Benefits Of Hiring A Property Manager To Manage Your Rental
Many prospective landlords and newbies in the property investment game ask the question: “should I manage my rental property myself?”. At PRD, we are highly experienced in the property market and we’re here to show you the benefits of hiring a property manager to manage your rental.
What Does Property Management Entail?
Firstly, property managers will prepare the rental for listing. This includes organising photographs of the property, determining the rental amount, ensuring tenancy law compliance, as well as marketing the property.
Next, they’ll secure the ideal tenant. Inspections must be planned and managed, tenant applications need to be reviewed and prospective tenants need to be checked for references and tenant ‘blacklists’. Lease and bond documentation is required, and these documents need to be indisputable, to ensure compliance in the case of difficult tenants.
The job doesn’t end there, as the property manager is responsible for managing the tenancy relationship during the lease period. Collecting and distributing rent and other rental costs (such as water and electricity bills), following up on outstanding rent, managing regular inspections and responding to maintenance requests is all a part of the property manager’s job.
Additional benefits of hiring a property manager include assisting with tax preparation, putting together and managing tenancy tribunal hearings, or conducting rental appraisals and possible increases.
Upside Of Managing Your Own Rental
On the surface, it may seem like managing your rental property will save you money. Let’s further unpack property management by looking at the costs involved so we can inspect the true cost to benefit ratio of hiring a property manager.
Property management fees tend to sit at around 5-10% of the weekly rental income, however, these fees are tax-deductible. This means they reduce your taxable income, and this benefit will be waived if you do decide to manage your own property. Additionally, you'll be losing out on the benefits of hiring a property manager: namely saving yourself from the intense workload, responsibility, and legal liability.
Downside Of Managing Your Own Rental
When it comes to managing a rental, the workload is immense, and issues can arise at any moment. This requires you to be flexible and dedicated to addressing tricky tenants and unforeseen maintenance mishaps in a timely and professional manner. If you already have a full-time job and other life commitments, the day-to-day work of a property manager can prove to be more of a hindrance than a financial help.
The PRD team of property rental managers understand all the ins and outs of property management and we’d like to help you get the most bang for your buck in a stress-free way.
Contact us today with your property management enquiries.
