Selecting a property manager to manage your investment property can be a time-consuming, and often overwhelming, experience. The following information will help you make an informed decision about how to ensure you select the right property manager.
Knowing the amount of properties a property manager currently has under their care is important, as well as their ratio of staff per properties. As a common rule of thumb, a property management company should have one staff employed per 100-150 properties they manage. Generally a smaller full-service firm will have fewer employees, but also less properties that they manage.
Understanding how maintenance works are handled is vital to understanding how your property will be managed. Works that require urgent maintenance must be handled in accordance with governing regulations, but the manner in which you are informed may differ between property management companies. Questioning the timeline for informing you and who may authorise any works is vital to ensuring you are kept in the loop, but that things will also be adequately handled in your absence.
Rental Appears Policies
Similar to maintenance policies, it is important that you scope out the property manager’s policy regarding rent in arrears. Question how many properties they currently have in arrears, and what they intend to do about it, will help you make an informed choice. Furthermore, understanding their payment policies and whether they charge late fees, how much they charge, and when it is charged, is important to know before embarking on the journey with the company.
Many elements of the property market require a strategic marketing plan. Understanding how your property will be marketed, how the plan aligns with the rental climate your property is located, and the composition of your property, are key components to understand before selecting a property manager. The fees for listings and inspections should be made clear, and any costs for online advertisements or photography should be discussed prior to signing on a specific firm.
Each property management firm will have a different approach to screening potential tenants. Ensuring that your property has the most fitting tenant is crucial to the upkeep of the property and regularity of payments. Questioning property managers on how they screen a potential tenant’s previous rental history, financial stability and current employment, will help ease any concerns you may have.
Each firm will have a different fee structure for the management of their properties. Requesting a detailed and unambiguous fee structure for your particular property will enable you to make an informed decision. Mark Ribarsky, senior buyers advocate and property manager, suggests that the right property manager for one property is not always the most ideal for another: “selecting a property manager that knows your property’s area well, is the most important aspect of deciding whom to manage your investment. Therefore, make sure you way up costs and information to ensure you are best positioned to receive a positive return on your investment.
For an obligation-free conversation, contact Wise Realestate Advice on 1300 009 473 to discuss how their professional property managers can support your property goals or check out our property management FAQ’s.