Smart Tips to Choose a Property Management Company
The Right Property Management Company for Your Investment
Are you currently in the market to rent out your investment property? If so, the following tips will help you ensure that you are dealing with the right property management agent. Someone that will act in your best interest while not charging you an arm and a leg for their services.
Watch those costs
A lot of companies are charging you for a week’s rent on top of their usual 5-10% charges whenever a new tenant is moving in. If you set your contract for a 6 month period each time a new person moves into your investment property you could theoretically end up paying two weeks worth of rents to your agent each year. This can quickly add up. It is therefore important to analyse the offers you get from the agents you interview to be able to choose smart, with the least possible costs to you.
Check for professional attitude
How professional are you received when you visit the agent’s office? I’m afraid some agents are way too lack about the attitude they extend to you. You should take the first impression you get when you deal with the office of a possible management company as an indication of the services to come. Check the following:
- How informed are front desk staff about property management procedures?
- How courteous and friendly are they towards you?
- Does the staff look like they know what’s going on, or are they failing to even refer you the proper person in charge of the task?
You’d be surprised at the apparent lack of procedures and know-how some property management agents display when you set foot in their business.
Do they know your market?
It’s a good idea to employ an agent familiar with the market in your town/city. Preferably you want someone who already enjoys a good relationship with a pool of tenants. If they know what the tenant wants they will likely match your home to the right person which will reduce future possibilities of complications.
Ask for an appraisal
A property rental appraisal is a free service real estate agents provide to you. They will come to look at your property to appraise it for the rental market. Good property management agents will provide you with a written quote, an overview of their fees and charges, and the according documentation you need to move ahead.
Are they punctual and professional?
If the agent is late for your first appointment then I would be wary of them. If they can’t stick to your appointment in time, then chances are they are probably too negligent about the other aspects of your contractual agreement.
How ready-available is your property manager?
Another important aspect of choosing the right property manager is to make sure the person you are going to deal with is likely to stick around. Customer service is key in assuring a long-standing business relationship. It will be hard to keep the trust and respect upstanding if you end up dealing with the office’s apprentice months down the track.
A good property management business assures you:
- Have ready access to your property management agent, regardless of the day, or time.
- Deal with the same person (staff changes permitting) throughout your contract period. If the office tends to swap people around for the job of property management purposes you are best advised to seek another company.
- Stringent control, based on your rights and that of the tenant.
Check when your rent will be paid into your account
If your management agent collects rent, and then takes a great deal of time to pay it forward into your account, you may miss out on the benefit of reduced interest. You want to make sure that your rent is paid into your account as soon as the rent is collected, and not weeks later.
Will they act in your interest?
I once had to find a holiday home for my dad for several weeks. When I visited the offices of a local real estate agent I was able to bargain the rent down by several hundred dollars a week!
While this was a clear saving for me (on behalf of my father) it wasn’t so great for the actual investor whose home my dad rented.
This just goes to show that you want to make sure your property management agent will act in your interest, and not in the one of the renter.
If you have special requests, and a set amount of rent you want to earn each week you want to make sure your agent knows this, and abides by your rules, provided they are legal of course.
If you can, ask for references
Any self-respecting property agent will happily give you some recent references about their services. Current landlords can give you a good indication about the service that you are about to receive. Make sure you ask around if given references. They can save you a lot of hassles down the track.
Meet and greet
It’s important to meet your property management agent in person before you sign the contract. Make sure you understand all the legal implications of the deal, the costs involved and the expectations that are placed on you.
The Australian landlord market is strictly guided by the RTA (Residential Tenancies Authority). Each state has its own legal body. You may check out Property Management for Your Investment Property to become more familiar in Property Management
Proper preparation can save you money
Investment properties are supposed to help you make money, not cost money in the long term. By dealing with the right property management agency you will save yourself a lot of headaches and money. Give each offer its due care and respect and then decide upon the right company after truly evaluating their services.
Related posts:
- Australian Property Information
- Property Management for Your Investment Property
- Investment Property Tips & Guides
- To Hire a property manager or To DIY
- Hot Tips For Buying Well In A Rising Market
- Property Valuation Services | How to Assess the Value of a Property
- Investment Property Tips ‘n’ Tricks when Selecting a Home Loan
- How to Find the Best Tenant for Your Investment Property
- Guide To Investment Property Tax
- Mortgage Repayment Management Tips
Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Loans.com.au - Dream Catcher | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 5.85% | 6.21% | $0 / $375 | 80% | $50,000 / $750,000 |
 
|
 Bankwest Online Home Loan | A low interest rate home loan with a $0 application fee and ongoing maintenance fees. This offer is exclusively available by applying online. | 5.97% | 5.97% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
 Illawarra Home Loans Bank Beater Home Loan | A low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.07% | 6.35% | $0 / $345 | 90% | $250,000 / $1,000,000 |
|
 State Custodians Mortgage Company Standard Variable Offset Loan | Awarded Mortgage of the Year 2012 – this multi-award winner features 100% offset and a loyalty 0.25% rate drop after 5 years. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
|
Ask A Question