Tenancy management and property management mean the same thing, right? Actually, no. There’s a monumental difference between the two and it’s important to get it straight so you know exactly what your property manager means when they talk about your investment. Here, we talk about the difference.
What is property management?
As the name suggests, this is everything related to the physical property itself, including finding tenants and maintaining the lease. It’s the everyday tasks required to keep the property running smoothly. This is probably what most people are familiar with, as it’s what goes on on the surface. It’s also the stuff landlords know they need for their property, rather than the things they’ve never heard of.
Property management includes:
- Marketing the property to find the right tenants
- Setting up and facilitating property viewings
- Reviewing tenant applications and facilitating the selection process
- Preparing the lease for the chosen tenant
- Collecting and lodging the bond, as well as handling all bond claims if applicable
- Completing the property condition reports at the start and end of the tenancy
- Holding regular inspections to check the property’s condition
- Collecting and disbursing funds (including rental arrears)
- Conducting rental reviews
- Handling all repairs and maintenance (including negotiating the best rates and inspecting the quality of the work)
- Communicating with the tenant about any issues
So…what is tenancy management then?
On the other hand, but certainly not less important, tenancy management tends to be the things you might not even realise your professional property manager does. Property management is a big field – so the person opening up your home at a viewing for prospective tenants may not be the same person who deals with an escalating tenant emergency.
Tenancy management is the bigger-picture, more complex aspect of managing rental properties and it requires experience dealing with the legislation, tribunals and ins and outs of difficult tenant situations. You’ll usually find this skill in an experienced professional.
Tenancy management includes:
- Understanding all legal aspects of tenancies and how they affect both tenants and landlords, such as the changing labyrinth that is the Land Stock and Agents Act
- Making sure your tenancy adheres to all regulations and regulatory frameworks
- Fully understanding and interpreting lease requirements and strata by-laws, like what counts as peaceful enjoyment or what an emergency repair is, and who is responsible for payment
- Compliance to trust accounting
- Communication and custodianship of the rights and obligations of owners and tenants
- Managing insurance claims
In a labyrinth of ever-changing regulations tenancy management can extend to safety considerations like window locks, asbestos, lead paint, electrical safety, balcony and deck height, and even hazardous or illegal activities.
So what should your property manager be doing?
Both tenancy management and property management are essential parts of any rental tenancy, so it’s not about just picking one and not the other. Regulations and compliance seem less urgent than the living, breathing tenant you’ve got inside your biggest financial asset, but they’re just as key to a problem-free tenancy. Many people think that you only need this type of management on big ticket properties but it is just as important in smaller properties. Conflict and disagreement can occur anywhere, in any property type, at any price point. Negotiating it requires time, energy and money, so ensuring your property management company is good at tenancy management can save you a lot of trouble in the long run.
Our advice? Test your property manager out by asking a few direct questions about the legislation and see how quickly, confidently and accurately they answer.
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At Property Providers our core purpose is “Helping People Live Better”. As Sydney’s most flexible residential rental agency we are totally focused on Property Management and renting “Your Property, Your Way”. We have designed 6 different rental services covering all facets of Long-Term Leasing as well as Short-Term Stays. Unlike franchise real estate agencies, we see the value in pragmatism and flexibility. Whether you want to rent your property furnished or unfurnished, for 6 months or 5 years, we will manage your property, your way. Our bespoke marketing strategies deliver discerning international tenants that understand quality and are prepared to pay for it. If you would like to learn more please visit our website or call us on +612 9969 7599