Proactive Property Management for Perth Landlords and Property Investors

When a residential property is leased to tenants there is often the need for that property (asset) to be managed on behalf of the landlord.

Typically, property management tasks will consist of maintaining tenant relationships, ensuring the property is tenanted to maximise rental income, collection of rent and the maintenance and upkeep of the property. Professional property management also ensures the property is managed in line with relevant legislative requirements.

The scope of property management tasks performed will depend on the agreement between the landlord and the property management company.

A property manager is employed by a landlord to manage their asset, in this case an investment property. The goal of the property manager is to professionally manage the rental property to maximise the return on investment the landlord earns – and minimise loss of rental income.

The property manager achieves this by focusing on:

• Marketing and tenanting properties,
• Tenant management and rent collection,
• Maintenance and repair management, and
• Ensuring compliance is met.

Further, the property manager acts as the representative of the owner and manages communication with the tenant.

The specific functions of a property manager will vary based on the property and the agreement between the owner and the manager.

However, the core responsibilities of most property managers include:

• Overseeing budgets and maintaining accurate financial records
• Providing advice to achieve the best rental return based on market conditions
• Preparing and executing tenancy agreements and notices
• Enforcing lease terms with tenants
• Making sure tenants pay rent on time
• Ensuring properties meet legislative requirements
• Handling maintenance requests, scheduling repairs and managing tradespeople as needed
• Regularly monitoring the condition of rental properties in their portfolio
• Negotiating contracts with service providers such as gardening and pool maintenance and pest control
• Conducting ingoing, outgoing, maintenance and routine inspections
• Preparing compliant property condition and final bond inspection reports
• Marketing and leasing properties to ensure vacant rental properties are tenanted promptly
• Keeping owners and investors updated on the property’s performance
• Maintaining a relationship with the strata manager, and ensuring strata rules are adhered to

Property managers can specialise in different property types, such as residential houses and apartment units, as well as other property types.

Residential property managers typically oversee the day-to-day operations of individual real estate rentals such as single-family homes, apartments, units or flats.

As Perth’s leading real estate and property management agency, HERE Property specialises in delivering comprehensive property services for property investors, property owners and developers alike. They rely upon HERE Property to manage their investments, nurture capital growth and maximise investment returns in Perth’s most desired suburbs.

Your property is an investment that you wish to maximise the return on, so your choice must be guided by choosing an agency that is going to deliver that outcome for you.

The relationship between a landlord and Property Manager is also crucial so it’s important to partner with an agency that understands your requirements and can best meet your investment goals. Look for testimonials or case studies on the Property Manager’s website for proof that the manager will be a good partner for you.

If you’re going for an agency or property management company, you should look at their experience and expertise in managing rental properties similar to yours, such as the age of the building, tenant profiles and how long they’ve been around. Make sure they have a good track record with other landlords and investors, too, especially in the local area where your property investment is located.

A professional property manager should also discuss an ideal tenant profile with you to ensure that tenants are properly screened before moving in. Finally, they should deploy effective marketing and advertising techniques to make sure your property is quickly filled with quality, long-term tenants.

A word of warning. Whilst the cheapest option may seem preferable this is unfortunately often a false economy which may lead to higher tenant churn, the use of substandard tradespeople or an inability to ensure compliance obligations are met.

These are just a few factors to consider when looking for a property manager – read the full checklist here and keep it handy when searching for the best fit for your needs.

Discover the ultimate checklist for selecting the best property manager for you.

If any of the following ring true for you, maybe it’s time to start looking into hiring a property manager:

• You want your investment to be managed as an asset and are seeking a professional to do just that
• You lack the time and energy to manage your property personally
• You don’t want to get too involved in the management process or have a landlord-tenant relationship
• Your properties have been sitting on the market for too long, not earning a return for your investment
• You have an investment property that’s held in a Self-Managed Super Fund (SMSF)
• Also, you may have had a subpar experience with a property manager before and didn’t get good value from them, or they didn’t provide the communication and tenant resolution services you expected.

If any of these scenarios is the case for you, it may be time to start looking for a new property manager who can provide more suitable services for your needs.

Find out when is the right time to choose a property manager.

Your dissatisfaction with your current Property Manager may be caused by a range of factors – perhaps you’re not getting the expected level of service or they are unable lease your property in a timely fashion.

Whatever the cause, it may be time to look for a new property manager.

You should also consider changing your management team if there’s been a decline in tenant satisfaction due to poor service, the maintenance of the property is substandard, there are significant delays in repairs and tenant resolution services, the tenant turnover rate is high, or there’s lack of communication from the property manager.

Finally, if you think their property marketing and advertising efforts could be improved, this is another good reason to switch.

Remember that the right property manager will help ensure your investment runs smoothly and maximises your return on investment. If that’s not happening with your current property manager, that’s your sign to start looking for a better fit to meet your needs.

Changing property management companies can be a complex process, so it is important to make sure you’re aware of all the steps involved.

First, you should clearly understand the services your current property manager provides, along with any associated fees. Then research other companies that provide the same services so you can compare fees and services.

Once you’ve found a new property manager, a few administrative tasks need to be taken care of before they can officially take over the management of your property. These include transferring tenant contact information, providing access to financial and property records and notifying relevant parties, such as strata managers and local council, and bond variations.

It’s also important to ensure that the new property manager understands any ongoing tenant issues, like rental arrears or outstanding breaches, so they can easily and quickly resolve them.

Finally, you should create a plan for transitioning tenants between your current and new property managers to ensure everyone is on the same page. This plan should include a timeline and clear communication with both the old and new managers, as well as the tenants.

Find more detailed information on the steps involved in changing property managers.

Finding suitable tenants for your property is key to ensuring you have the best return on investment.

That’s why a good property manager will use a comprehensive tenant screening process accompanied by objective qualification criteria to find reliable, responsible renters who are likely to stay in your property long-term.

The ideal tenant screening process should include credit and background checks to identify any potential financial difficulties or inconsistencies. It’s also important to verify job and salary information (employment verification) and rental histories to ensure that the prospective tenants are responsible and have a good track record when making payments on time.

It’s important to note that the exact tenant screening process may vary from property manager to property manager, so it’s best to discuss this with your chosen management team to understand whether they have a reliable system in place for finding tenants.

The main fees you pay for property management services are called ongoing management fees. These are typically charged as a percentage of the monthly rental fees, and they cover all the essential aspects of managing your property – from collecting rent payments and liaising with tenants to handling maintenance and compliance matters.

In the Perth local market, you should expect to pay between 8.5% and 10% of the collected rent.

In addition to these ongoing management fees, property managers will impose an administration charge as well as additional fees for certain services from time to time. These can include advertising fees, letting or leasing fees, lease renewal fees, routine inspection fees, and more.

Discover everything you need to know about Perth property management fees and ensure you understand exactly what’s included in your property manager’s fee structure before signing a contract.

It’s also important to shop around when selecting a property manager, as prices vary significantly between companies. Be sure to ask questions and compare services to make an informed decision in your best interest.

Undertaking a regular rental property appraisal is an important part of any successful investment plan.

It helps to ensure that your property’s rent is aligned with the current market rate and provides evidence-based decision-making when it comes to renovations or other changes you might be considering. This is especially since the market is constantly changing, so it’s essential to stay up-to-date with current trends and pricing.

A regular rental property appraisal can also help you maximise your long-term returns and ensure that you’re getting the most out of your investment by keeping your property as competitively priced in terms of rental rates as possible. Plus, it’s free, and there’s no obligation – so why not take advantage of this valuable service?

Learn more about how to get a rental appraisal and what it includes.