Choosing a Property Manager: what to ask

Selecting the best Property Manager isn’t as simple as going for the cheapest fees; you absolutely get what you pay for.

Your Property Manager will personally oversee your investment on a daily basis, so you need someone who’ll do the best possible job. That means excellent customer service, top notch management of tenants, and the speedy resolution of any issues that arise.

Poor management compromises your investment. Too many investors spend the time researching the market and finding the best property in a great location, only to neglect the same due diligence when deciding on the person who will care for it day-to-day. A good Property Manager maximises your rental income and installs trustworthy tenants who’ll care for the property.

Here are a few questions to ask in your quest for the perfect Property Manager.

Can you tell me about your reputation?

Research your options and see what’s out there. Let Property Managers know you’re shopping around for the best option. Top managers will fight to win your business, lazy ones will let you pass by if you seem like a ‘difficult’ client. It’s a neat method of weeding out those who aren’t up to the job.

To really get a good understanding of a particular Property Manager’s style, assess their references and testimonials. If you can get in touch with any of their other landlords, do it. That way you can hear firsthand about what they’re like to deal with, the quality of service they provide, and whether they deliver on what they promise.

How do you stay up-to-date with the relevant legislation?

You need someone who understands the law and knows how to apply it. Knowledge and know-how in this area is vital – tenancy legislation is complicated. The best Property Managers undertake training and professional development so that their skills are always up-to-date.

How do you choose the best possible tenants?

Your Property Manager will have control over the tenant selection process, so they must have reliable procedures in place to find tenants who will care for the property and pay rent on time. How will they expose your property to the maximum number of potential tenants, and thoroughly check references and applications?

Remember that finding a solid tenant is just the first step; keeping them happy is another issue. A good Property Manager, while providing you with great customer service, will also cater to the needs of the tenant. A satisfied tenant is a long-term tenant, which lowers the likelihood of the property sitting vacant for any significant stretch of time.

The Property Manager should respond to requests promptly, handle any issues efficiently, and, when a tenant does vacate, locate a quality replacement fast. They must also conduct regular inspections of the property.

How do you determine the appropriate market rent?

Setting the rent at the right level, in line with similar properties in the area, helps attract tenants. A knowledgeable Property Manager will be able to do this with ease. By setting the rent at the appropriate level, your investment will get attention from a variety of quality tenants and give you maximum rental return. You should also see what processes are in place for dealing with late payments and rent reviews.

Are you a dedicated, specialised Property Manager?

Look for an agency that specialises in property management. Most agencies have property management departments, but too often they’re an afterthought, simply riding the coattails of the sales department where the big money is made.

Look for an agency with a specialised, professional property management service. Ask how many years experience the Property Managers have, what their local knowledge is like, and how many other properties they manage.

What are your fees?

While you should never make the decision on fees alone, they are a factor. You’re in the investment game to make money and there’s no shame in hunting for the best deal. Think about the size of your portfolio, too – if you’re planning to acquire more properties, think ahead and assess the fees down the track. Will you have one manager for multiple properties, or will you engage different agencies and Property Managers?

Factor in the overall management fee as well as extras. Property Managers may also charge for things like locating tenants or the ongoing management of the property. Look at what services the fees cover.

How do you handle repairs and maintenance?

When a tenant requests a repair or the property is in need of maintenance, what are the procedures? How will they advise you of the work that needs to be done, and will they seek approval first, even in an emergency? What are the timeframes for responding to non-urgent tenant requests, and do they have reliable tradesmen on call to do the work (including after-hours and emergency response)?

Choosing the right Property Manager takes some time, but it’s well worth getting right. Having the best person overseeing your investment will make a significant difference in the long term.