With reductions to interest rates, subdued value growth and an array of attractive residential real estate purchase opportunities available, current conditions are certainly looking favourable for property investors. What many investors may not understand however is that the investment process doesn't necessarily stop once a purchase is made – a property must be effectively tenanted and maintained for your return to be maximised.
For many busy investors, the most cost effective and time efficient way to manage a property is to use a professional property manager. An expert manager will be able to manage all aspects of your investment – from ensuring it is occupied by high quality tenants to property maintenance and making sure that you and your property abide by legal requirements.
Securing good tenants is important for investors. A property manager will have the ability to find appropriate tenants and then determine whether or not they are suitable through proven screening systems and personal experience. It is important to get tenanting right - high tenant turnover and vacant days tend to be expensive and can reduce your return on investment.
Setting a market appropriate rental price is also a very important aspect of maximising your investment returns. Property managers have the experience and market data necessary to manage the increase process – without driving tenants away.
Another element for investors to consider is that investment properties require tenant inspections and the management of ongoing property maintenance issues as they arise. Not only can these activities be time-consuming if you decide to take them on yourself, they can also be expensive. Property managers have networks of contacts with which relationships have been established over time, the same as you will have in your own profession. These contractors will often charge the manager less for repairs needed than if you as an owner were to select them out of the phone book.
The process of renting out a property comes with a vast array of evolving legal requirements, covering subjects ranging from when rent is considered overdue to the use of double sided deadbolts on doors and smoke alarms. These laws can be quite complex and are often followed by inconvenient (and potentially expensive) consequences if not followed properly. As property managers deal with rental properties every day, they are well-versed with the legal requirements and can assure you remain abreast of your obligations.
As can be seen, renting out and managing a property can be a fairly complex process, particularly if it is not your field of expertise. As such, many investors often find that the value of using an experienced professional property manager can outweigh the costs of doing so.
For any further information regarding property management services or for attractive investment properties available for sale in your area, please don't hesitate to contact your local Century 21 office.