A property manager is a professional who takes care of the multitude of duties involved in owning and leasing a residential, commercial or industrial property on behalf of the owner.
They ensure the property is rented, is well maintained, operates smoothly and retains its resale value.
Landlords are often attracted to the prospect of self-managing their property as a way of reducing overhead costs.
However, those that do often find themselves under strain from the time commitment, workload and knowledge required to successfully manage the process.
Another consideration is the after tax cost of Property Management – analysis shows this is minimal when comparing the capital gains possible for a well maintained tenanted property
Property owners are capable of managing their own property if they have the time to dedicate themselves to it.
Below we look at what’s involved in managing a property to help you decide whether you’re up for it.
Setting, Collecting and Adjusting Rent
This requires a good understanding of the local market, where the property is located and factors that influence the desirability of living in the area such as proximity to shops or public transport.
These factors are then balanced with attributes of the property itself and by looking at comparable properties in the area.
Property owners also have the right to adjust rent under the Residential Tenancies Act 2013 based on inflation, local growth, improvements you’ve made to the property or other reasons. This process is governed by strict rules and regulations under the Act.
Screening Potential Tenants
A property manager can verify information about a potential tenant before moving in as they have access to the National Tenancy Database.
This allows them to check information such as:
- Tenancy history
- Identity verification
- Visa verification if tenant is from overseas
- Public record checks on bankruptcies, court orders or judgements
- References from previous agents or landlords from who they rented
Property managers simply have better tools and experience when it comes to selecting a tenant who will pay rent on time, have a longer tenancy and create fewer problems.
One of the main responsibilities of a property manager is to manage tenants, from finding them to dealing with complaints and evictions.
This includes setting the length of the lease and ensuring it has the necessary provisions to protect the property owner, handling complaints and maintenance requests, and handling the vacating process.
Managing tenants can sometimes be difficult for property owners who have a personal investment at stake, particularly when conflicts arise.
If a tenant damages the property, does not pay rent or otherwise breaches the terms of a lease, you must be able to manage the process of eviction and subtract from the bond in an appropriate and objective manner. This may even involve attending court to resolve matters.
Maintenance and Repairs
Physical management of the property, including regular maintenance and repairs is essential for the property to retain its resale value. The ongoing costs of preventative property maintenance and emergency repairs can be quite high.
Using a professional property manager can alleviate this as they have established partnerships with a network of reliable electricians, plumbers, carpenters, gardeners and other contractors who can attend to any repairs or necessary maintenance.
Tenant damage may require that the tenant pay for the maintenance. An experienced property manager with a comprehensive Property Condition Report showing the condition of the property at the commencement of the tenancy will know the process.
Legal and Financial Considerations
Property managers have a thorough understanding of the state and national laws governing your rights and obligations running a rental property. Their years of experience managing properties mean they are capable of keeping accurate and necessary records and budgeting for the ongoing management of the property.
Using a property manager is more about saving time and money. It’s also about being the owner being stress free with the peace of mind that comes with having an experienced professional manage your most important financial investment on your behalf.
Specialist Property Management in Perth
If you require the services of an experienced property manager for your investment property in Perth, get in touch with the team at Gow Property.