Property Investment Tips: Questions to ask property managers before hiring

By the resi financial blog team, 16 September 2014

Property Managers

After taking out an investment home loan and building your own property portfolio in Australia, you may begin finding it difficult to juggle the responsibilities necessary to be a successful landlord. After all, there are many tasks you need to fulfill before you assume control of your rental property, such as finance and finding tenants. 

Luckily, there are professionals that can help you take care of your portfolio and work towards making your properties as profitable as possible. A property manager will take over the day-to-day running of your investment portfolio, freeing you up to continue living your life while reaping the rewards of a successful, viable investment in Australian real estate.

However, because of the large amount of trust you'll be investing in these individuals, it pays to make sure they're the right match for your property. Here are some common questions to ask potential managers to gauge their appropriateness for your needs. 

How long have you been managing investment portfolios?

First of all, check how long your prospective property manager has been in the industry. This can let you know how experienced they are and what their track record has been for growing property portfolios. Also find out what type of properties they deal with. If you own apartments, it's likely you'll want someone who knows strata laws in your state, rather than someone who solely manages large detached properties. 

Ask the manager about their presence in your area specifically. Things like recent hotspots and growth trends - as well as an insight into the future of the area - is crucial information, and if they know a great deal about your suburb that means they're a good person for the job.

Another potential bonus of hiring a property manager with insight and ties to the local market could be the opportunity for your manager to have a number of close relationships with business owners across the area. This could allow for discounted prices at local hardware stores or even cheaper rates for repair services. 

What are their experiences with tenancy law?

Ensuring you and your tenants are both operating within your legal rights when it comes to your tenancy agreement should be a top priority when renting out your investments. Property managers often have an intimate knowledge of the various laws surrounding property and tenants, making them a useful bonus to have in your corner. 

A property manager is also the person that helps to solve issues, should they arise. This means that if your tenants are unhappy, the property manager will work with you and the other party to come to a positive outcome for all. Their knowledge of local tenancy laws, and the tenancy agreement for your property, are crucial in these instances. 

Categories: Home Loans, Property Investment