How do you choose the best Property Manager?

When you’ve put a substantial amount of your hard-earned dollars on the line to purchase an investment property, you want to know that your property will be expertly managed to maximise your returns whilst minimising stress! Of course there is the option of managing the property yourself, however many investors choose to utilise the services of a professional property manager.

Ensuring your valuable asset is in safe hands is an absolute priority so here are some tips from Leigh Chippendale, Principal, Professionals Caboolture/Morayfield, to help you choose the best property manager for you.

1. Stay local

In the real estate business, local knowledge is crucial. From knowing how to attract tenants, to setting the rent at the right level and having contacts with trusted tradies, a local property manager gives you a big advantage.

2. Research, Research, Research

If you have an Internet connection and a spare half hour, you can find out a wealth of information about the property managers in your area. Read customer reviews of property managers online to get some honest opinions from fellow investors. Here are some great resources to help you find the right property manager:

• Google. Do a quick search for property managers in your local area to see what’s available.
• Real estate websites. Realestate.com.au and Domain are the two 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. Listen to your friends

The best way to find a good property manager is through word of mouth and client feedback. Keep in mind most people prefer to review negative experiences than positive so it can be difficult to gauge.

4. Ask questions

A property management company may sound spectacular on its website or brochure, but you’ll need to ask a range of questions to get past the PR spin. To give you a good indication of the professionalism and experience of a potential property management team Leigh suggests asking the following questions:

• What are your qualifications? This can give you the level of experience the manager has to offer, such as a licensed manager versus a manager who holds a certification of registration.
• How many properties do you manageas a company? This provides 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.
• What differentiates your services to other agencies?This will help you learn more about what one property manager can offer that other managers can’t. For example, what marketing strategies will they use to attract potential tenants to your property? What processes do they have for selecting a tenant? When they find a good tenant, what sort of steps will they take to retain that tenant?

Other questions to ask include:

• Will I have one point of contact with the agency?
• How do you determine the rental amount?
• How will repairs and maintenance be handled?
• Will I be contacted before any work is performed?
• How often will you inspect the property?
• What will you do if a tenant falls behind on rental payments?
• How often will you contact me about my property?

5. Find out exactly what services they offer, and what they may not

Not all property managers are created the same, and not all of them will offer the same services, so make sure you know exactly what you’ll be getting for your money.

6. 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.

Getting the best out of your Property Manager

You’ll need to add the property manager’s fee into your calculations when determining the overall success of your investment. 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.

If you’re looking for someone to look after your investment property so that you don’t have to, make sure to do your research and shop around. Selecting the wrong property manager can have a detrimental impact on the success of your investment and even threaten its viability. However, if you put in the time and effort to find a reliable and professional manager, you’ll be able to sit back and watch your wealth grow.

Professionals Caboolture/Morayfield have a highly experience Property Management Team who are confident in responding to the questions raised above and welcome the opportunity to show you that we are leaders in the industry not only because of our competitive rates but our desire to achieve the best renting experiences for landlords and tenants alike.

Download a copy of our Property Management Booklet for further information on our Property Management services.