Choosing A Property Manager
How selecting the right property manager can save you thousands of dollars each year and increase the value of your investment property!
One of the most important decisions a property investor must make is choosing the right property manager. One who can maximise the value of your rental property by selecting the right tenants, maximising the rental return and screening the applicants thoroughly to ensure quality tenants are place in your property. This ensures rent payments are always on time and that the properties are cared for, minimising maintenance costs.
Property management is a lot more than just collecting rent!
If you treat your property investment as a serious business, you will soon come to realise the important role of an efficient property manager plays in maximising your returns.
As a property investor you have the choice of managing your investment properties yourself or to employ a professional property manager to handle the day-to-day management of your property.
Engaging a professional property manager is the preferred option for investors in today's more complex property market. It is critical that you choose your property manager wisely, as this can make a huge difference in the ultimate return you achieve from your investment property. The wrong choice can change a great investment into a troublesome asset.
The cost to employ a property management agency generally costs between 7% and 8% of the rental income of your property. There is also normally a fee to find a new tenant and prepare the lease on the property for you.
The right property manager should not be considered a cost, but an investment. A proactive property manager can considerably increase the return from your investment property. They will minimise vacancies, find quality tenants who pay market rent and care for your property, it also takes away the hassle of you having to deal directly with the tenants.
You can still be actively involved in the management of your property without being responsible for every little incident by employing the services of a managing agent.
Top 10 Questions To Ask A Potential Property Manager
1. Does the agency have a dedicated rental department and will you have a designated staff member as your point of contact?
Some agencies consider property management as a "secondary part" of their core business, with the main focus being on the sales department. Some agencies even leave the management of their client's assets to front desk staff and receptionists. Ensure that your agency has a dedicated property management department. It is preferable that the department is staffed by a number of experts so that there is continuity of management in the event of one property manager being ill or leaving.
2. Is a director/owner of the agency involved or at least informed with the day to day running of the property management department?
The majority of agencies have a sales and a rental department. In most instances the business owner will have a sales background, and often not a strong knowledge of property management, leaving the day to day running of their rental department to the property manager. More and more real estate agency owners are realising the huge benefit of a well run property management division to form a core part of their business although the rental department has a lower income to sales and is more intensive and difficult to manage.
If you find an agency where the director or owner has a more active involvement in the property management department they will generally take the business of property management more seriously.
3. How many years has the Property Manager been working in real estate and how long have they been with the agency?
This relates to the individual property manager and not necessarily the agency. Going to a brand name agency does not mean their service will be any better.
Many people start their career as a receptionist in a real estate office. Then move up to the property management department, in some instances the top performers may move into sales. Yet some individuals choose property management as a career as they have a passion for this part of the industry. This is the type of person you should be looking for to look after your property. You should be looking for an individual with a minimum of 3-4 years industry experience and preferably with a history at the agency.
4. How professional is the property manager when giving you a written proposal?
Look for someone who puts in the time and effort to present a professional image to you and gives you a written proposal. If they make the effort to present their services professionally to you it is most likely they will look after your property in the same professionally manner.
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