Do you need a Property Manager?
While an increasing number of property investors choose to handle their rentals independently, the majority across Australia still delegate this responsibility to agents. This prevailing preference is grounded in sound reasoning.
According to insiders in the industry, there are several compelling reasons for investors to opt for a property manager rather than self-management. Here are some key points:
Efficient time management and cost savings:
Engaging an agent not only saves owners money but also preserves their valuable time. "Managing day-to-day tasks like rent collection and tenancy matters, as well as dealing with occasional disruptions such as maintenance issues or tribunal affairs, can quickly become a full-time commitment," says Mr. Simpson. Most individuals lack the spare time necessary for such endeavors. A proficient agent, equipped with pricing insights, leasing expertise, negotiation skills, and a network of maintenance contacts, can significantly reduce costs and boost annual profits for property owners.
Property managers typically charge a percentage of the weekly rent, ranging from 4% to 8%, for comprehensive property management, along with an additional fee, usually equal to one to two weeks' rent, for leasing the property.
Access to expert advice:
Given the ever-changing landscape of tenancy legislation, outsourcing management to a knowledgeable property manager provides investors with constant peace of mind. "Owning a rental property involves numerous moving parts and navigating tenancy issues," Mr. Simpson notes. Having an expert readily available for inquiries is invaluable.
Assurance of quality tenants:
The quest for reliable tenants who consistently pay rent on time and maintain the property highlights the importance of tenant selection, an area where property managers excel. "Differentiating between a good tenant and a bad one requires experience," Mr. Simpson explains. Selecting tenants based on subtle cues during limited interactions is a skill honed over time.
Make it stand out
Written by Eric Mai -
Property Manager & Business Development Manager