You’ve just bought an investment property, and now it’s time to get that property rented…the only problem is you don’t have any experience selecting a property manager.
If its the first time you have rented an investment property your going to have a couple of questions including:
- What should I look for in a property manager?
- How can I make sure I’m getting the best return on investment?
- What makes a great property manager?
- How much should I pay?
In todays article we share 6 things to look for in a great property manager that will allow you to sort the good from the bad and get your new investment property rented and managed fast.
- History of good performance
Past performance is key.
This doesn’t mean you go out and find the guy with the largest rent roll (number of properties under management) in the area. It means you do some research into a number of high performing companies in the area.
Some great questions to ask are:
- Do they specialise in units or houses?
- Whats their rental vacancy rate?
- What do their clients say?
- Can you get the names and numbers of past clients who no longer use their service?
- How many properties do they manage in your area?
- What are their business goals moving forward?
You want to partner with a company or individual who has history with the type of property you just purchased.
The reality of the real estate world is that it isn’t always sunshine and rainbows.
You want your property manager to be honest with the feedback they are receiving during inspections.
You need to know if your listing price is too high and if prospective tenants are consistently giving similar responses after their inspections.
To get the best outcome from your investment property you want to know what your ideal tenant is thinking of your investment property as they are seeing it.
- Good Communication
You’ve called around a number of agencies in your area, and you’re waiting for a few property managers to get back to you. You want you’re your property manager to be efficient and attentive – after all if they cant get back to you in 24 hours how can they get back to your tenant?
You want them to be diligent with their communication from the get go and you want them to touch base with you regularly.
The best property managers are open and honest about issues and provide regular feedback in regards to how your tenants are going and where they are at with their lease.
- Connections, relationships and systems
You want your property manager to have a strong network that they can rely on whenever issues arise with your investment property or the tenants. You also need to know they have a great handyman, electrician, plumber, painter, locksmith and groundskeeper.
A great property manager will have well established relationships with these trades, and ensure your property is maintained to a professional standard.
More than anything the right property manager will have systems in place for dealing with issues, and a standard process for enquiries, paperwork, and communicating with you – the owner.
The first question you will want to know after you have identified a potential property manager is how much do they charge.
You don’t want to be paying an arm and a leg for your management, but you also get what you pay for in this industry.
The trick is to find the balance between a great manager and a great price.
I personally never pay more than 7%+ GST for property management.
I also negotiate 1 weeks rent for a new tenancy and make sure I am not paying any of the additional fees that agents love to try and charge unsuspecting owners including administration, postage, advertising, etc.
Remember cheap is often nasty, and you need to be confident you can rely on your property manager to do the best thing by you and your tenants.
If you don’t like your property manager chances are your tenant wont either. Personality is KEY to building relationships, and relationships are key to being successful in real estate.
Your property manager needs to be someone who you can be honest with, and someone who will be honest with you. You want to know your property manager is doing the right thing by you. They should have a thorough understanding of the market. They should be diligent, efficient and be an easy to deal with.
It is much easier to have a good relationship with your property manager as they are the ones who are going to do all the dirty work on your behalf.
You want a long-term relationship with your property manager, and your tenants – after all it is much easier and cheaper to have one long term tenant and one long term manager than dealing with someone whom you don’t get along with and who isn’t delivering value.
The information contained in this article is for general information purposes only and should not be regarded as a substitute for professional legal, financial or real estate advice. The information is provided by Pumped On Property and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained in this article for any purpose. Because every persons needs and financial situations are different, the information in this article are intended as a guide only. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this article or which may be suffered by any recipient through relying on anything contained in or omitted from this article.
Through this article you are able to link to other websites which are not under the control of Pumped On Property. We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.