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Property Investment

8 ways Property Managers add value to investments

We all know that as important as it is for our investors to find the right property, in the right location and with the right potential to achieve their investment goals, it’s equally as important to ensure their property reaches and retains high quality tenants, tenants that pay their rent on time and look after the property.

Although there are some investors who believe that they are more than capable of managing their investments themselves, often they are not aware of the following eight ways property managers can help investors add value to their investments and stay on track to achieve their goals.

Setting the right market value

You will find most investors more than likely keep their eye on the local rental market and are aware of what similar properties are renting for.  However, every property is different and has different renter appeal. Knowing the subtle differences and how to leverage them is where you the Property Manager fits in. You are skilled at assessing individuals properties, its features and location and reviewing comparable rental properties to determine a market competitive rent. You are also in touch with what local renters want and what they are prepared to pay. Having these insights is gold for your investor. With this skill set and information, you are able to determine appropriate property improvements to appeal to higher quality tenants and in addition could achieve higher rent – improving their annual yield. By completing annual reviews you will always be on the right price point for your investor.

Retain good tenants by servicing their day to day needs and requests

Most complaints that arise from self managing landlords is the time they spend addressing the day to day issues that arise. At times landlords do not understand the importance of attending to repairs swiftly and as a result they often lose good tenants or find themselves dealing with compensation claims, over small issues that quickly escalate. Having a property manager attend to the tenants’ concerns, address maintenance issues on their behalf in a timely manner, will help ensure the tenants are happy and the vacancies are limited. Plus important to note to your investors that you have a team of reliable trades at your disposal ready to action any repairs.

Skilled at reaching the greatest number of potential tenants

As Property Managers we know the local market, we know how best to position and promote properties to drive maximum interest. Having access to a large number of potential tenants will give your investor a greater opportunity to find the ideal tenant. We also have access to databases of potential tenants for most properties. Helping lease the property faster.

Skilled at screening tenants to find the right one

We all know that good tenants can actually mean the difference between a high and low performing investment – rent being paid on time (cash flow is consistent) and taking care of the property (less maintenance expenses). Good tenants, when happy, generally renew their leases, therefore reducing your investors’ turn around costs/vacancy expenses.  On the flip side, troublesome renters can cause big issues for investors, they can put your rental income, your neighbourhood and your property at risk.  We are all familiar with several tenant horror stories,  however many of them could have been avoided if the tenant had been thoroughly screened.

As Property managers we are skilled at screening tenants, those who will stay for the long term and cause few, if any problems.  Most investors do not have this skill, and only acquire this after some bitter experiences.  

We review the following when assessing the potential of a candidate:

  • Credit history 
  • Proof of ID and Income 
  • Thorough reference checking 
  • National Tenancy Database review

Help ensure your investor has accurate financial records for their accountant

Investors have the ability to claim a number of investment property related expenses come tax time.  However, to ensure they are maximising the tax effectiveness of their property, they need to ensure their financial records are in order.

As property managers we can provide provide our investors a fully itemised statement each month, along with a comprehensive rental statement at the end of each financial year, that can be provided to their accountant.  These reports generally outline:

  • Accounting records and services on all properties under management 
  • Accurate documentation on all incoming and outgoing monies
  • Provide appropriate tax documentation for end of financial year
  • Assist in organising depreciation schedules

Conduct regular inspections to ensure the property is being well maintained

Every investor wants to ensure their property is being well looked after, reducing costs in having to repair any damages caused by tenants is always a Property Managers key priority. By conducting regular inspections on their properties, we can manage this important task efficiently and ensure their property is being cared for and nothing untoward is happening on the premises. These inspections provide constant monitoring and help address any maintenance or health & safety issues swiftly Avoiding any possible tribunal outcomes.

Managing the rent, including setting, adjusting and collecting

We all know how tricky and time consuming it can be to collect arrears. Most investors heavily rely on their rent being paid on time every month to help with their mortgage repayments and if payments are missed it can have significant impacts on their credit history. As property managers we rental arrears procedures and software that allows us to efficiently manage, chase and ensure the rent is collected on time.
Having these systems in place will help reduce the stresses that chasing those non paying tenants causes.

Knowledge with legislation laws

Landlords have a legal obligation to comply with the regulations set out in NSW residential tenancy act. This documents interactions, rights and obligations of both landlords and tenants.  In addition, landlords are obliged to comply with local state and regional legislations and not doing so can have serious implications for them.

If self-managing a property, the landlord is obliged to be aware of and comply with these specific laws to ensure the safety of themselves and the tenant/s.  If at any point the laws change, which they do frequently, landlords need to aware of these. 

Part of our role as property managers is to stay up to date with the changes in legislation and help landlords stay up to date. Most of us attend conferences/webinars, and receive constant updates from our head office or governing bodies that assist in ensuring we know whenever legislation changes and are always up to date.