Going Deeper When Choosing A Property Manager
A skilled, reliable property manager will keep your asset in the same condition or better today, tomorrow, next year and the year after.
Your rental property should never go backwards with a property manager with the right expertise and work ethic.
They will select the right tenant suited to your property, ensuring the tenant will look after it and pay rent on time every week.
If you are a landlord, it pays to look a little deeper when choosing a property manager that way, you can make the best choice that is not based solely on price alone BECAUSE CHEAPER IS NOT ALWAYS BETTER.
In other words, what value will the property manager and the company provide for you, and what money will they make for you? As opposed to just the fee itself.
What if, say, property manager A can put an extra $1,000.00 or more into your bank account per annum?
With property manager B, the cheaper agent, you may save $10 to $12 per week on fees based on a weekly rent of $500.00, which equates to $624.00 a year.
With the below example, I’m sure you will agree there is more to sound property management than meets the eye.
Tables Can Turn
Currently, the medium days to rent a house in Takaro, Palmerston North, are 17 days (the market has slowed).
According to realestate.co.nz, the average weekly rent is $530.00 per week.
The rental is unoccupied, property manager B rents the property in fourteen days, and the vacancy cost is $1060.00.
Property manager A is more experienced and better trained and rents the property in five days using innovative marketing.
Professional photos and a virtual tour: the vacancy cost is $378.55, saving you $681.45.
You just recovered the cheaper agent’s fee & a little more; this is one of many ways a top property manager can make you more money.
Thinking you will get the best value from the cheapest fees can be a false economy when it’s an overall picture of who will put the most money in your pocket at the end of the day.
Questions To Ask When Considering Employing A Property Manager
It’s a good idea to ask a question like the ones below to get a good understanding of their experience & expertise.
➡ How many residential properties does your company manage?
➡ How many properties will the prospective property manager manage?
➡ What percentage of your residential portfolio is in rent arrears over six days?
➡ When was the last time you filed a claim to Tenancy Tribunal? And if so, for what reason?
➡What is the vacancy percentage of your residential rent roll?
➡ How many days, on average, does it take to rent a property when advertising?
➡ Apart from your property management commission, what other fees do you charge?
Asking a question like this will give you great insight and confidence in who to choose once you start comparing apples with apples.
All Ways Property specialises in optimising landlords’ returns; Call Richard on 027 249 8295 Today’
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