8 October 2015
What does a property manager do?
Hi I'm Amber Drummond, Franchise Support for Raine & Horne SA. I've been in property management for 15 years now working as a property manager for many of these and I've lost count of how many times I've been asked what I actually do. You just find tenants and collect rent don’t you? A property manager’s role is actually much more involved, we provide a comprehensive management service which usually include things such as:
• Providing advice on potential rental value. This will involve assessing many factors including the features the property has, bedrooms, car parking location as well as what is available to the market now and what has leased recently. Included in this assessment it may be necessary to provide advice on any improvements necessary to the property.
• Marketing for tenants. Ensuring a quality campaign is key. Quality photographs are needed as the majority of searches are done online so a good first impression is necessary. The ability to upload your property to a variety of web sites to broaden your reach is important. A clearly written advertisement should include all the key selling features of the home and paint a picture of the lifestyle the poverty offers. The better the overall presentation & impression you get from you the better quality of tenant you will be able to attract. Showing prospective tenants thru promptly is important as good quality tenants are key, advertise the property only when you know you have access to show tenants thru.
• Selecting and securing quality tenants. A good quality tenant is someone who will pay the rent on time as well as look after the property. A thorough screening process including leading questions when you first speak to the enquiry then show them thru, after by speaking to previous rental references & current as well as previous employers. Character references remain important but shouldn’t be your sole indication of a good tenant, its interesting to see the type of associates listed as character references this can tell you a lot about the general character of the people.
• Completing legally binding Tenancy Agreements and lodging the security bond. Professional Property Managers will have access to good quality industry standard agreements to ensure maximum protection for the owner and tenant. The role of a property manager is to advise their owner how to comply with the Residential Tenancy Act when preparing a lease agreement.
• Regularly, monitor collection of the rent. Good property managers will check rental arrears daily and should be able to tell you what percentage of their rent roll is in arrears at any one time. You need to have regular systems to follow up arrears and keep owners informed of this.
• Regular inspections of the property. These serve to ensure that the tenant is maintaining the property to a reasonable standard and to identify any maintenance or possible improvements the owners can make to keep the standard of the property up. Making suggestions for improvements be they small or large will help to maintain the value of the property both for rental income and capital growth over the age of the investment.
• Payment of accounts. Your property manager will be happy to pay outgoings for your investment property. This means keeping on top of all invoices coming in for the property and arranging payments on owners behalf.
• Providing regular financial statements. Providing easy to read clear statements showing income and expenses for the property will make the owners live easy, to know the same day that they rental income goes into their account by way of an emailed statement relieves some of the stress of an investment property.
• Attending the tribunal on your behalf in the case of dispute with tenants. In the event of a dispute with the tenant a property manager will need to attend Tribunal hearings to argue the case for the owner.
• And at the end of the tenancy, finalising the tenancy agreement, checking the property and arranging the release of the properties bond. A property manager needs to be assertive to be able to speak up when a tenant hasn’t left the property satisfactorily or the owner is being unreasonable int heir expectations. Thorough follow thru can be required to ensure the tenancy is finalised completely with any repairs attended to and all rental collected.
From this I hope I’ve given you a broader understanding of the role of a property manager beyond collecting rent. We cover a whole range of areas but all with the same goal in mind, to ensure that the owners valuable investment is achieving the best possible return for them and is looked after by the best quality tenant possible.
Raine & Horne South Australia