At Momentum Wealth, we are often asked ‘what does a real estate property manager do?’ While sourcing tenants and rent collection is the answer that most commonly springs to mind for most people, the role of a good real estate manager goes far beyond that.
When you purchase an investment property, you want to make sure that you’re getting the most value from it. Not just at the initial purchase, but from its management.
Choosing the right property management agency to work with, and finding a real estate manager that you trust, can make all the difference in the success of your investment.
A good property manager helps you get the most out of your investment, leaving you free to focus on other things—and making that first step into property investment much less daunting.
The key responsibilities of a real estate property manager
Your property manager is responsible for the ongoing management and oversight of your house and land. They ensure the day-to-day tasks of managing your rental property, from finding tenants to handling repairs, are taken care of.
The general responsibilities you can expect a property manager to undertake include:
They’ll conduct thorough pre-leasing inspections and manage the marketing of your property for you.
Managing potential tenants
Your real estate manager will help you source tenants by organising rental viewings and undertaking reference checks for all potential tenants.
As well as regular inspections and rent collection, they’re the ones who prepare and renew your lease agreements, ensure compliance, deal with payment of outgoings (such as council and water rates), and take care of the dirty work, (such as conflict resolution and negotiations). This enables you to step back from the process, while giving you peace of mind that it’s in expert hands.
Your real estate manager is responsible for maintaining your investment. With your authorisation, they’ll arrange repairs and maintenance, while ensuring that your investment is being cared for by the tenants.
Good versus great: what to look for in your real estate property manager
When looking to manage your investment, you don’t want to entrust it to just anyone. Any real estate agent can collect the rent and pay your bills.
What differentiates an average property manager from a great one is their attitude. They’re proactive, demonstrating that they go above and beyond the expected duties to give peace of mind that they’re working towards your best interests—it feels like they’re treating your investment property as they would their own.
They work with you to:
– Ensure your tenants actually pay rent on time—an issue that’s faced all too commonly by new property investors. It doesn’t even have to be a complicated solution, it can be as simple as offering a direct debit option to your tenants. Be sure to ask about their policy on rent arrears, and how they plan to address these issues should they arise.
– Identify any special conditions for inclusion in the lease, beyond industry standard clauses, to provide additional protection to you and your property. A good property manager will help tailor a lease agreement that includes special clauses to ensure specific elements of your property are maintained. These can include things such as protecting your floorboards from damage, or specific instructions for garden maintenance.
– Provide advice on strategies to maximise your return on investment. Such strategies can include adding value to your property, such as advising on renovations or additions that can enhance your rental returns based on local market demand, or looking into dual-income strategies to maximise your rental cashflow. A good real estate manager may even partner with a trusted mortgage broker to identify strategies to optimise your property’s cashflow, outside of rent.
– Take a preventative approach to maintenance . Things like regular termite inspections, or electrical compliance reviews help you avoid unexpected costs and safety issues, protecting your property’s value.
– Perform regular rent reviews to ensure your rent grows in line with the market , and recommend things like lease contracts that allow for more frequent rent adjustments in a hot market.
The benefits of a truly exceptional team
The right property management-agency understands that you don’t approach your investment property in isolation. They’ll work with you to take a holistic, 360-degree view of your property’s performance. This enables you to lean on their tailored expertise in all aspects of your property’s management.
A good real estate management agency ensures you never miss a beat when it comes to your portfolio’s performance, and work with you to maximise the value of your investment. From engaging their in-house property finance experts to educate you on how to best minimise your risk, while doing the work to maximise your returns at every stage of the property management process.
They make sure that things you would consider as basic tasks, like regular communication, don’t fall by the wayside. A simple check-in with an update on your property, the tenancy, and anything to be aware of for the future can give you peace of mind that you’re working with an expert team.
Download our property management brochure for investors