The Benefits of Using a Property Manager When Renting out Your Investment Property
It's quite logical that many people make additional property investments beyond their own home, and more than 1.8 million Australians own a second home which is rented out. When it comes to owning a rental property, you have the option of overseeing the arrangement yourself, or utilising the skills of a property management firm.
While property management is not free, it's an extremely valuable service that often pays for itself over time. So what are the key benefits of using a property management firm to oversee your valuable investment?
You Don't Have to Look for Your Own Tenants
A property manager will already have a list of prospective tenants, and will automatically add your listing to their portfolio. They will also take care of any necessary advertising, meaning you won't need to do a thing. The property manager will also check the background of applicants, which is essential for ensuring that a prospective tenant has the necessary financial resources to pay their rent each month: in full, and on time.
If you're privately renting your property, you can easily encounter problems if you choose the wrong tenant. Even the seemingly most upstanding looking applicants might have a history of unpaid rent and evictions.
They Show Off the Property
Prospective applicants generally view a rental property on weekends or in the evenings, because of course, they have to work. A property manager is used to this, and is able to bundle applicants together for viewing the property in a block of several hours at an appropriate time. If you had to do this yourself, you would need to take time away from your schedule, and might not be able to bundle applicants together in the same way. You would probably have to schedule a single viewing for each applicant, and this is both time-consuming and annoying.
They Sort Out Legal Matters
Your tenant would sign a legally binding contract between themselves and the property management firm, who would then deposit your rental earnings into an account of your choosing. You don't need to see a lawyer to draw up a contact, and then worry that it's not exhaustive enough.
The contract would also cover your obligations as the property owner, such as ensuring that any maintenance or repairs are carried out within a timely fashion, although this would be overseen by the property manager. Your tenant will be happy and will likely stay in the property for a long period of time, if not indefinitely. This means your rental property works as efficiently as possible as an investment.
Sure, you could do all this yourself, but unless you're a former real estate agent, it's all too easy to overlook a vital aspect of the process. A property management company like Calibre Real Estate can make your rental property a truly great investment.