only will your property manager get you the best work for the best price, but they’ll also oversee all necessary maintenance.
Saving time and hassle
Are you a full-time employee, retired or somewhere in the middle? It can be a full-time job to track rent payments, deal with complaints and repairs, prepare the property for new tenants, find vendors and deal with bad tenants. It may also become a constant source of stress. If you have a full-time job or some other heavy demand on your time, then you probably don’t have the time to manage your property at a moment’s notice.
If you’re retired, perhaps you have the time, but you may not want to spend it worrying about your property when you have other valued commitments in your life.
Having a property manager to deal with the daily handling of your rental property means you have more time to look for more opportunities for investment, deal with your career, and live your private life.
A final word
Making the decision to hire a property manager will require you to reflect on your personal situation and capacity to adequately maintain your property.
If you’re a very practical person, you live near to your rental properties, and you don’t mind putting in the time, then the do-it-yourself principle of property management could make sense in your case. However, if that doesn’t sound like you or you have multiple properties, then hiring a professional property manager can help you in a lot of ways. The relatively small price tag for having someone to look after your property investments could be a very small price to pay for the comfort and freedom it affords you.
If you’re thinking of investing in a rental property, talk to the team at Fahey Property Management about our property management services. We have a wealth of property and tenant management experience and will be able to help you manage your rental properties to ensure the best returns on your valuable investment.GET IN TOUCH