Why it’s important to leverage a high quality Property Manager in your team!
When looking to become a successful property investor and either purchasing one property or building a portfolio it is always important to remember that you must run this like a business. Why? Because it is a business, it’s not about how many pretty properties you have but about the numbers and what those numbers mean to you. I don’t mean how many properties you hold either, everyone’s goals are different but what are the numbers you need to replace your income. Ultimately building your wealth and creating passive income for the long term, allowing you to spend more time doing the things you want to and not being a slave to a full-time job 40 hours a week for 40 years.
This is where it’s extremely important to build a great team of specialist around you, this allows you to leverage a high level of knowledge in a certain area and gives you more time in your life allowing these specialists to help you on your journey.
Today we are talking Property Managers and why they are an important specialist within your A Team. They are crucial to you running your property investment portfolio with success!
Today we are talking about what good Property Managers do for you as a landlord. Remember that there are good and bad Property Managers and it’s always wise to ensure you have a good Property Manager because when things go pear shaped this is when they will really prove their worth!
How would you deal with a tenant if they stopped paying rent? Have you ever marketed your property for rent to achieve the highest rent possible? Do you have in depth knowledge of the legislation of where your property is located? Have you refined your processes and procedures to make managing a property as smooth as possible?
I’m sure many of us haven’t had this experience and therefore we hire a Property Manager. They have in depth knowledge of the legislation applicable to where your property is located. They will have set policies and procedures in place to make everything as seamless as possible, this impacts you having a positive experience as well as your tenant who ultimately you need to see as a customer.
Property Manager’s are experts in their local area and because of this once you have secured a property and it is ready for marketing your Property Manager will complete a rental appraisal. This is to identify the weekly rent that you’ll be able to achieve. This is important as they will have local area knowledge of the areas and allow you to achieve the highest rent possible. They can also give you tips and tricks on small changes you can make that will allow you to increase the weekly rent – meaning more money in your pocket!
Property Managers are experts in the marketing of your property once it is available. This is crucial because marketing ensures that you reach as many potential tenants as possible. The more applications you have the higher your chance of quality applications and higher demand means you have further options for the weekly rent.
At our Buyer’s Agency Taylored Property Wealth we incorporate into our special conditions on the contract of sale and negotiate to hold two inspections for tenants to view the property prior to our clients owning the property. Marketing the property and holding inspections before settlement reduces vacancy rates and allows you to have a tenant in place sooner. This can mean finding a tenant before you even own the property. It’s important that you have a good Property Manager in place to work with you to implement this.
Assessment of Applicants
Property Manager’s as part of the application process will complete a check on potential tenants using TICA (Tenancy Information Centre Australia). This is a data base that has information on over 7 million tenant records. This search mitigates you risk in terms of selecting a bad tenant and ensures you select a high-quality tenant. This allows Property Manager’s to verify if a potential tenant has a bad record and can avoid offering these tenants the property.
When looking to purchase an investment property a Property Manager is a key element to selecting a high-quality investment property. They can inspect the Property on your behalf, providing feedback on what would be required to get the property to an acceptable level to rent the property. They can also provide local area knowledge and provide information whether it’s in a quality area, what the properties rental income will achieve also. Rental income as part of your property selection is important when completing your Cashflow Analysis of the property. Knowing what the property will achieve in terms of rental yield and how much this will cost you each week or put in your pocket each week.
Automation of Bills
Every property that you own will have rates, maintenance and repairs that will need to be paid. A high-quality Property Manager will complete this for you. You can automate the rates to be directed to your Property Manager, they will pay these and will be deducted from the income payable to you within your Rental Income Statement. Your Property Manager will also organize quotes for any maintenance or repairs and have these completed and then pay these for you also. Again, these will then be deducted from your rental income payable and will be shown within your Rental Income Statement. Now this is very powerful when you build a large portfolio! Remember we are investing for more time in our life!
High quality Property Managers will conduct inspections on your property. They will complete the ingoing and outgoing report of the property, and this is to mitigate your risk of damage caused by tenants and identify if the tenant requires anything to be repaired once leaving the property.
When completing the routine inspections, they will provide you with a report with comments/notes on the property giving you a good understanding of the property. Has the tenant damaged the property? Are there any repairs that need fixing?
These are the main benefits that your Property Manager will provide you. Property Manager’s are worth their weight in gold! Remember that the fee that they charge is part of your investment properties expenses and is a tax deduction. Remember that this expense is an investment in itself!
If you have any questions in relation to any of the information, or if you want to be put in touch with a high-quality Property Manager please email us at email@example.com