How to Succeed in Property Management: Insights from Kylie Walker
In this episode of the Australian Property Investment Podcast, Aaron Christie-David sits down with Kylie Walker, founder of “That Property Mum” and “I Think Property.” Kylie brings her wealth of experience as a real estate business owner and property manager, giving practical advice for both investors and property managers alike. Watch the full episode here.
Property management often goes unnoticed in the broader conversation about real estate investment, but as Kylie emphasises throughout the podcast, it is one of the most critical elements for maintaining and growing a successful portfolio. With changing legislation and evolving tenant expectations, having a skilled property manager is essential.
The Unsung Heroes: Property Managers
In the world of real estate investment, property managers are often the unsung heroes. Investors frequently focus on acquiring properties but overlook the day-to-day operations that make or break the success of their investments.
Managing People, Not Just Properties
As Kylie highlights, the role of a property manager goes far beyond collecting rent and scheduling repairs. “We aren’t actually property managers—we’re people managers,” she says. Managing tenants, tradespeople, and property owners requires a unique combination of diplomacy, empathy, and organisation. Property managers must handle difficult situations, from financial struggles to mental health crises, all while ensuring property owners are protected and tenants are treated fairly.
The emotional aspect of managing people is often overlooked, but Kylie notes that a good property manager must be able to handle conflict, maintain professionalism, and prevent burnout in a demanding industry.
Why You Shouldn’t Self-Manage Your Properties
For many first-time or even experienced investors, self-managing their properties might seem like a way to save on fees. However, Kylie strongly advises against it.
Risks of Self-Management
“It’s like trying to be your own mechanic when your car breaks down,” Kylie says, underscoring the complexity of managing properties, especially when dealing with people. Property management involves much more than collecting rent—it’s about navigating legal obligations, handling tenant disputes, managing maintenance, and staying up-to-date with property legislation.
Kylie recounts a story of an investor who self-managed 20 properties. Most of the tenants were found through Gumtree (a big red flag), and many were six months behind on rent. By the time Kylie took over, the properties had been trashed, and the owner had lost thousands of dollars. This example highlights the risks and financial pitfalls of self-management, reinforcing the value of professional property managers.
Read more on Queensland’s property management regulations.
What Makes a Great Property Manager?
Finding a reliable property manager is crucial to long-term investment success. Kylie provides a checklist of what investors should look for when hiring a property manager:
1. Experience
A property manager with years of experience understands not only the intricacies of property management but also the ever-evolving legislation that governs it. The ability to navigate complex legal situations and ensure compliance is essential, particularly as regulations change. Kylie notes that experienced managers are also better equipped to handle unforeseen circumstances, like tenant disputes or emergency maintenance.
Learn more about property management and compliance from the Australian Government.
2. Local Knowledge
A property manager should have intimate knowledge of the local market. Understanding the rent levels, tenant demand, and local issues gives them an edge in securing the best possible tenants and keeping vacancy rates low. While it’s not necessary for a property manager to live in the exact area of your investment, proximity helps them respond quickly to tenant needs and stay informed about neighborhood trends.
Find out how Atelier Wealth helps investors manage property portfolios.
3. Tech-Savvy
In today’s property management landscape, technology is no longer a bonus—it’s a necessity. Property managers who use the latest software can offer more transparency to investors and tenants alike. From 360-degree cameras for inspections to digital rent payment platforms, tech-savvy managers reduce errors and streamline the entire property management process. Kylie emphasises the importance of agencies that are forward-thinking and willing to invest in cutting-edge tools to protect both landlords and tenants.
Changes in Queensland Rental Laws
The podcast also dives into recent and upcoming changes in Queensland’s rental legislation. These changes, aimed at protecting tenants while balancing landlords’ rights, require investors to stay informed to avoid costly mistakes.
Key Law Changes
Rent Bidding: Real estate agents are no longer allowed to accept offers higher than the advertised rental price. Previously, agents could push prospective tenants to outbid each other, sometimes driving rent well above the listed price.
Rent Payment: Tenants must be provided with at least one free method of paying their rent, ensuring they are not burdened with transaction fees. This change, set to be enforced later this year, is designed to ease the financial burden on tenants.
Rent Increases: Under the new rules, rent increases can only occur once every 12 months, and landlords must disclose when the last rent increase occurred during a property sale. This makes it critical for investors to work with property managers who can forecast market conditions accurately.
Maximising Rental Yields in a Changing Market
While raising the rent is the most straightforward way to increase rental yield, Kylie offers additional strategies that investors can adopt to enhance their returns.
Tips to Boost Yields
Charge for Water Usage: Surprisingly, many property owners overlook the opportunity to charge tenants for water usage. In Queensland, landlords can pass both the bulk water charge and tenant usage onto the tenants, provided the property is water-compliant.
Maintenance Management: Property managers should have a system for managing maintenance efficiently to avoid unnecessary call-out fees. Some tradespeople now charge for quotes, so consolidating maintenance requests can reduce these costs. By staying on top of maintenance, you can also prevent small issues from turning into expensive repairs.
Review Your Mortgage: Kylie advises investors to conduct annual reviews of their mortgage arrangements. Interest rates change, and refinancing could save thousands of dollars. Additionally, a review of the property’s equity can provide opportunities for future investments.
Atelier Wealth offers tailored advice on property investments and mortgage reviews.
The Emotional Side of Property Management
Property management isn’t just a transactional business; it often requires a great deal of emotional resilience. Kylie shares some of her most challenging stories from the field, including one that involved drug dealers and a property left in ruins.
A Story of Property Damage
Kylie recalls a particular incident where a self-managed property was taken over by drug dealers. By the time she intervened, the house was filled with stolen goods, and the situation escalated to a tenant wielding a butcher’s knife. Even more tragic was the discovery of needles in a baby’s cot. Stories like these remind us of the unpredictable nature of property management and the need for professionalism, empathy, and strong communication skills.
Kylie Walker’s journey from TV journalism to owning a thriving real estate business shows that property management is about much more than just managing properties—it’s about managing people, emotions, and investments with care and expertise. As Queensland’s rental laws evolve, having an experienced property manager like Kylie could make all the difference in the success of an investment.
For those looking to navigate the complexities of property management, Kylie offers mentoring services through her platform, That Property Mum, and continues to be a valuable resource for investors and property managers alike.
Ready to Take the Next Step in Property Management?
If you’re an investor looking for expert advice on managing your portfolio, Kylie Walker is the person to connect with. Whether you need professional property management services or are seeking mentorship in the field, Kylie has the experience and insights to guide you. Visit That Property Mum or reach out directly to Kylie through her social media channels to learn more.
For more comprehensive support in growing your property portfolio, Atelier Wealth is here to help. As specialists in mortgage broking and real estate strategy, we offer tailored advice to ensure your investments are working for you. Get in touch with us today to explore how we can help you maximize your returns and scale your property investments effectively. Connect with us at Atelier Wealth and take control of your financial future.
