Perth’s property market has been booming as investors seek rental income and property value growth. This surge has led to a corresponding rise in demand for professional property management services.
Managing properties can be challenging for many investors due to busy schedules or lack of knowledge. That’s why about 80% of property owners in Australia employ the services of a property manager that oversees the day-to-day responsibilities of owning a rental property.
Below are advantages of property management services in Perth and some of the costs you’ll incur.
Advantages of Property Managers
Imagine evenings free from late-night tenant calls and weekends without worrying about repairs. Property management offers Perth investors peace of mind and a smoother experience. Here’s a closer look at the key benefits:
Reduced Stress and Time Commitment
Owning an investment property can be a rewarding experience, but it also comes with responsibilities. Property managers like Johnson Property Group take care of the day-to-day tasks associated with managing a rental property, freeing up your valuable time and energy.
They handle tenant issues, such as repair requests or noise complaints. They also manage rent collection, ensuring you receive your income on time and without hassle.
Property managers can schedule routine property inspections and take care of any necessary maintenance or repairs. This means you no longer need to constantly check your properties.
With a property manager being on top of these responsibilities, there’d be less stress and time commitment.
Market Knowledge
Experienced property managers have a deep knowledge of the Perth rental market. They understand current rental trends, vacancy rates in different suburbs, and the ideal tenants for your specific property.
For instance, the real estate market in Australia is expected to hit USD$ 7.56 trillion by 2024; in the same year, residential real estate is expected to be at USD$ 5.84 trillion.
These numbers may not make sense to you, but property managers know how to take advantage of these stats so you can have a profitable investment, setting suitable rates depending on the property type.
Property managers also have a proven track record of finding suitable tenants quickly and efficiently. They use various marketing strategies to reach a wide pool of potential renters and conduct thorough screening processes to ensure responsible tenants will take good care of your property.
Compliance
Renting a property comes with a set of legal regulations that both landlords and tenants must adhere to.
Property managers stay up-to-date on all relevant Western Australian legislation, such as the Residential Tenancies Act (RTA), ensuring your property meets all safety and compliance standards. This protects you from potential legal disputes and fines.
They also handle the legalities surrounding tenancies, such as drafting compliant lease agreements and managing bond refunds at the end of a tenancy.
With everything done correctly and according to regulations, you’ll have peace of mind, not to mention the reduced risk of legal complications.
Professionalism and Communication
Property managers act as a dedicated point of contact for both you and your tenants. How do they do this?
They provide clear and professional communication throughout the rental process. Tenants can reach out to the property manager for questions or concerns, and the latter will handle these inquiries promptly.
As the owner, you also benefit from having a dedicated contact person. They’ll keep you informed about any important developments like upcoming lease renewals, issues about property maintenance or changes in market trends.
Costs of Property Management
While real estate management services offer significant benefits, they do come with associated costs. Here’s a closer look at the main cost categories to consider:
Marketing and Advertising Costs
Finding a good tenant means being able to maximise your rental income while minimising vacancy periods at the same time. Property managers typically advertise your property on various online portals and may also utilise signage in the area to attract potential tenants.
The cost of marketing usually depends on the chosen advertising channels and how competitive the rental market is in your area. For instance, advertising a luxury apartment in a high-demand suburb might require premium listings on online portals, whereas a more standard property in a less competitive market might not be as costly.
Management Fees
This is typically the biggest ongoing cost associated with property management. Fees can be structured in two ways: a percentage of the rent collected (usually ranging from 6% to 12%) or a fixed fee per month.
The specific fee you pay will depend on several factors. Property type plays a role, with houses generally costing more to manage than apartments due to their larger size and potentially more complex maintenance needs.
Location can also influence fees, with more remote properties sometimes incurring higher costs to compensate for travel time.
Finally, the level of service offered by the property management company is a key factor. More comprehensive packages that include services like routine inspections and tenant liaison will naturally cost more than basic packages that focus solely on rent collection and management.
Tenant Leases and Application
Property managers play a crucial role in ensuring your rental property is occupied by responsible tenants. In Australia, about 2-3% of properties have a change in tenants every month.
As such, you need experts who can handle tenant screening and preparation of property leasing agreements to cater for the changing clients. This ensures they comply with all relevant Western Australian legislation, such as the Residential Tenancies Act (RTA), protecting both you and the tenant and avoiding legal issues.
It’s important to invest a little upfront, that if you want to avoid a big headache later. It’s part of property managers’ SOP to run credit and reference checks, as well as verify employment to determine potential tenants who might cause some trouble down the line.
Maintenance and Repairs
Property managers handle property maintenance and repairs by coordinating with qualified contractors or handyman services. This ensures that any repairs are completed efficiently and to a professional standard.
Be prepared for potential costs associated with both emergency repairs, such as a burst pipe or a failing appliance, and preventative maintenance.
Preventative maintenance can save you money in the long run. For example, addressing a leaky faucet promptly can prevent water damage to walls and floors.
Conclusion
The costs of property management in Perth are balanced by the substantial advantages it offers. What’s more, it’s entirely possible to get a hold of a solution that suits your needs and budget, and this can ultimately maximise return on investment.
Optimising property investment can’t be stressed enough, and relying on property managers for this would be your best bet.
