STOP! DON’T SELL YOUR INVESTMENT PROPERTY UNTIL YOU READ THIS
It is vital that any investment is well looked after. When considering an investment property ‘premature signs of aging’ are going to take a negative effect, especially at the time of re-sale.
These negative effects can present in the form of a large monetary loss. Careful tenant selection can avoid this situation altogether.
The importance of a fit Property Manager that looks after the health and well-being of your investment is significantly important and just good practice.
Excellent Property Management – What That Looks Like
There are many different ways a Property Manager can do their job well and one very important one is to ensure there is regular communication and approachability.
Relevant information concerning your property and the tenants residing in it must be communicated on a regular basis. Any repairs that need to be made, reasonable tenant requests, the routine inspection reports and just general information about the property are some of the subjects that require regular feedback.
The medium your Property Manager uses to communicate these things to you should be of your preference and clarified right from the beginning.
Maintenance and Repairs
A common concern of Landlords are the quotes received by their Property Managers for repair and maintenance work. Often, they are far too high.
Images along with a description of the damage made should be sent to the landlord prior to the repairs being done. This should be followed by the option of using a preferred trades person or a trades person of the property manager’s choice.
Occasionally, a trades person can over-quote a job if they feel no one will challenge them on it. Repair work costs can sometimes be halved if the property manager has the sense to try and do so.
Every so often a tenant does not pay their rent on time. As unfavorable as this is, some mercy does need to be shown. Although, if it becomes a regular occurrence this requires the proper action and sometimes even a change in management.
Before changing property management, there are several things to consider:
Ensure you know what the procedure is in regards to dealing with rental arrears; How does the Property Manager relate to their tenants, is it respectful? Tenants can exercise their rights in negative ways if they are unhappy; Is the Property Manager communicating with the landlord in regards to the reasons why a tenant may not be paying rent?
Rental rates must always match comparable properties with similar features and in the same area. They occasionally vary and therefore an increase would be necessary to ensure you kept your property aligned with the current market. An increase however must be conducted in a careful manner ensuring not to frighten tenants away, leaving the property vacant.
A good property manager will present a landlord with a rental appraisal and the necessary evidence that shows comparable properties that receive the desired rental return.
The processes of tenant selection must be carefully conducted and thoroughly researched as the impact that can be made if this stage is not properly done can have an adverse effect.
Tenant’s renal history, their affordability, the number of people to bedroom ratio, how they present at inspection time and some other minor issues need to be seriously considered throughout the process.
Changing Property Management?
Changing your property manager mid-lease may incur charges but usually doesn’t. Generally, on any management authority, exclusivity holds the duration of 15 – 30 days so if a lease agreement exceeds this then you should probably stay away from such property management companies.
Changing property management simply requires some good research into what services the company can provide and the signing of a new management agreement.
TIP: To ensure you don’t have to pay any fees you can always ask your new property manager to read over your lease.
A boutique property management company is a better option when managing your investment property. They don’t have too many properties to manage, ensuring your investment is not lost or unattended among all the hundreds of others they are managing. This also ensures your issues are attended to promptly.