Whether you’ve just bought an investment property, or you’re considering letting out your home because you’ve been offered a contract overseas, one factor to think about is whether to use a property manager.

On the face of it, some people think managing their own property is easy and they could save themselves some money. For instance, a friend of a friend or a relative has said they’ll rent the property; now there’s no need to pay for advertising for tenants. You believe the person to be trustworthy, so now all of the rent can go into your back pocket instead of a portion of it paying for an agent.

However a few weeks into the rental, there’s a problem with the hot water system – and the friend of a friend calls you the morning you’re due to go on holiday. A few months later the friend of a friend’s circumstances have changed and they’re now behind on the rent…..

Here are just some of the benefits of using a property management agent:

Reducing your taxable income

Yes, you pay for a property manager, but this is a tax-deductible benefit. This means that instead of paying tax on all the rental income, you’re only paying tax on a portion of it.

Furthermore, property managers will give you a statement of what has been spent and where, meaning you don’t have to scrabble around trying to find receipts for maintenance when it comes to tax time.

Finding and screening tenants

Although you can put a notice in the paper or on community noticeboards, property managers have databases and access to an array of outlets to advertise your rental property.

Good property managers know what questions to ask potential tenants and have access to a database that identifies potential tenants with a tarnished track record. They also use many screening tools, such as employment verification, contacting previous landlords, and credit checks to ensure you get a good tenant in your property.

Monitor your property

It is imperative your property is inspected every few months so maintenance issues can be quickly addressed and to check the tenant is keeping the property in good order. However, to make these inspections, there are certain legislative requirements that have to be followed such as giving notice to tenants.

If there is a problem, property managers will organise and source tradespeople for repairs and maintenance; this may even be at a reduced rate depending on what agreements the agent has with tradespeople.

Knowing the legalities

A rental agreement is more than just a nod of a head and shake of a hand; there are bonds to charge, condition of the property reports and papers to sign to ensure both the property owner’s and the tenant’s rights are protected. If an issue or problem arises, knowing the legalities, processes and protocols is essential to achieving a positive outcome.

Property managers can advise you on your rights on all sorts of issues; they know exactly what to do if a tenant is behind on the rent or damages a property. Furthermore, they will liaise with the tenant directly, meaning you can avoid any potentially unpleasant confrontations.

Making your life easier

If you’re heading interstate or even overseas, it can be difficult to manage issues long distance. But even if you live near your investment property, do you really want to spend your time doing inspections, chasing up on rent, organising maintenance and keeping up on legalities? Using a property manager will not only give you peace of mind your property is being looked after properly and you’re acting within the law, but it will also save you time, money and stress.

We have over 40 years of property management experience behind us, so if you’d like to know more about the added benefits our property management services offer, or are interested in buying an investment property, our team would be happy to help out.