Should I hire a property manager?

Investing in a rental property is a big commitment. Aside from the demands of the sale itself, the long-term management of the property takes great dedication and energy. That is why many landlords turn to property management companies for valuable advice and professional services.

In this article, we will discuss the role of a property manager along with the main advantages of property management.

What is a property manager?

A property manager or property management company is a third party that you can hire to handle the day-to-day operations of your real estate investment. Depending on the real estate management services you choose, the property manager will oversee a diverse range of properties from residential accommodation to commercial office and retail units.

Property management services vary from one company to another. Some property management companies solely focus on collecting rent and keeping on top of your property’s maintenance. Others, such as the Property Management team at Cavendish Maxwell, offer a comprehensive and holistic approach, ranging from marketing the property to conducting rent reviews, budgeting and apportioning service charges.

Why hire a property manager?

A passive rental income is an attractive option to supplement your lifestyle, however, many people do not realise that it takes immense hard work and dedication. Ensuring seamless operations requires constant effort and upkeep of administrative tasks. Many landlords consider hiring a property manager as it saves time and energy, allowing them to focus on other matters at hand.

Here are our top five benefits of property management:

1. Get someone with local knowledge to keep up with laws, trends and occupier expectations

Property managers have their ear to the ground in the area where you wish to or have invested. They will have a detailed understanding of the specific laws and regulations of the area, allowing you to be compliant as a landlord.

They also have insights into current market trends and truly understand what local occupiers want from their rental properties. This expertise can help you capitalise on your investment and will give your rental properties a competitive edge. A good property manager will provide you with advice on the latest rental prices in the local market and will accordingly value your property to maximise your income.

Having a service provider local to the area is particularly helpful if you are an overseas investor or if you travel away from the region on a regular basis. Your property manager can keep you up to date with the demand for the property and its location, as well as provide valuable information on the competing units and latest developments in the area.

2. Avoid coordinating maintenance

Guaranteeing that your property is maintained to a high standard can be a task. From accidental damage to ensuring the major assets of your property are serviced on a regular basis, there are a variety of things that can go wrong.

A real estate management company can manage this hassle for you. They will have connections to local vendors and service providers, ensuring high-quality standards and fast response times for your needs. In some cases, property managers can utilise their network to get you discounted rates for plumbers, electricians, and general handymen. This means that you can maintain your property at the best possible rate.

Other benefits pertaining to maintenance include:

• Expertise on the contracts that should be in place to ensure all assets are being efficiently and effectively serviced, which subsequently avoids asset replacement and additional CAPEX costs.
• Taking care of service-level agreements (SLAs) to ensure maintenance requests are fixed within certain timeframes and disruption to tenants is avoided.
• Tracking breakdown and preventative work order requests

Using property management services means the owner spends less time coordinatng with the multiple parties involved. The property manager acts as a buffer by being the central point of contact, taking over all the organisation and administrative tasks.

3. Reduce the chances of a vacant rental

A property manager will list the property with local agents and set affordable rates to attract new tenants. This means that when a tenant moves out, your property is less likely to be vacant for a long period of time.

Some property management companies, including Cavendish Maxwell, go the extra mile by advertising and marketing your property on both, their designated web pages and property portals. Using local listings and targeted campaigns, they will create a buzz around your vacant units to ensure that the next tenant is lined up at the earliest.

Other services from property managers related to tenant selection and retention:

• Aid in the tenant selection process, helping you attract the right audience that is trusted and reliable.
• Handle transitions of tenants, including conducting walkthrough inspections, security deposit collection and reconciliation.
• Conduct rent reviews to ensure rental rates are in line with the local market.
• Tenant retention and dispute resolution, if any.

4. Never chase payments again

Not only will a property manager help set your rental rates for you, but they will also issue invoices and collect rent payments on your behalf. The property manager will organise payment dates, set up direct payments with the tenant, and keep a detailed record of transactions for you.

If a tenant is late on paying their rent, the property manager will also manage late payments. This means you do not have to spend time chasing the money you are owed. Instead, your real estate manager will take over that task, assuring you that the situation is being professionally handled.

Cavendish Maxwell’s Property Management team will also provide you with periodic reports, summarising your return on investment and the transactions made on your behalf. This detailed account ensures that all financial aspects of your investment are handled and provides recommendations for any adjustments, such as an increase in rents.

5. Receive guidance to make your investment worthwhile

Using their local expertise, your property manager can provide guidance on how to make the most amount of profit from your rental property.

They can suggest enhancing the property with additional amenities and facilities and provide insights on what are tenants looking for when renting a property.

From increasing your rent to considering an up-and-coming area for your next property investment, they will utilise their knowledge and experience to provide you with the ultimate returns.

Final thoughts

To make the most of your property from a rent perspective, hiring property management services is a useful option. By creating a trusted relationship with an experienced property manager, you will receive valuable advice and you can forget the hassle of burdensome administrative tasks. You can trust your property manager to have your best interests at heart, allowing you peace of mind and the ability to enjoy the benefits of being a landlord.

If you are interested in hiring a property manager, get in touch with our dedicated property management team today. The team at Cavendish Maxwell ensures a smooth and meticulous oversight of the financial, leasing, marketing and maintenance aspects of your asset and larger portfolio.