how to select a property manager
As a property investor it is important to choose a property manager who will maximise the value of your property by choosing the right tenants who will pay you the highest rent and minimise your vacancies.
If you treat your property investment as a serious business and want to maximise your returns, you will soon come to realise the importance of efficient property management. That’s because property management is a lot more than collecting rents. To find out exactly what a property manger should do for you, read more about it here.
To help you select a good property manager, here are some questions you can ask the agent who wants to manage your property;
- Does the agency have a dedicated rental department and how many staff will be looking after your property?
Many agencies see property management as a "poor sister" to the more glamorous sales department and some even leave the management of client's assets to the front desk staff and receptionists. Ensure that your agent has a dedicated property management department.
- Is a director/owner of the agency involved in the day to day management of the property management department?
You may find that an agency where the director has an active involvement of the property management department will take the business of property management more seriously.
- How many years has the property manager looking after your property been working in real estate?
This relates to the property manager and not the agency. Going to a brand name agency doesn't mean their service is going to be any better.
Many people start their career in real estate as receptionists and then move up to the property management department and some of the top performers move into sales. Yet some individuals choose property management as a career and this is the type of person that should be looking after your property. They should preferably have had 4 years industry experience.
- Does the property manager give you a written proposal?
Some property managers just go out and look at your property and say "OK we'll put it on our books."
Look for someone who has put in the time and effort to present a professional image to you and gives you a written proposal. If they make the effort to present their services professionally to you it is likely they will look after your property professionally also.
- What geographic area does the property management service cover?
While you should be looking for a property manager with expert local knowledge, consider what your property portfolio will look like in a couple of year’s time. Will you own a number of properties spread throughout the suburbs?
You could either employ a specialist property manager in each geographic location or you could instruct a large property management company that covers a larger geographic area.
Australia is now following the overseas trend in the formation of agencies that are solely dedicated to property management and cover a larger geographic area. With the advent of internet advertising and electronic banking, these "super offices" no longer need to be located in the local shopping strip to manage your properties. Many professional property investors are turning to this type of asset manager who will be able to look after their entire property portfolio.
- Does the Property Manager hand out keys or do they attend property inspections with prospective tenants?
If they just hand out the keys and let the tenant inspect the property on their own, move on to another agency. Too many things can go wrong with this approach and the security of your property is compromised. Inspecting your property with a prospective tenant means that the agent has a better opportunity promote the property as well a chance to get to know the tenant a little better.
- How many properties does the manager look after?
A property manager who looks after too many properties may not have time to devote the attention to your property. Some busy agencies have 250+ properties per property manager. In general this is far too many to give your property individual attention. At some boutique agencies each property manager looks after about 150-200 properties. While these agencies may charge a little more for their property management services landlords find this extra expense translates to a trouble free investment that often produces a higher return.
- Do you have staff available to show my property to prospective tenants 6 days a week?
The hectic pace of life and the advertising of rental properties on the Internet 24 hours a day means a good property manager must be available to show prospective tenants your property when it best suits the tenant.
- Do you have a system for checking prospective tenants with regards to credit worthiness, past rental history and their current employment?
Ensure that your property manager subscribes to a major tenancy database and screens all prospective tenants carefully.
- Do you have a system that daily checks rental arrears and takes the appropriate action immediately?
A good property manager who uses electronic funds transfer methods for rent collections and up to date computer systems should be able to monitor rental arrears daily and minimise late rental payments by regular communication with tenants by phone, letter, email and SMS.
- Will you go to court for me if need be and what is your success rate for previous appearances?
Unfortunately you just might have to go to the tenancy tribunal to protect your rights as a landlord. If this happens you will need an experienced property manager to represent you as tenancy laws have become quite complex.
Please call us on 1300 20 30 30 to find out how Metropole can maximize the returns on your investment property. Or complete this form and we will be in contact with you. You can be confident that your property will be cared for as you would look after it yourself. Changing property managers is simple and will not cost you any time or money - we will take care of all the details for you.