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What does a property manager do?

clock icon May 30, 2018
tag iconproperty management

You probably know that property managers exist, but do you know exactly what they do? The property managers are third parties who are hired to handle a wide range of daily operations related to real estate investments.

A property manager’s job description is usually determined by the terms of the management contract and by their fee. Here are some key things that a property manager will handle:

Find prospective tenants

After finding a tenant, your property manager should thoroughly screen them before recommending them to you. This means checking their references and employment history and talking with their employer. They should also check with their current agent or landlord ensuring they pay their rent promptly and keep the property in good condition.

Prepare the lease documentation

Your property manager will need to prepare a lease that protects both you and the tenant. The Real Estate Institute in each state has a standard lease that is used by most agents. A good property manager may add some special clauses required to further protect you.

Organise bond documentation

Your tenant will be required to pay a bond. Legislation in most states requires the bond to be placed with a Residential Tenancy Bond Authority. Your property manager will handle the documentation for this and any disputes regarding the bond arising at the end of the tenancy.

If, at the end of their tenancy, the tenant is up to date with their rent and has left the property in the same condition as when they moved in, except for what is called “fair wear and tear,” they get their entire bond returned to them. Unfortunately, many disputes arise as to what is property damage that should be rectified by the tenant and what is “fair wear and tear.”

Misunderstandings can be minimised by having a well-documented condition report and photos of each room of the property at both the beginning and the end of the tenancy. A good property manager will also give their tenants a document outlining their obligations when vacating the property which should help minimise disagreements.

Give you up to date advice on rentals

A good property manager knows the rental market and should be in a good position to advise you of the market rent for your property. If there is an oversupply of rental properties on the market, a slightly lower rent, should attract a number of tenants to your property.

Our property managers will show you examples and evidence of comparable properties which they have used to determine your market rent.

Administer rent reviews

At the end of the lease or every 12 months you will need to consider whether the rental being paid is still appropriate or whether you should ask for an increased rent. Your property manager will be in a good position to advise you when it’s appropriate to increase the rent and do so before the expiration of your lease agreement.

Our property managers will show you examples and evidence of comparable properties which they have used to determine your market rent.

Pass on the rent payments to you promptly

A top property manager will promptly credit your rental directly into your bank account, rather than waiting for the first of the month as occurs in many agencies. We will also notify you by email so that you have access to your money as soon as it is available.

Provide Regular Statements

By furnishing you with a fully itemised monthly statement and a comprehensive statement at the end of the financial year, your property manager can save you time and trouble keeping track of your accounts. A good property manager will email your monthly statements to you.

Regularly inspect the property

Your property manager can minimise disputes with tenants when they vacate by conducting a full internal and external inspections at the beginning and at the end of each tenancy. At Metropole we prepare a detailed report which is countersigned by the tenant to confirm it accurately reflects the condition of your property.

During the tenancy regular inspections followed by a written report should also be carried out. This lets the tenant know that you take the proper care and maintenance of your property seriously and should pinpoint problems early, minimising the risk of having a “tenant from hell” damaging your property without you knowing it.

Handle arrears

Your property manager will shield you from the unpleasant tasks of handling rental arrears and will know the correct action required if the tenant is in default. They will issue the relevant notices and should follow through until the rent is up to date.

Advertising

Currently the best advertising medium for rental properties is the internet. Private landlords are not able to advertise on the major real estate web sites, but your property manager will take care of this for you and should have a list of potential tenants to show through the property.

“For lease” boards on the property can draw a lot of enquiries particularly if your property is on a busy road.

Maintenance

A good property manager will have a team of qualified tradespeople who do a great job at a reasonable cost – often saving you money in the process. Usually you would advise your agent how you want them to deal with maintenance and they can attend to this on your behalf.

Pay authorised account and statutory charges

At your request your property manager can pay bills on your behalf out of the rent that they receive. These could include maintenance costs, body corporate/owner’s corporation fees, public lighting, insurance premiums, and water and council rates.

 

Please contacts us to find out how Successful Ways can maximise the returns on your investment property. You can be confident that your property will be cared for as you would look after it yourself. Changing property managers is simple and will not cost you any time or money – we will take care of all the details for you.

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