Property Collaroy - Real Estate Collaroy
Ray White Collaroy
Lorna Angell, Ray White Collaroy
As a property investor it is important to choose an experienced property manager (also now more frequently referred to as asset managers) who will choose the right tenants to pay you the maximum rent and minimise your vacancies, by doing so you will maximise the value of your property.
Efficient property management is more than just collecting rents.
To help you select a proficient property manager, here are some questions you can ask an agent prior to appointing them to manage your property:
How many years has the property manager looking after my property been working in real estate?
This relates to the property manager and not the agency. Going to a large brand name agency does not necessarily mean their service is going to be any better.
Some individuals choose property management as a career, they should genuinely enjoy Property Management and this is the type of person that should be looking after your investment. They should preferably have 4 years industry experience.
How many properties does the manager look after?
Some busy agencies have 250+ properties per property manager. In general this is far too many to give your property individual attention. A property manager who looks after too many properties may not have time to devote the desired attention to your property. At some boutique agencies each property manager looks after about 100-150 properties. While these agencies may charge a little more for their property management services landlords find this extra expense translates to a trouble-free investment and also maximising the return because the property manager has more time to review rents. The aim should be for you as an investor to know that your investment is being proficiently managed by an experienced property manager who has the time to take care of any issue efficiently.
Does the agency have a dedicated rental department and how many staff will be looking after your property?
Many agencies see property management as more of a hassle compared to the perceived more glamorous sales department and some even leave the management of clients’ assets to inexperienced junior staff. This mentality often transpires from agencies where the Principals themselves have no experience in Property Management. It is important to ensure that you confirm that the owner of the agency (director/principal) takes an interest in the Property Management Department and that there is a dedicated rental department with at least one experienced senior Property Manager.
Is a principal/director/owner of the agency involved in the day to day management of the property management department?
You may find that an agency where the director has an active involvement of the property management department will take the business of property management more seriously. Ask how many years experience the principal has in property management and if the principal attends the property management meetings. This will ascertain just how serious the principal is about the property management department and in theory the quality of service you are provided as a client.
What geographic area does the property management service cover?
While you should be looking for a property manager with expert local knowledge, consider what your property portfolio may look like in the future. Will you own a number of properties spread throughout the suburbs? It is easier for investors to have their portfolio managed by one agency who is able to effectively cover a larger geographic area. With the internet now being paramount in the advertising of properties and with the convenience of electronic banking there is less emphasis on the importance of where the office is located. Many prudent property investors are turning to this type of property manager who will be able to look after their entire property portfolio from one location.
Does the agency have staff available to show the property to prospective tenants 6 days a week?
A property manager must be available to show properties to prospective tenants when it best suits the tenant. With properties advertised 24/7 via the internet enquiries are made at any time and a good property manager understands the importance of showing a property outside the usual mid week or Saturday “open for inspection” times. Without tenants residing in the investment property it costs you the investor. The aim of the property manager should be to find a quality tenant as quickly as possible to minimise the vacancy period.
Does the agency have a system for checking prospective tenants with regards to credit worthiness, past rental history and their current employment?
Ensure that the agency subscribes to a major tenancy database and screens all prospective tenants carefully. The tenancy database should provide the agent with a certificate confirming that the tenant is not listed as a poor credit rating. The agent will be able to provide evidence of the reference checks carried out and the process involved to ensure a quality tenant is placed in the property. There is no guarantee that a tenant will not offend for the first time, however, by carrying out the necessary reference and credit checks it negates the risk to you as a property investor.
Does the agency have a system that checks rental arrears on a daily basis and takes the appropriate action immediately?
A good property manager who uses electronic funds transfer methods for rent collections and up to date computer systems should be able to monitor rental arrears daily and minimise late rental payments by regular communication with tenants by phone, letter, email and SMS. There is no excuse for rental arrears and communication is the key for the property manager to liaise between the property owner and tenant. If a tenant is experiencing genuine hardship, with consent from the property investor a payment plan can be arranged with the tenant and monitored stringently by the property manager.
Will the property manager go to court or a tribunal for me if need be and what is the success rate for previous appearances?
Unfortunately there may be an issue which cannot be resolved without having to attend either a tenancy tribunal or court to protect your rights as a landlord. If this occurs you will need an experienced property manager to represent you as tenancy laws are complex. It is in your best interest to resolve the issue prior to attending a tribunal or court as this will ease the costs involved to attend a formal hearing. An experienced property manager will have a good success rate when attending any formal hearings and be confident when representing you.
Ray White Collaroy is one of the leading real estate agencies on the Northern Beaches. Our office is located half way between Palm Beach and Sydney with only a 15 minute drive to Manly. Residents in our area enjoy a relaxing lifestyle of dining at a variety of fine restaurants, the use of public transport and of course the famous beaches, all within minutes from any suburb in the Northern Beaches.
We specialise in residential sales, auction, project marketing and property management, servicing the areas of Collaroy and surrounding suburbs.
Whether you are buying, selling or leasing, you can be confident you will be dealing with friendly and professional team who knows the market and we will do our best to achieve excellent results.
Our local and interstate network allows us to co-ordinate your move whether it be across the road, across the state or nation. Our groups in unison to make your “buying & selling” transaction smooth and worry free.