When you’ve put your hard-earned dollars on the line to purchase an investment property, your next steps is to make that investment as profitable and as stress-free as possible. You'll want your property to be expertly managed, unless you're tackling managing the property yourself, which means you need to find a professional property manager. How do you choose someone with the right runs on the board?
What to consider when choosing a property manager?
1. Look local
In the real estate business, local knowledge is crucial. From knowing how to attract tenants and keeping up to date with which streets and areas are the most in demand, to setting the rent at the right level and having contacts with trusted tradies, a local property manager gives you a big advantage over agencies that try to service a larger area.
2. Do some research
Read customer reviews of property managers online to get some honest opinions from fellow investors via:
Google and Reddit. Do a quick search for property managers or agencies in your local area to see what's available.
Real estate websites. Realestate.com.au and Domain are the 2 biggest property listing websites in Australia, and they also have online tools to help you find real estate agents and property managers all around the country.
Productreview.com.au. Check out reviews from fellow investors at this useful website to get an idea of what to expect from an agency. Just remember to take each review with a grain of salt.
Rent.com.au. Search a directory of more than 6,200 property management agencies throughout Australia.
3. Ask for referrals
One of the best ways to find a good property manager is through word of mouth and feedback based on experience from customers.
4. Ask questions
A property management company may sound spectacular on its website, but you want to get past all the shiny PR spin. Bottom line – you want them to manage your investment well and make your life easier, so make sure they can actually deliver what they promise.
Expert insight
"Interview your property manager to make sure they have experience, backup if they are away or sick, and an in-depth knowledge of the legislation. Turnover of staff is a huge challenge in our industry so try smaller independent offices as well as they may have smaller rent rolls and more time to devote to your investment property."
Licensed agent, property manager and director, Property Alchemy
5. Find out what services they offer
Not all property managers are created the same, and not all of them will offer the same services. Make sure you know exactly what you’ll be getting for your money.
6. Compare communication
A property manager must be able to quickly and effectively communicate with you at all times, whether it be to inform you of necessary repairs, provide you with a choice of tenants or simply check in to see if there’s anything more they can do for you. Make sure you find a property manager who is always easily reached and who always keeps you up to date.
7. Count the cost
Any expense associated with an investment is always going to be an important consideration, but remember that it’s not the only factor you’ll need to take into account. The old adage that you always get what you pay for holds true when it comes to property management, so don’t put price above all other factors.
Questions to ask a prospective property manager
Leanne Habib, CEO of Premium Strata, offers 6 key questions you can ask potential property managers to help with your choice:
What are your qualifications? "This would provide an indication of the level of experience the manager has to offer, such as a licensed manager versus a manager who holds a certification of registration," she says.
How many properties do you manageas a company? This is an indication of the size of the agency and their experience and service levels. Be mindful that an agency that looks over a large volume of properties may not have the time to devote to managing your property.
How many properties are allocated to each manager within the company? "This will provide an indication if their managers have too many properties to look after, and in return are likely to be stretched out over too many clients, giving less time to each client as a result," Habib says.
What is your commitment to best practice? "This will provide an overview of how they do things within their business," Habib says.
How will repairs and maintenance be handled? Will I be contacted before any work is performed?
How often will you inspect the property? They should have a schedule for each property they manage, ensuring none slip between the cracks without regular inspections.
How to get the best out of your property manager?
You’ll need to add the property manager’s fee into your calculations when determining the overall cost of your investment property. The fee charged varies depending on the state or territory the property is located in, but it’s usually a percentage of the rent on the property, such as 8% or 10%.
It also pays to review your property management services regularly to make sure your property is receiving the care and attention it deserves and not falling through the cracks. Contacting your property manager regularly for updates will help you determine how high a priority your investment is and will also help ensure that the manager remains committed to helping you get the most out of your investment.
Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio
Richard's expertise
Richard has written 554 Finder guides across topics including:
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