The Ultimate Guide To Property Management in Australia
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What is Property Management?
Property management in Australia refers to the professional management of real estate properties on behalf of property owners. Property management services are typically provided by licensed real estate agents or property managers who are experienced in managing different types of real estate properties, including residential, commercial, and industrial properties.
What Does A Property Manager Do In Australia?
A property manager will handle all the daily landlord responsibilities so that you don't have to spend time and energy on doing so.
You might be able to oversee one of your rented properties without any issues, but what if you don't have the time or have multiple properties to care for? You can't possibly take out the time from your day for all those repairs, rent collections, and general problem-solving. That's where the property manager comes into play.
Hire the right person, and they will always keep an eye out for any issues that might come along. They will directly work with the tenants, visit the property if it needs repair, and carry out various tasks while keeping you in the loop
What To Expect From Property Management Companies
• Daily Management
Property managers handle everything from keeping records to tenant requests, managing tradesman, and ensuring your asset is looked after.
• The Rental Set Up
You obviously want to get the best return on your investment, and no one can do this better than your property manager. They will conduct a rental appraisal and check the market to set up a fair and satisfying rental price.
• Acquiring Tenants
Landlords don't have the time to screen through multiple tenants over what could be weeks or months. Luckily, property managers are already familiar with the process and can help you get the most desirable tenants through detailed and careful evaluations.
• Rent Collection
Why run after tenants yourself when the property manager can do it for you? They'll collect rent on time and reduce late-payment cases whenever possible.
• Regular Inspections
Property managers understand the importance of inspections and will always create a report so you can be in the loop. Inspection reports can help you detect early signs of property damage, allowing you to plan your finances accordingly.
• Maintenance & Repair
Property managers are always in touch with the best tradesmen and will acquire their repair services for the best price. They deal with repair requests and notify you regarding the work involved while communicating with the tenant. Your property will remain in the best condition and receive timely repair services.
• Bill Management
Property managers ensure all the bills, whether for water, body corporate, or council rates are paid on time. They typically adjust the amount from your rental income; you don't have to lift a finger!
• Keeping Track Of Property Laws
Australian compliance can laws differ according to the region, territory, or state. Remembering all of them can be a pain, especially when each place has a unique set of rules.
Property managers are always familiar with the respective property laws across all territories. They'll ensure your property fully complies with the local regulations.
• Advertising Your Property
Your property management company will advertise your asset to ensure that a prospective tenant will see it and come to an inspection. They will handle all of the marketing and can even organise staging to make your property look more appealing.
• Conducting Inspections
Your property manager will conduct and manage rental inspections to ensure your asset is being maintained to standard and to evaluate if anything needs to be done such as maintenance or repairs.
Australian VS American Property Managers
Australian property managers always go the extra mile for their clients. Unlike in the USA, where they share responsibility with leasing agents, Australian managers handle most of the work themselves.
Australian VS UK Property Managers
Similarly, the UK also has two sets of professionals, property managers and letting agents. These are the ones who find new tenants and then hand over the work to the property manager after the lease signing.
What To Look For In A Good Australian Property Manager?
Finding the best property manager is a difficult task. You'll have to ask potential prospects a ton of questions to gauge their skills and see what they can do for you. Here are some insights into what makes a good property manager:
Market & Industry Knowledge
Property managers can only set the right rental price if they know the market inside-out. They need to be familiar with the price trends, locational value, and the locality in general.
Hiring a manager who lives in the suburb, or at least the general area, will benefit you greatly. These managers always know what renters look for in that particular area and what they don't need. What's more, they'll also be familiar with local council regulations and ensure your property complies with the law.
Solid Experience
Nobody wants a fresh manager out of training, so make sure the one you hire has significant experience. Property management is unpredictable, anything can happen to the market, and you must be ever-ready to respond. An experienced manager is the best way to safeguard you from unexpected scenarios and provide reasonable advice during such cases.
Excellent Organisational And Communication Skills
Your property manager should be a people person and know how to communicate with all sorts of characters. Tenants won't always be what you expect them to be, and altercations can arise if you don't treat them respectfully.
An organised and friendly manager helps smoothen the relationship and keep things that way. They should be able to make tenants feel at ease while promptly responding to their complaints.
Problem-Solving Skills
Property managers are essentially problem solvers by nature. They are the first to call when tenants have a broken ceiling or a window that needs fixing. The manager should be able to provide quick and effective solutions to satisfy tenants and landlords.
Patient Yet Assertive
You need to find someone who can balance between being patient and assertive. Property managers are usually under a lot of pressure; catering to everyone's needs is not the easiest job in the world.
