How to decide on a property manager for your rental

As a property investor you have two options – to manage your own rental home or hire a property management company to do it for you.

There are pros and cons with both but REDnews spoke to a professional in the property management industry to answer some common questions about the agency side.

Joel Goulding is a Business Development Manager with Ray White 360 Property Management and works solely with property investors. In his role, he educates landlords and investors on the business.

Q&A with Joel Goulding

What does a good property management company do?
JG: “Their purpose is to mitigate all risks, including tenants and make sure the investment works for the owner. They manage the rent, the maintenance of the property, tenancy issues and inspections, vetting and credit checking, marketing and all the rest of it. It’s not only property management, but also people management. A good management company will provide a hassle-free service, so investors can spend time on the things they love. You would pay a lawyer for property transactions, an accountant for tax purposes, insurance on your property, you’d use a mortgage broker and a real estate agent – you also need a property management professional to look after your investment. A good company should aim to collect 52 weeks of rent a year, if not, then close to it. They should aim for longer term tenancies, with low rent arrears and shorter vacancy periods.”

How much should you expect to pay the agency?