Buying an investment property is one of the best things you can do. A common question that investors are struck with, however, is ‘do I maintain the property personally, or do I employ a property manager?’.
Managing a property yourself is a big step. Whether you haven’t done it before or you have a portfolio of properties, employing a property manager could save you a lot of time and money.
Even though 54% of Australian properties are managed by a property manager, picking one isn’t always simple. You need to know the key questions you should be asking to find the one that’s right for you.
Are they a market specialist?
One of the most important points is making sure you find a property manager with specific industry knowledge. If they live locally, it’s likely that they’ll have a strong grasp of the local market, which will definitely be of benefit. They’ll know exactly what the competition are offering, so they’ll know exactly what tenants expect from your property.
Make sure to ask your candidates about their current target market, their clients and in which direction they think the market is moving. This last part is especially important if they have similar listings to your property.
How will they get you tenants?
Once you’ve signed the agreement, you may want to make some final touches to ensure your property is of the highest standards. After this is done, you’ll want tenants through the door as soon as possible so you can start seeing returns on your investment. For this reason, it’s important to iron out how quickly they can find a tenant.
What advertising methods are they going to use? Are they going to contact potential buyers they already know? In addition to asking them, it’s well worth taking a look at their current advertisements. This will give you an excellent picture of how they’ll pitch your property to the market. When the majority of Australian rentals are now advertised online, you need to make sure your property manager will use the right channels to get your property seen.
How will they manage your property?
With the wealth of options available to tenants today, how your property manager handles the relationship is key to ensuring consistent returns on your investment. You’ll want to ask your property manager about the following points:
- How quickly do they resolve issues?
- How do they handle emergencies?
- How often have they experienced late-paying tenants?
- How often do they inspect their properties?
Asking your potential property managers about these points will make sure you’re aware of their management style and how they react to difficult situations.
what else do you need to consider?
There are other points you also need to bear in mind. For example, getting along well with your property manager is essential. You’ll be speaking with them regularly, so although you don’t have to be best friends, a strong professional relationship is key.
Look out for property managers with strong reputations. If they’re renowned in the market, it’s likely that they’ve managed a number of properties successfully in the past. Do some research online and don’t be afraid to speak with some of their former clients.
Another crucial point is to test their communication skills. If a property manager can’t communicate effectively with you, they’ll struggle to handle the situations mentioned above. For this reason, make sure they’re strong communicators before moving forward.
When considering all of these points, a trained professional with market experience will no doubt be a good fit. Be sure to do your research, ask the questions above and you’ll have an effective property manager in no time.
To speak to one of our great Property Managers, contact your local Ruralco Office today. We’d be happy to offer advice.
Follow our blog for more helpful tips and to stay up-to-date on current real estate news.