What value do you see in a Property Manager?
By Bernie Tynes
We were recently asked this question. Essentially what value is a Property Manager?
Given the level of investment required to own and operate a property, you would expect that like any insurance policy, your investment will provide a solid return on investment.
Core services of a property include:
- Finding suitable tenants to occupy and take care of your property. It takes considerable time and processes to follow up on inspection requests, open the home, negotiating the lease, assessing applications, review references and rental history, pet clauses. There is a genuine risk associated with finding the wrong tenant and huge peace of mind in choosing the right one with the right terms.
- Incoming, Routine and outgoing inspections reports throughout the tenancy involves knowing what to look for and managing the trades and maintenance requests as they develop. Liaising with the tenant to arrange times to have issues rectified and ensuring that issues that require insurance involvement are being met and managed and your property is being properly maintained. Your Property Manager will know what is required when tenants vacate a property and ensure that your property is being returned in a specific manner suitable for the next tenant.
- Financial management. Your property Manager will also have a well-defined procedure in regard to rental payments, lease terms, arrears management and preparation of monthly and annual statements, bill payments and invoice management. Ensure that all payments are on time and all financials are balanced and all bonds being returned accordingly, less any expenses required to ensure your property is appropriate condition.
- Reviewing your rent in line with market trends and fluctuations and being able to advise tenants ensures that your investment is providing a suitable return on your investment, rental yield and capital growth. A Property Manager will also be involved in the lease renewal of your property to ensure that you have little to no vacancy periods. A vacant property earns nothing and balancing rental return, the right tenants and ensuring an active lease at all times and protects your investment return. Infinity Property Agents pay a subscription to obtain recent property data on rental incomes by regions to ensure that you are maximising the level of return on your investment.
- Property Compliance requires that you maintain an understanding of your legal responsibilities as a landlord. Representing you at tribunal when things don’t go as planned, understanding and maintaining your knowledge of items such as pool and gas compliance, strata, insurance and owner’s corporation requirements and communication processes with your tenants throughout the tenancy and when they vacate the property.
- Marketing your property ensures that you have the best opportunity to achieve the greatest customer demand, the widest exposure and potentially the best financial outcome for your property with minimum vacancy periods.
These are just the core roles of your Property Management Team. There is also the intangible benefits of having a Property Manager. Your time has value and this needs to be weighed against the relatively small cost of employing a Property Manager. There’s a stress cost - Do you really want the stress of dealing with tenants when things don’t go to plan or risking your biggest investment with no backup, having to deal with strata, council, executive, trades, building managers, all the financials and legal requirements.
DON'T FORGET, PROPERTY MANAGEMENT IS A 100% TAX DEDUCTIBLE EXPENSE!
At Infinity Property Agents (https://www.infinityproperty.com.au/) we are transparent with our fees and until April 30, 2019, we are offering 12 months FREE Landlord Insurance (Valued at $355) and retail appraisal as an added bonus PLUS we offer a Service Guarantee.
Details can be found here: https://www.infinityproperty.com.au/property-management
Or email us at firstname.lastname@example.org or call us on 9699 9179
OUR TRANSPARENT FEE STRUCTURE
(GST not included)
- Management Fee - 5%
- Letting Fee - 1 weeks rent
- Lease preparation - $50
- Advertising - $100
- Administration Fee - $6 per month