Why a property manager is a good idea
With around 60 per cent of investment properties in Western Australia professionally managed by a real estate agency, there are many reasons to engage a property manager.
Risk and responsibility
Property management is more about managing the tenancy than it is about managing the property with the property manager’s main point of contact being with the tenant.
Importantly, much of the risk and responsibility attached to the management process is carried by the managing agent.
Residential Tenancies Act
One of the most critical aspects of a property manager’s role is managing the tenancy agreement as expressed by the terms of a lease and regulated by the Residential Tenancies Act (RTA).
For tenancies longer than three months, the RTA applies automatically, whether there is a formal lease or not, so it’s in your best interest to utilise the services of a competent property manager who will have comprehensive knowledge of the Act.
National Tenancy Database
Your property manager will also have access to the National Tenancy Database so they can properly reference prospective tenants.
Management fees are not excessive and are normally tax deductible, plus, when you hire a property manager, you avoid being exposed to situations that might be uncomfortable, while at the same time ensuring the tenant can also raise issues without having to confront you directly.
Many self-managing landlords have fallen into the trap of sympathising with their tenant and allowing rent arrears to build up over time. A property manager will take a “no excuses” approach to all aspects of the lease agreement to ensure you are protected.
These days almost all prospective tenants are exclusively reliant on the internet to find a property to rent and with REIWA agents having access to property websites like reiwa.com they can easily advertise the property to those actively searching for a place to call home.
When a self-managed tenancy goes wrong it can become costly and very stressful. It has been my experience that with all things considered, managing a property yourself is not worth the risk.