Well done on securing your investment property.
It is a big commitment and one that is worth looking after well. And a good way is to hire a professional property manager.
A property manager will market your property, assist you with screening potential tenants and with the writing of lease agreements. They will conduct regular inspections and manage your rental income. A good property manager will be knowledgeable in property law and keep you informed as to your commitments under the Fair Housing Act and other Landlord responsibilities – smoke detectors, pool fences etc. They will be invaluable if an eviction is required.
The ideal property manager will demonstrate outstanding communication skills, be organised and have impeccable attention to detail. They will also be passionate about assisting you with your investment and want to ensure you reach your financial goals.
Here are some great questions to ask your potential property manager to ensure you make an informed decision.
How long have you been in business and how many rental properties do you manage?
Experience in managing people and property is important. A property manager with over 5 years in the industry and over 100 rental properties on their books would give you a good indication that they plan on being around for the length of your investment.
Where are the majority of your properties located?
Having local knowledge is important in terms of establishing an achievable rent and having access to a database of good tenants.
How do you determine rent rates?
A credible management company will be able to conduct a comparable market analysis to be able to identify the optimal rental price. This will help you reduce vacancy and maximize your cash flow.
How do you market vacant rental properties?
Make sure your property manager has an active website. A lot of tenants will only look online now. A listing on a site like realestate.com.au is essential, now.
How do you carry out inspections?
Look for clearly defined check lists and ensure you are happy that the items on the list cover all of your property.
Are there any fees if the property is not rented?
This helps you determine the type of business model. Some will offer a flat rate and continue to collect a fee even when the property is not occupied. You need to ask yourself how much work will go into finding you a good tenant if the property manager is paid the same whether your house is rented or not rented. Look for companies that charge a percentage of the rent fee – which is normally between 6-10%.
How often will I get updates on my properties?
You should get these as often as you request them. Establish what you feel this should be and ensure they are able to meet your request.
Managing a property is not something that is easily done on your own. Having a third party involvement will allow you an objective way to manage your investment.
If you are just thinking about investing and would like to crunch your numbers to see how you will manage repayments with rent and property management fees give Mortgage Choice in Mudgeeraba a call on 5559 2563.