When should you consider hiring a property manager?

Many investors underrate the value they add, but a good property manager can play a pivotal role in the success of your investment.

Most of us have barely enough hours in the day to manage our own households, with work, kids, groceries, home maintenance and other chores to attend to. But once you purchase an investment property, you’re responsible in many ways for managing your tenants as well.

If you would rather not deal with the day to day responsibility of renting out a residential investment property, you may want to consider using a property manager.

Finding the right one is crucial since their responsibilities will be wide ranging – from liaising with tenants to keeping your property safe and secure.

Of course we think property managers are an essential partner for any successful property investment, but here’s a look at particular scenarios where they are super important.

You don’t live near your investment property. Having someone close by your investment property with local connections, knowledge and the ability to attend your property quickly, will offer you peace of mind.

You’re not interested in hands-on management. You may not want to spend your days collecting rent, arranging repairs, conducting property inspections, keeping trust accounting accounts and records, filing bonds, locating tenants, adjudicating disputes, managing tenancy breaches, reviewing legislation and lease paperwork, renewing rent and leases to name a few investment property related activities.

You don’t want a relationship (with your tenant). With your tenant. Many people find it easier to use a third party to manage day to day tenancy issues, as many are sensitive and often can lead to difficult conversations such as bond inspections. Using a property manager, you don’t need to have a relationship with the tenant & be placed in difficult situations. We buy houses Winter Haven Fl

Your time is limited. You may not have the time to invest in managing your own investment property.

You can afford the cost. After weighing up time versus cost. You decide you wish to use a property manager. Ensure you research what service you will actually get and what you are paying for them. Don’t forget the fee’s are tax deductible.

You have multiple properties or rental units. The more rental properties you own and the more units they contain, the more you’re likely to benefit from a management company to manage all the tasks and people involved in the process for you.

12 benefits of using a property manager

After purchasing your investment property, the next key decision you will need to make is whether you will employ a property manager to help you, or whether you’ll manage it yourself. Here is a look at 12 key benefits a property manager can offer you.

Fewer problem tenants

Experienced property managers see hundreds of rental applications and are experienced at screening tenants, reference checking and reviewing rental history to ensure you receive high quality tenants. You of course have the final say as to who rents your property.

Avoid unpleasant confrontations

They are a buffer between you and the tenant – a property manager will help deal with problems such as late payments through to damaged property.

Tenants have someone to talk to right away

If an issue happens with the property, property managers are more accessible to address problems all hours of the day. Also their negotiating power with tradespeople ensures you get the best price on all maintenance jobs.

Decrease tenant turn over

Good property managers know how to keep their tenants happy and happy tenants are more likely to want to stay and renew their lease.

On time rent

Good property managers will work to ensure your tenants pay their rent on time. Consistent rent collection is the key to receiving rent payments on time and they will enforce lease policies if payments aren’t received.

Less stress

Someone else is managing your property and tenants so you don’t have to worry as they will do most of the work for you.

Across strict legislative requirements

Private owners are bound by the same legislative requirements as property managers in their dealings with tenants. This means that if you are taking the task on yourself, you will need to stay up to date with constantly-changing legal requirements. So choosing a property manager to manage your investment property can be a wise decision that may save you time and money over the long term.

Comprehensive Insurance

You’ll also find that landlords who enlist the help of a property manager may be eligible for more comprehensive insurance cover and other advantages.

Qantas Frequent Flyer Points

When you appoint LJ Hooker as your property manager you will receive 10,000 Qantas Frequent Flyer points to spend on a holiday of your choice.

Reduce your risk

By engaging a property manager you reduce the chance of having a vacant property therefore lowering your risk of lost income. Also reduced risk of damage with regular inspections and detailed reports to you. Allowing you to maintain the condition of the property in a managed time frame.

Many service fees are tax deductible

A property manager costs approximately 7-10% of your total rental income, however the services and expertise offered by a good property manager is worth much much more than this fee, plus in many cases the agents service fee is tax deductible.

Maximising your return

A good property manager will keep your abreast of market rentals and your position on rental increases. Also keeping your tenants on a current lease, giving you security of tenure. And introducing you to companies such as BMT for tax depreciation schedules, and obtaining more money for you come tax return time.

Next steps

Working with a competent property manager can save you from the countless headaches and stress that can come from having to manage your investment property. Finding, screening and managing your tenants, property inspections, organising repairs and maintenance are just some of the tasks a property manager can help you with. It is common for many investors to quickly dimiss the idea of hiring a property manager, but a good property manager can be the factor that can drastically improve the return on your investment.