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.
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.