A good property manager can really take the stress out of managing a rental property. They aren’t just there for rent collection as they also help to manage the property on day-to-day tasks such as maintenance and cleaning. It is also usually the property manager’s duty to make sure the tenants are abiding by their tenancy agreements with their landlords and maintaining the property to a reasonable level according to real estate law.
Unless you’re one of the lucky few to get a long-term tenant, property managers can take a lot of the headache out of preparing the property for rental once a lease has expired. They ensure the current tenant is leaving the property in a reasonable state of cleanliness and repair. This is not just for when the tenant is moving out as most jurisdictions require a property manager to make routine checks of the property. Any violations usually result in monetary compensation being requested from the tenant to repair any damages, provided they are not part of the usual wear and tear that occurs from living in a property.
A property manager will go through the property and note the condition of each room towards the end of a lease. They will note any maintenance that needs to be caught up on. Anything problematic is noted down and brought to the attention of the tenants. The property may need repairs, cleaning or painting completed before it is once again suitable for rental. In this event, a snagging list is prepared and presented to the landlord. Any items on the snag list will need to be rectified before the property is ready to be put back on the market.
Depending on the arrangement, many property managers will use the tenant’s deposit or subsequent rental payments to cover the cost and if excess is required then the owners will be required to inject extra funds to cover the difference. Regardless, all items will require prior approval from the property owner before repairs and maintenance requests are acted upon.
Perhaps one of the biggest advantages to using a property manager is their extensive marketing circle with which they use to find new tenants. Advertising for new tenants is an expensive affair, and as the months go by, the costs of advertising and loss of rental income can soon add an unsustainable burden to the mortgage repayments.
Most property management agreements involve an affordable monthly or annual fee that comes out of the rent when the property is tenanted. The first rental payment after the property has been successfully tenanted is usually reserved to reimburse the agent for their costs. These terms are not set in stone and you can usually negotiate extra services or cheaper prices depending on the market conditions. Most landlords agree that the wider marketing reach of their property manager is a very worthwhile investment.