Tag Archives: property management fees

Why Specialist Property Management Matters?

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.

property management
Don’t Even Think About Trying To Take On Another Tenant Before You Read This!

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.

property management
Engaging a property management specialist…

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.

property management
Property management…

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.

Property Management

Thanks to Jacobgrant.com for image source:Jacob Grant Property Management

How to Start Your Property Research

Start Your Property Research Now.

 

Property research made easy because there is such a wide range of information available to homebuyers and property investors, but it can be overwhelming if you don’t know where to start…

For example you are confronted by auction clearance rates, vacancy rates, pending building approvals. Not only are all these stats and figures overwhelming, it can confusing for some too. So…would you want to buy a property without proper research?

Property research whether you are purchasing your first home or starting an investment portfolio, the traditional methods of research such as websites, magazines, news reports and company announcements are always a good place to start.

However, the property research you need to do varies, depending on your end goal and/or profit targets.

If you are looking for your primary place of residence, factors such as proximity to family and friends, layout and design and overall feel have a major effect on the area and property you choose.

What if you are purchasing an investment property?

Your property research would focus less on personal preferences and more on what adds value and maximises the cash-on-cash return for your investment.

You want to consider a rental yield of 9% or higher because you are basing your research on how much this suburb has risen in value historically, and whether there is a potential uplift to add value through a renovation or the property meets requirements of tenants.

property research
Property research because searching is not the same as researching…

There are four key factors which you want to consider when starting your property investment research.

Property research for location: In particular, you want to consider the proximity of your property to public transport, schools and employment opportunities.

Areas in close proximity to the CBD in major cities have a real advantage when you consider the above factors. However, if you want to enter these areas today, you need to pay a premium and of course this depends on your financial circumstances.

Property research infrastructure: If the well-developed areas near major cities are out of your price range, you need to make special consideration for current and future infrastructure which may make an outer ring suburb more accessible in the future.

If you can ideally select these suburbs early, you would be able to snag a bargain and see significant increases in value (capital growth) as the infrastructure develops…

It’s easy to assume capital growth and decline looking at median price of a suburb alone, however it’s not accurate. There are sub markets within a city and even in a suburb, individual properties can attract different levels of demand.

Property research affordability: There are two key considerations to look at. Firstly, you need to sit down and work out how much you can afford to spend on your investment property, taking into account stamp duty, legal fees and property management fees.

Secondly, you need to consider the demographics of the area you are purchasing in and decide whether your target market (potential tenants) would be able to afford the rent you hope to achieve.

Even when median prices are falling, there are pockets of opportunity in each city which bucks the trend. The same applies in growth cites as not all suburbs perform the same way. In fact, each suburb behaves like a mini-housing market according to its own dynamics.

Finding suburbs with potential for price growth may not even be your primary goal, especially if you’re thinking of buying your first investment property and don’t know where to start?

What if you are an experienced investor motivated to avoid repeating past mistakes?

Property research because you need to avoid the persuasive high rental yield areas caused by falling prices, suburbs where prices peaked and are just about to crash. These locations have rising rental vacancies and of course leave you short on rental income.

The best property investments are found where the rent more than covers all outgoings, including your loan repayments from day one and local property market has power to provide rent increases and price growth.

Perhaps you don’t have time or resources to do due diligence and analysis to locate these hidden suburbs, so where can you find them?

Property research, there are a number of amazing resources available to property investors and homebuyers looking to enter the property market, so you don’t want to limit yourself to only researching via online resources.

An experienced team of experts can be worth their weight in gold throughout your property investment journey. If you would like more ways to ensure the success of your property research or information on how to begin you research, contact us today using the form below…

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Property Research