07 Mar 13
Whether your investment property portfolio is a single dwelling or a dozen or more, the best return on investment is gained when the portfolio is professionally managed. Many owners make the mistake of taking the attitude that 'no news is good news', and do little else but count their cash. As long as the rent is being paid, they pay no attention to the condition of the property or the rent prices being asked and achieved in comparable properties in the surrounding areas.
This is a short-sighted approach. Lack of regular maintenance will result in the property falling into disrepair, attracting only tenants at the lower end of the market. Not monitoring the current rental prices being asked could result in the property renting for less than what could reasonably be expected. Owners who place their valuable investment properties in the hands of a professional agency such as All Residential Real Estate can be certain of getting maximum returns for minimum stress.
Could a Self-Managing Owner Manage a Website?
The self-managing property owner would find it very difficult to match the efficiency and professionalism of a property management agency. In the internet age, for example, most people search online when they want to rent a property. Management agencies have their web sites professionally designed and positioned to attract the best tenants. Everything is online so the enquiring tenants can view properties and fill out inspection and application forms from their computers. A self-managing owner would struggle to get the internet presence to attract similar numbers of enquirers.
At All Residential Real Estate every rental property is not just photographed. They do videos of each property and include a full and descriptive text that tells the whole story. The website also includes the facility for anyone viewing a particular property to email the information to a third party, email the agent, book an inspection direct from the web page and get directions using Google maps. Could a self-managing property owner do this as well as the best property management agency?
Would a Self-Managing Owner Screen out Undesirables?
Professional agencies have rigorous processes in place to filter out undesirable tenants at the application stage. They have access to tenant default information databases and they check references and employment status to make sure the applicants have a sound rental and credit record and most important, the ability to pay the rental being asked for a particular property. Where there is more than one applicant for the same property, they consult with the owner who chooses the preferred tenant.
A self-managing owner sometimes lacks the objectivity to decide which repairs can be delayed, or those that must be done to maintain the property. A good example is a bathroom badly needing renovation. A self-managing owner may be reluctant to refurbish the bathroom, but instead keeps paying for minor repairs that are just band-aid solutions. If left for long enough, a dank, mouldy and smelly bathroom will turn off good tenants and result in the property being vacant for long periods of time. A professional manager would recognise this and discuss a better solution before rental returns are badly affected.
A professional property management agency is in business to do just one thing -- look after the interests of absentee owners. This is how they make their living, and their reputation rises and falls on the service they provide to both owners and tenants. Why would you even think about managing your own property when a quick look at www.allresidentialrealestate.com.au sets out the whole situation for you?