7 Things to Look for When Selecting a Property Manager
7 Things to Look for When Selecting a Property Manager
(3 Minute Read)
Are Property Managers Necessary?
Are property managers necessary? Real estate investment looms as a prominent source in the world's search for the ever-illusive 'passive income'. However, achieving true passivity can be challenging when managed by yourself. Property investment takes time and effort, so the answer is yes; though it is possible to manage your own property, the more significant outcome involves a property manager.
This month's PRD Insights will take you through 7 key concepts to help you find the right property manager for your investment
1. Real Estate Company or the Alternatives?
Your investment is an asset. Therefore, you must find the property manager that suits your needs, setting the goal of maximising your asset return. Consider three options with varying degrees of proficiency.
A. Real Estate Company
B. Property Management Specialist Companies
C. Individual Property Managers
A. An established real estate company draws upon all real estate sectors to maximise your current investment and create avenues for future prospects. At PRD Penrith, we have developed three major sectors that develop and diversify skillsets for all real estate sectors.
PRD Penrith brings a holistic approach to real estate, developing a range of market specialists that work collaboratively across all sectors.
A real estate company with a dedicated property management team can provide the services supplied by specialists whilst displaying superior expertise through their knowledge of multiple real estate sectors. Real estate companies consider the management of your investment and bring diverse experiences from other teams to develop your asset, utilising its value and providing options for you to consider in the future.
B. Property management specialist companies have the capacity to manage property effectively, but ticking the management box isn't enough for your asset. If your community develops and there is the potential for improvements in your investments, will an exclusive property management expert be enough to take your asset to the next stage? No. The lack of diversity can be a costly decision.
C. Individual property managers can be an underestimated commodity, yet the conditions have to be perfect. Individuals often lack the resources to provide the level of attentiveness and quality service your investment deserves.
The options are abundant, yet there is a clear choice for investment security. Real estate companies with extensive resources and diverse expertise provide services that go above and beyond the typical property management, personally investing themselves in your assets and time.
2. In the Area? Know the Area
Location is ever-prevalent in the property investment process.
A local property manager provides immeasurable value. They can attend inspections; they understand the community and the ideal tenancy demographic for your property.
Knowing the area is vital, and it comes with the added peace of mind that there is someone actively ensuring your property retains its condition
3. Does Reputation Proceed?
How did you find out about the property manager? Have you heard only good things? Are they providing services of the highest quality?
Reputability is a concept to research thoroughly before selecting the property manager for you. It's critical that you choose someone with your best interests in mind and someone you can communicate with regularly.
As technology advances, online resources make it significantly easier to research the quality of property managers; taking to the web is always a great start. In addition, nothing beats word of mouth; speak with others that use property managers and see what they have to say
4. In the Loop
Communication is crucial in a property manager. Someone who updates investors when events occur often outshines the layman manager.
Investors want to know what is happening with their investment. They want to know if there are changes and if action is required. A good property manager will advise the investor regarding improved returns on their investments.
5. Why Them?
What services do your prospective property managers offer? How do they stack up against the competition? Are they ticking all our other concepts?
Do they have the resources to achieve what you wish whilst not neglecting areas of your investment? Are they attentive, and do they have the capacity to put your investment in the foreground?
This Insight aims to prompt you to question 'why them?'.
Ensure you know 'why them?' before selecting your property manager.
6. Yes, and
Innovation is a unique service that can improve your investment and investing experience.
A property manager who innovates management services and constantly strives to improve your investment is a bonus to consider in your selection process.
Innovation and communication go hand-in-hand and are the front runners for an improved investment.
7. Cost and Your Investments
Fees are always a consideration when making a big decision. Consider then that the cheapest or most expensive may not suit your needs. Services provided play a vital role in identifying fees.
Be aware of what services you desire, further your research, then consider the fees related to your chosen services. Don't select the lowest cost; you will find that would go against most of the concepts discussed within this Insight.
The key property management services fall into three categories; management fees, letting fees and other fees. Management fees encompass the daily property management expenses. Letting fees refer to the process of obtaining new tenants. Other fees cover legislative obligations, lease renewals, statement fees, etc.
For an accurate idea of what these services cost, speak to our team at PRD Penrith for an appraisal.
Informed Investors Manage Smarter
Tough choices are made easier by making informed choices. Once you identify which type of property manager you want, ensure you research their location, reputability, communicative capacities, services, fees and whether they are innovating within the industry before making your final selection. PRD Penrith's Property Management team is a great place to start. If you want to discover more about property management as an investor, don't be afraid to contact our team at PRD Penrith and let them help you Manage Smarter.
