Top reasons to change your property manager

Limited service offering

Some property management companies provide a limited range of services and whilst they may charge less this isn’t the best service model. Some management companies only manage rental payments and certain maintenance tasks and leave the advertising, tenant screening, inspections and rental appraisals up to the landlord.

Best of breed property management includes the full list of responsibilities detailed above and considering their expenses are often tax deductible, if your current property manager isn’t providing these services it may be time to make a switch.

Breach of contract

The agency agreement you enter into with your property manager is a legal document and therefore they are legally responsible for the management of your property. They must act ethically and in good faith and always act in the best interest of you, the property owner. If your property manager doesn’t comply with this, it may be time to consider a change.

Poor maintenance performance

Management of any maintenance issues is an important element of a property manager’s role. Keeping your investment in good condition is critical to maintaining good tenants, attracting new tenants and preserving your investment.

As a starting point if they are failing to address maintenance requirements as detailed in your rental agreement, or if the property is not maintained to ensure a safe and healthy environment, your tenants may have the right to break the lease without penalty, leaving you out of pocket and in search of new tenants.

Secondly if they fail to address urgent maintenance issues as directed by yourself you could lose thousands of dollars in repair costs because of their lack of action.

If your property manager doesn’t have the experience or tradespeople required to effectively manage the maintenance issues of your property or your finding they are not addressing issues in a timely manner, it may be time to change.

Lack of property management expertise

Does your property manager have the experience to attract and screen potential tenants, do thorough reference checks and review potential tenants’ rental history?

Experienced property managers, like the ones working at LJ Hooker, see hundreds of rental applications and are experienced at attracting and identifying the best tenants. Whilst you have the final say as to who rents your property, if your property manager lacks these important skills and your finding the quality of tenants put forward to you for consideration aren’t appropriate, it may be time to look for a more experienced management team.

Consistently late rental payments

Good property managers work to ensure your tenants pay their rent on time. Consistent rent collection is key to receiving regular rent payments and this directly effects your cash flow and in most cases loan repayments.

Is your current property manager effectively managing this each month? Are they enforcing lease policies if payments aren’t received? If not, then it may be time to find another property manager. LJ Hooker has an excellent track record in ensuring rent is received in full and on time as we know how important this is to our clients.

Unsure of legislative requirements

Is your property manager up to date with the constantly changing legal requirements? Are they attending training and education programs to stay across any legal changes and advising you as to how this may affect you and your property? If they are not up-skilling themselves and communicating with you regularly it may be time to change teams.

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, organizing repairs and maintenance are just some of the tasks a property manager can help you with. It is common for many investors to quickly dismiss 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.