Property Management

Property Management

Why is a property manager a good idea?

Risk and responsibility

Property management is not only about managing a property, the tenant is the main point of contact and property managers have to manage tenancies, maintenance and finances just to name a few. Much of the risk and responsibility involved with the management of an investment property is carried by the agent.

Residential Tenancies Act

One of the key roles for a property manager is to manage the tenancy. Property Managers are trained and required to keep up to date with the Residential Tenancies Act as well as the terms of each lease agreement to ensure a smooth tenancy.

The RTA automatically applies for tenancies that are longer than 3 months.

National Tenancy Database

Your Property Manager will have access to the National Tenancy Database along with other databases such as TICA, therefore they are able to reference check each prospective tenant thoroughly.

Fees

Management fees are not expensive and they are usually tax deductible. Many private landlords fall into empathising with their tenants, for example when it comes to rental arrears. By appointing a property manager you avoid these uncomfortable conversations and situations. Property managers have zero tolerance towards rental & invoice arrears and can act accordingly on your behalf to make the entire situation simple for you.

Marketing

Where do we go for most things? The internet. It is usually the same for prospective tenants and most agencies have access to websites such as reiwa.com and can easily advertise your property on many different property websites.

You may have heard some horror stories about self-managed properties, in our opinion it is not worth the risk that falls on to private landlords.

What are the benefits of hiring a professional Property Manager?

There are many legalities when it comes to dealing with all things property from legal contracts to acting accordingly and within the Residential Tenancies Act (RTA).

One huge advantage of appointing a property manager is their local knowledge on the area, which is very beneficial for appraising the rental amount and to conduct regular rent reviews.
More benefits of hiring a property manager:

  • They know the Residential Tenancies Act (RTA) and can advise owners and tenants accurately.
  • They have the means to reference check prospective tenants thoroughly.
  • They have a database of prospective tenants who are actively seeking a rental property.
  • They are trained to report on the condition of the property at the start of the tenancy, the end and throughout when conducting routine inspections and have a keen eye for detail.
  • They are skilled at negotiating and communicating between you, your tenant and contractors, which takes away awkward conversations you may not wish to have if things get tricky.
  • Most agencies charge a management fee taken from the rent collection which is tax deductable.

SMOKE ALARMS

One question which gets raised a lot is around smoke alarms. Who is responsible to see that the smoke alarms in a property are in working order?

Ultimately it is owner responsibility.

Your property manager will usually discuss with you at the time of signing the management authority about how you wish to maintain compliance of the smoke alarms (and residual current devices (RCDs) at your investment property. This usually involves a qualified electrician to complete a check on the property and provide an electrical safety certificate to keep on file.

However, the tenant must also check and test the smoke alarms and residual current devices (RCDs) regularly and report to the property manager urgently if there are any issues with them.

The following is recommended from the Department of Fire and Emergency Services in relation to your smoke alarms:

  • Test all smoke alarms every month to ensure the battery and the alarm are in working order.
  • Every six months, vacuum your smoke alarm with a soft brush attachment.