Why Get a Property Manager?
Having an investment property is a great way to build wealth in support of your future but managing a rental is becoming increasingly complex and difficult. If you want your investment to be as passive, stress-free, and profitable as possible, hiring a property manager is a smart move. Why?
1. Save Time. Managing a property involves advertising the rental, screening tenants, handling maintenance requests, chasing rent payments, doing inspections, staying on top of regulations etc. A property manager takes all that off your plate.
2. Better Tenants, Fewer Headaches. Experienced property managers have systems in place to thoroughly screen tenants. This reduces the risk of late payments, property damage, or tenancy disputes (which can end up costing you more in the long run).
3. Legal Knowledge. Rental laws can be tricky and are constantly changing. A good property manager knows the ins and outs of the Residential Tenancies Act and ensures your property stays compliant and your Tenancy Agreements stay up to date, avoiding costly fines and legal issues.
4. Maintenance & Repairs. Property managers usually have a trusted network of tradespeople to support any repairs and maintenance. They also coordinate everything, saving you the hassle.
5. Maximising Rental Returns. They’ll help you set the rent right (based on market data), advise on improvements to increase value, and keep your property occupied, boosting your return on investment.
6. Financial Reporting. You will get regular, detailed statements showing income, expenses, and deductions, making end-of-year tax time easier and more accurate.
7. Peace of Mind. Whether you’re local or living elsewhere, knowing your property is being looked after professionally reduces stress and gives you more freedom.
So, is all of this worth the cost? Property management fees typically range from 7–10% of rent, and it's important to fully understand their fee structure before choosing to work with them. That said, most investors find that, with a good Property Manager, the value significantly outweighs the cost.
What's Involved in Renting?
Most people don't realise is how time consuming, complex and involved managing a property can be. To give you an idea of everything a property manager does, let's run through the basics:
Setting Rent: A property manager will use industry knowledge and in-depth research to set and reset the ideal rent to maximise your return, while ensuring your property is not left empty.
Marketing the Property: If your investment is ever vacant, a property manager will organise marketing material including listing copy and home photography and advertise on all relevant channels to target your ideal tenants.
Showing the property: After the marketing stage, a property manager will show prospective tenants through the property and answer any questions.
Selecting Tenants: There’s an art to picking the right tenants. A property manager will go through each application they receive (which could be dozens or more) and select the tenant most likely to help you reach your investment goals. This may include:
- Performing credit checks
- Verifying proof of identity
- Searching the Tenancy Tribunal records on the prospective tenant
- Reference checks
- Verifying the tenants ability to pay rent
- Chatting to prospective tenants at viewings to get a ‘gut feel’ for what they're like
Organising Tenancy Agreements: This is a legally binding document that must be up to date with current legislation.
Liaising with tenants: Any questions or problems your tenants have will be directed to your property manager. This includes rent reviews, maintenance, repair work. Equally, your property manager will liaise with tenants to arrange property inspections and coordinate required maintenance and repairs.
Attending the Tenancy Tribunal: In the event of a Tribunal intervention, a property manager will attend the Tenancy Tribunal with you or on your behalf, using their knowledge and experience to resolve the issue.
The Benefits of Owning an Investment Property
Owning an investment property can be a powerful way to build long-term financial security for yourself and your family. These are some key benefits to owning an investment property:
Positive Cash Flow: A property is considered cash flow positive when the rental income it generates exceeds the costs of owning, managing, and maintaining it — including mortgage repayments, rates, insurance, and ongoing maintenance.
Capital gains: When a property that you own increases in value after you buy it, the difference between the new higher value and the amount you purchased the asset for is known as a capital gain. This gain can be used as leverage to borrow from the banks to buy more property.
Tax Benefits: Depending on how your investment is structured, you may be eligible for tax deductions on certain property-related expenses. This could save you thousands.
If you're ready to maximise the potential of your investment property, we are ready to help you!