You have used equity in your home, done your research on how to invest, get your best property at the right price and now you are approaching the payment date. Congratulations on your smart move! Now you need to find tenants and put your rental property in the right hands – which is why the task of choosing a rental property manager can be difficult. Some of the characteristics of a good property manager you want are local experience, love, excellent communication skills and the ability to navigate your modern commodity market – so you can relax easily.
You can’t just simply go with the property manager of the same real estate company from which you bought the property. Ask around, talk to the managers of several buildings in the area and keep looking until you find someone you know who you can trust completely.
9 questions you can ask a property manager before hiring
- How many properties do you currently manage?
Too many properties in a wide area can mean that the property manager will be depleted very thin, and any problems associated with your property may not be fixed as quickly as they should.
- How will you market my property to potential tenants?
Do they have a list of tenants who are interested in the file? How will they market your property? What is their recommended weekly rent for this place? Hopefully you will have received the expected rental return before buying this land, so if the person you are referring to cites weekly rent that is much higher or lower than you expect, be very careful.
- Is there any improvement I need to make in this area now to attract better tenants and get a higher rental return?
This question will reveal how much the property manager knows about what attracts local tenants. If your property is likely to attract a young family, for example, a fully fenced yard can attract potential tenants and lead to higher rental revenues. If your tenant is likely to be a single woman, a better security or alarm system could be the key.
- What is your process for showing assets to potential tenants?
You want to know if they will go to the hard yards here and show off the property on weekdays or after hours if a potential employer is asked.
- What is your process for recruiting new tenants?
You want to know that more care will be taken to find trustworthy, stable tenants. You also want to know that your tenants will be treated fairly so they have no reason to complain and will stay longer.
- How do you handle situations such as an employer losing his or her rent or an emergency after hours?
The answer to this question will give you some important clues about property manager’s people and commitment skills.
- What are my responsibilities as a landlord?
As a new property owner, you need to know your rights and obligations as well as the rights and obligations of your tenants. An informed answer to this question will show that your competent property manager does know all the necessary legal matters as well.
- How often will you inspect my property?
You need to know that your property will be carefully inspected regularly (up to four times a year in New South Wales and twice a year in Victoria) and that you will receive a full report after each inspection.
- What is the fee structure?
Price is not everything, however it is important to understand where your dollars are invested. In most cases, the property of the property manager will be calculated as a percentage of the rent.
The answers to the above questions should give you many clues as to the local knowledge of the property manager, the level of enthusiasm for his work and the integrity of the employee. Any sign of helplessness should sound the alarm bells.
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