10 Reasons You Need A Professional Property Manager?
Managing a property, how hard could it really be? I'm sure many investors have thought this at one time or another. If you have great tenants this may be the case, but if things go wrong it's a whole new ball game.
Managing a property, how hard could it really be? I’m sure many investors have thought this at one time or another. If you have great tenants and they look after the property and pay their rent every week this may be the case, but if things go pear shaped that’s a whole new ball game.
There are so many reasons you need a professional to manage your property, I like to use the analogy if your car broke down would you try and fix it yourself? Or would you take it to a mechanic? Same goes for property management, renting a property is governed by a legal minefield of legislation which the average landlord just doesn’t have the time to master.
So here are our top ten reasons you should use a professional property manager:
1. Understanding laws and legislation: a professional property manager is across the latest laws and legislation and keeps up to date with changes as they happen. With a growing trend towards litigation, a professional property manager will be able to keep a landlord updated on any potential legal issues and address them as they arise. For example not fixing a maintenance issue that could potentially provide personal injury to a tenant, is just one example in a growing number of cases. This ultimately provides peace of mind for an investor.
2. Market advice: A property manager will be able to give an independent assessment of the achievable rent for a property. Many first time investors who aren’t locally based will tend to overestimate the weekly rent they should charge resulting in lost income through a high vacancy period.
3. Tenant selection: without relevant background checks on potential tenants landlord’s are at risk of enduring a tenancy with a ‘blacklisted’ tenant. This usually results in a lot of work, heartache and ultimately loss of rent. A qualified tenant with diligent reference checks will pay rent on time and look after the property. Some of the background information on tenants is exclusive to an agency.
4. Viewing the property: showing prospective tenants through a property takes time. Sometimes this may be weekends or after hours, and really if you want to secure a good tenant you need to be available to show them the property. For a private landlord with restrictions on time, this may result in the property being vacant for longer.
5. Marketing: A property manager has access to the best websites to promote and advertise your property, this is where 95% of enquiry for rentals comes from. They also have other potential tenants at hand, who may have missed out on a similar property.
6. Paperwork: a property manager will ensure all the correct paperwork is signed with all parties rights and responsibilities clearly outlined. It is easy to miss parts or sections, giving tenants an easy out clause to a binding agreement.
7. Tenant retention: keeping a good tenant is crucial to a good investment strategy. A property manager is able to foster a relationship with tenants, ensure things like maintenance is addressed in a timely manner and that communication is prompt. One of the main reasons tenants leave is due to poor service, this increases vacancy periods and reduces rental return.
8. Maintenance issues: a professional property manager will conduct regular property inspections, generally up to four times a year, and make sure a property is being well maintained and address it promptly if that is not the case. Maintaining the value of the investment is key for investors.
9. Vacating a property: problems can often arise when the tenant wants to vacate a property. Sometimes they fail to give correct notice or want to terminate for no legitimate reason. A property manager job is to make sure the agreement is terminated correctly and the tenant leaves the property in the same condition it was in when they rented it.
10. Professional relationship: the relationship between a tenant and a property manager should be professional. When a private landlord develops a friendship with their tenants all sort sof boundaries get crossed and it is difficult to navigate should it turn pear shaped. By strictly maintaining a business relationship the investor is much more likely to benefit financially.
At the end of the day, a professional property manager can save you a whole lot of time and stress. Property managers take care of dealing with the nitty gritty of managing your investment, ultimately freeing up your time to continue to build your portfolio.