The importance of choosing the right property manager for your investment: Carlie Ziri
For many people, an investment property forms part of their retirement plan. In order to avoid any major cracks in the future, this precious nest egg should be nurtured along the way so it lives up to its promise of financial security when the time is right.
This is why it is so important that you select an agency that you can trust, to manage your property as if it were their own.
With tax time looming it’s the perfect time to ensure you’re getting the right level of service from your agent. Paying a management fee covers more than just rent collection; it is also a tax deductible service that should ensure your agent keeps your property well maintained and earns you maximum rental return.
To ensure successful management of your investment property and returns, you need to work with a qualified agency that has a committed and professional approach. Your agency must have attention to detail, knowledge of all the appropriate legalities, and efficient procedures in place to manage the day-to-day demands of a portfolio of investment properties.
The average management fee in NSW ranges between 5% – 7% depending on location and service provided. However, it is the little things that will set a great agent apart from the average.
Ensuring the property is spotless when a tenant leaves is so often overlooked; with dirty vents, cupboards, light fittings and many small areas missed during a vacate inspection. These issues will just build up over each new tenancy and lead to early replacements. A good agent will also ensure everything is in working order rather than waiting for the new tenant to advise.
Detailed pictures of the property are essential in today’s market. Images ensure there is no debate over the condition of the property at the end of a lease, and with a furnished property, an agent can ensure the property is styled as beautifully as it was when it was handed over.
Organising cleaners, removalists, tradesmen and sourcing any service the property or landlord needs should all be part of the deal and at the end of the financial year, your agency should give you a complimentary end of year statement to pass on to your accountant.
Finally, communication is key. Keeping landlords up to date with values and market trends is something our agency is passionate about delivering on a regular basis.
Rohan Alexander, my Associate Director at Lifestyle Property Agency, has specialised in managing and leasing inner city properties for over a decade and always goes above and beyond for clients. Just recently, to ensure a deal was closed for the landlord, he organised a crane to lift a large piece of furniture onto the balcony as it wouldn’t fit in the lift of the apartment building. Both the landlord and tenant were extremely happy with the outcome.
According to Rohan, the following checklist outlines everything a good property manager should be doing for their clients:
Manage the property like it’s your own. Be positive, enthusiastic and proactive – there is always a solution!
Ensure there is a minimum of two routine inspections per annum – it is essential to monitor the property during tenancies. Many agencies don't even carry out one inspection per annum!
Review the market rent every 6-12 months, depending on the length of the tenancy. The smallest increase will maximise your return
Have a great relationship with both the owner and tenant; looking after both parties ensures a smooth tenancy
Be proactive with maintenance rather than reactive
Ensure your tradesmen are good at what they do, are reasonably priced and reliable
Always return calls! Many people don’t hear back when enquiring about a rental property. Prospective tenants, owners and current tenants should always receive a response, whether it is good or bad news
Choosing the right agent is worth the initial investigation and like anything the cheapest is not always the best. Make sure that this small tax deductible cost is working for you and your property portfolio, to maximise the opportunity for positive capital growth in the future.
Carlie Ziri is the director of Lifestyle Property Agency.
