As the owner of an investment property, you have two choices: self-managing the property or using property management services. You may be wondering what the benefits of using a property manager are?
1. Handling of documentation
A residential tenancy agreement is a binding legal contract and should always be treated as such. Having a property manager to handle this aspect will ensure the terms of the lease are clear, thorough, and legally binding.
Other important documentation is also prepared by a property manager, these include an ingoing and an end-of-tenancy condition report. A good property manager will also take the time to meet with tenants and thoroughly go through the lease agreement. This ensures that all bases have been covered in regard to the expectations and terms of the tenancy.
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2. Professional marketing and advertising of your property
Professional marketing and advertising processes lead to lower vacancy rates. A property manager will help you lease your property quickly and efficiently by carrying out the following:
- Advertising on the property management agency’s website
- Advertising on leading property sites such as Domain.com.au and Realestate.com.au
- Professional signage at the property
- Professional photography of the property for advertising purposes
- In-depth property descriptions
- Open houses and inspections
3. Thorough screening and informed selection of potential tenants
Selecting quality tenants can be a challenging process, especially if you self-manage. You want to be sure you’re choosing reliable, responsible people to lease your property, but it can be hard to judge them on paper or on the basis of a single conversation.
That’s where a property manager can help. They have experience in screening applicants, as well as access to a range of resources such as tenancy databases and applicants’ tenancy histories. They’ll also perform thorough reference checks to validate applicants.
After the screening process is complete, your property manager can provide you with advice and guidance when it comes to actually choosing the perfect tenant for your property. It is your property, and the ultimate decision is always up to you; but with the assistance of a property manager, you can be more confident in selecting quality tenants.
4. Communication with tenants and dispute resolution
If you self-manage your property, the tenant will contact you with any questions or problems they may have. By using a professional property management company, all communication with tenants will be handled by your property manager, from the initial letting process onwards.
If there are any issues, your tenants will directly contact your property manager, and it is their job to sort out any problem or query on your behalf.
In an ideal world, every aspect of every tenancy would run smoothly. While this does happen in many cases, there is always the chance you may run into issues or disputes with your tenants.
If issues arise, a property manager will work with you and your tenants to resolve them as smoothly and painlessly as possible. Having a mediator can be crucial for avoiding unproductive conflict.
Furthermore, in the unfortunate case that issues become escalated, you may need to attend the NSW Civil and Administrative Tribunal. Property managers are well-versed in property legislation and can present the best case possible on your behalf as your official representative.
5. Day-to-day management of property
A lot goes into the day-to-day management of rental properties – more than you might realise, especially if you are new to investing.
Here is an overview of all day-to-day tasks a property manager will take care of:
- Collecting rent and managing arrears
- Performing routine inspections
- Arranging repairs and maintenance (using established relationships with trusted contractors)
- Paying accounts and fees such as strata levies and council rates
- Preparing reports and financial statements.
Property management fees are generally very reasonable for the service that you receive. Also, keep in mind that fees can be claimed against your tax at the end of each financial year. Read our tax tips for property investors for prudent advice on expenses you can claim at EOFY.
At Leah Jay, we help property investors see the bigger picture. We focus solely on Complete Property Management and independent advice. Whether you’re at the start of your property investment journey or a seasoned investor, we can show you the opportunities. Find out more about Leah Jay and our differences, or get in touch with our Property Management team.