Why Use a Property Manager?
The plan was to write a list of pros and cons having a property manager manage your investment, but the only possible con I have been able to come up with is the cost.
Anyone who has managed their own properties will tell you that the spare time they has once an agent began taking care of their property was worth the management fee on its own. Not to mention the other benefits and value-adds that a quality property manager can add. On top of all of that, you are generally able to claim your management fees on your tax. So here are just a couple of reasons that you may want to consider having your property managed by a professional.
- Legalities – A professional property manager will have a very good working knowledge of residential tenancy legislation. This is especially important as the legislation is amended regularly. Having someone who keeps up to date with this is crucial. Having someone who intricately knows both landlord and tenants’ legal rights and responsibilities, and who can explain these to relevant parties can mediate and avoid a lot of stress. It can also prevent upsetting and losing tenants, which means avoiding loss of rent. In some cases it can even avoid unnecessary tribunal hearings or other legal proceedings , which can be costly and time consuming.
- Tenant Selection – An experienced property manager will know what to look for, and what to avoid when it comes to tenant selection. Experienced property managers have seen and heard it all, they know the questions to ask and the red flags in applications that should be avoided at all costs. A high quality tenant makes all the difference when it comes to your investment property. A poor tenant can cost time and money, and although they can usually be removed eventually, it is much better to avoid them in the first place.
- Tenant Retention – In addition to finding quality tenants, a good property manager will help you to keep good tenants. Good tenants are invaluable resources, and it is important to maintain good relationships with them. A good property manager will keep on top of any issues that arise and make sure that your tenants feel welcome and valued. As well as having a tenant who will take good care of your property, this will save you money on advertising and maintenance between leases, as well as avoid having your property vacant.
- Knowledge – Property managers know how to present and advertise your property. They know the things that tenants are looking for, they know the maintenance issues to look out for so that you can nip little problems in the bud before they become bigger issues. Taking advantage of a good property manager can add value to your property and save you money in the long term.
- Time – The reason many people purchase an investment property is to create their own independent wealth, and to build a better life for themselves. What is the point in working hard, scrimping and saving to buy an investment just to spend your time looking after it? Let an experienced property manager take care of it, let them stress over your property so that you can enjoy the rewards that a savvy investment can allow you.