5 Ways Your Property Manager Will Save You Money
If you own investment property, you’ve probably considered being your own property manager at some point. After all, you’ve already spent money on the property. Why spend more money on a property manager?
The truth is a good property manager is just as much an investment as the property itself. Both your property and its manager will make you more money in the long term.
Great investors to the stock market have a broker (sometimes multiple) for their share market investing who manage the portfolio, make recommendations and see to all the finer details at the instruction of their clients. A property manager is the same – a manager of your investment, caring for the property and managing the tenancy along the way. While it's often regarded that a property manager can save you time, property managers are also about achieving maximum value for the landlord investor and can save you money as well.
If you’re thinking about doing your own property management, you should first consider the 5 ways a property manager will save you money. Then consider if it’s in your best interest to use a property manager for your investment.
A Property Manager will keep your Investment Home Occupied
Any amount of time the property spends unoccupied is time you are losing money. It’s crucial to keep a tenant in your investment home as much as possible. This means you need tenants who will stay long term, and you need to be able to find new tenants quickly if your current tenant leaves.
Only a simple vacancy of five weeks is equal to 10% of the year’s rental income gone. It’s highly important to cut this time down to the shortest possible period.
If you oversee your own property, this is the hardest task to do yourself. You’ll have a very small network of potential renters to draw from. You’ll probably have to look within your own network of friends and acquaintances. Or if you put out an ad, you have to open the house yourself, process applications and conduct background checks and references at your own cost of time and money.
A property manager can make this process a lot less painful.
For one, they have specialised software ready to list your property at a moments notice, broadcast immediately to the advertising websites and potential tenant waitlists. The minute you tell your property manager you need new tenants, they’ll be preparing the advertisements and scheduling the open homes.
Secondly, they’ll process the applications in full. They know what to look for in a good renter and have the tools to examine them. They know what questions to ask, and what rules they should set. A Tenancy database search is very expensive for a lone landlord to complete, but a property manager has a subscription that is bundled as an expense in their management or letting fees.
An occupied property, and an expert handling vacant property for lease is the best way to keep the rent payments coming in on time and consistently.
A Property Manager will Protect your Home from Damage or Neglect
It’s a sad fact that some renters will damage your property, either from spite or negligence. Many landlords will just trust their renters and hope for the best.
But a property manager will protect your property by doing regular check-ins and inspections.
If a tenant is not taking care of something, such as lawn maintenance or keeping a pool clean, you want to find out as soon as possible. You don’t want the problem to continue getting worse for months at a time.
If you have someone check in regularly on your property, they will discover damage early before it becomes a bigger problem. A property manager could save you from spending more time and cost on major repairs.
A Property Manager will Organise Cost-Effective Repairs and Maintenance
Maintenance is an important – and inevitable – part of owning property. And it can become more complicated when a job requires a skilled tradesperson to do the work.
Not to worry! Your property manager will already have a vetted list of tradies they regularly work with. This shortlist is tried and tested over many other properties, so you can be sure you’re get good quality workmanship at a proper value. You’ll have someone on site ASAP.
This means projects will get down quickly, and won’t be drawn out for months on end.
Some home owners prefer to do the work on the property themselves. And honestly, that’s fine! You can speak to your property manager if there is a task you’d prefer to do yourself. You are still in control of your property.
Your property manager will Notify You of Changes in Legislation
When you’re a landlord, you have certain legal obligations. In Queensland it can sometimes feel like legislations are growing every year. As rules regarding compliance, tenancies and properties change from time to time, keeping up with the changes can be an overwhelming task. If you’re not actively looking out for changes, they can sneak up on you. You could unknowingly break a rule and be stuck with a fine.
This is especially true in a world where COVID can change (and has changed!) the rules at any moment’s notice.
A property manager will keep a watch on this and will stay abreast of law changes. If something happens, you can bet they will be the first to know about it. They will keep your protected.
Pursuit Real Estate is subscribed to a private advisory service that regularly inform us of laws, changes to laws, conduct training and professional development and provide individualised advice so we’re up-to-date and operating at our very best.
Your Property Manager will Negotiate the Price of Rent and Assist with Selling the Property
It’s important to charge exactly the right amount for rent. Too much will drive away tenants, too little will see you missing out.
A good property manager will know how to achieve this perfect balance. They’ll have extensive knowledge on the average rate of rent in your suburb and those nearby. And they’ll have the right instincts for setting the price for your property.
Second to this is staying aware of changes to the rental market. If the rental market starts booming – as it is currently – your property manager needs to be highly aware of this curve so that they are proactive with it and not too late to the party with your rent review.
They’ll also be a great source of knowledge on the topic of selling. Most property managers also have experience in the role of a real estate Sales agent. They’ll be able to give you advice on market trends, recommend work to add capital value and help you decide if and when to sell your investment home.
Remember, the question of ‘when to sell’ makes the biggest difference in the success of your investment property. Getting it wrong can cost you greatly. You’re best off getting professional advice throughout the process so you don’t miss out.
We hope this has given you something to think about. If you’re considering using a property manager for your property, give us a call at Pursuit Real Estate to ask your questions and get started.