You Purchased Your First Investment Property, Now What?
Our healthy property market has seen a rise in first time investors who have purchased investment properties rather than sinking their hard-earned dollars into the volatile stock market or fluctuating cryptocurrencies. According to research, the national rental vacancy rate dipped to just 1.3% in January this year, while we have seen endless surges in weekly rents across the country throughout the past 24 months. The market conditions spells extra rental income for investors.
It is certainly exciting for first time investors, who appear to have entered the market as conditions appear to peak, yet with the excitement often comes confusion. A rental property is a big commitment, and it must be managed effectively to achieve the best return on investment. Selecting a property manager is no easy feat as you consider what they will be responsible for during your property management agreement.
Your property manager will essentially select your tenants, the people who will be living in your property, generally for a minimum of six months. These people will be the primary caretakers of your investment, so you certainly want to enlist the services of a property manager that takes that responsibility seriously. Your property manager should thoroughly screen applicants and utilise industry resources to check for any previous issues with your future tenants before signing them up. A detailed entry condition report will also be done prior to new tenants moving in which will be imperative to document and record the condition of the property at the start of the lease.
Financially, your property manager will be responsible for collecting the initial bond for your property and the weekly rent throughout the tenancy agreement. The bond is equal to four weeks of rent and is lodged with the Consumer and Business Services and is returned at the end of lease or used to cover the cost of any cleaning or repairs required. A good property manager will utilise systems that are able to immediately detect in there are any late payments known as arrears, flagging this for follow-up immediately to ensure that your rental income remains in steady transactions.
Beyond the tenant selection and financial management, your property manager will also conduct regular routine inspections to check on the property and ensure it is being cleaned and taken care of as you would expect if it was your own home. They will also schedule any maintenance that is required and support you with legislative requirements such as ensuring your smoke detectors are compliant and your home is safe for your tenants.
At the end of the lease, your property manager will conduct an exit condition report and ensure that your property is returned to the initial state prior to the tenancy minus some expected wear and tear over time. It is important the property had a detailed entry condition report done at the start of the tenancy so that any changes or damage that has occurred during the tenancy can be identified and remedied quickly and at no cost to the owner.
Allan Real Estate have a dedicated property management team with years of experience and provide the highest level of customer service to their landlords, knowing your largest investment is in their hands. With strong screening practices and the most thorough entry and exit condition reports, the team select only the highest quality tenants while ensuring the property remains in tip-top condition. The stringent daily, weekly and monthly processes, supported by cutting-edge software systems allow the team to manage bond lodgement, arrears, monthly statements and maintenance, ensuring timely routines to protect your investment.
If you are looking for a property management team that will manage, protect and care for your investment then give the team a call today and find out how we can help you!
