Part 6 – Managing your investment property
Selecting the right property is just one part of maximising your investment return. The way you choose to manage the property on a daily basis will also affect both your enjoyment of the investment and the annual returns. It is possible to manage a property yourself – advertising for tenants and collecting weekly rent. However an easier option is to hire the services of a professional property manager – possibly the same estate agent you purchased the property through.
Property management fees are generally about 7.0% of gross rent though this is negotiable. Managing a rental property yourself can mean saving on management fees, however landlords need to comply with a range of laws and regulations. Even simple oversights such as not lodging rental bonds on time could result in a ‘please explain’ from the Residential Tenancies Tribunal. Using a professional property manager can streamline the whole process of investing in property.
Look for a property manager with:
• Strong local knowledge – this will let you set a realistic market rent, plus the agent may have a pool of prospective tenants to help minimise vacancies.
• Clear management process in place – where possible ask to see copies of standard forms or checklists used to manage tenants and properties.
• Screening systems for new tenants – a good property manager will thoroughly check tenant references.
• An active approach to management – how often are investment properties routinely inspected? Do they have a list of local
- Assured’s guide to property investing
- Part 1 - Why Invest in Property?
- Part 2 - Traps and Risks
- Part 3 - Buying Residential Property
- Part 4 - Property Investment Income
- Part 5 - Ongoing Costs
- Part 6 - Managing Your Investment Property
- Part 7 - Residential Mortgage Options
- Part 8 - Investment Glossary
- Part 9 - Useful links
If you’d like to talk to one of our experienced home loan consultants to assess what your investment home loan options are,
