Thinking about hiring a professional company like Baxton Property Management in Hobart to take over running your investment property? You may be torn by the feeling that you should do it yourself, to ensure that you get every dollar you can in rent to puff up your ROI after all the money you have spent on acquiring it in the first place.
What a Property Manager Does: The Build-up to a Tenancy
Everything to do with the rent: Professional property managers can advise on the amount of rent to charge and when to increase it (or even decrease it, if necessary) because of they know the rental market. They have systems in place to collect rent, and knowledge of the procedures to follow if that rent falls into arrears.
Finding the best tenants: They know what sort of advertisements to prepare, and how and where to use them to attract the best tenants. And they are able to handle rental property viewings for those interested in renting the property because of those advertisements. The property manager then handles the applications and takes over the time-consuming task of performing background checks on the prospective tenants’ financial and work background, as well as their previous tenancy history, and then makes the decision of which one makes the cut.
The tenancy agreement and the security bond: Once a successful applicant has been chosen, the next step is to decide on the length of the lease, the amount of the security bond, and to draw up a tenancy agreement, process everything, and see the bond is posted.
The entry condition report: A vital part of the start of a tenancy, the entry condition report is the yardstick against which the entire tenancy can be measured. It establishes a base from which both the landlord and the tenant can implement their obligatory requirements to maintain the property in the same condition until the end of the lease.
Playing the Middleman
During the tenancy, a property management company like Baxton in Hobart plays the middleman, using its experience and sound knowledge of the residential property laws applying to both tenants and owners to mediate and take action when disputes arise between them.
Repairs and maintenance are often at the core of tension between landlord and tenants, and how quickly and effectively they are handled can make or break the tenancy. For property managers, dealing with requests for repairs is all in a day’s work. It’s sometimes even in a middle-of-the-night’s work, if an emergency arises at the rental property. They are on call 24/7. Once the action required is determined, their network of contractors can ensure the job is handled professionally and quickly.
At the same time, as property managers handle the routine property inspections during the lease period, they are likely to see the need for repairs and deal with them well before the tenants even notice the need for them.
One of the biggest bug-bears for private landlords is record-keeping and administration regarding the tenancy itself . Companies like Baxton handle all those requirements with full transparency and ease of access to records for the owner.
When it’s Time for Tenants to Go
Parting company with a good tenant is not easy. It means going through the whole process again. But telling a bad one to go is very difficult. Property managers know when it is time to extend a lease, or do the exit inspection and part company with a tenant. They also know how to handle the complications of early lease termination instituted by the tenant or the owner, and they are experienced in handling the nasty business of eviction in the correct and legal way.
Can Property Managers save you money?
Property managers charge for their services – in fact, it’s usually somewhere between 7 and 10 percent of the rent for these services in Hobart. However there are a number of things that suggest owners may well find that less money going out and more is coming in because you are paying for a property manager’s services.
Firstly, many of their service fees are tax deductible in Australia. And then there’s the indirect savings made in terms of the owner’s time, and the stress involved in trying to organise and supervise effective and trustworthy contractors to handle repairs. And possibly paying more to get it done.
Reputable Property Management companies are accountable to their property owner clients, but are well aware that tenants are the lifeblood of their clients’ rental operation. They have also experienced interactions with many tenants, and owners. Their approach is therefore objective and aimed at balancing the needs of both parties. For more information regarding property management and its services, contact Baxton online.
Written and syndicated by
– Baxton Media.
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