Written by Sally Norton for Vogue Real Estate Australia
If you own a rental property, you are aware of all the benefits that come with managing it. However, while the financial benefits are great, depending on the property, you may feel like you are putting in a lot of time and effort into managing it. Possibly even the time that you don’t really have. This is when most people usually consider having a property manager.
In many cases, you will be able to handle your rental property yourself. If you fancy yourself a handyman, live close to the property and don’t mind devoting some time to it, you’ll do just fine. However, if you are struggling with any aspect of managing it or would like to expand your business, it is time to consider all of the benefits of having a property manager.
Setting the right price
If you’ve gone about renting your property on your own, the way you probably determined the price was finding out the ballpark amount of other similar properties in your area. However, even though this can serve you well for a time, hiring a property management company will help you professionally determine the best possible pricing for your property. They will bring their expertise to ensure that you are making the most money off your property, while maintaining a low vacancy rate at the same time.
Not bothering with payments
Among the financial benefits of having a property manager is not having to bother with many of the common issues landlords are faced with. One such issue is collecting payments. This is something people often struggle with themselves. Depending on the tenants, it can be difficult to get it done as well as awkward. On the other hand, property managers have their ways of collecting rent and making sure they are on time.
Having a property manager will help you become more profitable in this business. As a rule, most property managers charge 6 to 10 percent of the property’s monthly rental for their services. The fact that they are taking care of this side of the business allows you to focus your attention elsewhere. Also, in many cases, the managers’ service fee will be tax-deductible. You’ll end up saving more money than if you were doing the property management yourself.
One of the ways how having a property manager can make your business more profitable is that it doesn’t limit you when it comes to the locations of your properties. While you’re doing things on your own, you will mostly focus on the area in which you live. Having a property manager can help you expand to other locations that might turn out to be more profitable.
Finding the right tenants
If you’re only starting your rental business, finding the right tenants might seem very intimidating. To be honest, knowing how to protect yourself against bad tenants is quite a serious business. You need to do a bunch of checks to ensure you can trust these people to rent them your property. If you can, having a property manager do it will save you a lot of time and trouble. They will know what red flags to look for and how to get their credit reports, background checks, employment verifications and references from previous landlords.
Before there are any potential tenants to screen, property managers will also be able to help you with finding the best way and locations to advertise your property. This is something that is key if you want to avoid having your property vacant for long periods of time.
The essential activity a property manager is tasked with is managing the relationship between the tenant and the landlord. They will be expected to handle routine maintenance, as well as any emergency maintenance if the situation occurs. In addition, they will handle routine inspections as well as manage conflicts should they occur. If you are planning to offer furnished rentals, they will also help with the move. It is not outside of their job description to do things like take furniture apart for transportation, for example.
One of the benefits of having a property manager is also the fact that they will have already established relationships with different vendors. You will use these vendors for all of the repairs and maintenance necessary for the proper functioning of your rentals.
Instead of struggling with finding the right plumber, contractor or electrician yourself, a project manager will handle that part for you. Not only that, but they will be able to find you the best work for the best price. Finally, and perhaps most importantly, they will oversee all necessary maintenance projects. This way, you will save money and time while ensuring your property remains appealing to potential tenants.
Relationship with tenants
Besides being able to screen potential tenants really well, their relationship with tenants allows you to steer clear of any possible confrontations in most cases. Furthermore, having a property manager makes your rental more attractive to tenants as they know there is someone whose sole job it is to ensure their property is spick and span. It doesn’t matter what issue they come across. They will have someone to talk to about it at all hours of the day.
Is it worth it?
All in all, it seems that the benefits of having a property manager are immense. If you own more than one rental or don’t live close to your rented property, having a property manager would make your life a lot easier. Seeing how well they function may even inspire you to expand your business as a landlord. Your property will be taken care of and your tenants satisfied. All you’ll be required to do is come and pick up the cheque!