The importance of professional property management: insights & advice from Ascent Property Co.

When it comes to investment properties, maximising your returns is paramount, which is an area investors often struggle with. One way to achieve this is by enlisting the services of a professional property manager.

Recently, Luke Langford, Director/Licensee at Ascent Property Co, sat down with Chris Brown, Senior Financial Adviser at Chapters Retirement Partners, to explore residential property management.

They cover the key advantages of professional property management, the preferences of quality tenants, and essential questions to ask when considering property management services. Here's a closer look at their conversation.

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Chris: What are some key advantages for a property owner engaging professional property management when leasing a property?

Luke: Professional property management offers many advantages for property owners leasing their properties — I’ll give you 10 off the top of my head.

1. Expertise: Property managers possess extensive knowledge of local real estate markets, rental laws, and industry best practices, ensuring optimal rental pricing and tenant selection.
2. Time Savings: Delegating tasks like tenant screening, maintenance coordination, and rent collection to professionals frees up property owners' time for other pursuits.
3. Quality Tenants: Property managers rigorously screen potential tenants, reducing the risk of problematic renters and minimizing vacancy periods.

4. Reduced Vacancies: With efficient marketing strategies, property managers attract tenants quickly, minimizing downtime between leases.
5. Legal Compliance: Professionals stay updated on ever-changing rental regulations, helping property owners avoid legal pitfalls and potential liabilities.
6. Maintenance Management: Property managers handle repairs and maintenance, preserving the property's condition and value while minimizing owner involvement.
7. Rent Collection: Timely rent collection is ensured through streamlined processes, reducing the hassle of chasing payments.
8. Tenant Relations: Property managers act as intermediaries, addressing tenant concerns, and handling conflict resolution professionally.
9. Financial Oversight: Comprehensive financial reporting keeps property owners informed about expenses, income, and overall property performance.
10. Peace of Mind: Entrusting property management to experts provides owners with confidence that their investment is being well-managed.

Chris: Amazing! Just on your point about quality tenants, do you find quality tenants prefer to lease a property managed professionally?

Luke: The short answer is “yes”, definitely. Quality tenants generally prefer to lease a professionally managed property and see the value in it. There are a few reasons for this.

Firstly, reliability: professional property management ensures prompt handling of maintenance, repairs, and tenant communication, giving tenants reassurance. These properties are generally better maintained and have timely repairs which creates a better living experience. Another plus is efficiency. Experienced property managers streamline lease agreements, rent collection, and administrative tasks for smoother tenant processes.

Dedicated management also offers tenants peace of mind because they can rely on managers to address issues during their lease and manage communications with the property owner, which can sometimes feel a bit awkward. Finally, property managers have an extensive knowledge of rental regulations and ensure legal compliance — that’s good news for both parties.

Chris: What questions should you ask a property manager if you’re considering using their services?

Luke: It's essential to ask the right questions to ensure your chosen agency aligns with your needs and goals. Obviously being in the industry, I’ve received just about every question you can think of. These are the topics I think it’s most important to ask about.

• Experience and qualifications.
• Services and fees.
• Tenant screening and placement processes.
• How rent collection and other financial aspects work.
• Maintenance and repairs.
• How communications (particularly, difficult conversations) are managed.
• How vacancy and marketing are handled.
• Property inspections — they’re frequency and what’s checked.
• If needed, the tenant eviction process.
• Legal and compliance aspects.
• Contract and termination.

Asking questions in these areas will provide a comprehensive understanding of the property manager's capabilities and approach to property management, ensuring a good fit for you and your property.

Chris: And if they choose to go ahead, what are some things a property owner can do to make their home more appealing and achieve the best rental return?

Luke: Making your property appealing to renters involves aesthetic improvements and practical considerations. An obvious one is cleaning and repairing. Take some

time to ensure the property is well-maintained, addressing any maintenance issues to create a positive first impression. This could be as simple as a fresh coat of paint — I always suggest neutral colours to enhance the property's appeal. Maintaining the exterior, landscaping, and entrance also makes the property more inviting via good curb appeal.

A more expensive aspect to think about (but well worth it in my experience), includes modernising the home where possible. Consider updating features such as appliances, countertops, and fixtures to increase aesthetics and functionality. Kitchens and bathrooms are no different — if owners can afford to upgrade these key areas, they’ll attract higher-quality tenants.

In saying that, understanding your target market and tailoring improvements accordingly is crucial for achieving the best rental return.

Chris: Talk to me about property management fees. Are these fees normally a tax-deductible expense?

Luke: Yes, property management fees are typically tax-deductible expenses for property owners. These fees are considered operating expenses directly related to the management and maintenance of your rental property. As a result, they can be deducted from your rental income when calculating your taxable rental profit.

Chris: How can professional property management help when a property is to be sold with a tenancy agreement in place?

Luke: Professional property management can be incredibly beneficial here. For starters, they ensure the existing tenancy agreement remains intact, providing a consistent rental income stream during the sale process. This includes documentation and lease transfer — managers handle the necessary paperwork to transfer the lease to the new owner. They also maintain communication with tenants, minimising disruptions and preserving a positive landlord-tenant relationship.

Additionally, property managers are well-versed in local landlord-tenant regulations. They ensure that the sale process is conducted in compliance with these regulations, protecting both your interests and the rights of the tenant whilst ensuring all legal requirements are met during the transition.

Explore the Ascent Property Co advantage

Choosing the right property management team can significantly impact your financial outcomes. Ascent Property Co sets new standards in property management and currently offers a special introductory management package for new clients.

To seize this opportunity, visit their website or reach out to Luke Langford directly on 0493 672 956 or at luke@ascentpropertyco.com.au. You can also speak with Nigel Parker on 9356 8033 or at nigel@ascentpropertyco.com.au.

And, don’t forget to follow Ascent Property Co on Instagram & Facebook!