Types of Property Managers and Which is Best for You?

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Types of Property Managers and Which is Best
for You?
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First of all, congratulations on buying an
investment property. It is a great achievement
but it also brings with itself a whole set of
responsibilities. In order to maintain and keep
the property spick and span, you will have to
take care of it and maintain it on a daily
basis. To be able to maintain an investment
property, you might also be thinking of doing it
all by yourself. Well, there is nothing wrong
with it. But when it comes to handling
administrative tasks, documentations, following
state rules and staying up-to-date with them, all
at once may turn out to be a challenge. Probably,
this is the reason that about 80 of Australians
hire property managers to take care of their
property. The major reason is that managing your
own property comes with a lot of risks and
responsibilities. It may take up a lot of your
time and you still may not get desired results.
So, it is suggested to employ a dedicated
individual for your valuable asset. You can
contact the team of Freedom Realtors and hire a
property manager for long-term rentals. Hiring a
property manager may also seem a challenge
because you may have to asses some options
before finalizing. While finding yourself a
suitable property manager, you may even think of
self- managing your property and saving money.
There is nothing wrong in it but is hiring a
property manager really worth it? We have got
fresh insights from our Team to give you clarity
on the subject.
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Who Are Property Managers?
Property managers are the professionals who take
care of rental properties. They oversee
everything right from maintaining, caring,
collecting rent, looking for tenants, repairing
issues, and everything else that comes in
between. This gives owners an advantage of
focusing on other key tasks. Different Types of
Property Managers The inclusion of property has
brought a massive change in the entire property
industry. However, no matter the changes, you
will come across major three types of property
managers
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Traditional Property Managers
If you take a walk down the street and knock on
the door of your local real estate agency, you
will find traditional property managers. They
are the most popular property managers among
people for managing their properties. This is
because, the investors can hire a property
manager from the same place they bought the
property from. It seems easy and quite
convenient. Heres what you can expect from a
traditional property management company. Let us
look into their characteristics
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Provide Local Presence
Traditional property managers generally work on
properties in a certain area. It means you can be
reassured that your property is being looked
after by a local property professional.
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Charge Fees Based on Percentage Percentage-based
fee is calculated as a commission of your weekly
rent plus GST. This can also vary depending on
the location of your property. It is also
important to note that certain services can even
cost extra, so it may get challenging to figure
out what you are actually paying for. Managing
Great Workloads Traditional property managers are
known to manage up to 150 properties. It involves
a lot of paperwork, involvement of tenants and
inspections. So, it may get hard to give your
property due attention that it needs. New Model
Property Managers While traditional property
managers were said to be the hero and had
maintained a status quo. The time has brought a
massive change in the market. Now, a growing
number of disruptors are entering the real
estate property market. New model property
managers are shaking things up by making property
management their prime focus. They usually use
technology to deliver a better experience for
investors as they use innovative solutions.
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DIY (Do-It-Yourself) Property Managers
If you want to save up some amount, then go this
way and manage everything yourself. You can also
become a DIY property manager. Even though, it
involves a lot of work and there is a pretty
steep learning curve. Heres what a property
manager does in day-to-day life.
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Duties and Responsibilities

• Inspections Apart from conducting open houses
  for prospective tenants, you will also have to
  conduct ingoing, outgoing, and routine
  inspections. These are important to make sure
  your tenants are treating your property as they
  should. You will also need to know exactly what
  to look out for, right from checking the walls
  for any dampness to making sure the smoke alarms
  are operational.
• Leasing Renting out your property as a DIY
  property manager involves multiple steps. Right
  from setting a reasonable rental rate to
  advertising your property, and then finally
  assessing the character of prospective tenants.
  You will want to make sure that you are treating
  each step of the process with utmost care. This
  way, you are more likely to find the best quality
  tenants who will stay in your rental property
  for long-term.
• Tenancy agreements Negotiation must be done
  directly with the tenant. Who will be paying for
  the utilities, and who to contact for emergency
  repairs etc.?
• Managing bills From managing council and strata
  fees to paying utility bills, you will need to
  stay on the top of everything and make sure all
  the bills are paid on time. This is important
  especially if you are looking to invest in
  another property in the near future. Late
  payments no matter how small can reflect bad
  impression when the banks assess your credit file
  report.

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Difficulty in Time Management
One of the main disadvantages of becoming a DIY
property manager is that a huge time commitment
is involved. It clearly is not easy and staying
on the top of all the duties involved can be
time-consuming.
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Keeping Up With Documentation
Keeping on the top of everything can also be a
challenge. While it can be refreshing to have a
full control over how everything is managed,
this also means that your duties and
responsibilities can really pile up if not taken
care of in real time. You as a DIY property
manager would never want to be really bad at
protecting your valuable asset. While no one is
perfect, it is important for you to make sure
you stay up-to-date and keep good records as a
property manager.
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Challenges with Conflict Resolution Conflict
resolution may arise as major headache. While
there is a plenty of advice available online,
tenancy laws change in no time and no staying up
to date can land you in a legal trouble. It is
also hard to keep your cool and try to do things
ethically when your own property and money are on
line. Difficulty Finding Good Tenants Finding
tenants is easy but looking for good tenants is
not that simple. As a DIY property manager, you
may find it difficult to hunt good tenants. If
your property stays vacant for too long, that
will also be another trouble. So, to avoid any
problem, it is suggested to hire a property
manager. Advantages of Employing a Property
Manager You have a professional who lives and
breathes the market. They work in your interest
and strives to give you increased revenue.
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You Get a Professional Advice Property managers
are not just experts on property management. They
possess a wealth of experience and knowledge on
the market. A good property manager will be able
to give you great tips on how they can show your
property in the best light. When it comes to
property matters, it will be the best to have a
professional by your side. Expert in Getting You
Good Tenants Unlike DIY property managers who do
not have access to popular websites, a good
property manager has the required exposure and
can easily attract potential tenants. Unlocking
More Time to Do What You Want A good property
manager also takes the pain out of you as they
are obliged to take care of everything related
to your property. This will give you enough time
to look into yourself, carrying out activities
that you love, while being reassured that
everything else is being taken care of by an
expert. Since the advantages of having a
professional property manager weighs more than
those of DIY managers, it is suggested to go for
the former.
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