It seems that everybody wants to clip the ticket. This has got to be one of the most frustrating parts of being a property investor. But what about rental management? Is it just another expense, or is it actually worth it? Our clients have found having a property manager integral to the performance of their portfolio, and there are many reasons why.
Property managers are trained
You don’t start managing rental properties on a whim. There is a lot of time and effort put into learning the legal environment in which renting apartments or houses exists. Being aware of the responsibilities of all parties involved, a property manager can ensure that your lease documents are up to scratch, and protect you and your assets.
Aside from ensuring your lease is watertight, they take care of legal disputes for you, should they arise. They also have a keen eye for rental property prices and will be able to help you determine an effective market price that ensures few vacancy periods and a maximised return when occupied.
Property management is a full time job
Not only is your rental management team skilled in all of the above, but they also have to be on call – all the time. When a tenant’s hot water cylinder springs floods the hallway in the middle of the night or the chimney is leaking on Saturday morning, your property manager is on duty.
This means that you can concentrate on your own work and family, rather than take on the full-time responsibilities of running an investment property. You can authorise your manager to arrange for certain repairs without bothering you, while bigger expenses get the go-ahead when you say so.
Property managers are adept at marketing
You wouldn’t have thought it, but a rental property manager is very good at marketing. They know the local area like the back of their hand, and also have a solid understanding of the types of households that live and work there. This means that when it comes to advertising properties for rent, they will be able to create targeted appeals to draw in a crowd when your listing is vacant.
Combined with a rental price that is reflective of market conditions and the state of the property, your management team will be able to keep your property occupied and earning you money. When they do receive applications, they will also be able to screen them effectively.
By conducting through background and reference checks on possible candidates, your property management professional is looking after the security of your new asset. We’ve all heard the horror stories of what nightmare tenants can do – don’t let your property be the setting for the next tale.
Property managers make you money
When it comes to weekly rent collections or monitoring electronic payments, your property manager ensures your rent is received on time and that arrears are chased up promptly. In the worst case scenario, they can even handle an eviction for you – a lengthy process, which many owner-managers can feel overwhelmed by.
Rental managers also make sure your rent is set at an appropriate level throughout the course of the tenancy, which can include annual rental reviews and renegotiating tenancy agreements. Annual inspections and regular check-ups are another time a manager makes themselves indispensable. They do this to ensure your property is looked after at all times and that all opportunities to improve or maintain the dwelling are presented to you.
Property managers can be a good sounding board
One of the key benefits of working with The REIN Group is access to sound advice on all aspects of property investment. This extends to The REIN Group Circle of Safety – our trusted network of professional service providers. Your rental management team can provide invaluable advice on how to maximise the performance of a particular property, or even a whole portfolio. Having an ‘on the ground’ perspective of what the rental market wants can greatly help you meet demand and improve your returns.
Not only could they provide sound guidance on certain aspects of your investment property strategy, but they can also offer help in very specific circumstances. Whether you need to know the legal matters involved in certain decisions, or how to deal with a problem tenant, you property management professional will have a tonne of useful advice and experience to offer.
Whether you’re starting out on your investment journey or you’re looking to expand an already bustling portfolio of properties, a professional manager is just one part of the equation. For a complete solution to your property investment needs, talk to The REIN Group about the services your strategy could benefit from. Don’t have a strategy? Don’t worry – we can help with that too.