10 Sep, 2024
As a property owner, choosing the right property manager can make or break your experience (and your wallet!). A good property manager isn’t just about collecting rent; property managers are the gatekeepers of your investment - literally holding the keys to your kingdom, responsible for maintaining its condition, ensuring compliance, and managing tenant relationships. Before you sign that management agreement, it's essential to ask the right questions to ensure you're getting a property manager who is capable, responsive, and aligned with your goals. Here's 10 key questions to ask your property manager, focusing on Queensland-specific laws and best practices. 1. Will you provide all leases, Entry Condition Reports (ECRs), key sheets, and exit reports along with the photos? Why it matters: Transparency is key when managing an investment property. As a property owner, you are legally entitled to receive these documents, and a reputable property manager should have no hesitation in supplying them. These reports are essential for tracking the condition of your property and for resolving disputes at the end of a tenancy. 2. How do you handle maintenance issues? Do you notify me before arranging repairs? Why it matters: It’s crucial to establish the level of control you want to have over maintenance decisions. Many agencies may proceed with repairs without notifying the landlord, but this can lead to unexpected costs. If you prefer to be consulted before repairs are made, ensure the property manager's processes align with your expectations. Under Queensland law, property managers are required to handle emergency repairs promptly, but for non-urgent repairs, communication with landlords is key. 3. How do you manage water compliance and billing for tenants? Why it matters: If your property is water compliant, the law allows you to pass on the full cost of water usage to the tenant. However, many property managers may not properly calculate pro-rata water usage, leading to overcharges or undercharges. Ask how they determine water usage at the start and end of a tenancy and ensure they have a clear process in place for invoicing tenants accurately. This is especially important in Queensland, where water charges are a significant aspect of tenancy agreements. 4. What is Section 188 of the Residential Tenancies and Rooming Accommodation Act? Why it matters: Section 188 of the Queensland Residential Tenancies and Rooming Accommodation Act covers the property’s condition throughout the tenancy, including routine inspections, maintenance, and final exit inspections. A competent property manager must be well-versed in these regulations as they guide everyday operations. This question can help you gauge whether the manager is knowledgeable about the legal obligations and rights of landlords in Queensland. 5. What happens if a tenant wants to make changes to my property? Why it matters: Sometimes, tenants may request to make alterations or improvements to your property. Ask how the property manager handles these requests. Do they require written approval from you? How do they assess whether a proposed change is in your best interest? In Queensland, tenants are required to seek approval for changes, but you’ll want a property manager who has a clear, structured process for handling such situations. 6. How will you assist in defending my rights at QCAT if necessary? Why it matters: In the unlikely event that a dispute arises, and it goes to the Queensland Civil and Administrative Tribunal (QCAT), it’s vital to know that your property manager is well-prepared to represent your interests. Ask how they handle: Termination for failure to leave: This could occur if a tenant refuses to vacate the property after their lease expires or following a notice to leave. Your property manager should be well-versed in the process of applying for an order from QCAT. Compensation claims for financial loss: In cases where a tenant damages your property or fails to pay rent, ask how the property manager will pursue compensation on your behalf. 7. What is your process for routine inspections and reporting? Why it matters: Routine inspections are crucial for maintaining the condition of your investment property. A competent property manager will conduct thorough inspections every 3-4 months (as allowed under Queensland law) and report back with photos and detailed descriptions. This will give you peace of mind that your property is being well looked after. 8. How do you vet potential tenants? Why it matters: Tenant selection is arguably the most critical task for any property manager. Ask how they screen tenants—what checks are performed (e.g., rental history, employment verification, credit checks), and how they ensure the tenant is a good fit for your property. In Queensland, property managers must follow strict guidelines under the Residential Tenancies Act when vetting tenants, ensuring that the process is fair and legally compliant. 9. How do you handle rent arrears? Why it matters: Rent arrears can be a nightmare for landlords. Ask the property manager what their policy is on late payments, when they issue notices of breach, and how they ensure that rent is collected on time. Queensland legislation stipulates that tenants must be at least seven days behind in rent before a breach notice can be issued. Your property manager should have a clear process in place for dealing with this to minimise financial loss. 10. What are your management fees, and what do they cover? Why it matters: While it’s important not to focus solely on fees, you do need to know what you're paying for. A good property manager will offer value beyond just collecting rent, such as conducting inspections, managing maintenance, and handling legal compliance. Ensure the fee structure is clear and includes all services you expect, and don't be afraid to invest in quality management. Fees Are What You Pay, Value Is What You Get A good property manager will answer all of the above questions confidently and promptly. Their ability to provide transparent, knowledgeable answers speaks volumes about the service you can expect. While it might be tempting to go with a property manager offering the lowest fees, remember that an experienced and proactive property manager can save you money (and stress) in the long run. As a property owner, you have the right to be fully informed and in control of your investment. Asking these questions will help ensure that your property manager is the right fit for your needs, and that your investment is in safe hands. At CAPEX Property , we pride ourselves on delivering exceptional property management services that prioritise communication, compliance, and care. Our experienced team understands the intricacies of Queensland’s property laws and ensures that your investment is protected, well-maintained, and profitable. If you're an investor looking for a dedicated, reliable, and knowledgeable property manager, CAPEX Property is here to help. Let us take the stress out of managing your property, so you can focus on growing your investment. Contact us today to learn how we can maximise the value of your property with our expert management services.