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Professional property management

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This is an important service which can potentially save you not only money but time and frustration. However, you should regularly review the service you have chosen to ensure that the cost is justifiable and is providing a net benefit to you and your investment.

Property managers provide a useful buffer between the owner and the tenant, and can help alleviate the stress of managing an investment property.  For this they are paid handsomely, with some property managers charging in excess of 10% of the rental income. 

What tasks do property managers perform to earn this income?
Initially and as required throughout their term, property managers are responsible for finding and screening tenants. It is their job to prepare the lease documents for the property, as well as collect and lodge any applicable bond.  They can act as a go-between for the negotiation of the rental amount and lease conditions.

Once the tenants are in place, their most obvious tasks are the regular collection of rent, ongoing property inspections, and arranging tradesmen to undertake repairs. To be successful, property managers must have a thorough understanding of the legislative requirements associated with renting a property.

Do some homework
When deciding upon a property manager, be sure to do your research. Ask them questions to ensure they are the best fit for you and your property. For example:

  • How many years have they been with the agency?
  • What is their system for screening prospective tenants?
  • Do they hand out keys or attend inspections with prospective tenants?
  • How often do they inspect the premises?

Paying 10% of your income for such a service may seem steep at first glance, but it could potentially save you a lot more.  And what price do you put on the peace of mind you will have when you can rely on someone you can trust to manage your rental property?


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Sources:

'Renting out a property? Use a property manager’ www.money.ninemsn.com.au
‘Questions to ask your property manager’ Pamela Yardley, published 04/05/2007 www.propertyupdate.com.au

In our next Newsletter, Niki Lang, Director of Executive Property Leasing Pty Ltd, will comment on what investors should be aware of when selecting a property manager.

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