Small cost for peace of mind
There have been a number of news reports in the last couple of weeks about rental properties being destroyed by tenants.
While this isn’t a common, it pays to be prepared so you don’t find yourself in a situation that can leave you out of pocket and under a lot of stress.
The amount of work involved in managing a property and how complex it can be is often underestimated.
While the majority of investors choose to use a property manager, there are still about 40 per cent of investments in WA that are self-managed.
In my opinion, it isn’t worth the risk. A property manager will take care of the day-to-day tasks and responsibilities of managing a property and they will be well versed on the Residential Tenancies Act. This is useful if the property is damaged, maintenance is required or the tenant is being unreasonable.
Buying a property, an investment or otherwise, is one of the biggest decisions you can make. This emotional attachment can be detrimental when dealing with tenants.
A property manager acts as a link between the owner and tenant and will offer advice based on the best outcome for you.
A property manager will also have access to the National Tenancy Database so they can identify any applicants who have a poor rental history when it comes to paying rent and maintaining a property.
This is priceless information and can help you select the most appropriate tenant from the start.
The current market offers tenants plenty of choice, which means investors need to work harder to attract interest in their property.
A property manager will be able to assist you with a marketing campaign to give you a competitive edge. Plus, they have access to property websites, such as reiwa.com, so you can ensure your property will be seen by as many potential tenants as possible.
When selecting a property manager, it’s important you do your research. You want to ensure you appoint a property manager who has excellent communication and people skills, is knowledgeable and experienced in the industry, pays attention to detail, and is professional and highly organised.
Check too that they are a member of the Real Estate Institute of Western Australia. Management fees are not high and are normally tax deductible. Hayden Groves is the president of the Real Estate Institute of Western Australia.
A property manager can take the stress out of running your business.