How do property managers improve investor returns?

By Brennan Hill

Over the last couple of years local and interstate investors have been scrambling to acquire investment properties from across Logan to add to their portfolios, the price point is considerably lower than other capital cities across Australia and demand for rental properties remains high with potential yields from 5% – 7%.

Regardless of whether the investor is local or interstate, all investors share one thing in common — someone must manage the workload and relationship between the investor/owner and tenant. Some investors choose to take on this task themselves, while others engage the services of a professional property manager.

A sure fire way to generate better then average returns is to purchase low then lease high, this strategy is achieved by securing properties that are below market price because they require refurbishment or minor capital works.

Can a property manager conduct refurbishments? Property managers are coordinating these projects for their clients every day and have strong relationships with reliable cost effective trades. Property management experts will undertake these works for you and deliver the returns that often couldn’t be undertaken by an investor on their own.

What does a property manager do? In short, he or she oversees the day-to-day activities associated with owning and maintaining rental properties.

Securing a qualified tenant to rent the property is always a top priority. The manager is required to market the property, make it available for viewing by prospective tenants, and conduct background screens and checks. They must also comply with housing laws, local regulations and ethical standards.

After prospective tenants have been qualified and approved, the property manager oversees lease negotiations, property inspections and other tasks as requested by the owner. After move-in, the management company usually coordinates maintenance requests and handles the day-to-day care of the property.

An equally important function is to collect payments from the tenant and properly record and disburse funds. This includes pursuing late payments and executing eviction orders when that becomes the only remedy with a delinquent payer.

Why should a homeowner or investor hire a property management company to handle the day-to-day activities? Because the best managers and firms are well-trained to manage difficult and frustrating situations; lessening the stress and hassles of the real estate investor.

If you’re considering growing your investment portfolio, your property manager will give you with advice on the potential demand for your new property and also provide an estimate on how much the property would attract in potential returns plus provide tips to increase those returns.

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