Property Management Services Explained
After you procure an investment property, it is time to consider property management. The difficulties with an investment property arise when you have to manage your property. Dealing with tenants, home maintenance, and ongoing legal compliance can get time consuming. You soon know, that there is so much more to being a landlord than collecting rent every month. That is where property management services come in handy. In this article, we will discuss the services provided by a property manager, what the management fee and letting fee entails, and how the rental market performs in Point Cook.
What does a property manager do?
Property managers mainly take the hassle out of the day-to-day management of your investment property. It is much more than just collecting rent. These are the main tasks that a property manager must execute:
- Preparing the property to be leased
- Finding (and evicting) tenants
- Collecting rent
- Chasing up on arrears
- Conducting regular inspections
- Maintaining the condition of the property
- Scheduling maintenance jobs
- Managing bill payments
- Ensuring living and safety standards for the tenants
- Ensuring (ever-changing) legal compliance
Having a property manager looking after your property is especially handy when you are an interstate of overseas investor. It would be a tough job to organise open houses, inspection rapports, and communicating with tenant or maintenance providers when you are not physically there. Not to mention the time needed to follow-up payments, manage bills, and ensure that you are compliant with the rental property legislation. A qualified property manager will give you peace of mind and ensures your rental property is generating revenue for you.
Property Management Costs
In general, the property management costs consists of an initial payment worth 1- 4 weeks rent, followed by a monthly percentage of the collected rent. Usually, this percentage is between 5 – 12%. This will depend on the location and the experience of the property management agency. Let’s dive a bit deeper in what these two types of costs cover.
Letting Fee
The letting fee is the cost associated with finding the right tenants for your property. The rental provider covers this fee and in Point Cook, you can expect this to be 1 or 2 weeks’ worth of rent. In return, the property management will perform tasks such as organising inspections, conducting rental application checks, background checks, and completing all necessary paperwork to comply with rental legislations. They will ensure all the leasing documents are signed and the bond is lodged with the correct governing bodies in your state. Before the tenants move into your investment property, the property manager will also conduct a thorough inspection report. This report limits arguments at the end of the tenancy agreement.
Management Fee
Now that the property manager has found reliable tenants and lodged all the paperwork, other services will be performed continuously. The management fee covers the ongoing costs of managing your property. In the Point Cook area, the management fee can range from 5 – 7% of the weekly rent amount. Tasks for the property manager include:
- Collecting rent
- Payment of council rates
- Conducting routine inspections
- Organising maintenance and agreed upon repair work
- Communicating with tenants and managing their complaints/issues (with Strata if applicable)
- Ensuring your legal compliance
It is important to get value for money when it comes to property management services. High-quality services will save you heaps of time, stress, and money in the long run.
Other property management fees
There are other, tax-deductible, costs that you would want to consider when you own an investment property. Not every agency will charge all these fees. Therefore, it is important to understand your property management services and the related costs for your rental property. For example:
- Marketing costs
- Lease renewal fees
- Landlord insurance
- Council rates
- Owners’ cooperation fees
- Land tax
- Repairs and maintenance
- Accountancy fees or annual statement fees
Point Cook rental market
Around 30% of all Point Cook homes are rentals, but there are more people looking to rent in the area than there are rental properties available. The properties in Point Cook are mainly houses rather than units. Making it a great suburb for growing families. A very attractive, and affordable market, for both renters and rental providers. Other factors that make Point Cook a great investment location are:
- Waterfront setting
- Resort living option in Sanctuary Lakes
- Multiple wetlands to explore and enjoy
- Nature trails (that are dog-friendly!)
- Just 23km from Melbourne CBD
If you have not yet invested in a property, you should read why investing in Wyndham City is a great bet. With Wyndham City being one of Australia’s faster growing regions, it is definitely a suitable investment area.
What to expect from a property manager in Point Cook?
At Established Property, we hold ourselves to the highest standards. Our property management services are all compassing and we focus on:
- Minimise or eliminate rental vacancy rates
- Maximise the weekly rental income you receive
- Monitor your property via regular inspections
Looking for property management services in Point Cook?
Our team pride themselves on being the best property managers west of Melbourne. We have the largest property management company in Wyndham. We manage a diverse range of properties for Point Cook landlords and rental providers.
