When considering buying an investment property, many people wonder about the logistics of finding tenants and managing the property. Managing an investment property can be a time-consuming endeavour, and many landlords choose to use a property manager. Read on to learn about what a property manager does and if they are necessary for your investment portfolio.
What Does a Property Manager Do?
A property manager acts as your on-the-ground representative, handling the day-to-day tasks associated with your investment. Their core responsibilities include:
- Finding Tenants: Property managers leverage their market knowledge and expertise to find high-quality tenants who are likely to pay rent on time and take good care of your property. This includes advertising your property, conducting viewings and screening potential tenants.
- Rent Collection and Management: Your property manager will collect rent from your tenants, handle any late rent issues and deposit the funds directly into your nominated account.
- Maintenance and Repairs: Property managers can oversee routine maintenance tasks and arrange for repairs when needed. They’ll source qualified tradespeople, obtain quotes and manage the repair process, saving you valuable time and stress.
- Property Inspections: Regular property inspections are crucial to ensure your investment is well-maintained. Property managers will conduct routine inspections and provide you with detailed reports, allowing you to stay informed about the condition of your property.
- Legislation and Compliance: Navigating tenancy laws and regulations can be a minefield. A good property manager will stay up-to-date on relevant legislation and ensure your tenancy agreements comply, protecting your interests.
Property Management Fees: A Worthy Investment?
Property management fees typically range from 7% to 9% of the weekly rent, plus GST. While this may seem like a significant expense, consider it an investment in your long-term peace of mind and the success of your property portfolio. Here’s why:
Reduced Stress and Time Commitment: Property management frees up your time, allowing you to focus on other aspects of your life or work. You won’t need to worry about showing the property, handling tenant issues or managing repairs.
Professional Expertise: Property managers have in-depth knowledge of the local rental market and understand the legalities of renting a property. They can handle situations more efficiently and effectively than a landlord managing things alone.
Minimised Vacancy Periods: Finding good tenants quickly is crucial to maximising your rental income. Property managers have the tools and expertise to attract high-quality tenants and minimise vacancy periods.
Reduced Risk: A good property manager can help you avoid costly mistakes by ensuring your tenancy agreements comply with regulations and by screening tenants carefully. They can also help you navigate any potential disputes with tenants.
So, is a property manager necessary?
Ultimately, the decision depends on your individual circumstances. If you have the time and expertise to manage your investment property yourself, and you live close by, then you may not require a property manager. However, for many investors, the benefits of a professional property manager far outweigh the cost.
Here at Positive Income Properties, not only do we source your low-risk, high-return investment property options, we also assist with the property management logistics. Contact us today for a free consultation and discuss how we can help you achieve your investment goals.
Gil Elliott is the Managing Director and Founder of Positive Income Properties. Gil has a rich background in business consulting and property investment. All of these he gained in his nearly four decades of experience in the real estate and marketing industries.
