The No. 1 Real Estate Rental Advice? Hire a Property Management Agency!

In 2018, landlord Travis Adams from Perth, Australia, leased his three-bedroom rental property privately to a young family-of-six for three years.
In that time, he conducted rental inspections and didn’t have any particular problems with the tenants.
However, when the family was evicted soon after the contract expired, he found that the whole house was trashed—from the kitchen and water system to the master bedroom and air-conditioning unit.
When Travis shared what he felt when he saw his real estate rental being trashed, he said, ‘[It’s] heartbreaking, yeah. It literally reminded me of a rubbish town’.
Indeed, managing properties and tenants becomes difficult, especially as you start building your portfolio. But with the right property manager by your side, the job becomes much easier.
Indeed, managing properties and tenants becomes difficult, especially as you start building your portfolio. But with the right property manager by your side, the job becomes much easier.
In fact, you can avoid slipping in some aspects of property management which can lead to costly disasters.
And it’s better to realise this fact sooner than later—as Travis, unfortunately, experienced in 2018.
Like many investors, Travis likely didn’t have the time to run full, detailed checks on his tenants, whom he found on Gumtree. ...And that sadly led to an eye-opening property investment nightmare costing more than $30,000 of his money.
You can’t and don’t want to make the same mistake as Travis did, as a property investor. (I wouldn’t!)
So, what do you do if you don’t have the time to do everything that’s laid on your plate all by yourself?
Hire a property manager! (Still not convinced? Well, keep reading.)

6 Big Reasons to Hire a Property Manager

Make no mistake about it—property investing is, more often than not, a full-time business.
In fact, as you grow your portfolio, the demands on your time and resources grow too.
For example: Imagine that you have a portfolio of 10 properties, all of which have tenants.
That means you have 10 sets of maintenance issues to deal with. Plus, you have 10 tenants, all with their own needs. And on top of all of that, you’re handling the financial side of things and looking for other investments.
Being in the property market is like driving in the suburbs—once in a while, you hit an inevitable speed bump.
So, in your own property journey, the accumulation of challenges (albeit good or bad), issues, paperwork and setbacks can get pretty overwhelming.
In this article, I’m going to share some of the key reasons why you should have a property manager to help you with your real estate rental.
So, buckle up and enjoy the read.

Reason #1: You Save Time

Okay, so you may have noticed my little hints at the beginning of this article, but the main reason you should work with a property manager is that they save you time.
And time, as we all are aware from the very beginning, is something that we cannot afford to waste.
I’m sure that you have a lot on your plate already, investor or not. So, to add the responsibilities and tasks required to be successful in our property journey in your daily list of to-dos can be pretty overwhelming.
Even if you only have one property in your portfolio, there’s a wide range of tasks that you need to take care of, such as:
collecting rent from tenants
sending monthly statements to tenants
interviewing potential new tenants as needed
conducting routine inspections (scheduled and unannounced visits)
keeping up with the changes in laws and regulations relevant to leasing your property
addressing all maintenance issues are fixed
ensuring all ongoing repairs are completed according to schedule
And those are just the tip of the iceberg. The scope of this work magnifies massively as you build your portfolio and take on more tenants.
A property manager can tackle all of the day-to-day running of your properties. That essentially means you have more time to conduct other aspects of your property investment business.
Think of it this way: When you’re managing several properties, you may only get a few snatched hours per week to look for new investments. But with a property manager, you reclaim so much of your time—which means you can build your portfolio faster.
You save time and your energies to focus on building your portfolio in the long run.
And, for me, saving time and my energy has been a great strategy since one of my priorities in life is to make sure I’m present as a husband to my wife and as a father in my kids’ lives during their childhood years.
READ MORE: Buying & Thinking Strategies: Finding Wholesale Real Estate Deals

Reason #2: Property Managers Bring Expertise

Nobody can know everything about real estate.
That’s why it’s so crucial that you build a team to help you during your journey. And your property manager is an essential part of that team.
Property managers can help you find good tenants and advise you on what to do with your property.
Like successful investors Alice and Justin Hagen discovered, they could even help you to locate new properties. During one of my podcast interviews with them, the couple discussed how a property manager helped them in the early years they were just building their property portfolio.
Justin and Alice shared: ‘…Our property manager said, “Hey, I found a property, you need to go and have a look at it”. ...So, we stood up there on the front lawn on the footpath of that property, and we both looked out. And we could see the city, and we’re like, well, you know, I don’t think you could go too far wrong in an area like this. And we’ve done a lot of research obviously in the specific areas within 5 [kilometres] of the city with the city view. So, it was a big risk to take. But it’s been obviously a good risk.’
That property they bought ended up doubling in value, which represented the first major success for Alice and Justin.
Since 2018, they have built a $4.5 million portfolio. And now, they also work as property managers themselves—with their own business, Calibre Real Estate.
‘We look at strategies for our clients as far as how do we maximise their returns on their properties through our property management and obviously our sales division.’

