Approaching the settlement of your property? This is the time for you to start thinking about property management. It’s usually something that most investors wouldn’t put much thought into. For many, their main focus is how much rent they will be achieving. Well, I want to highlight the importance of getting the right property manager, and what can happen if you don’t.
So, how do I choose a property manager?
At the front end of your purchase, Blue Wealth will have often negotiated a rental vacancy protection, and this is a guarantee period to protect you as an investor from any rental gaps. To be eligible for this, you will need to sign on with the developer’s preferred property management company and are required to remain with the nominated manager for the duration of the agreed term. Blue Wealth do their due diligence on the nominated agency before we introduce them to you, ensuring they will gain you the best results.
Many of you will be first time investors and may not know where to start when looking for a property manager. There are key attributes that top property managers show, and they can mean a big difference for your investment. Here are some of the things you should look for:
- A frequent and clear communication system
Finding a tenant can be a nervous time for you and having regular updates goes a long way in keeping your confidence. It is important that your manager touches base with you even when there are no updates. After all, even when everything is running smoothly, an update with no news is good news.
- A deep understanding of the market
A good property manager will set your rent at a reasonable rate reflective of the current market. This may be higher or lower than your expectation, but it is important to remain realistic. Remember it is always better to have a tenant paying $10 less, than to have no tenant at all!
- An ability to secure quality tenants
If your rent is set to reflect the quality of your investment, finding a quality tenant will occur naturally. Securing great tenants is imperative for the longevity of your investment portfolio. I would also like to mention here that pets aren’t always bad residents.
- Competitive fees
Fees are not always indicative of the service. If the proposed fees appear to be unusually low, you should be asking why. Property management fees vary from state to state which can sometimes cause confusion. If you’re unsure, call us – we are always happy to chat.
- Regular inspections
Property inspections will give you insight into how your investment has been cared for and although you may not be present during these visits, a good property manager will provide you with photos (whether they be good or bad). This will also create incentive for your tenants to keep the residence neat and tidy.
Owning an investment property can become more stressful in the absence of these services. Picking the wrong property manager can result in:
- Longer vacancy periods
- Lower rental yields
- Damaged property
- Loss of rent
Blue Wealth have great property management relationships nationwide, which allows our clients access to the best property managers in the industry. We are constantly working with these teams to ensure their service aligns with our vision. If you are an existing client of ours and you would like to discuss your property management options, don’t hesitate to contact us!