10 Questions You Must Ask Any New Property Management Service
You’ll want a steady, reliable and competitive return from your investment property – so how do you find the right choice when you’re choosing between property management companies? These 10 questions will help you separate the best from the rest.
1. What percentage of tenants on your books are currently in arrears?
This is perhaps the single most important question because it cuts right through to the heart of the matter. If a small fraction of tenants are in arrears, it’s a strong sign that the property manager is actively doing their job.
2. How do you make sure that my tenant pays their rent on time?
Methods matter. As one example, at Let’s Rent, we place a strong and clear emphasis on having tenants pay by direct debit. By automating this process we’ve been able to reduce our arrears to less than 0.5% of our portfolio on average. At Let’s Rent, we have been able to ensure that 99% of our tenants pay their rent in advance, so you have peace of mind.
3. How do you manage and maintain your systems?
Let’s just say it – in 2020, your property manager should not be relying on post-it notes and paper forms for everyday processes. Things like paperless condition reports and electronic leases can make a world of difference for owners and tenants.
4. How up-to-date on legislation are you?
You’ll want peace of mind that your property is being managed by someone who’s across the latest legislation. If a property management agency is providing regular updates and news as they relate to your property, it indicates that they’re keeping up-to-date.
5. Are you solely focused on managing properties – or do you sell them too?
A property manager has less incentive to manage your property well if you can also use their services to sell your property. It’s worth checking that any prospective property management service is focused on property management alone.
6. How do you advertise or find new tenants?
You’ll want the right potential tenant seeing your property. At Let’s Rent, for example, we’ve been achieving strong results with realestate.com.au and domain.com.au listings for the suburbs of Annandale, Darlinghurst, Maroubra, Birchgrove and Petersham.
7. How do you screen tenants?
You’d be surprised (and horrified) by how often property management services don’t conduct a truly thorough screening for new tenants. Be sure to check that yours really follows through with employment and previous tenancy checks. At Let’s Rent, we like to do this over the phone to gain a true impression and we make sure to maintain the paperwork required to back it up.
8. How do you estimate rental rates?
Rental rates can fluctuate, but what’s most important is working with a property management provider who will give you the facts – and the choice – when finding the right balance between keeping your property rented and ensuring a healthy rental return.
9. How do you handle urgent and emergency repairs?
Not only do you deserve effective maintenance services for your investment property, but tenants also deserve a proactive and responsive service when it comes to urgent issues.
10. What are your residential property management rates?
Of course, value is vital when it comes to maximising your return from your rental property. Any provider should be upfront about costs. Focus on finding real value rather than just the lowest price, because the last thing you need is a property manager who will cut corners.
We get that you want peace of mind when you rent out your property. That’s why our services are built around providing thorough, transparent, and focused property management services in Sydney. Give us a call on 02 9555 4886 and we’ll be happy to answer all these questions and any others you might have.