7 nightmares you can avoid by hiring a professional property manager | Damian Collins

Being a property investor certainly has its moments. It can bring spectacular highs as well desperate lows.

Property management is one area that has more than its fair share of challenges, especially when a property is in inexperienced hands.

For those who manage their own property, there are many potential nightmares lurking around the corner.

This is why most investors employ a professional property manager to minimise their risk and allow them to focus on what they do best.

Here are some of the common nightmares a professional property manager will help you avoid.

“I can’t find a tenant!”

There’s nothing that worries an owner more than a vacant property, as every day represents lost income.tenancy_agreement_keys

Professional property managers will actively advertise your property to source a prospective tenant and they typically have a wider variety of options than the average Joe.

For instance, private landlords may be unable to advertise on major online portals, which can dramatically reduce the pool of potential tenants.

Property managers will also have a database of potential tenants, which can save you a considerable amount of time.

“I’ve broken the law!”

A real risk of being a private landlord is that you may inadvertently break the law, opening the door to liability and fines of potentially thousands of dollars.

Property managers understand the rights and obligations of owners and tenants under the Residential Tenancies Act and they know how to navigate the minefield of compliance requirements, which are constantly subject to change.

“I’m drowning in a sea of paper!”

Managing a property, like any business, involves dealing with a whole range of paperwork, which can easily overwhelm a private landlord.

A property manager will take care of most of the burden and provide you with the necessary income and expense statements at regular intervals.

“My property is falling to pieces!”

No owner wants to see their property being neglected or, worse still, intentionally damaged.

A property manager will ensure, though a detailed Property Condition Report and regular inspections, that your property is being adequately maintained. Private landlords often get lazy when it comes to inspections.

“I’ve been scammed!”

Private landlords are prime targets for criminals and unscrupulous operators because they don’t have the skills, systems and procedure in place to identify potential scams.

“I’m bleeding money!”

Private landlords typically don’t have the up-to-date local market knowledge of a professional property manager.

This means that they don’t get full market rent for their property, which has a knock-on effect to their overall investment plans. Property managers will regularly conduct market reviews to make sure you are maximising your returns.

“My tenant is a lunatic!”

The importance of tenant screening is not to be underestimated. A bad tenant can really set you back financially and emotionally.

Property managers have the tools and systems to put applicants under the microscope before placing them in your property. Private landlords tend to rely on ‘gut instinct’ alone which can be problematic.



Want more of this type of information?


Damian Collins

About

Damian is managing director of Momentum Wealth, a Perth based property investment consultancy firm. A successful property investor in his own right, Damian formed Momentum Wealth to assist time poor investors in building their portfolios and applies his many years of experience to help clients accelerate their wealth creation. Visit www.momentumwealth.com.au


'7 nightmares you can avoid by hiring a professional property manager | Damian Collins' have 4 comments

  1. March 18, 2015 @ 8:41 pm Focus Property Management

    “Thanks for this very informative post. Property managers can break or make a property owner’s investment. Great property managers don’t give excuses but rather find all possible solutions to ensure that a property owner achieve positive cash flow for his investment.”

    Reply

  2. April 3, 2015 @ 6:12 pm Bunbury Real Estate

    I totally agree. The role of a property manager can’t be stressed enough for those property owners who do not have much time in managing their properties. But sometimes hiring a property manager can also be a nightmare so investors must really do their research before choosing one.

    Reply

  3. April 3, 2015 @ 9:34 pm First National Real Estate Bennetts

    Property management may be an added expense to your investment properties but many property owners have realised that the benefits outweigh the cost. Property management companies do not only have expert property managers but also are equipped with the latest in systems and solutions to properly market a rental property and screen tenants.

    Reply

  4. April 6, 2015 @ 6:25 pm Ray White Property Management Bunbury

    One thing good about hiring a property management company is the tenant screening process. Professional property managers have the knowledge, experience and an advanced system to do it.

    Reply


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