When considering the option of Do-It-Yourself or Professional Property Management, many may ponder the concept thinking ‘How hard could it really be?’.
What is Property Management and what does a Property Manager do?
A Property Manager is an agent registered with the Office of Fair Trading and qualified under the Property, Stock and Business Agents Act 2002.
They provide Landlords with professional care of one of their most valuable assets – their investment property.
Whether the Landlord owns a studio apartment or a multi-million dollar portfolio, a competent and dedicated Property Manager should ensure that the tenant’s references upon application to rent a property are stringently checked before signing any Leases. That a close eye is kept on property maintenance and that recommendations are made on future works which may be required such as repainting or re-carpeting to allow Landlord to budget for such works.
A typical Property Manager’s day could involve rent collection and actioning arrears, inspections of properties that are currently tenanted, reviewing and increasing rents to market conditions, ingoing and outgoing inspections, bond finalisation, conflict management with tenants in relation to bond disputes, arranging repairs and maintenance with qualified tradespeople and ensuring all is done within the guidelines of the Residential Tenancies Act 2010.
Why do people like having Property Managers?
Landlords like using an agent because of the risk factor associated with possible mismanagement and the potential ramifications of such. Too many unsuspecting Landlords wind up in the Consumer, Trader and Tenancy Tribunal because of poorly managed tenancies, placing tenants in properties without thorough reference checking or because owners who self-manage their investments simply didn’t understand or know their rights and responsibilities under the Residential Tenancies Act (2010.)
On the flip side, Tenants like renting through an agent because it takes the emotion out of the transaction and allows an ‘arms-length’ approach to the tenancy. Tenants feel assured that their bond will be correctly lodged with the Office of Fair Trading, their rental payments will be received and correctly recorded and in many cases, the tenant can begin a rental history showing on time, regular rental payments which can assist them with future tenancies and loan applications.
Property Managers are experts in the industry and will be able to advise the best course of action to take when a situation arises. What many Landlords don’t realise is that it takes money, a great deal of effort and time to successfully manage a profitable investment property and without a properly qualified Property Manager handling the management, it can leave owners exposed to risk.
What are the benefits of having Property Managers?
When considering the value of your time versus the potential cost of mis-management of your asset, it becomes easier to understand the true value of a Property Manager. The management fees are tax deductible, the property may be eligible for substantial tax depreciation returns and the Landlord is provided with both detailed monthly statements and an end of financial year statement to provide to your accountant, clearly showing the collective income and expenditure for the year.
Additional benefits of using a Property Manager include;
• They have a thorough understanding of the legislation.
• It reduces the risk of potential claims of compensation made by the tenant against the landlord.
• It avoids the inconvenience of late night maintenance calls.
• Removing the emotional attachment a landlord may have with his/her family home and to keep things at an arm’s length by having someone facilitate the management on a professional and independent level.
• Detailed accounting software and reporting.
• It should be time saving for you to employ a professional to handle the management of an investment property than try and tackle it on top of a full time job.
Latham Cusack Property Services – Professional Property Managers
We are pleased to introduce one of our newest clients, Latham Cusack Property Services to the rest of our client network.
Latham Cusack Property Services is a residential Property Management entity founded and operated by two of the industry's most experienced and dedicated professionals. Sarah Latham and Jaala Cusack offer 30 years of experience in providing solutions to overcome challenges faced by landlords and tenants.
If you would like an experienced Property Management team who are directly contactable and accountable, please let Latham Cusack Property Services facilitate your move (W: www.lathamcusack.com.au T: 02 9909 1113).