When we first start talking to people about investing in property, we often find that it is fear that has prevented them from building a property portfolio. This can be prompted by worries about whether they can afford it, uncertainly about their life circumstances in the future, or misconceptions about the level of risk involved.
One of the other major concerns or fears we hear most often is that people are worried about the levels of responsibility associated with owning an investment property. In particular, they are concerned about how much time, money and energy they might have to commit to its management.
However, almost all of the most common worries people have in this area can be lessened by the appointment of an experienced and professional property manager.
How does a Property Manager Make It Easier to Own an Investment Property?
Below are just some of the reasons why potential investors have told us that they have been put off investing in real estate, as well as how these issues can be alleviated through employing a property manager to oversee your investment.
We all know how busy modern life can be, especially when you’re trying to combine work, family life, wellbeing and much more. Unfortunately, too many people also see this as a barrier to being able to invest, as they fear they don’t have enough time to devote to managing their property.
In most cases, the income you derive from rent will be central to reaching your investment goals; therefore, a fear of not being able to find tenants and having extended periods without rental income coming in can make people hesitant about investing in real estate.
Likewise, prospective investors are often concerned about tenants who might pay their rent late or not at all, and what steps they are entitled to take in this situation. For many people, it can be quite daunting to have to think about pursuing overdue or unpaid rent, and so this is a situation they would rather avoid completely.
For some potential investors, it can be maintenance demands that deter them from buying an investment property. Worries about having to deal with plumbing problems, fix malfunctioning appliances, keep the garden in shape, or deal with emergencies or other issues can be too much for some people to contemplate — especially if you are not especially blessed in your handyman skills!
Some people are also concerned about tenants damaging property (either intentionally or accidentally), meaning that repairs and maintenance have to be carried out before the property can be rented out again, resulting in cost, delays and loss of rental income.
The Benefits of Hiring a Property Manager
You don’t need to own a raft of properties or an entire apartment building to benefit from the services of a property manager. You may have a single unit, a couple of properties, or an entire portfolio — regardless of the number of properties you own, the value of your investment will be enhanced, you will experience less stress, and you will find the entire investment process much more enjoyable and profitable in the long run by employing the services of a property manager.
One of the most immediate ways in which the value of your investment will be enhanced by having a property manager on hand is through being able to attract good quality tenants. Professional property managers generally have immediate access to a range of responsible and trustworthy potential tenants, and can take responsibility not only for finding someone to rent your property, but also the screening of applicants, signing of agreements, collecting deposits, etc.
This means that you can rest assured that your property is always being rented out and income is coming in without having to do any of the time consuming legal and administrative work yourself.
The relationship between a tenant and a landlord is not a one-way street — if tenants have issues with a property that are not resolved, maintenance tasks that are not performed, or are generally dissatisfied with the condition of the property or how it is managed, they will move on. This means you could lose a good, responsible and careful tenant because they feel they are not being well looked after.
A property manager therefore also acts in the interests of a tenant by taking care of maintenance issues and upkeep on the property in a timely manner. This makes it more likely that tenants will remain in situ for longer periods of time, giving you greater continuity and rental security.
An efficient property manager will also have systems in place to ensure the timely collection of rent so that your income stream is not disrupted by it not being paid on time. They will also have procedures that they use for collecting rental payments that have fallen behind, or pursuing rent that is unpaid.
Taking this sort of potentially problematic work out of your hands is one of the most helpful, cost effective services that property managers provide.
Maintenance and Repairs
In even the best maintained property, there are going to be issues that arise from time to time. It could be a relatively simple problem like a broken fridge or a leaky tap, to something more urgent, like malfunctioning air conditioning or a major pipe burst.
One of the most important aspects of a property manager’s role is to take care of maintenance and repair issues on your behalf. They have ‘insider’ access to networks of tradies and other trusted professionals and so can get the right assistance when needed, no matter how complex the issue.
This gives you peace of mind, knowing that your property is being well looked after and problems resolved in a timely, efficient manner — but without any stress or effort on your part.
How do I Find a Good Property Manager?
One of the many services that Power of Property provides is to connect you with highly experienced, professional property management teams who can take care of your investment property on your behalf.
If fear about the responsibilities that come with real estate investing have been making you hesitate, then hiring a property manager can take away the stress and worry, and ensure that you are getting the best possible value from your investment while freeing you up to spend more time on growing your property portfolio.
If you want to find out more about how a property manager can contribute to your smart property investment, our property strategists are here to help. Call Michael Lawton on 0407 785 560 or Danielle Charlton on 0411 268 795, or book an online property strategy session at a time that suits you.
Property Management FAQs
Kimberly Yeeles, Property Management Director at Ray White Real Estate in Adelaide, talks about some of the issues most commonly associated with buying an investment property and managing a property portfolio.
What is the typical lease period?
The most common lease terms are six or 12 months. However, there is no restriction on the lease term you can offer.
What weekly rental income can I expect from my property?
It is not possible to estimate the rent you can charge without appraising your property. The factors that affect a property’s rental value include location, space, amenities, the condition of your property, landscaping, washing and drying facilities, provision for allowing pets, etc.
Can I increase the rent in the middle of a lease period?
The rental rate set in the contract will hold throughout the lease term unless there a special provision allowing a rent increase in your tenancy agreement. If not, at the end of the term, you must provide tenants a written notice of the intended increase.
What is the definition of a ‘good tenant’?
A good tenant is someone who pays rent on time and maintains your property responsibly. You can expect a smooth and positive experience with most tenants. As many tenants go on to own their own homes, they understand the importance of upholding the terms and conditions of their contract.
What if my tenant does not pay on time?
Selecting the right tenant is the best solution for reducing the risk of your tenant not paying rent. Each state has different legislation surrounding tenants not paying rent. In South Australia, a tenant has to fall 16 days behind in their rent before a landlord or agent can start the process of applying to the tribunal to have a tenant evicted for failing to pay rent.
What happens at the end of the lease?
At the end of the lease, you have the option to renew the lease or you can request the tenant to vacate.
What is my major responsibility as a landlord?
Your major responsibility as a landlord is to offer and maintain a dwelling that meets basic habitability requirements, such as: structural safety; heat, water and electricity; sufficient water-proofing; and a sanitary indoor environment.