Insights to property management tips and strategies
For property owners, investors and would-be investors, property management isn’t a taxing ordeal. You can still enjoy quality tenants, high rents and low vacancy periods. Here are 5 ways you can maximise your financial returns from your investment property.
1. Market smartly
A smart marketing strategy is effective in landing you the highest rents achievable and highest calibre tenants possible. For a successful marketing campaign, you and your property management company should have a winning game plan.
For starters, you need to make your goals specific, for instance, when you want to lease your property and how much you want to charge. Next, give your property manager a specific brief on your needs and expectations.
Lastly, be realistic! Overpricing your property will probably dent your strategy, thereby lowering tenant enquiry levels and increasing the vacancy cost. So, always listen to your property manager, do your research of the property market, and target precisely what you’re after and what works.
2. Realistic rents
Pricing your property above the local market could or most certainly reduce your campaigns enquiry, increase your property vacancy period and decrease your overall investment returns.
When searching for rental properties, tenants tend to take several factors into consideration, including the number of bedrooms or bathrooms, the distance from the city centre and most importantly the rents.
If your property is overpriced, potential tenants are likely to ditch it for a similar property across the road, which is more affordable. Consequently, your property will remain vacant eventually affecting your overall rental income.
That’s not all; your marketing campaign will prolong for a longer period and cost you a lot. So, it’s better to set a price – the right price – that’s in line with the overall property market to avoid the above problems.
3. Property management fees
Fees normally vary from company-to-company. So, before appointing one, make sure you know what they are charging. A majority of property management companies charge multiple fees including leasing fee, management fee, releasing fee, administration fee etc.
Others opt to charge a one-off fee that covers all costs to manage your property. Remember some companies may find it hard to offer you an exact figure for each year. So, make sure you know the full amount you are paying.
4. Legal issues
Every rental property is required to have at least two Residual Current Devices (RCD’s), have a barrier around private spa and swimming pools, have smoke alarms and meet minimum security standards, including window latches, deadlocks, etc. If your property breaches any of these requirements, you’ll be penalised with large potential fines.
Considering the amount of damage destructive tenants can cause, default of rent and abandonment of property by ill or jobless tenants, and uncontrollable events like floods, fires, earthquakes, and storms; landlord insurance is highly recommended for every property owner. The insurance covers everything from theft by tenant, broken leases to accidental damages.
All in all, using a property management specialist can give you peace of mind knowing your property is in professional hands. Additionally, the property management process will be stress-free and have no potential conflicts or negotiations. Credit to 4rooms Property Management for these tips & insights. They constantly give out free content on the 4rooms Property on Vimeo & 4rooms Property YouTube channel.