Many property investors find hiring a property manager extremely beneficial as they are able to purchase investment properties, but have a professional handle the landlord responsibilities.
But do you know if your property manager is doing their job properly? After engaging a manager, many investors make the mistake of not consistently checking up on their investment properties to ensure they are being taken care of. If you are not regularly assessing the property manager’s performance, how will you know if they are doing their job?
1. Adjusting the Rental Price
A property manager is responsible for managing and collecting the rent. Although it is not always a possibility to adjust the rental price, there are some circumstances when it is plausible to do so and your property manager should know when this. If your rental fee has not changed in a number of years or other properties in the same area have a higher rent, then it is possible that your property manager is not regularly monitoring the rental market.
2. Managing Tenants
This is one of the most important responsibilities for a property manager. They are not only responsible for finding a tenant, but also ensuring the tenants are happy whilst living in the property. A good property manager will know where to advertise for tenants and what should be included in the advertisement to appeal to the right people. This is where having an experienced manager might be an advantage as they will have a better idea if how to find a suitable tenant for a certain property.
If you find that you are only receiving minimal applications or they are all unsuitable tenants, your property manager may not be doing their job.
When it comes to repairs and maintenance, a good property manager will make the effort to find the best price for a repairer. If you find that your bill amounts are excessive, it may be that your property manager did not compare different quotes to find the best option. A quality property manager will usually have a network of companies they frequently use.
4. Regular Contact
When was the last time you heard from your property manager? Do they inform you every time they make a decision? This is one of the most important responsibilities as they should keep you informed about all of the decisions listed above. If your property manager is contacting you frequently, it shows that they are making an effort to look at your file and keep you up to date. It is also important to establish a more personal relationship with your property manager as it will help ease the tension if disputes or problems arise.
If you do not hear from your property manager on a regular basis, you have no way of knowing what decisions they are making or how often they check up on your property.
Although you may be paying a property manager to manage the landlord responsibilities for you, it doesn’t mean you should forget about your investment property altogether. It is important to regularly evaluate your property manager’s performance to ensure they are still worth the money.
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Anouska Linz is Manager, Online Sales at State Custodians and has over 10 years’ experience in financial services, both in broking and banking. Holding a bachelors degree in accounting, Anouska quickly discovered a love for mortgage lending and assisting people to achieve their home ownership goals. She leads a team of highly experienced lending specialists who are passionate about finding lending solutions which result in real wins for the customer. She is also a massive netball fan.
For more information on our home loans, visit www.statecustodians.com.au or call 13 72 62.