Getting the best return on your investment property
Daily attention for long-term rewards.
Unless the property market is experiencing extraordinary growth, an investment property is a long-term proposition. The reason is simple: your ultimate profit will be the difference between the purchase price and the sale price, minus expenses, and it can take years for the price to increase to a point where the profit – your return – is worthwhile.
This is not exactly earth shattering news, which is why most people have a ‘set and forget’ attitude to property investment.
But if an investment property is to realise its absolute potential, it must be nurtured and maintained. It would be extremely disappointing, for example, to make $100,000 on the sale of your investment if you had to spend $50,000 in repairs and renovations preparing for it.
That’s why choosing the right property management group is so important.
The role of a property manager
The primary role of a property manager is to find – and keep – good tenants for your investment property. The right tenants will not only pay their rent on time, they will also take pride in the property and look after it as though they owned it.
Other duties include:
- Managing the bond
- Collecting rent on time and in full
- Arranging regular inspections to ensure the property is being maintained
- Conducting rent reviews to ensure the rent payable aligns with market conditions
- Maintaining a database of reliable and qualified tradespeople to conduct repairs
- Obtaining competitive quotes and arranging for any maintenance work required
- Liaising with landlords and seeking approval before any action is taken
Peace of mind
Landlords who choose to find tenants and manage their investment property on their own often find themselves in trouble when something goes wrong. A management company removes that burden, and their experience in dealing with virtually any situation will generally result in issues being resolved expeditiously.
Maintaining the relationship
Your property manager should make every effort to ensure you are happy with his or her service. If, at any time, you have an issue with an aspect of their performance, your first option is to discuss the problem with their manager. If the problem persists you might ask to have a different property manager assigned to you.
If all else fails, you can terminate the contract with your property management firm, effective immediately, by submitting a termination notice in writing.
A well-managed investment property will deliver rewards when the time comes to cash in your investment. Talk to your local hockingstuart office about the services they can provide on a daily basis to help you maximise your ultimate return.