Make this mistake with property investments and you’re finished…
Property Management and Protecting Your Property Investments…
Don’t even think about taking on another tenant until you read this report because property management means more than just collecting rent. That’s why investing in residential property must be treated as a business venture…
Your property investment deserves the best property management possible, right?
Would you take the risk of cut price management, as you really do get, or should we say don’t get what you pay for.
The management fees are fully tax deductable. Most residential property investors use property as a means to build assets for their future financial return on investment.
Screening prospective residents affects every other aspect of managing rental property.
On average, well qualified residents have less lease violations, are more likely to pay rent on time and return rental properties.
This should be a strategic business decision made to support their personal goals, and as such the property needs to be treated as you would any business investment.
Why use a specialist property management company:
- Complete knowledge of the real estate industry with experienced professional staff
- Excellent understanding of the rental market and current market conditions
- Expert knowledge of how to present your property to maximise rental returns
- Quality internet advertising with numerous photographs with detailed area and property description
- Current market analysis carried out on new lettings so owners get the maximum rental return
- Progress updates provided on new prospective tenants for your property
- Process tenant applications utilising a 100 point ID check, full reference checks and database
- checks including Barclay M.I.S and T.I.C.A to ensure most suitable tenant is found for your property
- Preference for rent payment using a direct debit system from the tenant’s bank account
- Rent paid monthly or twice monthly to your account by direct deposit, fully itemised monthly statement
Engaging a specialist property management company can be a very smart business decision because you’re hiring an expert service to manage your assets.
Just like employing an accountant to help with your tax return…
A specialist property manager takes responsibility for managing an investment property and optimising return for the investor:
- A fully itemised end of financial year summary of each property to make your tax return a breeze
- Rent collection and control of rent arrears with full information to owners on the course of action
- taken to bring rent back in advance as required or eviction as soon as possible after all legislative requirements are fulfilled
- Full entry and exit reports conducted on all properties to ensure the integrity of your property is maintained
- Ensuring all tenants remain on a fixed term lease where possible to protect the owners best interests
- Regular routine property inspections with a full written report and photographs where appropriate
- All routine maintenance is identified, reported & acted on by qualified and insured trades people in a timely manner to protect your asset
- Ensure your rent reviews are inline with current market rates improving your cash flow and borrowing capacity….
A specialist property manager can minimise your hassles, because there are many time consuming (often expensive) problems associated with managing an investment property.
These range from sourcing:
- Right tenants
- Maintaining property
- Paying expenses
- Collecting rent
- Organising inspections
- Accurately recording transactions for tax office
There can be complicated problems of dispute resolution with a tenant through an administrative tribunal.
A professional property manager covers all of these issues and protects your interests for a relatively small tax-deductible fee.
The question to ask yourself is; do I really want to be dealing with every little aspect of the day to day management of my property?
Choose a dedicated residential property management specialist can often be an “add-on” service provided by real estate agencies whose principal focus is selling property.
Let’s face it, some agencies only offer this service as a method of more listings for sale.
A specialist property management company does not have a sales department, however specialises in doing one task exceptionally well – property management.
Expert knowledge of the geographic market which is a key role of a specialist property manager knows the pricing and tenant issues for all of the suburbs they are servicing – this is their bread and butter.
They make sure landlords are able to maximise their rental return with highest possible occupancy rate for their property.
A specialist property manager does not have to be located in the same suburb as the property…
Yet their constant involvement and team of property managers ensures they remain up to date with changes in the market.
Image Source:Jacob Grant Property Management
One contact for all your properties because dealing with different individual real estate offices is often difficult – each with their own systems and processes.
Even franchise operations can be difficult as you are still dealing with completely independent operations.
Finding the one agent which covers your needs across the majority of your portfolio is a real bonus.
A specialist property manager also provides consolidated reporting and a key benefit for tax deducations.
National representation means a property management specialist manages all of your properties in each city.
Having offices in key major investment areas nationally allows you to have the same high level of service provided to you for all of your investments across Australia.
Matching right tenants with right property is crucial. You want to know any prospective tenants for your property are being checked thoroughly.
A property management specialist carefully checks any applicants current and previous rental references, current employment details, and personal references if necessary.
Many property management specialists subscribe to major tenancy databases, where they check if applicant has been listed by other agencies as causing problems in the past.
A property management specialist takes all of these checks into consideration, and then presents you with the details and their recommendation.
You have final discretion on whether or not to accept the tenants…
Professional presentation of the property along with advertisements on a number of different websites is the best way to find the right tenant.
A professional property manager knows the key features of a property which are in demand and how to present the property in the best light.
Internet advertising and people’s lives becoming increasingly busy, your property manager is available to show properties to prospective tenants 6 days of the week.
Tenant Protection Insurance is often also called “Landlord Protection Insurance”, this protects the landlord against tenants defaulting on their rent as well as tenants causing malicious damage to the property.
While most owners have this insurance in place, many would not know what they are covered for, what excesses may apply, and the costs they might have to cover until they have to make a claim.
(It is recommended to thoroughly read product disclosure statement and speak with several insurers, including at least one who specialises in this type of insurance rather than automatically using the same insurer used for your home or car.)
Maximising the best rent means a landlord wants to get as much as possible for their property.
While a property management specialist wants you to get as high a possible return, they’re able to advise you of what’s a realistic rent at the time your property is available.
It is not a matter of just putting the advertised rent as high as possible and then have no
explanations for the landlord when they can’t find a tenant.
During a tenancy, a professional property manager have systems in place for reviewing and discussing regular rent increases for your property.
The property manager should also communicate effectively about this to tenants so the property has minimal vacancy periods.
Laws and legislation differ from state to state, so you want a national property manager with expert knowledge of each state’s legislation.
Thanks to Jacobgrant.com for image source:Jacob Grant Property Management