Handling tenant relations on your behalf
Approaching tenants about issues such as late rent payments and breaches of tenancy rules can be awkward for owners. Property managers deal with tenants on your behalf, meaning you won’t need to listen to excuses, chase payments or, in a worst-case scenario, go through a stressful eviction process.
Lease terminations can be a real hassle for landlords; having to find time for the end of tenancy inspection, advertising the property, holding viewings, interviewing, checking references and credit ratings, deciding on the successful tenant, communicating with applicants, preparing legal documentation and conducting the ingoing inspection. Having a professional property manager handle the process for you can free up hours of your time. In addition, if a tenancy doesn’t work out, a property manager can manage the tribunal process, which can take up to 35 hours from start to finish. Even experienced landlords find that property managers remove a lot of stress from owning investment property, enabling them to enjoy the income without the hassles.
Up to date knowledge and experience
Residential tenancies have been subject to extensive legislative overhaul in recent years, with many landlords struggling to keep up with the latest regulations. Even the most careful, well-meaning landlords can unwittingly break the rules. A good property manager will be well versed and experienced in current legislation, as well as keeping thorough records and evidence which can help landlords avoid becoming liable for exemplary damages which are a financial penalty of up to $6,500 per breach.
Earning more money from your investment
A common misconception is that property management is a cost, when in fact it can be highly effective in increasing your income. Approximately 80% of self-managed rental properties are rented below the current market level. When marketing a rental property to prospective tenants, a property manager can help achieve a higher rent by employing effective techniques that are in tune with the current market.
Regular scheduled inspections
For many self-managing landlords, doing routine inspections can be daunting and feel like an invasion of tenants’ privacy. Approaching tenants about any damage caused can also be awkward. Insurance companies generally require at least three to four inspections every year and if a claim is lodged, they will often ask for full detailed written inspection reports, including photos, for each inspection. They will also ask for details of the reference checks that were done during the selection process. Property managers keep thorough records for the duration of the tenancy, ensuring all bases are covered in the event of an insurance claim. Property managers also carry out routine detailed inspections as a matter of course; paying particular attention to any health and safety matters, hazards, suggested improvements, maintenance and regulatory compliance, as well as taking appropriate follow-up action if required.