Justin Hagen

The key point here is that property managers provide their invaluable expertise in helping you find opportunities that may slip through your net.
In fact, they bring a wealth of experience that you can leverage as an investor—and which can invariably aid in growing your own wealth, finance and experience alike, in the long run.
READ MORE: Building A $4.5 Million Portfolio in Housing and Property Market

Reason #3: They Keep Up With Changing Laws and Regulations

All property investors and developers, listen up. This third reason is a very important one.
And if you’re like me, determined to reach success in my property journey, you would take the time to understand this particular note.
Unfortunately, the rules of real estate rental aren’t static. Legislators introduce new laws and regulations regularly. And in Australia, you also have to remember that each state or territory has its own rules.
So it’s essential to understand that what works in one state may not work in another.
An article on Domain points this fact out: ‘NSW, Victoria and the ACT have all recently legislated changes, Queensland, Western Australia and the Northern Territory are in the process of reviewing their regulations, and South Australia and Tasmania made changes several years ago.’
With everything else on top of your property journey tasks, do you really want to add onto your list of to-dos to keep up with these changes?
It’s tough enough to do if you only have properties in one state. If you hold multiple properties all over Australia, it could feel almost impossible.
Thankfully, a good property manager will help you unravel the legal complexities that come with the turf of being an investor.
With the help of a property manager who’ll look at the ins-and-outs of laws and regulations that pertain to your properties, you’ll be able to focus on building your portfolio without dealing with legal issues.
I don’t know about you, but that sounds like a good deal to me.
READ MORE: Real Estate Expert Reveals Ways to Explore the Property Investing

Reason #4: They Help with Selecting Tenants

Earlier, I mentioned that property managers help you find tenants. And even though finding good tenants is difficult at the best of times, good property managers can help you find and select them for a win-win situation—for you and your potential future tenants.
So, what happens if you pick a bad egg of a property manager?
An experienced investor and developer, Progressive Property Founder Melissa Morgan discovered when she was just starting her own property journey that working with the wrong property manager makes the job even harder.
When I asked her about her early experiences in property during one of our talks, she talked about the first property manager she worked with. She shared: ‘I went to a local property manager, and they put some tenants in. And those tenants ended up defaulting on their rent, not vacating the property. The property manager sort of just waved their hands and weren’t proactive.’
The experience was so harrowing that it led to Melissa deciding to become a property manager herself. And one of her goals is to always provide her clients with a much better service.
‘Property management is day-to-day managing risk for yourself or for other people.
... It’s a customer service job at the end of the day. It’s about doing the right thing by people—especially, I think, the tenants. If they’re happy, then they’ll stay in the property and look after the property, which at the end of the day results in a better asset for the owner.’

Melissa Morgan

Now, Melissa’s experience is a little bit of a horror story, I know.
However, the fact remains that a good property manager will help you find good tenants. They’ll conduct all of the relevant checks and ensure that the property is open for inspections when needed.
READ MORE: How To Bounce Back From $200,000 Loss: Managing Finance & Assets

Reason #5: They Fix Issues and Do Property Maintenance

Your real estate rental comes with a host of appliances and fixtures that keep the property running. Of course, all these need regular maintenance, or else your tenants will become unhappy.
This necessary fact creates another time and work burden for you. And it will require you to seek out contractors and respond to your tenants’ maintenance requests on, more often than not, a regular basis.
In fact, the more properties you have, the more maintenance issues you’ll get. Successful property buyer’s agent and House Finder Director Simon Loo actually touched on this inevitable truth in one of my talks with him.
‘The actual reality is the more properties you own, the more calls you’re going to get from your property manager; the more hot water tanks you’re looking after, the more kitchens you’re looking at, the more tenants you have to babysit.’

