Purchasing an investment property is a significant milestone but what comes next is just as important. One of the first decisions you’ll need to make is whether to self-manage or engage a professional property manager.
While managing the property yourself may seem feasible at first, it can quickly become a complex, time-consuming task. From tenant relations to compliance, maintenance, and rent collection, a property manager can help ensure your investment is both protected and optimised.
What is a property manager?
A property manager is the go-to person who handles the day-to-day management of your rental property - from dealing with tenants and maintenance coordination to ensuring legal compliance. By streamlining operations, they free up your time to focus on strategic investment decisions.
Below, we explore 15 key benefits of partnering with a professional property manager and why it could be a smart move for your property journey.
The benefits of hiring a property manager for your investment property
Attracting high-quality tenants
Experienced property managers (especially those from dedicated property management companies) review hundreds of rental applications and know exactly what to look for. They’re skilled at screening tenants, checking references, and reviewing rental histories to help you secure reliable, long-term tenants.
One major advantage? Many property managers have access to specialised tenancy databases, allowing them to identify red flags like missed payments or past disputes. With their experience, they can quickly spot both high-quality applicants and potential risks. Of course, the final decision is always yours, but having expert advice makes it a whole lot easier.
Avoid difficult tenant confrontations
Property managers act as an intermediary between you and your tenants, handling sensitive matters such as late payments, agreement violations, or property damage. This ensures interactions remain professional, objective, and solutions-focused.
Immediate support for tenants
One of the duties of property managers is to provide tenants with timely support, particularly for maintenance or emergencies, enhancing tenant satisfaction and retention. Their relationships with tradespeople also ensure home owners get the best price on maintenance jobs.
Lower tenant turnover
Good property managers know how to keep their tenants happy and happy tenants are more likely to want to stay and renew their agreement.
Consistent and on-time rent collection
Good property managers will work to ensure your tenants pay their rent on time. Consistent rent collection is the key to receiving rent payments on time and they will enforce lease policies if payments aren’t received.
Less stress, more free time
With a property manager handling your tenants and day-to-day responsibilities, you can stop worrying about the nitty-gritty. While there’s a cost involved, the time and freedom you gain can be invested into other priorities, including opportunities that make you more money.
Navigating legislative compliance with confidence
Private property owners are held to the same legal standards as professional property managers when dealing with tenants. This means that if you choose to manage your investment property yourself, you'll need to stay informed about constantly evolving legislation and compliance requirements.
Hiring a qualified property manager can be a smart investment, saving you time, reducing stress, and potentially preventing costly legal issues down the line. With a strong understanding of the legal and operational responsibilities involved, a property manager can take the burden off your shoulders and help ensure everything runs smoothly.
Reduce your risk and liability
By engaging a property manager you reduce the chance of having a vacant property, therefore lowering your risk of lost income. There is also a reduced risk of damage with regular inspections and detailed reports to you, allowing you to keep track and maintain the condition of the property.
Access to comprehensive landlord insurance
You'll also find that landlords who enlist the help of a property manager may be eligible for more comprehensive insurance cover and other advantages.
Claiming tax-deductible management fees
A property manager costs approximately 5-10% of your total rental income, however, the services and expertise offered by a good property manager are worth much more than this fee, plus in many cases, the agent's service fee is tax-deductible.
Maximising your rental return
A good property manager keeps you informed about current market rental trends and advises you on opportunities for rental increases. They also ensure your tenants remain on a current agreement, giving you greater security of tenure.
Minimising vacancy periods
It’s easy to assume that once a tenant signs a tenancy agreement for your property, the hard work is all done. However, that tenant is not going to stay forever, and at some point, you will have to find a new one.
Property managers are skilled in finding suitable tenants for your rental. They can help shorten the time between an old tenant leaving and a new one moving in. So, if you have a tenant who leaves (even at a moment’s notice) a property manager can source a new one in a timely manner.
Professional marketing for your property
Staging your property, taking photos, creating ads and marketing your rental to the right clientele is a lot of hard work! A property manager has in-depth knowledge of your local area and access to the best resources and connections to help you promote your property and set a competitive market price.
Maintaining a professional landlord-tenant relationship
The relationship between a property manager and tenant will always be professional. Without a property manager, it is easy for boundaries to be crossed between tenants and landlords. Sometimes landlords develop great friendships with their tenants, which can make it difficult to navigate issues that may arise - such as late rent. A property manager will maintain a strictly business relationship with tenants and can be a great ally to you when dealing with the nitty gritty of property management.
Industry knowledge and experience you can trust
A property manager has years of experience managing investment properties. Most property managers, like those at LJ Hooker, are also licensed real estate agents who have property market knowledge behind them. This allows them to know the ins and outs of the market, have local market knowledge, and know how to price homes.
Through their years of experience, they have dealt with all matters of property management including sourcing tenants, solving disputes, lease breaks and more. These are some of the things that can often be very stressful for landlords, especially if you have never managed a property before.
Is hiring a property manager worth it?
It is definitely worth it! Working with a competent property management company like LJ Hooker can save you from the countless headaches and stress that can come from having to manage your investment property. Finding, screening and managing your tenants, property inspections, and organising repairs and maintenance are just some of the tasks a property manager can help you with.
It is common for many investors to quickly dismiss the idea of hiring a property manager, but a good property manager can be the factor that can drastically improve the return on your investment.
Ready to hire a property manager? Talk to LJ Hooker!
Ready to experience the difference a professional property manager can make? Contact LJ Hooker today for a free rental appraisal. We’re here to help you protect your investment and achieve the best possible return.
