Property Management
Property Management involves a lot of things, not just
finding good tenants. Sometimes a good tenant is not the best. I have had bank managers say he was a good
tenant he expected a low rent and was willing to stay there for years. Do you
want a low rent for that long? No doubt
the good tenant would find a similar good tenant and you are locked into low
returns and requests to upgrade the property.
With changes to rental laws in QLD likely, it will be difficult
to ask a tenant to leave and more difficult to increase the rent. This is where
an experienced rental manager comes in.
The aim is to have full occupancy, a high rent and the
ability to maintain the property while good tenants are in place and the
ability to constantly increase the rent.
Many investors have properties that have the same rent for ten years.
This is the fault of the property manager in not being
proactive. There are ways to increase the rent and so increase the value of the property. Once rents are increased,
they usually stay high as that is the norm for the property. A few
improvements, pretty up the outside, and tenants know that is the price required.
Advertising on different platforms ahead
of time lets everyone know what is expected. As with all investments, it is important
for the manager to do the maths on what can be achieved and the way forward to
obtain goals. An extra $50 is $2500 per
annum to put back into the investment to increase the return further. This compounding can have dramatic effects
over time.
In choosing a property manager, you should ask if he or she
owns investment properties themselves. Have they had a successful career as a
property investor? Are they aware of
what renter expect individually? Are
they flexible in obtain the best rent while providing service to the tenant? Do
they know what is required to maintain and improve a property?
Do they have a building background?
Have they undertaken substantial renovations or building work themselves?
Do they have a list of qualified tradespeople and are they prepared to get quotes
even for small job and supervise the repairs to correct standards? Can they successful
liaise with the tenant to obtain a win- win outcome for all concerned. Like all businesses, providing timely advice
and service is essential.