The ultimate checklist for selecting the best property manager for your property
With the property market delivering significant returns in the past 12 months, property investors and landlords need to remember that preserving their property’s capital value while maximising return on investment includes a critical but often forgotten component: the right property management.
Whether you are considering property as an investment vehicle in your portfolio, have recently purchased an investment property, or are a seasoned property investor, it’s important to understand the benefit and value of finding and selecting the right property management for your investment.
How do you choose the right property manager for your investment property?
It’s common for landlords and investors to choose a property manager based on fees. The assumption is that if all property managers have the same undifferentiated offering with the same outcomes, then the lowest fees are seen as a means of maximising return.
The reality is that property management is complex. While fees need to be factored in when making a decision about the right property manager, there are many other considerations to take into account.
With so much to consider, it can be challenging to differentiate between providers and service offerings.
That’s why we have compiled the ultimate checklist for you to use when selecting a property manager for your investment.
The Ultimate Property Manager Selection Checklist
This handy checklist will help you identify the right property management for your investment property. As you weigh up your options, ensure that your top selections can all meet the criteria set out in this checklist.
1 – Agency has a dedicated property management department
A good property management company has a team of dedicated professionals that know how to manage your property and find you the best tenants.
Ask how many staff will be actively looking after my property? What happens when there the staff is unwell or departs. How is continuity of management ensured?
2 – Property Manager takes a proactive approach and can tailor its offering to your unique needs
A good property manager takes a proactive approach to managing every property and tailors a solution to the unique needs of each investor. Understanding and analysing every aspect of a property that is leased or managed enhances its value.
3 – Property manager actively discusses how your investment property and its management fits in with your financial and lifestyle goals
Property managers can provide valuable insight into how you should invest in property to maximize your potential for profit. Property management services offer an investment opportunity that should contribute to the financial and lifestyle goals of every investor. A property manager is constantly discussing what could be done better or changed around so it suits all needs – not just yours!
4 – Property manager provides you with a fee schedule
A property manager should always provide you with a comprehensive schedule of all the fees. You can expect to see items such as late penalties for not paying rent, security deposits, key replacement costs and pet cleanup charges in this fee sheet!
Managing a property can be costly, and you need to know where your money is going. Analyse property management fees related to service scope and quality. Look into how rents are achieved, collected and optimised. Think about property maintenance charges, repair bills, and all other expenses that may add or relate to your management contract.
5 – Agency is helpful, efficient and easy to work with
A property management agency should be helpful, efficient and easy to work with. Most importantly, they should be accessible. A portfolio style management adds value and streamlines communication by enabling one point of contact and access to a dedicated property manager whenever you need. Before you appoint a property manager, ask for client references or check review sites like Google reviews for direct feedback on the client (and tenant) experience.
6 – Property manager discusses a good tenant profile with you
A good property manager should have a thorough understanding of your requirements, will know which tenant profile would be the best fit for you, and has the skills to help you find them. After assessing all criteria, they’ll work closely with management duties like screening applicants, completing credit checks, or performing background screenings that ensure top quality tenants who will take care of their properties just as expected.
7 – Agency has proven expertise and experience in the local area where your property investment is located
You need a property manager who understands the local market. A property manager should have proven expertise and experience in the local area plus the surrounding suburbs to where your property investment is located. This ensures that they know all of the intricacies surrounding this environment, such as regulations or potential tenant needs.
8 – Agency deploys effective marketing strategies and has access to prospective renters via a database in order to minimise the number of days to lease for a property
A good property management company will have proven marketing strategies and demonstrable processes to ensure your property’s vacancy rate is kept to a minimum. Having a sizable database of renters to whom your property can be marketed to ensures rapid access to prospective tenants. Requesting historical vacancy rates and leasing days-on-market from prospective property managers will give you insight to the company’s performance across high-low property markets.
9 – Property manager personally attends inspections
A property manager or their team should always be present at inspections. It is his or her responsibility to make sure that the inspection goes smoothly, and nothing slips through the cracks. A property manager should personally attend inspections to make sure that the tenants are living up to their contractual obligations. This includes making sure any complaints from tenants are addressed as soon as possible so they don’t turn into bigger problems later down the road
10 – Property manager is not responsible for too many properties
A single property management specialist should not be tasked with managing too many properties. Being responsible for too many properties will mean a reduction in services and staff burnout, which will lead to turnover. That’s why it is important your property manager has a team of professionals who can ensure the day-to-day management of your property delivered consistently and without interruption. It is important to consider that low agency fees may be an indicator of low staffing resource.
11 – Property manager has demonstrable successes backed references and positive online reviews from landlords and tenants
Positive reviews from both tenants and landlords that are publicly available on third-party review sites, such as Google Reviews, are an essential criteria for assessing the right property manager. In property management, positive reviews and testimonials aren’t just a nice to have – they’re critical for ensuring that what is promised is also delivered. Tenants will also check property manager reviews to gauge the tenant living experience on offer when they are searching for a new home, in high supply markets, this could be the difference between a tenant choosing your property or not.
12 – Property manager offers a wider range of solutions that impact a comprehensive investment strategy, e.g. property finance and insurance
Along with property management solutions, you may also want to access property finance or insurance services for your current and future properties. A property management team with additional financial services and who collaborates with industry partners are better equipped to develop long-term strategies that align with your financial and lifestyle goals.
Ready to work with Perth’s best?
If you want tailored and knowledgeable support from a property manager that knows how to accelerate your return on investment, we’re here to help.
HERE Property offers nearly 40 years of experience in the Perth market. Our expert team is 100% focused on simple, smart, and proactive property solutions.
To discuss how we can help you take a holistic approach to your property investments, contact us today.
