Property management refers to the process of taking care of all aspects of the property on behalf of its owner. Here, owners can manage their properties themselves or hire a property management company.
A property manager will find tenants, address maintenance issues, and collect rental payments as part of the task. Landlords can outsource their property management either through a property management company or a real estate agent. Usually, real estate companies have a dedicated property management team.
However, It is common for landlords to choose to manage their properties through the property agent they have previously transacted. For instance, an investor may purchase a property through a property agent who will then manage it for them.
The idea that property management is just collecting rent is a common misconception! It’s much more than that! However, some investors indeed believe their property manager does nothing but that, and that’s a clear sign of a bad manager.
Property management companies are important to you because they handle your day-to-day property management needs while keeping you updated. Having access to a wide range of contacts, the property manager can deal with problems when they arise.
Essentially, he is a middle-man between the landlord and the tenant, which frees up time for both parties whilst promoting the property on more popular sites.
With over a decade of experience in the industry, Axis believes a good property management company should have the following characteristics.
Property Management Company should:
Market your property:
Depending on how your property is marketed, you will attract a certain type of tenant. The key to finding a good tenant is to have a lot of options. Essentially, you’re playing the numbers game. When you are putting your property up for rent, a good property manager will have a solid plan of attack, which includes:
- Detailed marketing strategies
- Clear descriptions
- The best possible photos to showcase the property and attract quality tenants
Conduct property viewings:
Viewings are crucial to attracting tenants. Property managers respond to viewing requests and supervise viewings, so you don’t have to be present during the viewing. As a result, the prospective tenants can discuss their requirements, maximising the chances of matching your property with the right tenant.
Select Suitable tenants:
When you place a good tenant into your property at the start, you will reduce the likelihood of future problems.
Good tenants have several advantages:
- You will likely have stable income inflows because your property is less likely to have a high turnover rate
- Your property is more likely to be well-maintained, resulting in lower expenses
Your property manager should conduct periodic inspections to ensure that the lease terms are being met and your property is in good repair. When you renew your lease, it provides them with an opportunity to review your monthly payment and discuss your future plans.
Handle legal matters:
Choosing a property management company that understands legal and compliance matters like lease termination and property safety will help you ensure that your legal obligations as a landlord are met.
By enforcing timely rent collection, a great property manager minimises vacancy periods, maximises rental returns, and ensures a steady income stream. In addition to regular review of rent rates based on your local market and property type, they should also work to reduce tenant turnover and maximise returns.
Managing properties involves a lot of tasks and responsibilities, and these typically require strong detail-oriented skills. Make sure you have the time and energy to manage the daily responsibilities. Marketing, screening and managing tenants, inspections, and chasing up late payments are some of them. If you cannot be hands-on with your property and are okay with giving up control of the daily processes, a property management company like Axis Property can be valuable.