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Don’t Get Overwhelmed Managing Your Investment Properties

Owning and managing properties can be overwhelming, especially when faced with multiple responsibilities and limited time. To alleviate these burdens and streamline your investment journey, a property manager is your best solution. Not only do they have the experience of working in the industry to keep up with legislation changes, they take on daily management tasks, allowing you to focus on more critical matters and maintain a work-life balance.

Tenant screenings are essential for finding reliable tenants who take care of your property and pay rent on time. Conducting thorough background checks, credit screenings, and reference verifications can be time-consuming, but a property manager has the expertise to handle these processes efficiently.

Tenant relations can become complicated, leading to conflicts and disputes. A property manager acts as a buffer, managing tenant concerns and enforcing lease agreements, fostering a harmonious landlord-tenant relationship and reducing stress.

Keeping up with landlord-tenant laws and regulations can be challenging, but property managers stay informed and ensure your property remains compliant, reducing the risk of legal consequences. They also implement efficient rent collection methods, ensuring consistent cash flow.

Property maintenance, repairs, and emergencies require a reliable network of contractors. Property managers have access to trusted professionals, preventing minor issues from becoming costly problems and maintaining your investment’s value.

Effective marketing is crucial to fill vacant properties quickly. Property managers are marketing specialists who use various channels to attract quality tenants swiftly, maximising rental income.

Staying informed about market trends and property values is essential for making informed decisions. Property managers possess industry expertise and can provide valuable insights and recommendations.

Tenant turnover can impact your rental income, but property managers focus on tenant retention, maintaining good relationships, addressing concerns promptly, and handling lease renewals efficiently.

A property manager saves you time, money, and stress while elevating the success of your real estate investments. Our team has expertise in handling these challenges and can unlock the true potential of your property portfolio. So don’t wait; get in touch with our team today and let us manage and optimise your investment journey.

Are there risks with self-managing my property?

Owning a rental property is a great way to build your investment portfolio and diversify your assets as you plan your life into retirement. When you do purchase you will find the decision to either have the property managed or self-manage.

Employing a property manager to take care of the intricacies of property rentals can remove potential stress from the day-to-day care of the property and tenant management while maximising your investment. 

Alternatively, you may have the time and the resources to self-manage the property. If this is a strategy that you choose, be aware of the risks and benefits around self-management.

One of the financial benefits of self-management is there are no management fees charged from an agency. These fees can range from management fees to letting fees, leasing, representation at tribunal, advertising and marketing and other ancillary fees. 

You will also have a more hands-on approach with the management of the property as you will be dealing with the tenants, rental payments, and day-to-day maintenance. It provides you with more control as you meet with and approve tenants and are required to build a relationship with them throughout the tenancy.

While there are some benefits, it is worth weighing up the financial costs with the implications of self-managing, especially should things go wrong. 

Hiring a professional property manager can reduce stress as they have the most up-to-date knowledge and training of the relevant acts and legislation surrounding rental properties. They are able to navigate any challenges that may rise with tenants including representation at tribunal and insurance claims if required.

A property manager will manage the collection of rental funds and ensure that the tenants are paying their rent on time per the agreed schedule, and should they fall into arrears, will take the relevant action that is required. 

The time it takes to show tenants through properties, process applications, and prepare the required lease documents and condition reports add up and a property manager and their team can give you back these precious hours by including it as part of their service and fees package. 

Consider how much your time is worth and analyse the costs that are associated with self-managing when weighing up your time and choosing to have the property managed by an agent. Your time is precious, and a property manager can help you get this time back.

They will also have a list of licensed and insured preferred suppliers that will attend your property and ensure that work is carried out to a satisfactory standard at a reasonable cost and help to mitigate any losses to you. 

If you would like to compare self-management to having your investment property professionally managed, contact our property management team to discuss how we can help.

Do I really need Landlord Insurance for my investment?

There is a multitude of insurance products on the market, and it is likely that you have comprehensive insurance for your primary place of residence and your car as well as your health. 

It makes sense that you should take out specialised insurance to cover your investment property and to ensure that you are protected should the worst-case scenario happen throughout or between tenancies. 

Property damage is covered

In a specialised landlord insurance policy, you can be covered for the building and any damage that occurs due to natural disaster events or events outside your control. A good policy will also cover for accidental damage to the property that may occur due to the tenants use. 

Accidents do happen, even in our own homes and having coverage for this can ensure that the property can be repaired in no time and at a minimal cost to you or the tenant.

During vacancy periods, there can be potential for damage to the property. Landlord insurance will protect your liability over this time as well as throughout a tenancy.

Coverage for unpaid rent

Even the best tenants cannot plan for what life may have in store for them and for reasons outside their control, may fall into arrears at some point during their tenancy. 

While our property management team has strict policies in place when it comes to arrears management, we are also realistic that life happens, and we will work with both the tenants and Owners to find a solution to rectifying rent arrears.

Where an easy solution cannot be found and should the tenant need to move on, a landlord insurance policy can assist in reducing stress and ensuring that your income is secured by covering the rent loss in these scenarios. 

Some policies will even cover for rent loss during a vacancy period if there has been property damage and it takes time to have repairs carried out and the property relisted.

