Whether you’re eyeing to achieve capital growth, maintain a positive cash flow each month, or just break free from the 9 to 5 work culture, it’s a no-brainer that real estate investment is a smart option to go. 

Oftentimes, a lot of aspiring investors think that real estate investing is quite simple. Once they have settled their investment property, they think that finding tenants is all that’s left to do. We hate to burst your bubble but there’s definitely more to that. One of which is managing your rental property, which is just as important (and overwhelming) as finding and securing one.

Whilst investing in rental properties seems lucrative, just like everything in life, nothing really comes easy. You have to put work into it (click here to read our blog about property investing from an investor’s perspective). Aside from mastering the ever-changing legislation, you need to be available for your property and tenants almost 24/7. To do that, you may either self-manage your property or enlist the services of a professional property manager.

Sure, self-managing your property and listing it to third-party sites such as Gumtree and Facebook can save you money and resources, but what happens after and in between? How do you effectively manage your property? What should you do to set competitive rental rates? How do you ensure you have happy tenants? 

The list of questions goes on but there’s actually one answer that could solve all: hire a professional property manager. 

Joanne Strange, Business Development Manager of 4one4 Property Co., believes that it is more advantageous to hire a property manager rather than manage a property yourself. “I say this not because I’m in the industry but because we’ve seen so many horror stories, a lot of losses, and not-so-happy endings sometimes,” Joanne shared. 

“Keeping that relationship separate between you and your tenant is really important. You need to have a middle person. And that middle person ensures that the property is being looked after through regular inspections.”

With almost a decade in the real estate industry, Joanne shared with us the common problems that property owners who are self-managing their properties encounter–that an experienced property manager can solve:

Security Issues

Safety should be the owner’s responsibility and priority. This doesn’t only apply to the physical security of the property, but more so, to the agreement of the tenant and the owner. Investors who are managing their property themselves are at times (or most of the time) not aware of the formal lease agreement that is issued upon settlement. This guarantees some legal protections if things don’t work as they should.

With proper knowledge, an experienced property manager knows how to process all documents and paperwork needed to put both parties at ease. Application forms, entry notices, and bond forms might seem like a lot of work to do, but these help tenants get protected from losing their bonds and being handed unexpected costs during their stay on the property. One of their jobs is to stay up-to-date on the latest changes (should there be) and ensure that all agreements and dealings are clean and compliant. 

Reasonable rental rates

More often than not, tenants are looking for rental properties that are worthy of their prices. As a property owner, you’d want to offer something that people would consider without even thinking twice, price-wise; nevertheless, your goal is to generate more returns, investment-wise. How do you put yourself in the middle then?

A professional property manager is knowledgeable about the current and average rental rates in specific areas. With the right research and implementation of some necessary improvements to the property itself, it can add value to the property, making it more irresistible and marketable. The result? You can offer a rental property that is worth every dollar spent by the tenants and is profitable at the same time.

Plus, you won’t need to stress about rent collection as this also covers the scope of a property manager’s role. How cool is it to just sit back and relax while you know your property is being taken good care of?

Complaints and conflicts

Most ‘DIY’ property managers often face the dilemma of being confronted by tenants with endless complaints and problems. With a lot of things going on, the last thing you’d want is to lose your temper and resort to unprofessionalism. But, what better way to avoid such than take proactive steps in the first place?

That’s when the expertise of property managers saves the day (again)! Right from the beginning, that possibility should have been anticipated. Finding the best tenants for the property is the best initial step to do. With their knowledge and resources to attract a wide range of potential tenants, property managers can provide you with a pool of ideal tenants to choose from–who will treat your property as if it is theirs.  

At times, complaints about the oddest things are unavoidable. Property managers are trained to communicate effectively and do necessary actions to resolve issues. Talk about being understanding and compassionate, property managers are the right people to rely on.  

Tedious preparations

Since we are in the digital age already, visuals are one of the most (if not the most) important fields to perfect. Not to mention, the attention span of humans is getting shorter over time, so tickling their curiosity should be a part of the plan. If you want to attract a lot of interested applicants online, you know that taking a quick photo and uploading it directly on sites and a marketplace like Gumtree is not enough… 

You need to present your property in its best possible light–highlighting its main features. A property manager can arrange that for you. Oftentimes, he/she is a part of a larger real estate agency with an in-house marketing team. After all the necessary renovations and decluttering, advertising materials should be taken professionally. With the right marketing strategy, your rental property could stand out. There’s only one shot at attracting a tenant, so ensure to optimise the opportunity.

Keeping your tenants happy

Your work as your own one-man team doesn’t end the moment the tenant has moved in. To set the record straight, you might need to make yourself available almost 24/7 to cater to your tenant’s needs. But the million-dollar question is: how much can you sacrifice?

With a property manager by your side, you can attain peace of mind with the thought that your property is in great hands. You can do the things that excite you the most while your property manager conducts regular inspections to ensure that it is in its best condition. Should there be a need for repair, it should be taken care of in no time. Tenants’ requests, may they be small or urgent, must be addressed accordingly, too. 

Some property owners refuse to hire a professional property manager because they don’t want to pay fees for the professional work. Joanne mentioned how reasonable allocating a percentage for a property management team is. “It’s not that large amount. In the end, it’s quite reasonable and you don’t have to worry about anything as far as your property is concerned.”

Here’s a friendly piece of advice from Joanne to all the investors and property owners who are a bit hesitant to hire a professional property manager to look after their properties:

“I think they should do their research. Reach out and have a chat. It’s free to get an appraisal; it’s free to get information. Count your numbers and talk to your accountant. At the end of the day, it’s probably not going to be such a big cost because of tax deductions. Plus, you’ll have peace of mind knowing your property is being managed professionally.”