How to Increase Rental Yield by Choosing a Better Property Manager

Making a good return on a property investment may be challenging, but it is possible with good tenants. The question is: how can a property investor attract and keep good tenants? The answer is quality investment property management.

Investors seem to grasp its importance, and the growth of the property management market is proof. According to CoreLogic, new investor loans rose nationally by 18.8% for the 12-month period ending September 2024, more than making up for investors leaving the property market because of higher interest rates and tenancy reforms.

This guide will assist you in choosing the right property manager to help you increase your rental yield and get the most out of your investment.

How a Property Management Company Adds Value

Let’s take a closer look at the value a property manager brings to your rental yield. This way, you’ll understand why it’s important to choose the right one.

Comprehensive Packages

The range of services provided by property management companies will vary. Some of them offer comprehensive packages that cover all aspects of managing your rental property. By having everything taken care of under one roof, the load can be taken off your shoulders, and it will bring you as close as possible to turning your property investment into a passive income stream.

Local Expertise

No one understands the value of your property and how to market and manage it like a property manager with experience in your local market. They will:

• Understand the trends that influence the current market (i.e., median rents and appealing modern amenities)
• Determine rent prices by assessing recent rental data for comparable properties
• Navigate federal, state, and municipal regulations, specific laws, and licensing regulations that apply to rental properties
• Know the tenant prospect pool, which makes them better at targeting your demographic and getting exposure for rental properties with their marketing

All of this is to say: having access to someone who can execute a plan with local knowledge will greatly increase your chances of success.

Licensed Professionals

Property management companies are required to hold DMIRS registration before they can work as a property manager in WA. This means that applicants need to complete a training course and a police check to operate in the industry, providing you with peace of mind that you are dealing with a qualified professional.

To illustrate, you get the added benefit of insider knowledge and experience, protection for yourself and potential tenants, efficient services, and compliance with laws and regulations.

Limited Vacancies and Premium leasing campaigns

How a property manager addresses vacancy periods and advertises the investment property makes all the difference. As such, always make a point to ask your chosen property manager about the marketing strategies they use to limit vacancies and attract high-quality tenants.

Casting the net wide to attract all tenant prospects is key to securing a quality tenant and strengthening the commercial outcome. These marketing efforts may include premiere web listings, virtual property tours and promoting the property to relocation consultant networks.

Stellar Reputation

Property managers should have experience working with tenants and property owners and, accordingly, a track record of success when it comes to navigating various aspects of property management, communication, and collaboration. This should be reflected in client testimonials and reviews. For you, this equates to low vacancy and strong rates of tenant retention, which supports cashflow and increased rental returns over time.

Additionally, referrals from other investors in your rental market, such as friends and colleagues, are invaluable, ensuring your tenants have positive renting experiences with your property manager.

Seamless Collaboration

A property investor works closely with their property management professionals, which is why good property management experts collaborate internally to ensure clients (and tenants) are receiving a consistency of service.

Streamlined operations and innovation within the property management company mean your property manager can focus on protecting your asset and providing you with sound rental market guidance.

Professional Screening

Property management companies are well-versed in tenant screenings, conducting rental history checks, and reviewing proof of ID and income, national tenancy databases, finances, and work histories to select the best tenants. They are further able to detect red flags and source those with excellent credit and rental history.

In the long run, these procedures help secure quality tenants and lower the chances of missing rental payments and repair costs, which is bound to protect the property value and increase rental income.

Continuous Rent Management

Property management companies understand local market demand, market rents for similar properties to yours, the subtle differences between properties, and the differences their features and locations make in rent. With such insights, they do not set lower or higher rent than is proper, maximising your rental income by accommodating the affordability ceiling and getting higher rent.

They further conduct annual rent appraisals and regularly review rental rates to promote long-term success and can make suggestions for renovations or minor updates that will boost your property’s estimated value, meaning higher rental returns.

Additionally, property management services include rent collection. In other words, you can avoid the discomfort of requesting rent from tenants and managing rental ledgers, payment systems, and arrears processes, allowing you to enjoy timely and stress-free income payments.

Regular Maintenance and Inspections

Addressing maintenance issues and current tenant demands is time-consuming for landlords. A professional responds to small to urgent maintenance issues 24/7 to promote the tenant’s positive living experience and minimise the impact or damage to your property. In the end, they have both the time and connections with trusted maintenance specialists who can accurately diagnose problems and provide solutions quickly and cost effectively.

Also related to the upkeep of rental properties are regular inspections, which ensure that tenants are caring for the premises and help identify preventative maintenance, protecting the property investment.

Switching Property Managers Is Easy!

If you already have a property management expert renting out your property and they do not provide you with the benefits covered here, switching experts is the right choice.

Fortunately, you do not need new contracts with tenants, and your new property manager will do all the work for transferring the tenancy, so it will not disrupt you. Switching will not disrupt your tenants, either. On the contrary, it will enhance the leasing experience, favouring tenant retention and ensuring increased rental returns in the long run.

Not to mention, it is less expensive to switch experts. Poor property management services mean more potential damage to the investment property because of the lack of inspections and maintenance, lessening its market value. Also, it means more vacancies, which lowers your rental income

Investors can switch managers at any time—there is no need to wait till the lease ends. Your relationship with the property management company is governed by a management agreement (not the tenancy agreement).

Ready to Boost Your Rental Income?

Switch property management experts and enjoy maximum rental income. It is easy to do without extra admin hassle—a good service (like us!) conducts the entire end-to-end process, handles communications, and collects needed documents. In other words, you can sit back and let us do the hard lifting.

At HERE Property, our property management team is experienced and focused on getting rental increases with simple, smart, and proactive property solutions. Make the switch now!