Like many things in life, often the first time we try something and it doesn't work out we never get
Managing the property yourself is not a good idea as most owners don’t have the time to dedicate to doing the job well and it will become time consuming. The most important role of a Property Manager is to act as a professional link between the landlord and the tenant. This ensures that the landlord will not be exposed to uncomfortable and difficult situations, while at the same time ensuring the tenant does not have to confront the landlord directly with issues.
Finding a good Property Manager is extremely important and should be a priority the moment you decide to purchase a property for investment.
Many new developments offer onsite managers and done correctly this can be a very good option as they are based onsite, can market the properties before they are completed so there is no down time or vacancies and also can field walk in enquiries and keep potential renters on file as properties become available thus reducing advertising costs.
The best time to appoint a property manager for your new investment property is the moment you go unconditional on the property and you officially own it. This will give them plenty of time to understand your needs and expectations and also source a suitable tenant therefore creating income from the moment the property settles and is ready for tenanting.
Your agent can charge you commission on the rent you receive. This can be from residential tenants or holiday stays. Normally, your agent will withhold their commission from the tenant’s rent payments and forward you the balance.
You should compare agents based on the services they offer, as well as their pricing structure. If you aren’t happy with the commission that your agent charges, you can shop around for another agent as soon as their appointment period has ended.
A letting commission (sometimes called a letting fee) is a one-off payment that you make to your agent at the start of a new tenancy agreement. This will usually come out of the tenant’s first rent payment.
It covers the agent’s costs for advertising your property and setting up the tenancy agreement with your new tenant.
Commission on rent
An agent can charge commission on the regular rent payments from your tenant. This is in payment for handling the property and rent on your behalf. Many agents charge this as a percentage of the rent payment from the tenant.
Your agent may charge further payments if you want them to supervise any repairs or replacements at your property. You must agree in writing in advance before they do this.
Setting the correct rent, choosing suitable tenants, checking references, agreeing on the lease terms, compiling a property condition report and bond lodgement are just a few of the initial tasks required to properly lease a property. Add to this list the ongoing handling of repairs and maintenance for the property, ensuring the rent is paid on time, conducting periodic inspections, paying insurances and other outgoings and, most importantly, complying with the complex and ever changing residential tenancy laws.
Most landlords underestimate the amount of time that goes into managing a property. If a dispute arises, say if the tenant defaults on rent or requires eviction, things can become difficult and expensive.
The Property Manager will ensure that you have a reliable tenant by personally checking each one of the potential tenant’s references (current and past tenancies, employment history and referees) after evaluating all Applications your Property Manager will discuss their recommendations with you. Of course, the final selection of tenant is up to you as the owner.
The Property Manager will require a new investor to sign a Form 6 in QLD which will outline all costs of management and commissions required to manage the property and give them authority to act on the investors behalf.