Rental property management: how does it work?

Rental property management handled by professionals can save you time and the hassle of doing it yourself. Find out how it works and the advantages for investors.

Rental property management can be handled by professionals to save you the time and hassle of doing it yourself as a landlord. Read on to find out all about how professional property management works and the advantages for investors.

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What does a property manager do?

Quite simply, having an expert team can be of significant benefit in managing your important investment. A professional property management service charges landlords a fee in return for providing any or all of the following services:

Help you maximise your rental income by monitoring current market rents and vacancy rates.
Sourcing potential tenants via their own database or by advertising on real estate websites and arranging inspections.
Screening potential tenants for suitability, including employment, rental history and reference checks.
Preparing and arranging the signing of your tenant lease documentation.
Collection of tenant rental bonds to help protect you financially from any unpaid tenant rent or property damage caused by your tenants.
Management of lease renewals and rental adjustments in line with the market.
Collection of tenant rent on your behalf.
Regular property inspections to ensure your tenants are looking after your asset.
Paying regular property expenses on your behalf, for example, council rates, insurance, and strata/body corporate fees.
Arranging qualified people to undertake any repairs and maintenance work that you approve.
Communicating with tenants on your behalf.
Assisting with any tenant disputes and ensuring your legal compliance at all times.
Preparing financial reports on your rental property investment to help you maximise its tax effectiveness.

A professional property manager will liaise with you right across the many requirements in the management of your property.

If you choose not to use a property management service for any or all of these tasks, then you have to do them yourself, and need to consider the time and effort needed to ensure your investment performs to its potential.

How much do property managers charge?

This depends on the extent of the services provided. However, the cost of a high-quality, professional rental property management service should be more than offset by the benefits provided.

If you value your time and want to ensure your legal compliance, then hiring a reputable property management service is a smart choice.

Some property managers charge fixed fees, some charge variable rates, while others offer a choice between both options.

If you value your time and want to ensure your legal compliance, then hiring a reputable property management service is a smart choice.

How many Australian landlords use property managers?

According to the latest figures from the Australian Taxation Office, the majority of Australian landlords (more than 70%) claim property manager fees on their tax returns. Rental property management fees are a tax-deductible expense, so there is no financial benefit of trying to do all the necessary work yourself. You could be putting your feet up instead!

What to look for when choosing a property manager

The key things to look for when choosing a property manager include their:

Experience: A property manager who has a demonstrated track record in managing rental properties in your area will do a better job of managing your investment than one who doesn’t. Your property manager should be based where your property investment is located.
Track record: Low vacancy rates and low rent arrears are signs of a high-quality property management service.
Testimonials: A high-quality property management service should have plenty of satisfied landlord clients who can vouch for their performance.
Range of services: Property managers who provide a full range of landlord services give you the convenience of a one-stop shop for your property investment.
Pricing structure: A reputable property manager should be able to offer you a flexible pricing structure with a choice of a fixed, flat rate or a variable service fee that’s based on the scope of the services they provide.
Response time: Issues can arise with any property 24/7. When they arise on your rental property, you want to have the peace of mind that you can contact your property manager any time. Look for one that has a guaranteed and fast response time.

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How we can help

At DPN, we provide the full range of property management services for our landlord clients. Our fully trained, proactive and experienced team work with our clients to maximise their property investment. We have a flexible pricing structure, guaranteed 24 hour response time, and extremely low rent arrears and property vacancy rates. You can check out our reviews here.

Contact us to find out how we can help you with rental property management. We would be happy to discuss your needs and goals, and to answer any questions that you have.

DPN can help by providing:

The full range of property management services.
A flexible pricing structure.
A guaranteed 24 hour response time.
Extremely low rent arrears.
Low property vacancy rates.

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