Simon Loo

Furthermore, you also have to deal with disputes.
In your property journey, you have to understand that not all maintenance issues arise because of natural wear and tear. Sometimes, it’s the tenant who’s at fault, as REIA president Malcolm Gunning points out.
In talking about a maintenance issue with a toilet that he needed to investigate, Malcolm shared in an article on Domain: ‘We found out that the reason for the blockage was that foreign matters had been put down the toilet. This then becomes the tenant’s problem and the tenant’s cost.’
This investigation saved the investor a lot of money on a problem that wasn’t their fault.
So, at the end of the day, a property manager can help you to handle the standard maintenance issues that all properties have. Plus, they can also help you to investigate issues to determine fault, which could save you money.
READ MORE: Why A Real Estate Plan Is Important For Your Exit & Entry Into Any Market

Reason #6: They Handle the Tough Conversations

Unfortunately, in your property journey, you will need to have some tricky conversations with tenants. Beyond the maintenance requests I mentioned earlier, you may also need to talk to them if you plan to increase rents. And that’s without mentioning the conversations you must have if you need to evict the tenant.
Again, these are all things that a good property manager will handle on your behalf.
Carolyn Parrella, Terri Scheer Insurance’s executive manager, explains the benefit of having a property manager to act as a buffer between you and the tenant: ‘It means you’ve got someone who’s there to take calls when your hot water service breaks down at 8 p.m. It’s less personal, and keeps you at arm’s length.’
The point about staying at arm’s length is especially important. The more connected you are to tenants, the more emotion you may bring into the equation.
In addition to that, when I interviewed NextGen Property Management Founder Chris Dimitripoulos, he explained that a property manager’s job is at the very basic to manage property issues and concerns that may arise along the way.
‘Every time you’ve got the word “management” or “manager” in your title, it’s all about dealing with problems. That’s what that means: Managing problems.’

Chris Dimitropoulos

With a good property manager, you can come up with viable solutions or arrive at an amicable middle ground with your tenants when it comes down to it.
In short, your property manager brings a level of professionalism to your real estate rental that you may struggle to bring—especially when the need to have difficult conversations with tenants comes up.
READ MORE: From $400 To Multi-Million Private Portfolio & Rental Properties

A Good Property Manager Makes Your Life Easier

Okay, as you’ve seen so far, you have enough challenges to deal with as an investor without having to deal with tenant and property issues.
That’s why the No. 1 real estate rental advice I have for you is to hire a property management agency for your investment property.
Let’s sum it up. A great property manager:
saves you time
brings expertise
can help you to run your investment business better
That’s why property managers are a crucial part of anyone’s team. They basically make your life easier in the short and long run.
So now that you’ve read all the six reasons I gave you for hiring a property manager, your task is to find a property manager who’s up to the job.
After all, you don’t want to end up in the situation that Melissa Morgan or Travis Adams found themselves in.
NextGen Property Management
Progressive Property
Hagen Property Managers

Don’t Forget: It’s About Mindset
and Strategy

What is property management?
Property management, in a nutshell, is all about managing your properties and all that responsibility entails.
In your own property journey, the accumulation of challenges (albeit good or bad), issues, paperwork and setbacks can get pretty overwhelming. Imagine that you have a portfolio of 10 properties, all of which have tenants.
That means you have 10 sets of maintenance issues to deal with. Plus, you have 10 tenants, all with their own needs. Also, you’re handling the financial side of things and looking for other investments.
Managing all these make up the things-to-do involved in property management.
What does a property manager do?
A property manager is someone who can make any property investor’s life relatively easier! In summary, a good property manager can:
Why do I need to hire a property manager?
Make no mistake about it—property investing is, more often than not, a full-time business.
In fact, as you grow your portfolio, the demands on your time and resources grow too. You have enough challenges to deal with as an investor without having to deal with tenant and property issues.
That’s why the No. 1 real estate rental advice I have for you is to hire a property management agency for your investment property.
A property manager helps you save time (and even money!) in the short and long term by laying out his expertise and the benefits he offers when he or she’s part of your team.
When should I look for a property manager?
The best time would be now. Whether you’re new or a veteran in investing in properties, you can save time and money when you hire a property manager.
Think of it this way: When you’re managing several properties, you may only get a few snatched hours per week to look for new investments. But with a property manager, you reclaim so much of your time—which means you can build your portfolio faster.
How do I find the best property manager who is aligned with my goals and suited to meet my needs?
Well, we at Property Investory can help you in your property journey and recommend potential property managers that you can work with.
Just click on this link, and we’ll help you partner with the best property manager who is aligned with your goals and suited to meet your needs.
If you’re craving for more insights about property management or property managers, check out the article above. We’ve spilled all the juicy, helpful details you’ll need to know on your property journey today.

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