So you’ve taken the leap of faith and finally bought your first investment property, but now you have to decide whether to self-manage, or engage a property manager.
But after learning that it’s a six percent management fee, you’re wondering if it’s a job worth doing yourself.
It might seem like an attractive idea, to help you boost cash flow. But after reading these five reasons why a property manager is a worthy investment, you might just change your mind.
Potentially the greatest benefit of employing a property manager is that they spend their time on a whole range of administrative tasks for your property.
They respond to queries, create marketing campaigns, arrange open homes, organise inspections, collect payments and take care of maintenance requests.
In the initial stage of securing tenants, a lot of time is spent meeting and showing interested parties through the property. This in itself can be difficult for investors with existing work commitments.
Maintenance requests can often come at inconvenient times too, but property managers can respond to these quickly, so you don’t have to.
Property managers often work as part of a larger company, with decent marketing budgets and plenty of marketing expertise.
They also have an existing platform, where they receive tenant enquiries, and therefore have a greater pool of contacts to communicate with when finding a tenant.
It means the process of finding a tenant can be much quicker than if you advertised on your own, lowering the chances of the property sitting empty for extended periods of time.
Additionally, they’ve more than likely had experience with all kinds of tenants, and have a better understanding of who’s likely to be a quality tenant.
A large part of a property manager’s role is organising maintenance jobs, so it’s highly likely that your chosen property manager has an existing relationship with a range of trades.
This is beneficial because a well known tradesman is likely to charge a fair price, especially if they value the repeat business. Some might even offer discounts to keep their standing as the property manager’s go-to tradesman.
The benefits extend past financial incentives too. Property manager’s with existing trade relationships could be well equipped to action maintenance requests faster, rather than landlords calling around to multiple trades to find availability.
Take it this way – they’ve done the vetting so you don’t have to.
Renting out a property isn’t always smooth sailing.
Sometimes rents are late and sometimes tenants can do the wrong thing.
When this occurs, it’s valuable to have an advocate on your side, or a sounding board to deflect the conflict.
This is where a property manager comes in. They have experience in dealing with tenants who don’t pay rent on time, and tactics to resolve things in a smooth manner. Which means you’ll be somewhat protected from the anguish that conflict can cause.
Property manager’s also have leverage. They’re part of a larger organisation, where the consequence for being a lousy tenant will have far reaching effects.
Tenants tend to be wary that if they withhold rent or mistreat a property, they could face difficulties securing a rental in the future, especially when dealing with a reputable real estate business.
One of the main purposes of investing in property is to create a passive income. And to do that, most investors will need multiple properties.
When the time comes to expand your property portfolio, having a property manager will keep things running smoothly.
If you self-manage a portfolio of properties on top of working in regular employment, you could find it becomes unmanageable.
Employing a property manager will ensure things keep running smoothly, while your properties bring in income and grow in value. Keep in mind that a property manager’s fees are tax deductible too.
A good property manager is worth their weight in gold, and Freedom recognises this. When a Freedom member purchases a property, we’re one step ahead and often already have a property manager and tenant lined up upon completion.
This takes the guesswork out of investing.
To get the best team behind you in your property investment journey, be sure to speak to a Freedom property specialist and ask about our rent guarantee.