4 reasons to use investment property managers
Buying residential property is one of the smartest investment strategies anyone can undertake, but managing one or more rental homes can be time-consuming and stressful. Dealing with new or existing tenants, advertising and selecting appropriate people for vacant homes and simple day-to-day maintenance can become overwhelming, particularly as you add more assets to your portfolio.
That's why choosing a property manager to tend to your investments can lead to a happier and easier life. Here's just some of the benefits you'll enjoy by employing professional investment property managers.
1. Finding the right tenants
IBISWorld's June 2015 Residential Property Leasing and Management in Australia market report looked at the scale of the rental real estate market in Australia, finding 2.3 million residential rental households with an estimated six million residents. With that sheer volume of established and prospective renters, finding the right ones for your investment property can be a tough ask – something that most people aren't equipped to do on their own.
That's where investment property managers can come in, taking the reins on advertising, displaying and ultimately filling your rental. Cut out the stress of finding a tenant with effective property management.
2. Maintaining consistent relationships with tenants
Finding the right tenants is just the beginning of the journey with your rental property – the secret is maintaining the tenancy over a reasonable length of time. With the always fluctuating market, renters who are unhappy with the service being provided by their landlord will have no qualms moving to a more suitable home, so keeping them satisfied while also maximising your personal gain can be a tricky balance.
A professional property manager can negotiate the choppy waters of tenancies – whether concerning maintenance, payment issues or rent increases – in an ad hoc but consistent manner, whatever the situation.
"Experienced and knowledgeable investment property managers can offer simple peace of mind in any scenario."
3. Knowing the legal ins and outs
It might seem like managing a rental property is as simple as collecting the rent each week, but there is in fact complex and multi-faceted legislation put in place to protect both landlords and tenants. The regulations, like any other laws, are also fluid and liable to change with new governments or as unprecedented issues arise.
Evgeniya Hawthorne, research officer for the Real Estate Institute of Australia, reinforces that investors have to keep themselves up-to-date, but investment property managers are well equipped to take care of that for you.
"Education, ongoing training programs and seminars are important and helpful tools in order for a property manager to keep abreast of changing legislation and market conditions," says Ms Hawthorne, noting that ongoing professional development is an important part of the job.
4. The experience to handle all situations
Lastly, and some might say most importantly, an experienced and knowledgeable investment property manager can offer simple peace of mind in any scenario. Regardless of how unique a situation might seem, they or their professional network are likely to have seen it all before, and can use previously successful responses to handle whatever may come. They've seen the best tenants right along with the worst – sometimes even on the same day – and are trained to manage a crisis efficiently and with as little impact on the property owner as possible.
Bringing in investment property managers to maintain your portfolio will obviously introduce an additional cost, but the benefits of handing over such a large responsibility to a professional is one of the best financial decisions you can make. We'd all like to have an unbroken run of dream tenants in our residential rentals, but to protect your investment – not to mention your general well-being – an investment property manager can be a life saver.