Getting a property manager to pay your bills might seem like a sweet deal but what does it really mean?
In the positive, most of your investment property related expenses will appear on your monthly management statement and the end of year statement if your property manager provides this service.
But does it come at a cost?
Yes it’s more expensive. You get what you pay for. Property Managers will charge more if they have the responsibility of paying your bills. After all, this is a time consuming job, that’s why you don’t want it, right?
Did you ever consider that you are handing over the responsibility of your credit rating? There are risks involved in getting your property manager to pay your bills. Obviously the first one is that you aren’t in control. If there is a discount to be had, how can you be sure that the discounted rate is going to be taken advantage of? For example, if you change property management companies, you will need to be sure that your new property manager has managed to change over all your accounts such as body corporate, council rates, and water. If one of these is missed, there is no guarantee that the previous managing agent is going to forward the bills and you may end up with a surprise plus bonus interest!
How many bills is your property manager paying? Some of the common providers in Brisbane are:
If your renting agency has a large rent roll and in charge of paying for rates, body corporate fees, water, electricity and gas for hundreds of properties, one or two are bound to slip between the cracks. So they misplaced your water bill for last quarter because it wound up in the wrong invoicing tray, oh well, they will just pay it now and add on the late fee. What?!
Unfortunately, human error happens. Although your property manager may be apologetic, who reaps the repercussions? That’s right, you! Again, you are not in control, and do you want to leave your credit rating in the hands of someone else? That is the question you must ask. So as yourself, “are my accounts better managed by a property manager, myself, or a bonafide accountant?”