McGrath Estate Agents – Why good property management is crucial to your investment success
Australian investors are continuing to enjoy a strong market as landlords, according to Cotality’s September Home Value Index. House and unit rental growth is still increasing in every capital city, along with gross rental yields. Rental markets also remain very tight across most regions with the national vacancy rate at 1.5% in August.
Whether you’re a new investor or a highly experienced one, a property manager is crucial to investment success. They are particularly important for interstate or overseas buyers but either way, they need to be reliable and experienced.
Home buyers who are new to the investment sector may not know exactly what property managers do. Or, they might want to be their own property manager to save some money on fees.
But firstly, property management fees are tax deductible. And, while you’re legally allowed to be your own property manager, you’ll likely be surprised by how much time and effort this work takes.
Here are some other compelling reasons why property managers are invaluable.
1.Investment negotiations and arbitration
A property manager’s main role is to be a go-between or mediator between you and your tenants. A good manager will make the rental process smooth and stress-free. And as a result, you won’t lose income because of a tenancy eviction or emergency property damages.
2.Tenancy management
Property managers will collect your rent and make sure it’s paid on time. They’ll also check new tenant’s applications, and ensure you obtain the best one possible, as well as lease agreements’ legal compliancy. If your home needs a new tenant, a property manager will organise the copywriting and photographs and will attend any open homes.
3.Maintenance issues
With a property manager, your house will undergo regular inspections to check for any damages and you should receive a report with photos. If there are damages to your home, or other repairs or upgrades are needed, your property manager will organise to have them fixed. This includes obtaining tradespeople quotes and negotiating with them and the tenant regarding times and dates for this work.
4.Legal and legislative requirements
This is one of the most important reasons to hire an experienced property manager. Many locations are undergoing a wave of new rental reforms – Victoria in particular. But property managers will be fully aware of these changes, and how they may affect you and your home, especially in sensitive situations like tenancy evictions.
Final thoughts
Remember that your property manager should handle any stressful situations between you and your tenants, and most importantly, they’ll safeguard your investment property.
So I’d suggest questions to ask yourself when making an important appointment. Can you trust your manager? Are they reliable and experienced? Do they listen to your questions and concerns respectfully and carefully, and give you answers that you can understand? Are they knowledgeable about local property management and rental details, including recent reforms and changes? Are you happy with how they handle tenancy conflicts and other potentially difficult situations like emergency repairs and unreliable tradespeople?
If you take your time choosing the best property manager for you and your property – and don’t decide to hire one based solely on their cheaper fees or other similar reasons – your investment should remain stress free.
By John McGrath, Chief Executive Officer of McGrath Estate Agents.
For more information including articles, checklists, guides and more visit McGrath’s Insights Centre.
More origibal in depth real estate market analysis from John McGrath on The Real Estate Conversation:
John McGrath – Solid success continues in the prestige property market
John McGrath – It’s never too late to buy your first home
John McGrath – Regional centres’ change of pace opens doors to buyers
Read more on The Real Estate Conversation
