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6 Ways a Good Property Manager Can Save You Money

31-Oct-2017
Property investing is an exciting adventure and there are many risks and opportunities involved in property investing, although trying to manage your Property Portfolio all alone, without a good property manager, is a risky decision that can cost you rather than saving you money.

Cash flow positive property investing

The new trend in property investing is to aim for properties that can deliver you strong positive cash flow. This is often best achieved by devising a plan to optimise the amount of income your property can generate while, at the same time, minimising the costs of investment property ownership.

Saving money at all costs can, however, lead you to make a decision to go it alone and manage your property by yourself in order to save money. This is where big problems can start to cause you trouble. And, that's the last thing you need as a property investor!

Good property managers save you money

Getting help to manage your Property Portfolio from a good, experienced, professional Property Manager isn't really an expense to avoid. Here are some reasons why working with a good property manager makes excellent sense:

#1 - Good property managers know how you can save when purchasing a property

As a first time investor, it’s all too easy to go into the purchase of a property overly excited and too eager to secure a property as quickly as possible. This can lead to three problems you can avoid by asking for help from one of 1on1 Property's expert property managers.

Firstly, when you’re buying a property specifically for the purpose of investing it's hugely important to buy the property in a location that suits your ultimate customer – your tenant. You want to buy your property with your tenant in mind and this means buying in a location that is different to what you might like. Areas and suburbs popular with paying tenants could be different to suburb choices you would make.

Secondly, before rushing in and buying any property, you want to ensure you're getting a quality property; something that is in good condition and good repair, and won't be in need of a whole lot of expensive repairs before you can lease it to a tenant. You can shortlist your property selections and have a 1on1 Property Manager inspect these properties with you and give you an assessment about whether or not they are viable.

Third, involving your Property Manager before you purchase a property can help you avoid paying far too much for a property then being unable to achieve a good rental return, and in the future being unable to recover the excess you have spent on the property when you come to sell it. A good property manager can advise you on the whether or not the property you're thinking of buying is good value.

#2 - Good property managers can help you prepare to sell and achieve the best price for your property

While not all Property Managers are also sales agents, they are active in the industry every day and will have developed strong networks that you can leverage all the way through your ownership experience - even at the end when you one day sell your property.

Good Property Managers can help you ensure your property is fit for sale. They can help you do this by making sure your property keeps up its maintenance and repairs. They will also advise you on how you can optimise the property's presentation so that it represents an appealing and attractive purchase for potential buyers.

A good Property Manager will also make sure you’re kept up-to-date with your property’s performance in the market by arranging annual Market Appraisals of your property’s potential selling price. This can help you decide on the optimum time to sell.

#3 - Minimising your property's vacancy rate

Achieving the best possible rental return is not just about achieving the highest rental amount possible. It is also about having stable tenants who rent your property for the long term. This is because it can be very costly to continually need to re-advertise for new tenants.

The first thing a good Property Manager will do, even before your property is listed, is to thoroughly research the local area and find out as much information as possible about properties that compete with yours. They will work with you to make sure your property is advertised correctly, and for the right market rent to attract as much interest as possible from likely tenants.

An excellent Property Manager will also help manage the relationship with your tenant to keep you both happy. Property Managers know keeping good tenants is difficult but it is the best outcome for you.

#4 - Attracting great tenants

New investors quickly begin to understand that there is a lot more to successful property investing that simply buying a house and handing over the keys to anyone who wants to rent it.

The key to doing well in real estate investing involves careful planning and deliberate choices. That is definitely also true when it comes to choosing who gets to live in your investment property. When you are lucky enough to have good tenants, you want to make sure you keep them. Good tenants tend to pay their rent on time and take excellent care of your property.

Attracting good tenants involves making sure the property presents very well and is visually appealing; especially when you are advertising your property to let and you’re conducting open home inspections. A good Property Manager will make sure you have excellent photos and marketing material to show off your property's best features. They will also make sure that it is priced at an advertised rent that will attract a large pool of interested potential tenants to work with.

A good Property Manager knows how important it is to quickly sift through the list of applicants and process applications in a quick time frame. After all, every agency wants great tenants, and if you don't accept them quickly then someone else will.

#5 - Help you save money on care and maintenance of your property

A really good Property Manager can help you plan your expenses to assist you with managing cash flow. For example, if a major maintenance or improvement is being planned then ensuring the work is carried out near the end of the financial year can mean the owner benefits by being able to capitalise on receiving a possible tax deduction and tax refund.

A good Property Manager will also have a team of highly-qualified and experienced tradespeople at hand to help with any issues that come up. If the need arises for more significant work, having good access to these trades professionals can reduce the amount of time taken to complete work. Regular work with tradespeople allows Property Managers to develop good relationships which they can use to your advantage.

#6 - Advise and protect if trouble comes

Sometimes, despite all of the care and concern given, people change and things may go wrong. A great Property Manager is alert to the warning signs and they can proactively provide advice in these circumstances. Their negotiation skills alone can generally avoid potential issues, and it's important to trust their advice because this is what they do every day and their experience dealing with trouble can really save you.

1on1 Property Management Professionals are Here to Help You

Are you a real estate investor looking for an edge in developing a successful Property Portfolio? Or, are you starting your property investing journey but you're not sure what your next step is? Come and talk to us and we can happily advise you of your options. Call us on 02 4014 1900 and arrange to speak with one of our experienced Property Management Professionals today.

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