Choosing a Property Management method to suit your style of investment involves many factors.
Whether you’re a multiple property developer or a mum and dad investor, can determine if you head down the traditional ‘end to end’ style, call upon the services of a boutique agency, a pod or line management service, a franchise or if you prefer a centralised office with corporate backing. Or perhaps a bit of everything? Peard Real Estate can offer the ultimate tailor-made style of property management, covering most styles … just ask us how!
There are many benefits to having a Property Manager take care your investment property.
Attract quality tenants – Firstly, a property manager can provide advice on how to prepare the property for lease to ensure the maximum rents can be achieved. They will also interview potential tenants and conduct reference checks including speaking to employers and investigating their rental history.
Protect your property – In addition to sourcing quality tenants a good property manager will be proactive with routine inspections and bringing any small maintenance issues to your attention. This allows them to be repaired early, minimising the chances of further damage or the need for significant repairs.
Maximise rents – An experienced property manager will have in-depth knowledge of the current market in your area and will manage the rent review process for you, ensuring rents are increased when possible. They will also have policies in place to ensure rent arrears are dealt with swiftly.
Save you time – The property manager deals with all tenant communication. If the need arises, they will deal with any complaints (including those from strata). Where necessary, they will obtain quotes from local tradespeople and provide access for repairs and maintenance to the property. They can also take care of other time-consuming tasks, like paying your council and water rates using the collected rent.
Minimise vacancy rates – With a database of prospective tenants a property manager can potentially source tenants more quickly to reduce your vacancy rate when old tenants move out.
When considering all these benefits teamed with the right Property Management method, you know your investment will be looked after.
Here are the five different types of Property Management explained:
Traditional – Also referred to as ‘end to end’ where the benchmark is one hundred properties being the responsibility of one person. This one person is responsible for managing the property from start to finish, including home opens, routine inspections, paperwork, accounts, maintenance, tenant issues, final inspections and vacate procedures.
This may sound a lot of work for one person, but it depends on the geographical nature of where the properties are located. For example, the coastal suburb of Scarborough has many 2x1 apartments in multi storey apartment blocks, so to manage a high number of these in a smaller vicinity is relatively easy compared to residential suburbs like Joondalup, Hillarys or Ellenbrook where there are more homes with garages, sheds and pools and are spread further apart. Having one hundred of these properties would traditionally take more work.
Boutique – This type of agency would have a very small team, sometimes just the Agency owner, one property manager and possibly a virtual assistant working for them, depending on the size of their rent roll. They would personally determine the number of properties they want to manage and set the size of their rent roll to suit them. The downside to smaller “one man band” agencies is if that person wants to go on annual leave or is sick. Who will manage the portfolio?
Weighing up fees compared to the level of service when making your decision is key. A larger organisation has the benefits of teams and corporate support to manage a property. Whereas a smaller agency may offer that one-to-one service but may not have the coverage if unexpected illness happens.
Pods – Also referred to as ‘task-based’ Property Management is built on a structure of line management. This management is made of the most experienced property manager who is the Line Manager, followed by the Senior Property Manager, Property Manager and finally the Junior Property Manager.
The Junior Property Manager’s first role is to conduct inspections and some outside work, the Property Manager who has 2-3 years’ experience is would oversee the routine inspection reports, maintenance and work orders, repairs, lease renewals and home open schedules. The Senior Property Manager would typically have five or more years’ experience and will handle the trickier bond disposals, vacate process and attend court when required. The Line Manager oversees the entire process and offers assistance and advice where needed to support their team and encourage growth within the team and the business.
With a large number of properties to manage per pod, each team member will have specific tasks to perform. As the number of properties rise in the pod, more staff will be employed, preferably starting at the junior level of Inspection Agent, with each team member having the opportunity to move up the ranks/line.
Franchise – As opposed to an independent agency, a franchise is usually a well-known brand and each office will have a Property Management and Sales Department. Franchisees may lean towards the traditional or ‘end to end’ property management method.
Centralised – This term refers to a management model where a large portfolio of properties is managed from a large single office, rather than individual offices around the metro area (Franchise). There are many benefits to this method including greater efficiency, streamlined processes, easy communications between staff, team coverage for properties when staff away, more accurate reporting and team accountability.
Peard Real Estate have recently moved offices in Joondalup and offer a Centralised Property Management service while still having staff who live and work in our core suburbs being Leederville, Hillarys, Swan Valley, Joondalup, Mindarie and Scarborough. By living in the suburbs, they can visit clients and complete inspections before attending our modern central office to complete their day’s work.
If you are unsure what style of Property Management will suit your Investment Portfolio, our Business Development Managers will meet with you, listen to your needs and tailor a service that suits your investment style, whether it be a multiple property developer or a mum and dad investor.
At Peard Real Estate, we believe good business exists from building long-term relationships not just with our landlords, but with our tenants. Both relationships are paramount to our success. As our valued landlord, you can rest easy, knowing we work hard for your investment’s maximum return, security and your personal trust. We also take a proactive approach to actioning maintenance with owner approval in order to keep properties in shape, maintaining your investment and thereby minimising vacancy periods between tenancies.
Get in touch with Peard Real Estate to discuss your investment goals with our Property Management team.