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.
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.
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.
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.