Do you have multiple properties that need renting? You might need the help of a property manager, but before diving straight into an agreement with one there are multiple factors you should consider. The experts at Bricks+Agent share some of the best tips and tricks to help you through the processes of choosing the right property manager for your property.
1. How far is your property?
The greater the distance between you and your rental property, the more difficult it will be for you to oversee your investment and keep tenants happy. If your property is more than 100 km from your current residence, you should hire a property manager. The time and cost that is required to manage a property and handle tenant relationships also add up. Hiring a property manager makes perfect sense when you live interstate or have multiple properties in various locations.
2. Number of properties
Owning multiple properties comes with major responsibilities and property management becomes difficult when you have a lot of properties to look after. Multiple properties mean, many tenants, more maintenance issues, complaints and payment collection issues such as rent and utility expenses. If you have multiple homes for rent, you should consider hiring a property manager to handle all related tasks. After all, they're trained in this!
3. Property management experience
While hiring a property manager, its important to consider their prior experience before signing any contracts. Hiring an experienced person ensures that he or she has the knowledge and expertise to handle tasks and provide you with a quality property management service.
4. Giving up the control
Property managers are responsible for multiple tasks relating to your property. From collecting rent, handling tenant complaints to creating work orders for maintenance and repairs requests. You must consider whether you are ready to provide them with that much control. If a property manager makes a mistake, it could be the landlord who ends up in trouble.
As the property managers have authority to make decisions on your behalf, they may also make mistakes on your behalf. As a landlord, you could be held liable for the errors your manager makes on your behalf. It's essential you consider whether you are willing to take on the potential liability of your property manager.
Property management companies charge you for the service they offer. Usually, they charge anywhere from 4 to 10 % of the monthly rental income received by the real estate. Property management fees range dramatically so it's important you're vigilant and hire a property manager with reasonable property management fees.
7. The condition of your property
Buying a property that needs repairs and maintenance work due to its condition is another good reason to engage a property manager. If you're renting a property on the older side of life, you should hire a manager that's confident and can handle all the maintenance tasks.
8. Tenant screening
There are many things that you need to consider before renting your home to tenants. Will there be a no-pet policy, current jobs, backgrounds etc. A property manager handles all these screening tasks for tenants and only brings you tenants who have good character and the guarantee to pay rent on time.
9. Your commitments
Majority of people are extremely time poor. You've probably got work and family commitments, let alone enough time to look after rental properties. Property managers take the work out of owning a rental property. That is why the landlords need property managers to help them with their commitments.
10. Ask for referrals
You should ask for references before hiring a property manager. Call all referrals and ask them about the quality of services offered by the manager. If you get positive feedback, you can hire the person to manage your property.
Hiring a property manager requires you to assess your situation. Following the tips listed in this post can help landlords to make a positive decision while hiring a property manager for management of their properties.