Don’t forget the contents

Tenants are strongly advised to take out their own contents insurance for their belongings, however, this insurance will not cover items like window coverings, light fittings, appliances and floor coverings. 

In a strata complex, the building insurance may cover the building but not the contents within your property. For example, if there is a burst water pipe or other damage to the property, the contents of your apartment may not be covered. 

In cases like these, there could also be potential compensation to the tenants, and you will be left out of pocket if you do not have landlord insurance, or your policy is not specialised to cover these events. 

If you don’t currently have landlord insurance or would like to arrange a policy, our property management team can assist with helping you get started. 

3 ways to keep your renters happy while selling your property

If you’re attempting to sell your property while also managing an investment property, it may seem like a daunting task. However, by enlisting the help of a good sales agent and property manager who work collaboratively with the tenant, a successful sale can often be achieved.

Keep an open communication

Effective communication is essential. Although some states have strict regulations around sales inspections of rental properties and notice periods for entry, open communication with renters from the beginning of the sales campaign can create a solid foundation for the sale. A good sales agent and property manager will contact the tenant prior to listing the property for sale to discuss the requirements and work with them on the best times for entry. They should also be mindful that the renter may be nervous about people coming through their home and the potential need to move if the property is sold to an owner-occupier.

Keep on helping with the presentation throughout the selling period

Presentation can make all the difference. Every owner has their level of cleaning and presentation, but a property may need extra care to show it in the best light. If that’s the case, it may be helpful to offer professional cleaning and gardening services throughout the sale. This will ensure that the property is presented well both inside and out and can make the experience less stressful for everyone involved.

Keep motivating the tenants with incentives

Incentivising renters can ease the process. The relationship between the owner, tenant, and agent can be complicated, especially when it comes to the security of a home. Offering rental compensation as a thank you for the inconvenience throughout the sale campaign can sometimes assist in transitioning the renter through the process. Additionally, if the tenant is locked into a fixed-term rental agreement, you may want to offer a penalty-free tenant break option should they wish to move on and find another property, which would lead to a vacant property when it comes to the sale. Although this would mean a loss of rental income, it would allow an opportunity to make small improvements to the property before the sale, which may contribute to a higher sale price.

To determine the best options for your property, it’s important to speak with your sales agent and property manager and work out which avenue is best for you, the property, and the renters. By working together and utilising these strategies, you can make the process of selling your property while managing an investment property much smoother and more successful.

Common Problems Your Property Manager Can Help Solve

Managing a property can be a time-consuming and complex task, especially if you have multiple properties or lack the necessary expertise. That’s where a professional property manager comes in. Property managers are experienced professionals who can alleviate the burdens of property ownership by handling various aspects of property management, making your life as a property owner easier and more efficient.

1. Tenant Screening and Selection

One of the primary responsibilities of a property manager is finding suitable tenants for your property. They conduct comprehensive background checks, verify employment and income, and analyse rental histories to ensure that only reliable tenants occupy your premises. By thoroughly screening applicants, property managers minimise the risks of rent defaults, property damage, and evictions, ultimately saving you time, money, and stress.

2. Efficient Rent Collection

Collecting rent from tenants can sometimes be a challenging task. Property managers handle rent collection on your behalf, ensuring that payments are made promptly and consistently. They have established systems in place to track rent payments, send out reminders, and handle late payments and evictions if necessary. 

3. Property Maintenance and Repairs

Maintaining your property in good condition is vital for its long-term value and tenant satisfaction. Property managers take care of routine maintenance tasks such as landscaping, cleaning, and repairs. They have a network of trusted contractors and vendors who can quickly address any issues that arise. By proactively maintaining your property, property managers help prevent small problems from becoming more significant and expensive repairs, saving you time, effort, and money.

4. Legal and Regulatory Compliance

Navigating the complex web of legal and regulatory requirements in real estate can be daunting. Property managers stay updated with current laws and regulations, ensuring that your property is compliant with all local, state, and federal regulations. They handle lease agreements, property inspections, safety requirements, and eviction processes, keeping you protected from potential legal disputes or penalties.

5. Finding Your Next Tenant

When a property becomes vacant, filling the vacancy promptly is crucial to avoid revenue loss. Property managers employ effective marketing strategies to attract potential tenants. They create attractive property listings, utilise online advertising platforms, and tap into their network of contacts to reach a wide pool of prospective tenants. By minimising vacancy periods, property managers help you maintain a consistent rental income.

6. Financial Management and Reporting

Keeping track of your property’s financials can be overwhelming, especially if you own multiple properties. Property managers provide detailed financial reports, including income and expense statements, rent roll summaries, and tax documentation. This helps you have a clear overview of your property’s financial performance and facilitates accurate record-keeping for tax purposes.

Hiring a property manager is a wise investment for property owners looking to simplify their lives and maximise their returns. From tenant screening and rent collection to property maintenance and legal compliance, property managers handle the day-to-day operations of your real estate investments, saving you time, reducing stress, and enhancing the profitability of your properties. 

By leveraging their expertise and resources, property managers allow you to enjoy the benefits of property ownership without the associated headaches.