The current economic climate is adding pressure in many parts of Australia, so some property owners may be thinking of saving some money by managing their investment properties instead of using the services of an experienced property management company.
This is can lead to unwanted headaches and frustrations especially if you accidentally end up with a high-risk tenant.
First-time investors often believe they can easily manage their rental property and save some money, until they pick the wrong tenant. Then they can become disillusioned with property investment and could end up selling their property or never buying a second investment property.
There are thousands of people listed on databases that identify bad tenants throughout Australia. So the risk of getting a high-risk tenant is no joke. And many of these bad tenants like to prey on first-time investors.
In this article, you’ll learn about the benefits of utilising the services of a property management company.
Fees
Fees associated with using the services of a property management company are miniscule compared to the loss of rent and damage to property a bad tenant can cause.
The expenses you incur employing a property management company are also tax-deductible and you can also claim a tax depreciation.
Correct Rent
Your property manager will be able to provide you with an independent assessment of the market rent and the correct amount of rent for your property. This helps to maximise your returns and minimise vacancies. First-time investors often over state the rent they should charge and end up losing income through a high vacancy rate.
They can’t guarantee that your property will never be vacant, but they will minimise the vacancy periods by advertising widely across various media platforms.
Prompt Payment of Rental income
Your property manger will ensure you don’t miss out on rent money and will make prompt payments of your rental income into your account. You will also receive a monthly Rent Statement that details all rent collected and disbursements made on your behalf.
Your property manger will also deal with any arrears issues to ensure the tenants pay their rent. Including serving Termination Notices when required.
Timely Repairs
Holding on to a good tenant is critical. They often leave because they don’t receive a high level of service. This includes delays fixing broken stuff like an air-conditioner or a leaking roof because you are too busy. A property manager will ensure that all the tenants’ needs will be dealt with in a timely manner. This in turn will reduce your vacancy rates.
Maintain Value of Property
Your property manager will ensure regular inspections are carried out to ensure the value of your property is maintained.
Consistent communication and Reporting
You will receive timely communications from our property manager who will also be available to talk through your concerns and needs. They will also send you an End of year financial report for taxation purposes.
Avoiding High-Risk Tenants
Your property managers is focused on maximising your returns by carefully selecting tenants. They find the best tenant in the shortest possible time.
This involves conducting open for inspections and private appointments that provide an opportunity to interview prospective tenants. Detailed screening often includes a 100 point identity check and a National Tenant’s Database check to minimise the risk of high-risk tenants.
Peace of Mind
If you use the services of a professional property management company, then you will not only have peace of mind, but your investment is protected with consistent cash flow from rent. And all staff participate in on-going training on new regulations and are covered by professional indemnity insurance