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Why you need to hire a property manager BEFORE you buy an investment property

Writer's picture: Skye TaylorSkye Taylor



Imagine taking this action of having a property manager in place whilst you are property shopping, and they can give valuable input as you go through the process, and possibly save you thousands of dollars.


Most people hire a property manager AFTER the contract is signed


An experienced property manager can provide excellent advice on what to look for in the contract regarding any existing tenancies or potential tenancies, possible clauses you can consider in the contract, and most would be landlords are sleeping on this goldmine of information!


It's about more than just providing a rental appraisal.

I will consider a property that a potential landlord shares with me, evaluate the risks, and immediately think of all the ways the home can be more appealing to tenants, and how we can best maximise the returns now and in the future.


Decide on your expert upfront


Whilst you can't sign any management agreements without a chosen property, you can tell your intended property manager that you wish to work with them when you find a property, and I am sure that any good property manager will be willing to help once you are at the stage of submitting an offer.



"This isn't about having multiple property managers in your corner, and using up their valuable time, it's about selecting a property manager you want to work with, and trusting their guidance."


The hidden risks


The fact is, you don't buy real estate every day, and all properties and transactions are different. So although you may have transacted on real estate previously, unless you are familiar with all of your rights and obligations as a landlord, you may be exposing yourself to hidden risks and costs without even knowing!


I had a client who purchased a property with it being advertised as tenanted. This is what they wanted, they didn't want an empty property.


The tenants left prior to settlement, and there was no bond, so when they finally collected keys, there was all sorts of damages inside and outside the property that they had to clean up, a full repaint, and no money coming in as they couldn't even advertise the property not knowing what condition it was in.


The cleanup further delayed the advertising, meaning more vacancy days (even though I rented it on the first open inspection).

This could have been avoided with some clever clauses in the contract, but the way the agent had written up the documentation meant my clients had no legal grounds to pursue any kind of compensation.



Tenanted properties can be a minefield


Another client purchased a property with a tenant, who was then breaking the lease, which is a very messy situation.

The landlord has to mitigate the tenants losses, but between sale and settlement, who is responsible? The Vendor or the Purchaser?

And will the final inspection be done properly? Who does it? The outgoing PM or the new PM?


Empty properties


You might think that the property you are buying is empty, so you don't need a property manager prior.

Think again! There are a number of things you can do prior to settlement to improve your chances of securing an excellent tenant and minimising your vacancy days, such as connecting power prior to settlement, having cleaners ready to go (because it absolutely will not be clean enough), and advertising early of course.


Having a property manager in place ready to go when you find that investment can ensure you aren't wasting any time putting these steps in place, and they can also tell you what to prepare for once settlement occurs.



Timing and preparation is everything


We all know those people who got lucky with the timing of the real estate market, and timing isn't always in our control, but for this simple strategy, it can save you thousands of dollars, and won't cost you a thing! Getting your property manager in place before you buy a property is one way you can maximise time and ensure your success before you even own the property.


If you're considering buying an investment property, make sure you have a chat to me before you sign that contract! 0426 241 676 or hello@tayloredproperty.com.au.

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