How to Choose the Right Property Manager for Your Rental

A successful investment purchase is not just about a property that ticks all the boxes - choosing the right property manager is just as important to ensure that the investment is well managed.

Property management services are easy enough to find, but not every property manager is going to provide the same level of expertise and service.  If you’ve done your research, you’ve likely come across horror stories of properties that were poorly managed, costing owners both time and money instead of the expected returns.

So, what should you be looking for in a property manager?

8 Tips for Choosing the Right Property Manager

1. Go local

It makes sense to go with a property manager that is local to the area and the market. Local market knowledge is key to ensuring the property achieves the best possible rental rate, and it helps to have a property manager in close proximity to the property to conduct inspections.

Larger property management companies frequently market their services as “better”, but they may lack the local market experience of a smaller, local property management agency.

2. Review the track record

You’ll naturally want an experienced property manager with a proven track record of successfully managing investment properties. Check whether the company has won any property management service awards or accolades. Take us, for example - Townsville Rentals was recognised as REIQ Queensland’s “Best Small Agency” in 2012.

Aside from awards, request case studies of investment properties. Your future property manager should have experience managing similar properties to your own.

3. Check what services are offered

Property management encompasses a wide range of services from marketing to tenant sourcing, property maintenance, legal assistance, and financial reporting. Not all property management companies offer the full suite of services, so take the time to check whether the services you need are offered.

4. Find out how they communicate

A good property management company emphasises communication. After all, you don’t want a property manager who goes radio silent for months, creating anxiety about the state of your property. 

Before hiring a property manager, determine how communication will work and how often you will receive reports on the property's condition. It’s best practice to have access to recent information about your property investment, regardless of how involved you want to be in its day-to-day management.

5. Consider how tenants are assessed

Good tenants who pay their rent on time and take care of the property are ideal for any rental property. The right property manager knows which type of tenants best suit your investment property, and has a thorough review process to ensure only reliable tenants are considered.

6. Read customer reviews

The way a property management company markets its services does not always reflect the quality of its actual service.

Take the time to read reviews from others about their experiences with the property manager or agency - reviews can often reveal more about the true quality of the services offered. Google reviews, online forums, and investment property communities are places to look for potential green flags (or red flags) of a property management company.

7. Ask about dispute resolution

Property management is essential in resolving complex situations or disputes. If your property is facing a legal or financial problem with tenants, your property manager should be able to step in and find a solution on your behalf.

During consultations with property managers, ask how they would address issues such as property damage or extended vacancy periods. Do they have specific protocols for identifying or addressing potential issues?

8. Ask about capacity

A property manager working at full capacity has less time to properly address property issues, which can lead to properties becoming ‘neglected’. This is why some property managers deliberately limit themselves to managing fewer properties to ensure a high quality of service for each one. 

If you are planning to expand your portfolio in future, consider whether the property manager has the resources to manage more properties. 

The tips outlined above will help you choose the right property manager for your rental. At Townsville Rentals, we specialise in servicing all types of residential properties in the Townsville region, with a focus on maximising returns for investors and maintaining property value. Get in touch with our Townsville property management team to receive a free rental appraisal of your property.