Mij Michael, August 30, 2021
Choosing a Property Management Agency
If you're looking for an alternative way to manage and grow your portfolio, then here are some tips to help you on your way.
Real estate agencies that buy and sell properties usually offer property management as an additional service. This is how many investors hire a property manager out of convenience, especially if they bought the property from the same agency.
But these agencies don’t only focus on property management, and turnover rates have been known to be high for property managers. The average tenure of a property manager in Australia is about 9 months!
This means that you can be stuck in the dark when you are switched over to a new property manager, without warning! Poor communication being a common complaint from property owners. In addition, traditional property managers are known to manage up to 150 properties, this means it’s highly unlikely that your property will be their top priority.
Having a property manager means you have someone looking after your property in case something goes wrong and in Australia, properties can be managed either:
- Through a real estate agent
- Property manager
- Independently by you as the owner of the property (DIY property management).
It’s much more than just collecting rent. It’s about ensuring your property is in good order and that your tenants are happy. This is an art-form that involves a whole-lot of work.
The essential services of Property Management, include:
- Collecting rent
- Finding (and evicting) tenants
- Chasing up on arrears
- Maintaining the condition of the property
- Organising maintenance jobs
- Conducting regular inspections
- Ensuring compliance with the specific state or territory’s property laws
- Managing bills
- Prepare the property to be leased.
In addition to the essential services, a good property manager can offer some added benefits, as follows:
- Great local insights about the industry
- Knowledge of local laws and legislations
- Trained professionals that “know” what to do and how to respond in any situation.
What to look for
A key to creating wealth through property is holding on to it for the long-term. This can be an issue if your portfolio is not managed professionally, or you don’t have access to expert advice along the way.
So it's recommended that you don’t just choose the agency that sold you the property. First check if they are any good at managing properties and what services they provide.
Look for a Property Management service that can provide:
- Consistent Cash flow
- Full market rental
- A quality medium to long term tenant
- A quality long-term property-management relationship
- A property manager who has your best interests at heart.
Find the best choice for you, that one who can help you to maximise the value and rent of your property so that you can achieve your wealth goals.