30 April 2010
As property investing has increased in popularity and sophistication so, too, has the role of the property manager.
These days an experienced and professional property manager often acts more like an advisor to a client. They guide, research, manage and advise on all aspects of the client’s investment property “business”. The role is far removed from the old style real estate agent and landlord relationship.
For example if your rental property was a company, the property manager should almost be like the managing director, using their expertise to look after the property, ensuring legal compliance, keeping the tenants satisfied, planning for the future and, of course, ensuring that all important income stream remains secure.
The manager also needs to provide many other roles within the “business” such as financial controller, accounts payable, valuer, mediator and administrator.
However it is probably the expert advice and experience that is the key difference between the old style agent and a professional property manager. Here are a few areas where advice can be crucial to the success of your property investment:
• Recognition and understanding economic circumstances and how they can impact on the investment property market.
• Choice and location of investment properties.
• Analysis of current and ongoing rental market conditions, including the impact changing conditions have on purchase prices and rental incomes.
• Advice on if, when or how to improve or renovate a property to achieve maximum return on investment.
• Understanding and compliance with tenancy obligations.
• Advising and helping keep the client/landlord up to date and informed on market and legal issues.
• Ensuring the long term security of the rental income stream.
• Advising on future investment strategies.
The property manager, however, must also provide practical everyday services such as:
• Assessment of potential tenants.
• Managing tenant expectations and requests.
• Initiating and acting on repairs and maintenance.
• Ensuring clear and accurate communication between all parties.
• Immediate response to client and/or tenant requests and queries.
• Ensuring unrealistic demands from tenants are mediated.
• Providing access to a qualified and experienced team of trades people.
• Representing the client in any tenancy tribunal issues.
• Providing accurate and timely financial reports.
We believe the advantages of a professional property manager significantly outweigh the cost of not having access to this type of advice and service. A professional manager not only manages your “business” but also respects and understands the many complexities of the property investment industry and markets.
