We could be your secret weapon.
After all, as property managers, we understand which properties provide the largest return and, sometimes more importantly, the least amount of headaches for rental providers.
Switched-on property investors will often engage the services of a property manager to cast their eyes over a shortlist of investment properties they are considering. Particularly if they are looking to buy in an area they are not personally familiar with. Even interstate Buyer’s Agents will often recruit a local property manager to give them an insight into whether a particular property will tick all the boxes for their client.
Being able to gain an insight into how well the renter meets their obligations is incredibly valuable for a potential purchaser.
There is also gold to be found when an investor is able to have access to the maintenance history of an investment property. As an example, if the air conditioner in the living room has been repaired 3 times in 18 months, you can probably assume that it is reaching the end of its lifespan and budget accordingly for a replacement.
Likewise, if there has been an ongoing issue with regard to a fence, you are not going to be blindsided as soon as the sold sign is removed by demands from an upset neighbour who has reached the end of their tether.
Being prepared (or you could say forewarned), will help you create a strategy for your investment so that you can achieve the goals you have set for your property, whether you are intending to live in the home yourself at some point or are purchasing purely as an investment.
Outside of the usual items an investor considers when looking at adding to their property portfolio i.e. rental yield, tax implications and capital growth potential, we also suggest you keep these items in mind when doing your research.
- Potential Safety Issues. Particularly those items you might not necessarily worry about if you were living in the property yourself. As an example, uneven paving in the backyard due to tree roots can be a tripping hazard and can be an expensive fix for an investor.
- Garden Upkeep. Not every renter is going to have the time or the interest in maintaining a lush and beautiful garden. They may appreciate it when they first move in, but are simply not able maintain the upkeep, especially if particular tools are required to be used. This is one battle that is difficult for the property owner to win.
- Legislative Requirements. Minimum standards are now required in many state and although the rules are pretty straightforward in most instances, it is important to be aware of whether the property/ies you are considering will require some changes to meet these standards e.g. installation of heating in the living room is required if the property is in Victoria (and not just any old heater).
- Target Market. Identifying the biggest “pool” of potential renters in the location you are considering is important. Regardless of the market conditions, having a property that is appealing to the majority of people in the area works best for rental investments. A fully furnished one bedroom unit in a sought after school zone is always going to take longer to rent and slower to appreciate in value than a family home, even if the asking price is a “bargain”.
- Potential to Improve Appeal. Most investors are across this, but we feel it is worth mentioning from a property management point of view. In our experience, sometimes it’s the little things that make the biggest difference. For example, the power of a fresh coat of paint throughout can never be underestimated, particularly if combined with new floorcoverings. Or the installation of a split system air conditioner. Even installing gates at the side of a property to fully enclose the backyard could make a big difference. In an older property where security is an issue, being able to open the garage with a remote might make it more appealing to potential renters.
The list of items that need to be considered when purchasing an investment property can seem endless and this is where involving a property manager to guide you as to what will give you the biggest bang for your “buck”. After all, we want to help you achieve the maximum return on your investment.
