If you’re a landlord, it makes sense to have a property manager. When things are running smoothly, it’s easy to underestimate the work involved in managing your investment property. But there’s a lot to it – finding quality tenants, tracking rent payments, dealing with maintenance issues and repairs, coordinating trades and chasing unpaid rent are just a few of the aspects a PM takes off your plate.
Your rental property is a significant investment – working with an experienced PM is the best way to minimise your risk by leaving property management to the experts. Plus, property management fees are tax-deductible, which means you should look at them as an investment rather than an expense.
A good property manager will add value to your investment property in these ways and more:
1. They’ll find quality tenants
A good property manager has an eye for quality tenants. They’ll be able to sort through the applications you receive and provide you with a shortlist of the most suitable tenants for your property. They know that getting the right fit isn’t just about selecting the tenant who’s offering the highest weekly rental – it’s about choosing someone whose needs are aligned with yours.
If you’re renting your property for just a short period while you travel or wait on council approval of a building permit, someone who’s looking for a six-month lease might be perfect. Likewise, if your rental property is a long-term investment, a tenant who’s willing to sign a two or three-year lease will give you peace of mind that your rental income is certain into the future, and allow you to avoid the minor damage that’s inevitable when tenants move furniture in and out.
2. They’ll be on top of inspections and maintenance
A quality property manager knows that routine inspections aren’t a tick-the-box exercise. They’ll be proactive in ensuring that inspections happen when they’re due and give you the option to attend if you wish.
Your property manager should be on the lookout for minor issues that could turn into more significant problems if not addressed. Just because something isn’t bothering your tenant doesn’t mean it shouldn’t be a priority to fix. If cosmetic cracking is getting progressively worse or the floor is falling away in an area, you could be facing into expensive major repairs. A good PM will identify this type of issue, move quickly to get the problem assessed, and arrange for quotes to fix it.
3. They’ll help you to maximise your rent and capital growth
If you’re planning to have your investment property for a long time, you’ll want to maximise both your short and long-term returns. A property manager who knows the local area well will be able to guide you regarding a reasonable weekly rent. They’ll also know what improvements you can make to expand your property’s appeal and add to its capital value.
A proactive PM will have a view of how many years a dated kitchen has left before it starts to negatively affect the rent you can achieve and will bear this in mind when a lease is coming to an end. While taking your property off the market for a few weeks to install a brand-new kitchen will “cost” you in the short-term, if this change achieves a decent uptick in rent, it will have paid for itself in no time. You’ll also be able to deduct the cost of any improvements from your taxable income at tax time.
At Greg Hocking, our experienced property management team works closely with our landlords to protect and maximise the value of their investment properties today and into the future. Contact your local office today for more information.