With an Increase in Private Rentals, why employ or rent via a Property Manager?
According to a recent report carried out by the Australian Housing and Urban Research Institute the private rental sector between 2006 to 2016 has grown by 38%, meaning that more than 2 million Australian households are rented/managed privately.
It is predicted that this rapid growth is set to continue with the increasing number of Owners and Tenants using online platforms to either secure tenants or to rent a property. Portals such as Facebook are making it easier for people to line up these informal arrangements.
The report also finds that this is having an effect on the market by inflating prices on the “room rental market” where the private rental market was traditionally seen as a more affordable option.
Owners and Tenants should be aware that these portals and apps do not do a lot for the protection of user’s rights as they appear to be, for the most part unregulated.
Real Estate Agents are bound by the Residential Tenancies Act that sets out regulatory protection for all parties involved, whereas the alternatives such as Rental Bidding App’s allow for increased competition in the Private rental market which leads to people being priced out of the market.
So why should Owners and Tenants use a Property Manager?
- You have a legally binding Tenancy Agreement governed by the Residential Tenancies Act in place providing you protection of your rights
- You are issued with a condition report documenting the state of the property you are moving into and are given an opportunity to document any discrepancies
- Your rental payment history is recorded with receipts and ledgers
- Ensures that your bond monies are appropriately lodged and safe guarded
- Be issued with a rental reference at the end of your tenancy from a reputable agency which will come in handy down the track and particularly when looking for a new home as a reference from an agent carries more weight than one from a private landlord
- Ensure that you have avenues to have urgent repairs dealt with and that any other issues are addressed promptly, professionally and in accordance with the Tenancies Act
- You have a legally binding Lease Agreement governed by the Residential Tenancies Act in place providing you with protection of your rights and awareness of your responsibilities
- Your properties condition is thoroughly documented before, during and at the end of each tenancy
- Your financials are recorded, documented and reported therefore making financial tracking and end of financial year tax assessments seamless
- An agent ensures that you are compliant in all of your obligations under the Tenancies Act and further ensures that the tenant is fulfilling their responsibilities – An agent should be educating their Owners and Tenants as to their respective obligations
- Outsourcing the day to day management to a Property Manager eliminates lost time and much stress to Owners
There is much more involved in the renting process beyond these points listed and a lot of what Property Managers do cannot all be listed here.
Regulations are constantly reviewed and changes are regularly implemented. A licensed and experienced property manager is required to keep up to date with all ongoing changes to legislation.
A Private Owner, or Tenant for that matter, can find this all difficult to navigate and in unregulated territory Owners and Tenants do leave themselves vulnerable.
I suspect that in the Private rental market, a lot of what is Best Practice to most Property Managers’ may be missing. Having a Property Manager in place ensures that Owners and Tenants clearly know where they stand and acts as a mutual point of contact for all parties.
For Owners and Tenants there is a lot of risk and uncertainty that is eliminated when you employ a Property Manager, well a good one!