11 May Who will look after my investment property?
Who will look after my investment property?
There are 3 main questions every would-be property investor asks themselves:
- Where am I going to buy?
- How much will it cost me to buy, and then hold?
- Who is going to look after it?
To ensure you have a successful and smooth journey when purchasing an investment property, it’s important to surround yourself with a team of experts. These experts include mortgage brokers, accountants, solicitors and finally property managers.
Once you have settled on your investment property you want to know it’s in good hands and that your asset is being looked after. A professional, local Property Manager is a vital asset to obtain a quality tenant as well as guarantee the smooth day-to-day running of the property. A good property manger is worth their weight in gold and will ensure you’re staying in front of unnecessary headaches.
How do I select a good property manager?
If you’re new to the property game this may seem like a feat, however same as any hiring process you tend to know the “A-players” when you see them. There can be a bit of trial and error involved but asking the right questions can assist you in making the best choice.
Some important questions to enquire about include:
– How many years of experience do you have in the industry?
– How many other rental properties do you currently manage in this area?
– Can you provide me with a rental appraisal on my property as well as other comparable properties in the area?
– How do you attract the best tenants?
– Do you have a strict policy on how you profile tenants and what types of background checks you do?
– How do you determine that the tenant can afford my property?
– How will you notify me of any emergencies or tenant related issues?
– Do you have any testimonials I can see from current/past clients?
– What are your fees?
Actions speak louder than words when it comes to property management and reputation is everything. Seeking out testimonials or reviews on a particular company or individual property manager can give you a good insight as to whether they provide quality service to you as a landlord and your tenant.
Some investors often decide to manage the property themselves to save on paying management fees. While it might be suitable for some, not everyone has the time, capacity or knowledge to manage an investment property. Holding costs such as Property Management can easily be included in advance of the property purchase. You always want to ensure that all associated purchase and holding costs “stack up” to make it an easily maintained and profitable investment avoiding the need to cut costs or cut corners. There is intelligent property investment calculators available which let you include all the figures and “try on” the investment before you buy.
It is important to understand the work a good property manager does for you as a landlord. From marketing the property, securing a quality tenant to responding to tenant requests in a timely manner.
Are there other ways to ensure my Investment Property is protected?
While a property manager looks after the day to day running of your investment property there are other ways to ensure you aren’t left out of pocket or liable should any unexpected issues arise.
Having the relevant insurances in place can save you a lot of money, as well as time, rectifying issues. If you are buying a unit in a strata scheme the Body Corporate looks after the communal well-being. On top of this, there are various insurance policies such as landlord’s insurance and building insurance to protect your asset into the future.
Sound Property Group has a network of tested and trusted property managers that we would be comfortable recommending to our clients. Should you wish to speak to us concerning property management please feel free to contact us on 1300 655 899.
This article is provided for general information only and does not constitute personal advice, as it does not take into consideration your personal circumstances. Please consult a licensed tax or financial advisor before making any decision to invest.