A property manager is expected to maximise the rental returns from your investment property and make life easier for you as a landlord, however not all managers offer the same level of service. If your property manager fails to look out for your best interests, then missed rental payments or unaddressed repairs could lead to thousands in costs – and those risks can increase substantially with higher value properties. Here’s what to avoid and what to seek in a property manager for rental properties in Sydney.
Signs of an unprofessional property manager
Look out for the following early warning signs that a property manager might be falling short of expectations:
– Tenants are frustrated when it comes to requesting repairs, asking questions or communicating with the property manager. It costs a landlord more to replace a quality tenant that to retain them.
– A property remains vacant for longer than is necessary. Keep in mind that for every week that the property is not tenanted, you will be losing almost 2% of your annual return from the property.
– Your property manager isn’t familiar with compliance requirements, for example relating to smoke alarms and swimming pool safety. You could face fines if the property is leased when it shouldn’t be.
– Inspection reports and communications are consistently late. If the manager isn’t staying on top of their administrative matters, then they could be dropping the ball in maintenance and other areas.
What to look for in a professional property manager
Whether you are researching property managers for your new rental property in Sydney or are looking for a more suitable replacement for your existing manager, these are some of the signs that you’re speaking with a professional:
– They know the local area and demographics thoroughly. Using this in-depth knowledge, they’ll be able to help you set the highest possible price for your returns and identify dependable tenants.
– Every member of the team you speak to communicates clearly and responsively. This indicates that tenant enquiries will be effectively handled and you’ll have any questions answered promptly.
– Transparent fees and costs. The most professional property manager may not be the cheapest one; however, they’ll be upfront about their fees and invoices so you can effectively manage your costs.
– A property manager should have set strategies to minimise late or missing payments from tenants, ranging from the strict screening of potential tenants through to communication of late payments.
While it’s all too easy to ‘set and forget’ the property management of your investment assets, the right property manager could make a difference of whole percentages to your rental yield.