9 ways property managers help add value to investment properties
Buying an investment property is the first step of a long-term journey that could bring you immense satisfaction and financial gain. As with any journey, having someone experienced on board who knows the best routes and how to avoid possible pitfalls is invaluable. When it comes to property investment, a property manager is just that person. A good manager will help you navigate your way to successful real estate investing, acting on your behalf and in your interest to maximise returns and minimise risk. Here, we break the property manager’s role down into three main areas – the tenants, the property, and the finance and legalities, and show you nine ways that a great property manager can add value to your investment property.
The tenants
Really good tenants pay their rent on time and look after a property as if it were their own, so finding, keeping, and managing fabulous tenants is an essential part of maximising your property’s short and long-term value. A property manager’s role when it comes to tenants includes:
Finding the best tenants for your property
With the knowledge and resources to advertise your property and attract a wide range of potential tenants, property managers can provide you with a far wider pool to choose your ideal tenant from. They will organise viewings and talk to interested parties so that you don’t have to, and they will also screen tenants carefully, taking the necessary time to ensure your tenant can meet their commitments and will care for your property well.
Retaining your ideal tenants
Once they are in, you will want to keep a great tenant. A property manager will help you do this by providing timely responses to the tenant’s queries, solving any small problems quickly, and being highly accessible to tenants, meaning that you can sit back and relax while things get sorted efficiently.
Managing the comings and goings
Vacancies can mean real losses for a landlord, and a property manager is highly focused on minimising any downtime when a tenant does decide to move out. They will ensure the property is cleaned and made ready for an incoming tenant and will organise property reports and final inspections to make sure that your property is at its best before and after a rental. If you have a problematic tenant, it’s the property manager who will help you deal with them right the way through to eviction if needs be.
The property
Whether you live far away from your investment property or have a busy lifestyle, it isn’t always easy for you, as a landlord, to get there in person and deal with any urgent or longer-term issues. A property manager will have you covered and will be responsible for:
Immediate maintenance and repair issues
Property managers will carry out regular inspections to make sure that any immediate issues are sorted out as efficiently as possible. They will usually have built up good relationships with a team of local tradespeople to ensure that any unforeseen problems can be dealt with quickly, keeping your tenant happy and your property safe.
Long-term building issues
Your property manager will be able to discuss your long-term investment plan with you. They can help you understand property depreciation and guide you when it comes to deciding about renovations, major repairs, or upgrades that could protect and even enhance your capital growth. They will also act as an intermediary between your tenant and strata, should the need arise.
Risk management
With their extensive knowledge of legal safety requirements, a property manager will help you understand and mitigate any risks related to the property itself. They will advise you on things like smoke alarms, window latches, pool fences, appliances that need to be serviced, and so on, to minimise any possible risk to tenants, to the property, and to you.
Finances and legalities
Legal and financial complexities can be a real headache for a landlord. Property managers are experienced and knowledgeable in these areas and will help you add value to your property by:
Maximising rental yields and potential capital growth
Added to your own knowledge of the local rental market, a property manager’s insights and skilled assessment of your specific property will help you determine a competitive rent. From their extensive experience, a property manager will understand what tenants are looking for and what they are prepared to pay more for and will advise you to ensure you are getting the best rental yields for your investment property. With an eye on capital growth, they will also offer the best advice on how to optimise your property for the long term.
Helping with fiscal compliance
Property managers are well-versed in the intricacies of investment property tax deductions. Their knowledge, paired with their accurate record keeping, will not only make your investment as tax-effective as possible but also ensure that you have all the documents you need for the taxation department.
Ensuring you comply with the applicable landlord-tenant laws
Whether you are dealing with a difficult tenant or wondering how best to hold on to a great one, the legal side of the landlord-tenant relationship can be very difficult to navigate successfully. Your property manager will be able to take a firm hold of the wheel here and steer you through any legalities related to local, state, and federal landlord-tenant laws. They will always be up-to-date on the latest changes and ensure your agreements and dealings are squeaky clean and compliant.
Summing up
With flexible agreements, from lease only to full management, the benefits of having a property manager are manifest. Even better, their services are, for the most part, tax-deductible, meaning that having a professional property manager to ensure the smooth and efficient running of your investment property represents an excellent cost-benefit result for any landlord.
