So many industries have a never-ending supply of jargon, and the real estate market is no different. One term that is on the lips of most investment property owners is property management, with some sleek property management companies popping up all over the world. It’s the apparent saving grace for those too busy to keep two eyes on the ins and outs, but what do property managers actually do? We’ve covered this question in detail in the guide below so consider making the switch if you want to automate your investment property income.
When you bring a Fitzroy property management company on board, you are relinquishing the pesky responsibilities that come with investment property management. The list of tasks carried out by your property management is very long, with managers finding and vetting ideal candidates for your property, organising paperwork (police checks, references, tenant agreements) and then managing these tenants for the duration of their lease. They will also be the first point of call in case any maintenance is required on the property and will essentially be the middle man that acts in your best interests always. Property managers can operate anywhere in the world, but there is a real value in appointing a property management company that is local to your area, so if you are considering one for your property look in your suburb first.
Property maintenance is an unfortunate reality for any home, and there are going to be issues that pop up from time to time. When it’s 11 pm on a Saturday night and the plumbing fails – it’s the property manager that is going to take on that urgent priority and deploy the right tradesmen to fix the problem without involving you in any of the steps. Most property managers will have owners review and approve a list of tradesmen and suppliers so that you won’t get any expensive surprise and will know that the work being done is to a standard that is set out by you.
Less common than maintenance issues but far more stressful is tenant drama. A great property management company will protect you from this situation as best they can, but if you come up against a tenant dispute your property manager will step in. They will represent you at any hearings and be the point of call to minimise drama and reach and ideal outcome for both parties.
So many property owners list their property at one rental price and never think to increase or decrease that number. You could be leaving some serious money on the table if you aren’t using the data that property managers use and their connection to the area and surrounding properties. Using a property management company will give you total peace of mind that you are getting the right rental yield from your property, and attracting the right candidates that are in that right financial segment. This also goes the other way, as you would prefer a tenanted property rather than an empty one, and the difference might be that your asking rental price is $20 more than it should be a week. Yes, it really can be that small of a difference with renters using filters to weed out properties that are not in their budget, when yours rightly should be.
Most property owners get a property management company on board and then wonder how they ever did it without one. You are putting your property asset into the hands of a team that is dedicated to finding and managing candidates who will treat your property right, and keep it rented for every day of the year.