Selecting the right property is just one part of maximising your investment return. The way you choose to manage the property on a daily basis will also affect both your enjoyment of the investment and the annual returns. It is possible to manage a property yourself – advertising for tenants and collecting weekly rent. However an easier option is to hire the services of a professional property manager – possibly the same estate agent you purchased the property through.
Property management fees are generally about 7.0% of gross rent though this is negotiable. Managing a rental property yourself can mean saving on management fees, however landlords need to comply with a range of laws and regulations. Even simple oversights such as not lodging rental bonds on time could result in a ‘please explain’ from the Residential Tenancies Tribunal. Using a professional property manager can streamline the whole process of investing in property.
Look for a property manager with:
• Strong local knowledge – this will let you set a realistic market rent, plus the agent may have a pool of prospective tenants to help minimise vacancies.
• Clear management process in place – where possible ask to see copies of standard forms or checklists used to manage tenants and properties.
• Screening systems for new tenants – a good property manager will thoroughly check tenant references.
• An active approach to management – how often are investment properties routinely inspected? Do they have a list of local