18 Jun 12
by Perry Beebe
Thousands of investors all over Australia have looked to property to build wealth, and the types of investors range from those with large portfolios of free-standing dwellings, units, commercial premises and others, to single investors with one or two rental properties. While the size and diversity of their investment portfolios may differ, they have all asked one question at some stage in their investment journey. Why hire a property manager? Property management is not easy. It requires organisation and administration skills to keep track of the paperwork involved, the ability to source good tenants who will care for the property and pay their rent on time, and a thorough knowledge of the relevant legislation.
With this in mind, it is no wonder that most people with investment properties make the decision to engage the services of a property manager. Most property managers work for an agency, either a real estate Wollongong agency that has a separate division for property management, or a specialist agency that deals just with rental properties. They usually are allocated a specific client base and one of the most important parts of their role is to build a sound relationship with the client i.e. the owner or lessor of the investment property.
They also have a sound knowledge of the properties under their management. A good property manager knows the location, the type of dwelling and its main features, its proximity to services and other key information without necessarily having to refer to their database. This is useful when they are called on to place a tenant quickly or need to respond to an urgent request for information by the owner.
Modern property managers also need competent computer skills since all information is now kept on databases, much of the interaction between clients and tenants is by email or text messaging and most properties are advertised on the internet. They also need to have detailed knowledge of the relevant legislation since a key part of their role is arranging the tenancy agreement and ensuring it is correctly completed, undertaking a pre-occupation inspection and documenting the results, and complying with the requirements for arranging regular inspections.
Keeping the property maintained during a tenancy is another challenge for the property manager. Generally, owners don't like to spend a lot of money on repair and maintenance as it reduces the income they receive from the property. However, if the property is not maintained regularly, small repairs quickly become large, expensive jobs that must be done to keep good tenants. This is a balancing act that the property manager must handle to keep the property within their portfolio.
Successful property managers usually like working with people and while they are prepared for some unpleasant situations, they know what to expect and accept it as part of the job. It is a demanding role with a high burn-out rate, so the question really is ' why wouldn't you hire a property manager? As an owner or lessor, it's the best option available.
Perry is the Managing Director of All Residential Real Estate.
All Residential Real Estate is a boutique agency passionate about providing very high levels of customer service. We believe that property sales and management is about you. It's about how you feel when you sell your property or have a property managed through an agent. At All Residential Real Estate, you have very experienced professionals who take pride in everything they do.
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