Property Investment Articles
This article describes the FIFTH ELEMENT of the SEVEN elements to building a successful property portfolio so that you can reach your financial goals sooner”
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5. The Right Management – “How to have a remote control property portfolio which means no rental headaches for the lifetime of the ownership of the property”
The Right Management
“How to have a remote control property portfolio which means no rental headaches, ever, guaranteed”
What if I were to suggest that you don’t have to worry about late rents? Or no rents? That’s right – we can find you properties with guaranteed rent for 10 years without excessive management fees and restrictive clauses locking you in for the whole period. But oops…! This is a secret I shouldn’t be revealing!wholisticfinancialsolutions.com.au
Why Use a Property Manager?
“It’s crucial that your investment property is well-managed and that you choose a good property manager. Effective property management is the key to protecting your asset. Remember, it’s not just a property, it’s a significant investment and you want it well looked after. You want its value to remain high and you want the best rental return on your investment.”
Some landlords try to manage their investment property themselves. Sometimes this works OK. However, there can be many pitfalls. We have found from our experience that a good property manager is worth their weight in gold in looking after our investment and saving us hassle.
A good property manager will excel in the following:
Marketing– Marketing your investment properly to get the maximum exposure to the right kinds of tenants. Effective marketing is a key factor in ensuring your property is not left vacant.
Legal requirements– Being fully aware of all legal requirements and ensuring that all requirements of government legislation relevant to your investment property are complied with – advising you on your rights and obligations.
Your rent– Consistently monitoring market trends for rental returns and ensuring your investment is getting the highest possible rental return – regular rental reviews – ensuring tenants pay the rent on time.
Tenant selection– Ensuring the best quality tenant for your investment property – following strict and professional guidelines intenant selection, including checking references, employment stability and proof that the tenant is capable of paying the rent and a proven quality in their previous rental history.
Agreement preparation– Arranging the preparation and signing of the residential tenancy agreement and lodging the rental bond.
Tenant management– Ensuring the tenant is well educated in the terms of the residential tenancy agreement and that the terms of the tenancy agreement are complied with– Building a good relationship with the tenant – a happy tenant is a tenant who stays and who will contact their property manager immediately with any issues.– Acting as a negotiator in any disputes between tenant and landlord. A good property manager can ensure that most disputes between landlords and tenants are solved before they escalate.
Rent collection– Providing a good range of options for tenants to pay their rent – requiring tenants to pay rent in advance – dailymonitoring of incoming rentals – having zero tolerance for any rental delays.
Looking after your investment– Knowing your property, inside out – conducting regular inspections of your property (as per the legislation) and forwarding you a written report on its condition and any maintenance that may be needed.– Conducting regular external surveillance of the property to assess the external appearance and to ensure its being well-maintained.– Giving you feedback to help you budget for larger items of expenditure that may be required – providing an after-hours contact for emergencies.
Communicating– Communicating well with you on your investment.
Saving you hassle– No need for you to interact with your tenant at all – paying bills for you – invoicing tenants for user-pays water costs – monitoring and handling any maintenance required, obtaining quotes, dealing with trades people, ensuring the job is well done – providing statements for your tax return.
And if you decide to refresh your investment portfolio– Liaising with your tenant and your real estate agent to make the sales process easier, smoother and faster – or liaising with your mortgage broker regarding access for valuation purposes, all making things easier for you to refresh your portfolio.
The Right Management solution is one of the most important strings to your investment bow. The management of your property ensures that your investment is being looked after in all aspects. The property manager makes sure that your interests are looked after priority number one! Diligent property management will ensure that your investment property is always tenanted with only top quality tenants.
The point is that the Right Management is the tool that allows you to have a safe worry-free investment solution that is truly ‘Set and Forget’.
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