When you’ve made the decision to invest in a new property, the next step is to make an intelligent choice about your property manager. You want to make a sound choice to protect you large investment and scale your income in the future.
Many factors go into choosing a property manager and it can often be a difficult decision – after all, you want to find the most astute and dedicated manager who will look after your property while maximising your returns at the same time.
The balance between superb and affordable service can be precarious. However, there is a number of things to look out for.
Discuss their rental history
Upon your initial meeting with the developer’s sales representative, request a rental appraisal from their office and if there is an onsite manager. Follow up with either your agent or representative that introduced the property, the appraisals from the office that gave the rental and also meet the new on site manager as they usually have paid a significant amount of money investing in the management rights of the development. If the developer is managing themselves, request past projects rentals and about their history.
Maintenance and inspections
Entrusting the care of your property to someone else can be daunting, at times. Rather than worry about tenants damaging your property, hiring a property manager will allow you to defer responsibility to them and also is a taxable deduction.
Request inspections three time per year with a follow up report from your manager and suggest proactive maintenance, allowing at least one to two weeks rental to be used for urgent repairs. If you wish, you should attend at least one inspection per year with the manager, and they should include provisions to allow this to happen. This can be claimed as an expense if you need to travel, always talk with your accountant on what you can successfully claim in expenses. A new property also has depreciation, builders warranty usually up to six years and appliance warranty’s so buying new has its benefits.
Continual research in the property market
As a long-term investment, the property market can sometimes be fickle, fluctuating and dipping however choosing an area with high rental yields and low vacancy rate is a good indicator that you have purchases a sound investment however your manager should be attentive to market activity and skilled in trend prediction and analysis, to provide you the best indication of rental demands and prices.
They should also provide a thorough overview of tenancy laws, regarding tax matters and capital gains tax when needed.
Sandy Murray of SM properties & Investments has managed up to 130 properties and has worked on site for many developers on the Gold Coast. She has had vast experience and can give sound advice when purchasing your new property.