It's common for tenants to make unreasonable requests, so you want your manager to be firm and practical even during those situations. At the same time, you want them to be assertive enough when dealing with late payments and problematic tenants.
An Investor's Attitude
Landlords always value those property managers who have an investor's mindset. Let's face it; you'll always want to increase the rent occasionally. A property manager who can think out of the box can bring the best solutions to get your desired rental price.
They need to understand your goals and determine your property's best course of action. They should be able to study your property and understand the changes that can increase its overall value.
Strong Understanding Of State Laws
Managers always need to be updated on the latest state laws regarding property management. They should be aware of every legislation or government change and take responsible action to safeguard landlords and tenants.
Ask about experience and client lists to determine their value and demand. You need someone versatile and knowledgeable about every situation, including yours. It's also important to know how they plan on finding tenants or what kind of furnishing you should get. Make sure they're good talkers, and you have yourself a reliable manager!
How To Become A Property Manager in Australia
Property managers can earn good incomes and the career path can lead into other areas of the industry. But before you start, you must complete a particular course which might differ according to the territory or state you want to work in. Finding a single course that fits all nation-wide is impossible, as each state or territory has a unique set of criteria. Let's take a look at what's required based on states and territories:
Queensland
You have two course choices if you want to practice in Queensland. You can go for the 19 units full real estate license course or the 12-unit salesperson course, which includes property management training.
More Information: Real Estate Courses Queensland
Victoria
To become a property manager in the state of Victoria, you are required to complete the Certificate IV in Real Estate Practice.
More Information: Agents Representative Victoria
New South Wales
To be a property manager in New South Wales, you need to obtain your Real Estate Certificate of Registration / Assistant Agents Course.
More Information: NSW Certificate of Registration
South Australia
To become a property manager in South Australia, you'll need to complete the course from Certificate IV and the 13 Units of Competency.
More Information: South Australian Property Manager Qualifications
Western Australia
In Western Australia, you can complete the 18 Units course from Certificate IV, which includes property sales and management, or choose the 12-units Real estate course, which only provides property management.
More Information: Western Australian Sales Representatives
Tasmania
To practice in Tasmania, you need to hold a Diploma of Property CPP51119 awarded by a registered training organisation, or another qualification the Board is satisfied is substantially equivalent
More Information: Property Manager Licence - Tasmania
Australian Capital Territory
To become a property manager in the ACT, you need to obtain your Certificate of Registration ACT (Assistant Agent course).
More Information: Qualifications and Experience for Registration
Northern Territory
To be a property manager in the Northern Territory, you need to complete the Agent’s Representative Course.
More Information: Northern Territory Agent’s Representative Course
Newcomers typically have to work under an officer or licensee in charge. Note that different territories label these positions differently. Before applying for a course, you should familiarise yourself with the path to becoming a property manager. It'll definitely make things less confusing. Research the licensing requirements and read up on who your government regulator is.
Should I Get Into Residential Property Management?
Although some property owners still prefer to handle everything independently, the vast majority choose to hire someone. Property managers bring a list of benefits too good to turn away from, especially in 2023.
Keeping track of property regulations can be severely hectic in Australia, where laws change according to where you are. This is amplified when you own properties across the entire country, each falling in different states and territories, so the career is certainly going to be in demand for the foreseeable future.
Property managers need to remember locational regulations and stay updated on each new rule that comes to pass. Daily inspections, bill payments, and rent collections can be overwhelming and make for a demanding job. What's more, you won't always be dealing with people who are happy, and there can be a degree of conflict involved.
A property manager should be the one interacting with the tenants, as they know how to put up a friendly and professional front. They can conduct regular inspections, timely rent collections, and prompt bill payments without ever bothering a property owner.
A property manager can help scale the property's value over time and gradually increase the rental price without upsetting tenants. Hiring one is absolutely necessary to run a smooth operation, and this job can be used as a stepping stone into other career paths.
What Becoming A Commercial Property Manager?
You don't need a formal qualification to land a commercial property management job in itself, but you do need the prerequisite course listed above depending on your state or territory so that you are properly licenced.
You can also opt for other vocational courses and acquire certificates or diplomas that can help you further your goal. You could try finishing either a Bachelor of Business (Property) or a Bachelor of Property and Real Estate course.
Typically, you would be a Residential Property Manager for at least two years before you are able to be promoted or find a new job as a Commercial Property Manager.
Property Management Services
There are different types of property management services in Australia which will depend on the type of asset you have. This can determine what type of service you will need and the roles and responsibilities the appropriate property manager would take on. Let's take a look at some of the different types of property management service providers.
Real Estate Management
Real estate management in Australia involves the professional management of real estate properties, including residential, commercial, and industrial properties. Real estate management services are typically provided by licensed real estate agents or property managers who are experienced in managing real estate properties.
