The Benefits of LJ Hooker Property Management
Purchasing an investment property is a big decision. You have put a lot of thought and money into the property, so you want it to be managed properly. This is why hiring a property manager may be best.
Many investors are financially savvy, however, finding tenants and dealing with day-to-day property issues can be tricky. A property manager is experienced in not only marketing to and finding the perfect tenants, but also handling any issues that may crop up throughout the tenancy agreement. This ensures you receive a reliable income stream without the stress of managing the property.
What does a property manager actually do?
A property manager does exactly what the name suggests, and then more. This includes marketing the rental, choosing your tenants and then managing the day-to-day activities. However, a property manager does not have to do everything if you do not want them to.
Generally speaking, your property manager can handle any of the following main responsibilities:
- Market the property - this may involve going out to their clients, database and the general public. This also involves opening your property for viewings.
- Choose the tenants or advise you on who to choose - this includes screening tenants with relevant reference check and rental history reviews.
- Negotiate and collect the rent
- Prepare the tenancy agreement
- Lodge and collect bond payments
- Conduct regular inspections
- Handle any repair or maintenance requests, including obtaining quotes from relevant trades and advising you how to move forward in the process
- Report all relevant notices and financial statements
- Pay council rates and taxes - this will be taken from the rent collected
- Handle complaints from tenants, deal with any issues the landlord may have with the tenants and where necessary, issue termination notices to tenants when required
As mentioned, you do not necessarily need to engage a property manager to handle all of the roles. However, a good property manager will have the appropriate knowledge of the overall market and the local market, meaning they will know who to go to in order to find the right tenants, which trade will work best in your area and even potentially, your building, and how any changes to the market may affect your investment.
The benefits of using a property manager
There are many benefits of using a property manager. Perhaps the most common advantage is the convenience of not having to do everything yourself, and of course, their local knowledge. But there are other benefits too.
Matching a tenant to a property
Because property managers will have a good database, they may be able to find you a tenant almost immediately, just by knowing who is looking for a property like yours. In addition to this, finding a tenant can be a taxing and complex process, especially if you do not have experience in the industry.
An experienced property manager knows what to look for to find you a good, decent and honest tenant and knows what red flags to look for too. Remember, having an inadequate tenant can really impact your investment and it is often difficult to get them to leave your property. A good tenant, on the other hand, may be long-term, responsible with their rent, minimise wear and tear on your property and overall, cause fewer problems. Property managers know where to find these gems.
For potential tenants, having a property manager to deal with means there is less emotion in the mix, so if there is something troubling you, it is much easier to approach a neutral party. Also, if you go through a property manager, you may be privy to rentals that are just coming on the market, if not before. This means you will have first-choice on the most appropriate properties out there.
They handle the legals
Even if you understand the property market and have knowledge of all the legal jargon, managing a property yourself is not always desirable. Having a property manager involved protects both the landlord and the tenant.
The landlord cannot hold anything against the tenant without the property manager affirming the situation and vice versa. It also means the property manager handles all the legal elements of the tenancy agreement, including evictions, inspections, termination of leasing and security deposits.
Maintain the value of the rental property
The value of a rental property lies in a few things - the physical condition of the property, its rent rate, and how often and for how long it is vacant. Potential tenants will consider all of these things when looking at various properties. A property manager is well versed in making sure each box is ticked when it comes to caring for and maintaining a property.
This generally means properties are marketed correctly and priced correctly to encourage long-term tenants to stick around. Experienced property managers often have tenant retention policies that are tried and tested. They know how to get the right kind of tenant and ensure they stick around. For tenants, this means a long-term home. And for landlords, this means less vacancy time which means no rent lost and low maintenance costs when it comes to changing the locks and repainting where necessary.
Finally, property managers know who to go to in order to get the best price and the best job done to facilitate repairs and maintenance for the property. Ensuring the property is well-maintained means the property asset is preserved. In turn, the value of the property is maintained, if not increased.
It is personal
Of course, there are personal benefits too. It is much less stressful to have someone else handling everything for your rental property. As a tenant, you know exactly who to call if things go awry, no matter what time of day it is.
For landlords, you do not have to stress about possible evictions, organising trades to traipse in and out of the property and being there when required, chasing paperwork or dealing with rent.
Why choose LJ Hooker?
LJ Hooker has more than 150,000 properties under management, totalling almost $90 billion. We are also Australia’s most recognised brand when it comes to property. We are trustworthy, and of course, market leaders in the area. Because we have been servicing the area since 1928, we have built a reputation of outstanding service, helping clients at various touch-points of their lives, from their first rental to their final downsize.
LJ Hooker agents and property managers regularly attend training, externally and in-house, placing a large focus on continual professional development. In a continually changing world, it is important to keep up with the real estate industry and the relevant legislation too.
Finally, we are experienced property managers. We know that communication is key to every relationship so we believe in keeping our tenants and our landlords informed every step of the way. Whether it is good news or bad news, we know you deserve to hear it from us, so we tell it to you as it is. We keep everyone updated on the process as it happens, ensuring all statements are forwarded in due course, including rental income and any payments made on your behalf. Plus, we electronically deposit your money as cleared funds into your nominated account within 48 hours.
Ultimately, our goal is to increase your income and ensure your investment is working for you with minimal hassles, providing you complete peace of mind.
We offer experience alongside excellent market knowledge that helps make the investment process as smooth as possible. If you are ready to find and engage a property manager and maximise the potential of your investment, get a free rental appraisal today.