The advantages of consolidating your property portfolio
18 June 2018
If all your properties are managed by different real estate agencies, you may be missing out on some great benefits.
Achieving the best possible return on investment is a key focus for any property investor. Whether an investor has one, five or 20 properties, this goal is usually on their mind.
Having multiple real estate agencies managing your properties means you may not be receiving comprehensive guidance on how to maximise the value of your portfolio as a whole.
If you have investment properties across multiple agencies, then consolidating your property portfolio and selecting one managing agency is something that's worth considering. The benefits it can have for your portfolio and your greater financial picture can be very rewarding.
Single point of contact
One of the biggest hassles of having your investment properties managed across multiple agencies is the multiple points of contact you need to engage with. Each individual contact point requires its own amount of allocated time that includes meeting, reviewing, consulting, chatting and in some instances travel.
If you consolidate your property portfolio you will deal with a single agency. Time cost should be reduced, which would allow you to spend your time more efficiently. This will also give you more time to spend on other things in your life.
Consolidation can also simplify the administrative burden thanks to having a single point of contact. Having a single source to get your information and documentation from means that your information can all arrive at the same time and in the same place.
You won't have excessive correspondence from multiple different parties leaving you flooded with emails and unsure where to find the information you need at a glance.
Having a single point of contact can also allow for an investor to become more familiar with their property manager and the agency that they work for. You can develop a better, personal relationship with them as you will be spending more time with them thanks to the consolidation of your portfolio.
You also have an opportunity to familiarise yourself with the values and vision of the agency and really see if they match your own. Evaluate your needs and principles and then decide what kind of property management you want for your investment.
A holistic strategy for your entire portfolio
By consolidating your investment property portfolio, your property manager can potentially gain a better understanding of your portfolio and help it grow. This possible growth can not only be applied to return on investment (through increased rental yields) but through the expansion of your portfolio as a whole too.
The monitoring of your assets to ensure that you have sufficient return on investment from all of your properties is a goal that you both mutually share.
It’s important to remember that real estate investing is a marathon, not a sprint. The efficiency, informed decision making and collaboration that come with utilising a property manager are all just steps along the journey to property portfolio accomplishment and financial stability.
Only settle for the best
A common occurrence that can come with property investment is to simply go with the company that the property was purchased with for property management. Adding to or creating your property portfolio is a stressful experience that, once the finish line is in sight, can cause people to just settle and do anything to complete the process.
Examining the market and comparing what different property management agencies offer is a vital step to take. An exceptionally low management fee may seem like a great deal but you may be missing out on better service and more strategic long-term savings opportunities.
A crucial part of buying an investment property and using property management is getting the best possible service and price.
This can potentially save you money in the long term which can be used for other things, whether that's to pay down your mortgage or reinvested into repairs and maintenance for your investment property that could increase its value.
Make life easier
A high priority of your property manager should be to make your experience as an investor the smoothest one possible. To that point, the best real estate companies will actively work to make sure their service is beneficial.
With their main roles including advertising your property, receiving enquiries during the leasing process and the selection of tenants — a property manager does the heavy lifting to ensure an investment’s returns are the best they can be.
An investor needs a property manager because they do all the administrative tasks that many investors do not have time for. You may not hear from your property manager every day but they’re just taking care of everything behind the scenes.
Consolidating your property portfolio with a single, trusted property management agency can be a great way to make your investment journey as easy as possible.
Change can be great
As an investor, you may have been with the same property management agency for an extended period of time. If you are unhappy with their service, it’s very easy to just accept it because you are already using their services and cannot be bothered switching. It can be a great deal of work doing the required research to find the best possible option for you.
It is worth it though because finding the right property manager could make a real difference to your investment experience and your future.
There are some circumstances though that simply don’t allow for change. For example, you may have a fantastic experience with a metropolitan agency that you think would be ideal for your property in another city or in the country but they do not operate there.
In these circumstances it is still very worthwhile to do your research. Looking for the best possible deal is a process that you should consider.
A key component of any property management agency is that they build a network of partners to streamline your investment experience. Through the partnerships they form with other businesses, property investors can experience benefits beyond property management, including reduced insurance costs, efficient and effective maintenance work on their property and more.
Little Real Estate has partnered with EBM to ensure property investors are protected from the risks that can be associated with owning an investment property.
RentCover is an industry-leading landlord insurance policy and it’s even better with exclusive additional coverage and reduced rates for Little Real Estate clients. The RentCover features for Little Real Estate’s clients include:
15-52 weeks of loss of rent cover, depending on the circumstances
cover for malicious or accidental damage caused by tenants and theft by tenants
legal liability cover up to $30,000,000
cover for pet damage up to $70,000.
By consolidating your property portfolio with Little Real Estate, any new properties become eligible for this great insurance offer
This partnership also extends to tenants and is a cost-effective insurance solution for those that rent, covering tenants’ contents as well as providing liability protection. This is a part of the Little Real Estate way of looking after all aspects of our investor's properties
Even the savviest property investors can encounter problems when they own several investment properties with them being managed across multiple agencies. While there are some valid reasons for this to happen, by consolidating your property portfolio with a single agency you may be able to save yourself from experiencing a number of issues.
At Little Real Estate, we’re determined to give our customers the best possible, hassle-free experience with their individual leasing and management needs. By consolidating your investment property portfolio with us, you can ensure that your best interests are being looked after by the best in the business
Contact us today and experience the benefits of working with Australia’s largest independently owned real estate company.
Disclaimer: The information in this publication and the links to further information within it are provided for general information only and should not be taken as constituting professional advice from Little Real Estate. You should not rely on the accuracy of this information and should seek independent legal, financial, taxation or other advice to check how any of this information relates to your unique circumstances. Little Real Estate is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, or from our website.
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