What questions should you be asking when searching for a Property Manager?
With many property management offices in Perth, it can be daunting if you are on the search for a Property Manager – especially if you are a first time investor and are unsure about how the leasing process works.
While fee structure is important and can differ from agency to agency, there are some other important questions that should definitely be on your list:
- What is included in the management fee?
It is important to clarify if the agency charges their management fee on rental income only, or if they charge it on total collections for the property. If they charge their fee on total collections, this also includes a fee on water consumption, bond deductions etc. = you will be paying more. Some management fees may be lower, however you also need to account for what is included in the fee, not just the percentage charged. - Are inspections outsourced?
The initial property condition report (PCR) is one of the most important documents for a tenancy. Ideally your Property Manager should complete this initial inspection (before the first tenant moves in) and collate the reports themselves so they understand the property and know it inside out. This then flows to the routine inspections and through to the final inspection. Outsourcing these visits & reports to an external company have become more common in recent years. - How many properties does each Property Manager look after & how is the office structured?
Though portfolios can differ in numbers depending on how the office is structured, it is always good to get an understanding of how many properties each Property Manager is responsible for. Some agencies have a Property Manager, an Inspecting Agent and a Leasing Agent which means the Property Managers portfolio is usually larger (up to 200 or even more properties per Manager). In a case like this, Owners may be dealing with a few different people and there is a possibility the Property Manager never attends the property during the tenancy. In comparison, some agencies have one Property Manager who oversees the whole process, from initial leasing and all aspects of management during the tenancy – they often have lower portfolio numbers. There are pros and cons to both structures, however ensuring you know which style of management suits you best will help in your selection process. - Finally ask as many questions as you can so you can have a complete understanding of the office policies and procedures.
Your investment property is an extremely valuable asset and you need to feel confident and comfortable with the agency that you are entrusting to take care of it.
To find out more about making the Property Management switch & our competitive rates please contact our Senior Property Manager Tash on 0499 523 106 / (08) 6454 1888 or tash@drivengroup.com.au