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Using a property manager for your investment property
Wondering what a property manager does?
You may be tempted to manage your own rental property. But there can be good reasons to use a professional property manager to do the job for you.
Property management does come with some costs. A property manager could charge between 7% to 10% of your rent. But it could be money well spent, especially when you consider what’s involved.
How a property manager can help you
A managing agent is responsible for a variety of duties:
- Finding suitable tenants
- Making sure the tenancy agreement (lease) is correctly filled out and signed
- Lodging the rental bond.
A property manager also handles day-to-day tasks like:
- Collecting rent and maintaining rent records
- Arranging repairs
- Conducting regular property inspections
- Handling tenant disputes
- Paying bills (like water and council rates) on your behalf.
Handling these everyday chores can make a landlord’s life easier, especially at tax time. Most property managers provide a single tax statement detailing rental income and any expenses incurred during the year. It could save you time when it comes to completing your tax return.
Selecting a property manager
Speak to local agents before choosing a property manager and to learn more about their services and costs. Questions to ask your property manager candidates could include:
- How many properties do you manage?
- How do you handle requests for repairs from tenants?
- Do you check repairs after they have been carried out?
- How do you screen prospective tenants?
- What steps do you take if the tenant is late with the rent?
In particular, talk about what’s included and excluded. Fees may be negotiable so don’t be afraid to negotiate.
Formalising the arrangement
You’ll need to sign a formal agreement if you use a property manager. Read this carefully before signing to be comfortable with all the conditions.
It can be worth using a property manager if your property is far away, if you’re pressed for time or if you want to enjoy stress-free investing. Using a property manager also means you don’t have to deal directly with tenants. Some landlords and tenants may prefer this.
