Being a landlord can be a particularly stressful and time-consuming experience. Not only are you managing the wellbeing of a house and investment property, but you are also dealing with tenants, legal considerations, and insurance matters. Things can get complicated pretty quickly when there is some dispute or a legal matter to deal with.
According to a report by the Rental Protection Agency, every day 544 individuals are entering the rental market as landlords. For all these landlords, it is not possible to service these properties themselves. That is why it makes sense to appoint a property manager to look after your rental property. Let’s take a look at 10 of the main benefits of appointing a property manager.
Frees You Up
Arguably, the most obvious benefit is the fact that you don’t have to worry about the day-to-day aspects of managing the property. Between marketing vacancies, choosing and communicating with tenants, ensuring the property is well-maintained, organizing repairs and the various other tasks involved with being a landlord, you might find it difficult to find any spare time.
It’s going to be a particularly busy and stressful time if you’re also working full-time. Giving these responsibilities to a property manager can free you up to worry about other duties in your life like finding and analyzing more investment properties to build your portfolio. A property manager can also find a high-quality landlord insurance cover for you.
An underrated aspect of hiring a property manager is the fact that the fees that you pay them are 100% tax deductible (confirm with your tax professional), much like all costs associated with keeping your rental property well maintained. At first, having a manager look after your investment property may seem like an unnecessary cost, cutting into your profits, but it can, in fact, wind up saving you money over a longer period.
Tenant selection is a hard job that almost every landlord has to face. The process includes checking the background and previous behavior as well as knowing how responsible the new tenants are. Rushing things creates a high chance of getting a bad tenant. Meaning that they will not pay the rent on time, and will not look after your property. A property manager can use his/her expertise here to access tenant history and make a thorough background check before renting out your property.
Showing the Rental Property
A prospective tenant will want to view the property before renting it, and in most cases, it will be after work hours. Showing the whole property will take time and waste your weekend. Property managers are experts at this and are available after office hours or on weekends. They will be able to find the best tenant and give them a walk through your property, getting you a tenant in the fastest time.
Conflicts with tenants are arguably the most stressful aspects of being a landlord and property investment. They can also cut into your profit if not resolved quickly. Property managers are used to these situations and have the expertise to handle them and calm down angry tenants while also keeping your financial interests as a number one priority. This ensures that any disagreements are diffused without you having to get involved in the drama to any great extent. Their experience in this field can even help you get the best rental property insurance proposals.
Coming across a good tenant is harder than you think. It is critical that you hold onto them. Dissatisfied with the level of service, most tenants consider moving out. Vacancy rate rises as you take days to fix the air-conditioner, solve the electricity, water, and drainage problem. Employing a property manager here can help you deal promptly with the tenant’s requirements.
Not having to worry about repairs and maintenance is the ideal situation for a landlord. Unfortunately, there are times when you’ll have to repair part of the rental property as a result of wear and tear. Property managers will often have contacts and ongoing relationships with contractors and tradesmen, meaning you may be able to pick up reduced rates.
Plus, there is the fact that you won’t even need to worry about finding a tradesman that offers a decent quote, etc. They may also have landlord insurance quote recommendations for you if you’re struggling to find a high-quality investment property insurance provider. Regular inspection reports can help you maintain the value of your asset.
The job of being a landlord is obviously something you get better at with experience, particularly the way you manage your time. That’s why it makes sense to have a property manager take on the role, given that they have a great deal of experience and do this for a living.
Marketing a property is a key area in this discussion as well; property managers are going to know how to attract the right kinds of tenants that you’re looking for, given the kind of property in question. This can lead to fewer disputes and tenants that are in it for the long-term, which works to maximize your profits. Property managers are also experts about the market and know exactly how much you should be charging for rent given the state of the market.
Ensuring Rent Is Paid on Time
It’s human nature to work harder if there is a personal goal attached to it. Property managers get a commission of the rent plus the GST as their payment. So, unless they get the tenant to pay the rent, they don’t get their salary. This works as a catalyst to keep them motivated to collect rent in a timely manner. If they come across a problematic tenant, then they can use their experience to deal with it, including issuing an eviction letter.
A property owner can get entangled in litigation if they fail to follow legal responsibilities concerning the investment property. This can include fixing any item that could lead to an injury. Having a property manager who is fully briefed on these responsibilities, a property owner can have additional peace of mind.
Working with a property manager is a convenient, cost-effective option for a lot of US and Australian landlords. If you’re just starting out as a landlord, it’s well worth considering for the reasons discussed above.