Selecting the right property manager is crucial to maximise your rental property’s return on investment while minimising stress. A knowledgeable local property manager not only understands pricing trends in your area but can also connect you with qualified tenants and trusted tradespeople to keep your property in top condition. Here’s how to choose a property manager who’ll deliver value for their commission.
1. Prioritise Local Knowledge
Local knowledge is invaluable. A licensed property manager familiar with your area’s market conditions will help you set the highest rent the market can bear, which benefits both you and them, as their commission is tied to rental income.
2. Research Options
Word-of-mouth recommendations and online reviews can give insights into a property manager’s reputation. Local property managers are often ideal as they may already have potential tenants lined up, reducing your marketing expenses.
3. Avoid Being Just a Number
Interview at least three property managers to get a sense of their experience and workload. Ask about the number of properties they manage, the number of team members dedicated to your account, and the length of time staff have been with the agency.
4. Ask Detailed Questions
Probe into their market knowledge, how they determine rent, their marketing approach, tenant selection process, and how they retain quality tenants. A service level agreement can be a good indicator of their commitment to maintaining high standards.
5. Understand Their Problem-Solving Skills
Learn how they handle issues like late rent payments, tenant disputes, and repairs. Establish clear expectations for maintenance, including inspection frequency and communication with you. Ensure you’re consulted before any repair work is undertaken.
6. Prioritise Experience in Tenant Selection
A skilled property manager excels at identifying high-quality tenants while spotting potential red flags, such as late payment histories or property damage claims. Strong systems for retaining good tenants are also essential.
7. Ensure Good Communication
Communication is vital to managing issues promptly and keeping costs down. Confirm who will handle your account and whether they are backed by a team to ensure timely responses to property needs.
8. Check References and Retention Rates
If undecided, seek references from other landlords. Ask property managers about their landlord and tenant retention rates to see if patterns of satisfaction emerge.
9. Don’t Choose Based on Fees Alone
It’s tempting to select the manager with the lowest commission, but in property management, you often get what you pay for. A higher-quality, attentive manager may charge more but will save you money in the long run. Expect to pay 7-10% of rental income, which is tax-deductible.
By following these guidelines, you’ll find a property manager who’ll protect your investment, find reliable tenants, and ensure your rental property is managed efficiently.