Finding the right property manager is a rite of passage for many Australian property owners. Here are some key factors to consider when choosing a property manager, plus an overview of property management services, so you understand exactly what you’re paying for.
8 Tips for finding the right property manager
Firstly, here is a detailed look at property management from a landlord’s perspective, including pros and cons and fees. But these are our top tips for finding the perfect property manager for your rental property:
1. Compare local agents
Firstly, you want to focus your attention on local and experienced property managers. A local real estate agent is beneficial for several reasons. But primarily, it means they have in-depth local knowledge of the property market. This is advantageous for marketing your rental property to potential tenants, setting a rent price that’s in line with the current market value and maintaining established relationships with trustworthy tradespeople that can perform maintenance repairs at a competitive rate.
The easiest way to compare several local agents simultaneously is via LocalAgentFinder’s free comparison service.
2. Rely on word-of-mouth
Ask your local friends, family members or co-workers for property management recommendations. If you have a good relationship with a local real estate agency, it’s also beneficial asking them for a referral. When it comes to word-of-mouth recommendations, don’t forget to ask the important questions. This includes how long they’ve worked with their property manager, their main services, their communication skills and whether they’ve ever had any issues.
3. Check reviews
Checking reviews from other landlords gives you an honest look at how prospective property managers operate. While Google is the first stop in most cases, homeowner reviews are a part of LocalAgentFinder’s free comparison service.
4. Ask the right questions
When it’s time to interview prospective property managers, go in with a game plan and a list of questions. Here are 10 questions we recommend asking the property manager, but some of the key questions include:
How many properties do you currently manage?
The size of a property manager’s portfolio is directly reflected in the quality of service. You don’t want your property manager to have more than 120 properties on their rent roll, as they typically won’t have the capacity to give your rental or investment property the attention it needs and deserves.
How much experience do you have as a property manager?
Ideally, you want a professional property manager with multiple years of training and experience in property management and the local market.
How many of your tenants are currently in arrears and what action do you take if a tenant is behind in rent?
A landlord wants a proactive property manager who effectively handles tenant issues.
Have you previously had any tenant and/or landlord disputes?
If they answer yes, ask them to identify the issue and the steps they took to resolve it.
How can you ensure the best rental return on my investment property?
A property manager’s primary responsibility is to maximise your rental yield. So definitely ask them how they’ll achieve this goal and what they estimate your weekly rental income will be.
Can I speak to your other clients?
It never hurts to ask a prospective property manager if you can speak with other rental providers they work with. If they excel at managing properties, they’ll have nothing to hide and will be more than willing to hand over their contact details.
5. Ask about their property management services
Another essential question to ask potential property managers is the scope of their services, so you know exactly what their fee covers. Property management services should include the following:
- Creating a marketing and advertising campaign that effectively targets high-quality tenants. A part of this process includes advertising on real estate websites like realestate.com.au and domain.com.au and organising professional photos and open house inspections.
- Screening potential tenants (more on what this matter entails below).
- Organising the tenancy agreement and rental bond money.
- Handling the rental income, including ensuring it meets market value. A property manager should also advise whether or not a property owner should increase or decrease their rent according to current market conditions. This step further includes depositing the rent directly into your bank account.
- Effectively communicate with tenants and landlords to handle disputes, emergency repairs and property maintenance requests.
- Handling administrative duties as required, including tenancy agreements, lease renewals, annual statements and bill payments (if requested).
- Ensuring your rental property is compliant with relevant legislation and laws.
- Performing routine inspections to ensure your tenant is looking after your property.
6. Understand their fee structure
Property management fees differ between states and territories, cities and towns. However, it’s typically a percentage fee based on your rental income. For example, the average is currently 6% in Melbourne but 9% in Brisbane. It’s also important to note that there are typically other fees charged on top of this base percentage fee, which can include:
- Leasing fees (generally two weeks of rent).
- Advertising fees
- Inspection fees
- Administrative fees
- Lease renewal fee (usually one week of rent).
While fees are an important consideration, it’s always helpful to compare them with the property manager’s local market knowledge, personality, skills and expertise. It’s also important to remember that all of these fees and services should be outlined in the property management contract. So ensure you read the fine print before you sign.
7. Confirm their tenant screening and selection process
Experienced property managers will have their tenant screening and selection process down to an art form. Ask them to explain their screening process, which should include reference checks, confirming the tenant’s current employment and accessing a national tenancy database to view their rental and employment histories. They will also conduct inspections and renew leasing agreements when required.
Property management is responsible for relaying this information and the application form to the landlord so that they can choose the right tenant for their rental property.
8. Compare communication
From the time a property owner starts communicating with a property manager, they should focus on their communication skills. You need a manager that communicates quickly and effectively, is easily reached, and keeps you updated on maintenance requests and other prudent matters.
Where do you find property managers?
At the end of the day, the property manager works on behalf of the landlord or rental provider, so it’s in their best interest to keep their client happy through competitive fees, maximum rental returns and effective communication.
So to find the right property manager that ticks these boxes, your complete one-stop shop in Australia is LocalAgentFinder. Our free comparison service allows you to compare local agent fees, services, strategies and rental performances. Plus, we provide homeowner reviews so you can make an informed decision.
Once you lock in your dream team, follow this step-by-step guide to successfully rent your property.