Property Management – San Fernando Valley
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How to choose the right Property Manager: 20 Questions you should be asking.
The importance of choosing the right property manager
Owning investment property is an important step in your financial future. Using a Property Manager to manage your investment should help to minimize risk and maximize your returns. Choosing the right Property Manager for your needs is essential to correctly manage your property and ensure your investment works for you.
Real Estate Agencies often claim they will manage your property to high standards, however for most agencies, over 90% of their business is driven by property sales – ie; property management, and hence service, is not their number one priority. If you choose to consider a Real Estate Agency to manage your property, it’s important to understand the business of the Agency you choose to represent you.
What is their property management experience? What is the culture of the organisation in terms of customer service? Do they measure customer satisfaction? Do they have a high staff turnover? All of these questions and more are highlighted throughout this guide to ensure you’re equipped to ask the right questions when choosing your property manager.
Why use a property manager?
Helping you maximize your investment.
A Property Manager will do more than just collect your rent – they understand the laws and legislation of Real Estate, find and screen suitable tenants, conduct inspections and organise maintenance where required.
A good Property Manager will also provide advice on increasing the value of your investment, ensure any disputes with tenants are dealt with quickly and efficiently, and provide a very high quality service which removes the stress for you. They will regularly
review your rental, have access to comparable rentals and negotiate appropriate increases, while minimising vacancy periods.
Most importantly, a good Property Manager will assist you to preserve the condition of your property, increase its value and maximise income – that’s ultimately why you are investing in property in the first place!
Helping you manage your risks.
The Victorian Residential Tenancies Act is a specialised piece of legislation, with over 400 pages and sections. A Property Manager should know the particulars of this document, inside and out to ensure your legal interests are covered in regard to your property.
A Property Manager is also beneficial when it comes to drawing up leases and submitting bonds to the Residential Tenancies Bond Authority (RTBA). Unless you are in the Property Industry yourself, making sure your interests are covered legally can be a daunting task. With a professional to manage your interests and advise you on legislation, your experience as a landlord should be an enjoyable and rewarding one.
How to choose a good quality property manager.
Always look for a Property Manager that is a licensed Real Estate Agent. This ensures they understand and adhere to all laws regarding rental properties.
Understand what you’re getting for your fees.
In Melbourne, whilst it is possible to gain discounted property management fees, eg; 5-6% of rental collected, this discount cannot be achieved without discounting service levels. Be aware of any hidden or unbundled fees that may creep in and also be aware of industry service level benchmarks if considering a low value, discounted service. A total, high quality Property Management service should be offered for a fee between 6.5-8% of collected rental. This means the property manager conducts everything from
tenant interviews and reference checks to dispute resolutionservices, inspection reports and sourcing tradesmen
for maintenance.
While paying a fair market fee for professional services is important, it should be only one of the deciding factors. You should always cynically consider an agent who tries to win business purely by discounting. If they are willing to give away their own money, should
they be managing your assets? Therefore, it’s important not to only look for a Property Manager with low fees. This doesn’t necessarily mean you will save money in the long run – especially if they fail to look after your property well, choose unsuitable tenants or charge more for maintenance.
Remember, the Property Industry and its legalities are complex and ever changing. Ensure you adequately cover your investment and make it work for you by engaging a professional that delivers a high quality service.
20 questions you should be asking
Building on the advice provided throughout this guide, below is a checklist of the ’20 questions you should be asking’ when choosing the right Property Manager for you.
Does your Property Manager:
- Conduct regular rental reviews and provide you with comparisons?
- Conduct comprehensive routine inspections?
- Monitor lease dates to minimise vacancy periods?
- Ensure rent is paid on time, every time?
- Pay your rent to you weekly?
- Conduct maintenance where necessary and have excellent relationships with tradesmen?
- Monitor the property and tenants regularly?
- Know and act in accordance to the Residential Tenancies Act?
- Provide you with condition reports?
- Have the capability, database and marketing knowledge to re-let your property quickly?
- Understand the bond lodgement process and legalities?
- Have the ability to deal with Body Corporate issues as they arise?
- Have experience screening, interviewing and choosing suitable tenants?
- Advise on works or maintenance to increase the value of your property?
- Represent you at VCAT should issues arise?
- Conduct thorough final inspections?
- Contact you and respond to your queries in a timely manner where necessary?
- Act appropriately on your behalf?
- Have strong communication skills and keep you fully up to date?
- Work with you to effectively manage and improve your property, not sell it? Or, if the advice is to sell (under certain circumstances)can they manage your sale for you at no additional cost to regular agent sales commissions, and without the stress?
