Your next essential step is to engage the services of a property manager.
Many investors simply hand over the property management to the real estate agency that sold the property to them without asking detailed questions regarding the ongoing management. Your choice of property manager is crucial to your success as a property investor as he or she will be vetting and selecting your tenants, preparing the lease, handling the bond and rental monies, inspecting the property at regular intervals, and organising any urgent repairs or maintenance.
Your relationship with your property manager is essentially an ongoing business partnership, so do not choose one on fees alone. You are looking for a top professional.
Before selecting a property manager you can trust, here are some questions you should ask when visiting real estate agencies:
1. Do you have a dedicated property management department?
Many agencies concentrate on the more lucrative arena of sales and consider property management the "poor cousin". Ensure that the agency has a dedicated property management department staffed by trained experts.
2. How many years have you worked in real estate?
Many people start out in real estate in admin roles then choose to move into property management as a career, rather than sales. With this question, you are seeking to learn more about the property manager's experience and qualifications.
3. How long have you been with this agency?
You want a property manager with excellent local knowledge and stability, so they get to know you and your property, not someone who is likely to move on in six months.
4. Will you inspect my property and provide a written proposal?
A professional property manager will look at your property and present you with a written proposal presenting the recommended rental pricing and outlining their services, rather than simply phoning you to tell you the rental value of the property.
5. How many properties do you manage currently?
Make sure the property manager is not handling so many properties that he or she will not be able to devote individual attention to your property. What structure does the team have to further support your property management throughout all facets of the process, including leasing.
6. Would you go to court on my behalf if needed?
Tenancy laws have become increasingly complex. If for some reason, you need to go to the tenancy tribunal to protect your rights as a landlord you will need an expert and experienced property manager to appear on your behalf.
7. What strategies do you use to attract the best tenants?
Your property manager should have a database of quality tenants looking for rental accommodation, consider the demographic most suited to your property, and market the property accordingly via internet advertising.
8. How do you manage all the financial aspects?
Your property manager should be able to detail how and when rents are collected, when to expect your payments, the management fee and everything that is included in the fee.
9. Will you keep me informed on movements in the local property market?
Your property manager should care about increasing your property's return and inform you on any movements locally in rental returns or capital growth.
10. How regularly will you inspect my property and check on the tenants?
Make sure your property manager intends to conduct routine inspections of your property as per legislation. Ask for details of what he or she will check on during the inspection and whether you will receive a written report.
The right property manager will ensure your property is kept in top condition and that you will not have a high turnover of tenants. A professional, proactive property manager can partner with you to considerably increase the return from your investment property, so choose well.
Our property management professionals will answer the above questions and any others you may have and soon convince you of their expertise and ability to take care of you, your tenants, and your investment property.