The main goal of real estate management in Australia is to maximise the value of a property while minimising the risks and costs associated with property ownership.
Airbnb Property Management
An Airbnb property manager in Australia is responsible for managing the rental of a property through the Airbnb platform. This involves a range of tasks, including:
Listing The Property: The property manager is responsible for creating an attractive listing on Airbnb, including photographs, descriptions, and pricing information.
Responding To Inquiries: The property manager must promptly respond to inquiries from potential guests, answering questions about the property and providing information about availability and pricing.
Managing Bookings: Once a booking is confirmed, the property manager must coordinate with the guest to arrange check-in, provide access to the property, and ensure that the guest has a comfortable and enjoyable stay.
Coordinating Cleaning and Maintenance: Between guests, the property manager must coordinate cleaning and maintenance services to ensure that the property is in good condition for the next guest.
Handling Payments: The Airbnb property manager is responsible for handling payments from guests, including collecting fees, deducting cleaning and maintenance costs, and remitting the balance to the property owner.
Handling Complaints and Issues: The property manager must be available to handle any complaints or issues that may arise during a guest's stay, such as a broken appliance or noise complaints.
Ensuring Compliance with Local Laws and Regulations: In Australia, there are specific regulations around short-term rentals, and the property manager must ensure that the property is compliant with all relevant laws and regulations.
Commercial Property Management
Commercial property managers in Australia are responsible for managing the day-to-day operations of commercial real estate properties, including office buildings, retail spaces, industrial buildings, and other commercial properties. The key responsibilities of commercial property managers in Australia include:
Tenant Relations: Commercial property managers are responsible for building and maintaining positive relationships with tenants, responding to their needs and concerns, and ensuring that the property meets their requirements.
Property Maintenance: Commercial property managers oversee the maintenance and repairs of the property, ensuring that it is kept in good condition and that all systems are functioning properly. This may involve coordinating with contractors and service providers to perform routine maintenance and repairs such as carpet cleaning, plumbing, and electrical work.
Lease Management: Commercial property managers manage the lease agreements for the property, including negotiating new leases, renewing existing leases, and handling lease terminations. They are responsible for ensuring that all lease agreements comply with local laws and regulations.
Rent Collection and Financial Management: Commercial property managers are responsible for collecting rent from tenants and ensuring that all financial transactions are properly recorded and managed. This includes handling security deposits, paying bills and expenses, and providing financial reports to property owners.
Property Marketing: Commercial property managers are responsible for marketing the property to potential tenants, including creating and distributing marketing materials, showing the property to potential tenants, and negotiating lease terms.
Regulatory Compliance: Commercial property managers must ensure that the property complies with all relevant laws and regulations, including building codes, health and safety regulations, and environmental regulations.
Rental Property Management
Rental property managers in Australia are responsible for managing residential properties that are rented out to tenants. Their responsibilities may vary depending on the size of the property and the number of units being managed, but some common tasks and attributes include:
Lease Knowledge
Property managers should have complete knowledge about lease agreements and ensure things occur smoothly. They should be aware of the different lease provisions and ensure all obligations are upheld during the tenant's stay.
Knowing The Legislation
Your property manager should have all the information regarding residential lease legislation in your state. They need to be aware of all the latest changes in the relevant acts, stay updated on new information, and make changes accordingly.
Maintain Tenant Relationships
Unhappy tenants will result in vacant properties, so ensuring they are content and satisfied is critical. Remember, getting long-term tenants who stay on for several years is much better than dealing with people who come and go. You won't be able to keep track, and the constantly changing demands will definitely result in you clashing with a tenant.
Property managers do a great job communicating with tenants and forming long-term relationships by creating an environment they find comfortable. Your manager must have exceptional communication skills, problem-solving abilities, and maintenance oversight to do this.
Collecting Rent
Another important task is to prevent the landlord from having a cash flow shortage. To do this, they must collect rent on time without causing any issues for tenants. Having lease provision knowledge regarding rental breaches is also quite valued.
Smooth Inspections
Your property manager isn't doing a good job if they fail to spot future damage; that's what all the inspections are for! Each inspection allows for discovering hidden damage and administering its timely repair.
Overall, property management in Australia is a comprehensive service designed to help property owners manage their real estate assets effectively and efficiently. Property managers must have a deep understanding of local real estate laws and regulations, as well as strong communication, negotiation, and problem-solving skills.
There should always be a game plan to follow, and your property manager ensures everything is going according to it. They understand your current and future goals and manages your property according to what you want to achieve. Needless to say, property managers should make decisions that reflect long-term goals and make them possible.