Appointing a manager

• They are professionals in property management. The services they can offer you and the tenant are usually extensive and are backed by industry tools and services, such as rent.com.au.

• Property mangers have access to reports, fact and trends to help price and promote your property in the best way possible.

• Property managers have good local contacts when repair and maintenance work is required.

• Tenants most often find it easier to access and discuss matters with property managers as a third party, which means better communication and less possible conflict for you.

• The property manager acts as a buffer between you and the tenant if things go wrong and can help negotiate matters so that conflict puts less direct stress on you.

What you can expect from a property manager

When appointing a property manager, you will sign a property management agreement, and much like a lease, its terms and conditions form a contract. These agreements vary in their terms as agreed between you and the property manager and contain notice periods for termination.

Read through these carefully and discuss clauses such as allowing the property manager to authorise and spend up to a specified limit for repairs.

The functions of the property manager include:

• advertising for tenants, including online advertising at rent.com.au;

• screening, interviewing and performing reference checks on prospect renters;

• negotiating rental terms on your behalf;

• explaining the tenancy agreement to renters and obtaining signed lease documents;

• preparing the Property Conditions Report;

• lodging the bond with the relevant bond board or trust;

• collecting the rent and transferring it to your account;

• sending you monthly payments and commission reports;

• receiving and conciliating rates notices;

• arranging quotes and repairs and documenting these in your account;

• conducting property inspections;

• generally dealing with the tenant for all matters on your behalf, and

• effectively managing your property for maximum return and convenience to you.

Property management fees

There are a variety of ways in which the property manager gets paid but the most common is to charge a percentage (%) of the gross rental collected per rental period during the term of the lease. This is usually between 5-15% depending on what services are provided.

The property manager will also probably charge a "letting fee" for each new tenancy and may claim costs associated with the advertising of the property in newspapers or on rent.com.au.

All of these terms can be discussed between you and the property manager.

See Appointing A Property Manager and use the Property Manager Directory and Get a Management Quote services to find a property manager in your area to manage your property.