The essential guide to choosing your property manager - BizTech
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The essential guide
to choosing your
property manager
Leasing an investment property
is an exciting venture, however,
not without its challenges.
A property manager can take the stress out of
the equation and also bring excellent results -
provided you hire an expert. Here’s what you
need to know about choosing a property
manager, and how they can take the
headache out of your rental experience.
www.nelsonalexander.com.au www.nelsonalexander.com.au 1
01 What is a property manager?
A property manager is a person or party you employ to look after your
property and the occupying tenants, overseeing the following tasks:
Vetting potential tenants
The Royal Commission’s stringent criteria around bank lending has lead to an
increase in people looking to rent. This can create an influx of tenancy applications
for those putting their properties up for lease - screening these, especially if you
are inexperienced, can be exhausting work. A property manager can confidently
vet tenants using their own strategy and previous experience to determine what
attributes are the perfect fit for your property.
Maintaining the property
Efficient maintenance is a big part of owning an investment property. A property
manager is the first point of contact for tenants should something go wrong in the
household, and can hire help for the issue if you’ve granted them this authority.
Maintenance also involves checking in on tenants with regular inspections and
making sure the correct documentation is signed.
Managing rent
One of the challenges when leasing a property is setting an appropriate rent. A
property manager accurately appraises your property to find the best price for both
you and prospective tenants based on the current market, and makes sure rent is
paid on time.
www.nelsonalexander.com.au 2
02
How do I choose a
property manager?
With everything considered, selecting a property
manager may seem a daunting task. Conducting
thorough research into a prospective property
manager means that you can be sure of what skills
they bring to the table and what this may mean for
your investment property.
Carry out due diligence
Hiring a property manager is like buying a house - thorough
due diligence is needed to make a wise decision.
Check whether a potential property manager is a member of
the Real Estate Institute of Victoria (REIV). The REIV seeks
to further the professional excellence of members to benefit
the communities they work in, therefore managers within this
institution meet a high standard of practice.
It is essential to ask the right questions in a meeting to
ensure you are making an informed decision.
The questions you should ask the potential property
manager are:
>> Can they provide client testimonials?
>> How many years experience they have had in property
management?
>> What their processes are for vetting and screening
prospective tenants?
Word of mouth is a powerful indicator of a property
managers performance. Many agencies allow client reviews
and display them either on their website or as part of a
portfolio - have a thorough read of these, taking into account
the qualities sought, and which meet your personal criteria.
www.nelsonalexander.com.au 3
03 How do I set up a
property management
agreement?
Once you have selected the perfect agent for
managing your property, it’s important to establish
a property management agreement - a contract
outlining the expectations for both manager and
house owner. The agreement needs to clarify
fees involved in the property management, the
requirements of both parties, and the limits to the
manager’s authority.
Management fees
There are a range of fees involved in property management,
which may or may not be outlined as part of the manager’s
hiring fee. When writing your agreement, consider all potential
costs to ensure you won’t be met with a surprise bill in the
future. As well as paying them for their services, the following
fees may be involved:
>> Statement and bank transfer fees.
>> Administrative costs, such as postage fees.
>> Marketing expenses.
Authoritative limits
Property owners can grant managers power in ordering house
repairs, however you can cap these to a certain amount. This
authority may extend to redirecting payments from rent income
to pay for municipal rates, or having total control over the
tenancy selection. Ensure you’re comfortable with the services
the property manager is offering, and the consequences
involved.
Employment guidelines
In some cases, the property management agreement serves as
a contract of employment. Make note of any termination clauses
noted, as well as the duration of the employment - if you’re
looking to lease the property for a set period of time, make sure
the manager is aware of this when signing the agreement.
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04 What are the benefits of hiring
a property manager?
The game of property can be challenging to navigate, especially if
you’re not familiar with the practices and legislation around property
management. When it comes to dealing with rentals, hiring a property
manager can bring you both peace of mind and confidence in the
success of your investments.
Managing properties is their job
Maintaining a property is time-consuming. For those self-managing on top of their
other commitments, property maintenance can slip through the cracks, leading to
serious consequences. A professional manager will deal with all aspects of your
investment property to a high standard, with an expert plan in place.
They’re prepared for tough situations
The nature of renting means that sometimes there are grievances that need to be
addressed, such as evictions. A property manager is onboard to sort these with
a confident understanding of legalities, and to provide support should things get
complicated.
They’ll walk you through the process
A property manager can explain the legalities of leasing a house while walking you
through the process, so the tasks you need to complete as an owner are executed
with a competent understanding of why they are necessary. As well as having a
technical knowledge of real estate, property managers are armed with a wealth of
local information about the area and target demographics, meaning their marketing
and management strategies will be refined.
www.nelsonalexander.com.au 5Why Nelson Alexander?
With over 15,500 properties within our
management portfolio, the award-winning
team at Nelson Alexander are front-runners
in Melbourne property management, and
have provided management expertise for
over 48 years.
Nelson Alexander have 17 offices across Melbourne,
and pride themselves on providing efficient and effective
management strategies, as well as a wealth of local
knowledge invaluable to clients.
With a strict tenancy criteria, Nelson Alexander selects
only the best people for your rental and have earned a
reputation for matching property owners with respectful
tenants, evident across over thousands of five star reviews.
For a rental appraisal
and to find out what
our management
strategies can do for your
investment property, get
in touch with the expert
team at Nelson Alexander.
www.nelsonalexander.com.au
Our Offices:
Ascot Vale | Brunswick | Carlton North |
Coburg | Commercial | Docklands |
Essendon | Fitzroy | Flemington |
Greensborough | Ivanhoe | Keilor East |
Kew | Northcote | Pascoe Vale | Preston |
Reservoir
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