Why use a rental manager to look after your investment property?
This topic is hotly debated, but it generally comes down to whether or not a landlord sees value in what a rental manager does for them. In some instances, an owner may be right in wanting to manage their property themselves.
Some owners may think they can save on management fees if they self-manage. But they can get into trouble if not fully informed. It can end up costing more money if they don’t keep up-to-date with legislative changes, if they are unsure whether their tenant has abandoned the property, if an incorrect notice to remedy rental arrears is issued, or if the property remains untenanted for any length of time. Mis-managing their investment property may also result in their landlord insurance policy being declared void (especially when landlord insurance is a must-have).
As a landlord myself, I have always had my investment property managed by a rental management company. I’m competent in this area but I simply didn’t have the time to ensure I was 100% all over everything remotely, as I was occupied with my own job and its day-to-day demands.
One of the main reasons a property owner would choose a rental manager to act on their behalf is to protect themselves with a third-party liaison. This avoids becoming emotionally involved in negotiations, and avoids personal involvement in any confrontations. If there are any issues with the investment property – such as rental arrears – the rental manager deals with it. The property owner doesn’t need to take any action, and doesn’t need to take on any stress.
A good rental management company will offer genuine value to landlords. Value is not purely reflected in the fees charged for looking after the property, but also in the service level provided. Management fees cover more than collecting the rent and conducting routine inspections.
What do the management fees and charges cover?
- Advertising and marketing the investment property to secure an appropriate tenant.
- Holding open-home inspections to allow a prospective tenant to preview the property.
- Screening potential tenants to gauge their suitability for a property.
- In-going and out-going inspections.
- Periodic inspections.
- Facilitate the collection of monies including rent and water.
- Correcting and collecting rental arrears.
- Organise emergency repairs.
- Organise and monitor maintenance.
- Liaise between the landlord and the tenant, ensuring both relate appropriately to each other.
- Conflict resolution.
- Manage the landlord’s financial accounts.
- Manage paperwork and allocate responsibility.
- Record and store conversations and correspondence (which may be required at a future date).
The Residential Tenancy Act 1995 South Australia is comprehensive and covers the rights and obligations of both the landlord and the tenant. Any misinterpretation of the legislation can result in legal and financial consequences.
As a property owner are you are of:
- all the notice periods required
- what you need in preparation for a SACAT conciliation hearing
- lease break requirements
- abandonment requirements
- how to charge for water usage
- rental advertising requirements
- when a rental reduction or increase can apply
Some tenants seek out private landlords because they don’t have a good track record with renting. These tenants bank on the landlord to make mistakes which will be advantageous to the tenant.
A rental management professional has exceptional communication and endeavours to resolve conflict positively.
Why should you choose Barossa Rental Specialists?
- A fully licensed real estate agent with years of experience in the industry
- Comprehensive understanding of the Residential Tenancies Act 1995 South Australia
- Up-to-date knowledge of current market conditions and rental prices
- Specialists in multi-tasking, communication, negotiation and conflict resolution
- A commitment to treat everyone with dignity and honesty
- Proactive, trustworthy and willing to go the extra mile to ensure all parties are satisfied with their rental situation
- Building a great working relationship is our priority
- One person to deal with
- Available at times which suit you wherever possible
- Flexibility is one of our advantages
If you own an investment property and want peace of mind,
contact Lisa Akeroyd of Barossa Rental Specialists on
0414 335 660 to discuss your rental management strategy.