Property manager’s vacancy rate as crucial as area’s: PhilipWebb

It is certainly important to consider the vacancy rate of the suburb you’re considering investing in, but you should also consider prospective property managers’ vacancy rates.

According to PhilipWebb property management division head Sophie Lyon, you need to be asking plenty of questions of your property manager.

“Your property manager should know their stuff, and easily be able to describe the tenant demographic and suburb profiles,” said Lyon.

“How many properties do they manage in the area? How many are similar to yours? What is the agency’s occupancy rate?"

She explained that the way your investment property is marketed to tenants directly impacts the number of days it’s available on the rental market – and therefore your own cash flow and financial situation.

“You need an agency with a track record of high occupancy rates. The less time it is vacant, the more profitable your investment,” she said.

Ask property managers the rental occupancy rate on their books and compare it to that of the area.

“This is one of the most important factors to look at when choosing a property manager,” she said. She also noted that the quality of the tenants will also directly impact on your return.

“Landlords should regard having a good property manager as having good insurance,” she explained.

“A lot of what property managers do is behind the scenes. We deal with fallen trees, gas explosions, fire and even murder suicides.”

Maintenance, mediating disputes, emergency repairs and communication are all in a property manager’s daily lot.