Property management is a professional job. A good property manager juggles many balls, including setting rental rates that maximise yield and finding tenants who respect the property.
Choosing the right property manager starts with knowing what to expect in fees. This article peels back the layers of complexity to help you understand what you get for your money.
Getting Started
Jarrad gets a buzz from sharing his knowledge and experience of property investment and has spoken at many industry conferences around Australia. He and his team work hard to transform raw property potential into consistent rental returns.
Property management fees can be a major cost for landlords. There are two main fees that can apply – a letting fee and a management fee. The letting fee applies to the initial cost of sourcing a new tenant and is usually equivalent to 2-3 weeks rent. The management fee is an ongoing cost that can be expressed as a percentage of weekly rent.
To become a property manager in WA you must complete a qualification with a training provider. You can study a property management course with Entry Education or Kangan Institute – external site.
Finding Tenants
One of the most important parts of property management is finding good tenants. This includes ensuring that your rental property is correctly priced to maximise your yield and that it’s attractive to prospective tenants.
It also means securing a lease with a tenant that’s happy to pay your rent and is willing to take care of the property as if it were their own.
Property managers charge a letting fee and a management fee. The letting fee usually equates to two weeks rent plus GST and covers the cost of introducing and qualifying applicants, the preparation of tenancy agreements, checking tenants through defaulting tenant databases and lodging of bond with the governing body.
Rent Collection
One of the main duties of a property manager is rent collection and payment. This ensures that your investment is being properly cared for and that you are receiving a regular income.
A letting fee is charged for sourcing a new tenant, usually equating to 2-3 weeks rent in Perth & regional WA. A management fee is an ongoing charge for managing your property and can range from 8.5 to 11% of the weekly rent.
You should also be looking for a solution that makes it easy and convenient for tenants to pay their rent online. This helps to reduce late fees and improves credit management.
Maintenance
Being a landlord comes with legal and financial responsibilities, so you need to be prepared to handle repairs and maintenance issues that arise. These can include anything from a broken dishwasher to an electrical outage. It is a good idea to have the services of an experienced property management company in Perth that can take care of these issues for you.
Residential properties can range from stand-alone single-family homes to apartment buildings. They require regular maintenance to keep them looking and functioning their best.
On Demand Property and Building Maintenance is a one-stop shop for all general repair and maintenance services for residential property. Their team is accredited, security checked and fully insured for your peace of mind.
Insurance
A skilled property management company can help you save time and money. Whether it is a rental inspection report or advice on what the best rent rate is to maximise your return, their experience can ensure that your property is well managed.
A Perth property manager can take care of all the day-to-day tasks involved in renting out a home or apartment. A good one will keep detailed records ranging from maintenance requests to rent contracts and rates liability budgets, taking the stress out of managing your investment property. They also know your preferred communication style and can save you a lot of time by handling all the communication.
Taxes
Unlike percentage-based fees, flat management fees are calculated according to what it costs the property manager to conduct their service. This can be a fairer way to price these services and won’t punish landlords for owning valuable properties or increasing their rental yield.
As a landlord, you may also be able to claim some of the cost of hiring a property manager as a tax deduction. However, this will vary according to state laws.
A good property management company will take care of all the responsibilities that come with renting out your investment property. By ensuring that tenants are treated fairly and that all legal obligations are met, they will help you maximise your rental returns.