A Comprehensive Guide To Getting A Property Manager

The best advice you will receive as a property investor is to find a property manager that understands your vision. NSW has one of the highest renter populations in Australia. Over 34% of NSW households are renters, making NSW the ideal market for an investor. But without appropriate management, you aren’t able to take advantage of these stats. Therefore, getting a property manager is pivotal to improving your property’s profitability in the short and long term.

Why You Should Be Getting A Property Manager

Property managers save you a world of frustration and stress that are only exacerbated by the DIY landlord approach.

Because our team at Citione International understands that the sole purpose of a property manager is to maintain your property’s value and ensure it is in demand when the tenant vacates, we ensure every process receives our undivided attention.

This requires us to meticulously maintain the premises, vet prospective tenants, liaise with occupants, and manage administration, all while saving you time and money. But there are other reasons you should choose Citione International as your property management expert. These include:

Thorough Tenant Assessments

Assessing tenants is only a small fraction of a property’s managers job, but it is one of the most significant activities. For the duration of the lease, it is the choice in tenants that will affect every facet of your property. Including its ability to generate a profit during the lease and after the lease ends.

During the term of the lease, you want a tenant that meets their rental obligations and maintains your property as you would.

Non-payment and property disrepair are only some of the possible outcomes DIY landlords face. But on the extreme, tenants may go as far as deliberately and maliciously damaging property, refusing to vacate premises, racking up strata fines, and so on.

Because we have access to proprietary information and have the time and expertise to complete thorough due diligence, we’re able to vet prospective tenants to ensure they meet the highest standards and are less likely to default.

Market-Related Rentals

Are you renting your property for its market value?

There isn’t a database of information that landlords can access to determine the exact rent they should be charging on their property.

Because of this, you may be grossly underpricing or overpricing your property and in the process foregoing profits.

At Citione International, we use metrics and accurate and up-to-date market data to determine a property’s true rental value. Using this information we’re able to attract superior tenants to your property.

But securing better rentals also relies on marketing to reach the intended audience. Our rentals are only advertised on platforms known to repetitively secure reliable, and trustworthy tenants.

Enforcement of Tenancy & Lease Agreements

Your lease should include every provision for every possible scenario, but more importantly, you need to consistently enforce provisions within the lease without fear or favor.

Oftentimes when tenants are dealing directly with a landlord, problems arise. Tenants may refuse to adhere to the lease agreement for several reasons, including personal extenuating circumstances. When tenants are confronted by tough times, they may resort to manipulating an owner’s understanding of the law or exploiting their tenant rights.

Getting a property manager, places a barrier between you and the tenant and makes them feel as though they’re dealing with a person of authority.

Firstly, we have substantial knowledge of the legal requirements and stipulations of a lease agreement, and can therefore enforce those provisions. We also have access to tools that enable us to deal effectively with difficult tenants or at-risk tenants. Besides, our team has the skill and ability to limit confrontations, arguments, and retaliation that can arise when dealing with a problematic tenant.

Should You Be A Hands-On Landlord: Cost Analysis

For many property investors, the thought of being the property manager or landlord is tempting, because of the money you’ll save in property management fees. When you’re thinking about making money from your property it’s reasonable to think that getting a property manager will significantly eat into your profits. However, when you conduct a breakdown in cost, the opposite is usually true: property managers can save you thousands a year.

To determine the real-world cost of property management, it is a good idea to assign worth to a tenant, and then determine if a property manager exceeds the additional worth of a good tenant.

How much will you lose from a bad tenant in contrast to how much is a good tenant worth?

How Much Does A Bad Tenant Cost?

You can determine the cost of a bad tenant by reviewing the possible cost of property damage, lost rentals, and increased vacancies that came as a result of bad apples.

For the average Sydney unit, a bad tenant can cost the equivalent of 10 weeks of rent.

This is attributed to property damage (that exceeds the four-week bond), lost rentals due to arrears, and increasing your vacancy period between tenants because you have to focus on repairing the property.

How Much Is A Good Tenant Worth?

Tenants are the backbone of a profitable property. Good tenants can usually save you the equivalent of seven weeks of rent per lease term because you’re able to reduce your vacancy days. This is especially true for tenants that continue to maintain the property like their own.

How To Find A Suitable Property Manager

Now that you understand the benefits and costs of getting a property manager, it’s time to find a suitable property manager for your property. These are the three criteria your property manager needs to meet because you can be sure every property manager at Citione international has these characteristics.

#1: Experience

When it comes to property management – more than any other property transaction – you need someone with experience. Your agent should have relevant experience managing rental property, in addition to a manager with deep insights into the property market in its entirety. Because with this they’re able to share their experience and give invaluable insight and advice that will ensure you’re reducing vacancies and making a profit from rentals.

#2: Knowledge of The Local Area

Most tenants will either know the local area or be from out of state or from outside the country.

For the former group, having an ill-informed property manager tell them about the property, its amenities, and the neighbourhood is off-putting. For the latter group, they want to understand the benefits of your property. When you have someone with substantial local knowledge, they’re better equipped to sell your property and compel tenants to rent.

#3: Database of Tenants

A property manager who’s any good at what they do will have a roster of qualified tenants, who are interested in vacancies like yours. They can then leverage that list of interested tenants to help you find the ideal tenant quickly, and once again reduce vacancy periods.

It’s possible your tenure as a landlord could be positive. You may have the expertise and skill to vet tenants and take your time choosing the best of the bunch. You may have learned from having a property manager in the past or could have a property manager friend who is willing to help you along the way. Unfortunately, it only takes one bad tenant or bad experience to reveal what an awful idea foregoing a property manager can do to your property.