Because it's important to understand what you need in a good property manager
As with all types of investments, putting your hard-earned money into property can come with some significant risks. Whether it is a sudden downturn in the market or rising strained rental affordability, when you play the property game there is always a chance that you might lose.
One of the easiest ways to reduce your risk and get ahead can be through good property management. So, what exactly does that look like?
Return on investment
A good property manager knows how to help you maximise your investment property’s rental returns. When you have the right rental returns, your property is working towards a better return on investment.
The rental returns for your property are a vital KPI for monitoring the health of your investment against other opportunities.
In order to help you achieve these and the best return on investment, your property manager can assist you in numerous ways such as:
Striving to keep vacancy rates low
Consistent communication with your tenants
Recommending proactive maintenance that is cost-effective in the long run
Making sure the rent is at market price.
By calculating rental returns, you can better understand how your investment is progressing and which potential areas could be improved upon to allow you to achieve your investment goals.
It also acts to take the guesswork out of making future decisions regarding your portfolio.
Another basic thing to understand about your property is its rental yields.
When the property manager you are using is working for you, your property portfolio should work like a well-oiled machine. Therefore, good property management and return on investment go hand in hand.
The investment objectives you have as an investor should also factor in to the approach that is taken.
As such, experienced property managers will also understand the tax benefits of owning an investment property.
When done correctly, this can lead to the timing of expenses such that there is minimal outlay and maximum benefits come tax time.
Good property management not only looks good in the present but in the future too. When managing a client’s portfolio, a property manager can take a proactive approach to ensure that the financial performance continues to be excellent.
A great step is advising an investor to keep on top of the maintenance of their asset. This can allow for the spacing out of rather costly repairs and upgrades instead of them occurring all at once.
Alternatively, a property manager may be familiar with the best and most cost-effective suppliers in the local area. This is your money, so it needs to be treated as if it were coming from the agency themselves.
A proactive approach when looking at a property’s return on investment is one of the key aspects to a property manager's job. With good property management comes the constant search for means of improvement.
Being on top of rental trends and the current state of the market, particularly in suburbs that they are managing in, is a key to knowing when a rental increase can be implemented for example.
Ultimately, your property manager should be working with you, not for you, in order to achieve the best possible returns and financial results.
At the height of importance for good property management is the ability to make and maintain good relationships.
Being able to bond and form a good relationship with not only the property investor they work for but also with the tenant that they are responsible for is vital. For this to occur good communication is the key.
When good communication is combined with the regular contact needed for a property to succeed, an investor can stay informed and form a better level of trust with their property manager. In this state, you can relax and rely on them because you know the work they are doing behind the scenes.
One way this will be achieved is through a better quality of conversation between a property manager and all the stakeholders involved with the management of a property; whether that be the investor, tenant or cranky neighbour that is looking for someone else to pay for their new fence.
This can be in person or over the phone need be. As long as these conversations about performance or even general updates are going on, you can be sure that there is a look of professionalism to the way your property is being managed.
Good property management also relies on the rapport that can be built with tenants. Often when this relationship is developed and respectful, there can be fewer incidences of rent being late or damage done to the property.
Your property portfolio should just naturally tick over, it shouldn’t have to be a big chunk of your day. When things go bad, your property manager is trained to deal with it.
Why you need good property management
Due to its non-volatile nature, property can be looked at as a relatively safer option when it comes to investing. When you buy an investment property, using a property manager is a move that can safeguard you against the difficulties that do sometimes come with property investment.
The best property managers will care about getting you the best return on investment possible. It should be at the front of their mind when dealing with your property.
They will take a proactive approach to help maintain and improve your investment property.
The best property managers will also communicate in a timely manner and ensure that everything is put into writing. Good communication forms good relationships.