When you buy an investment property, one of the first decisions you’ll have to make is whether or not to hire a property manager. Understandably, many are hesitant. The fee can be between 8 and 10 per cent of your total rental income – enough to make anyone think twice.
However, the value of the service far outweighs its cost for several reasons. You’ll save hours every week, and you’ll have peace of mind knowing that your investment’s in the best hands possible. But most importantly, if you select a good property manager they’ll use all the experience and industry knowledge at their disposal to protect the value of your investment. Here are just three examples of how.
In most Australian states you’re permitted to review and raise the rent of a property every six months. Average market rent regularly increases and it’s in your best interests to ensure that your property’s rental price is always kept in line with this.
A property manager will conduct all rent reviews to ensure that you are receiving the maximum amount of rental income possible. As your rent increases, so too will the capital value of your property – these reviews are essential to your investment’s success.
As an example of how significant your rental increases could be; The average rent for 2-bed properties in areas across Australasia doubled between June 2003 and December 2016, according to Housing statistics – proof that by missing reviews you may as well be giving money away!
Property is not a set-and-forget investment. Depending on your property and your tenants, maintenance problems could pop up every week or not at all. Hire a property manager and they will take care of all maintenance, keeping your tenants happy by quickly responding to requests and fixing problems.
They may even be able to save you money by using their industry contacts to get discounts on tradesmen and materials.
Another way to ensure your property stays in good shape is regular property inspections. Each state has different laws but generally your property manager can conduct an inspection every six months – checking that your tenants are taking good care of the home, and that it does not require maintenance.
These can be time-consuming tasks, particularly if you’re working full time. Hire a property manager and you’ll have peace of mind knowing that your property’s in the safest hands .
The quality of your tenants can make or break your investment. Choose poorly and they may not take care of your property, increasing maintenance costs. Worse, they may leave without notice, meaning you’ll be left with a vacant property and zero rental income.
A property manager will protect the value of your investment by thoroughly screening all tenancy applications to select only the most trustworthy and reliable renters. That way you’ll save money on maintenance, as well as avoiding vacancies.
These are but a few examples of the things a property manager will do to protect the value of your investment.
As an investor, property management may just be the most useful service available to you – one that’s essential, particularly if you’re new to investment.