In this video, Heather gives you an overview of whether the property manager should pay the rates, water and maintenance bills on behalf of the property owner. Click the video below to watch or read the transcript.
Hi I’m Heather Johnson from Beyond Property Management and I wanted to talk today about a question that we sometimes get asked with new clients as they’re coming on board with our service and that is ‘Should the property manager pay the rates and water bills and the maintenance bills for the client or should the client pay them themselves?’
And the answer that I give to clients about that is, it depends. And the reason I give that answer is because I’m an investor myself and so I understand what’s happening in the background with mortgage payments so what we say to clients is we are happy to pay your rates and water bills for you there’s no fee for us doing that. What the client needs to think about is how they’re managing the money.
A lot of people have bought a property there’s a mortgage in place and the only thing that happens in that mortgage account is rent in mortgage out so if I just paid your rates and water bills for you, you might not get much money from me that fortnight because we paid twice monthly so it just means you need to manage your accounts differently because the payments you will get from your property manager are a bit lumpier depending on whether they just paid a lot of expenses on your behalf. So that’s something for you to think about in terms of the way you’ll have to manage your money around it.
The other thing to consider is about the end of financial year we issue a statement and if we’re paying rates and water bills for you then it’s all on that one easy statement for you so that’s the benefit that a lot of clients see for it. We don’t mind we’re happy either way there’s no charge to do it but we’ve got the experience to help clients think through the pros and cons of each option so I hope that helps, thank you.