Top 5 Property Management Tips For Long Term Success In Your Business.
For many people, becoming a landlord sounds successful, even glamorous. At Salvan, we treat every landlord as a ‘Property Investor‘ and that your investment into bricks and mortar should be viewed as your business, but what does that really mean?
Well here Salvan Property Managers Top 5 Tips for managing your property investment like a business for long term financial gain.
Be Business Minded
The first points to remember here are don’t get emotionally involved and don’t make it personal because when money is involved, especially large amounts, it should be strictly business.
Your customer is the person who’ll be paying the rent, your tenant. Instead of making decisions based on what you like, think of what prospective tenants look for in the house, unit or apartment you have purchased and want to rent out.
What profile of tenant are you wanting to attract? Does your rental property tick all the boxes by people looking for rental properties located where yours is? What is on offer from other landlords within the same suburb and at what price per week are they offering it?
These are just some of the business decisions that have to be made without becoming emotionally involved.
Similarly, don’t make it personal either. Your tenant will be paying your mortgage, so even though they may be lovely people, they should not be viewed as your friends. If you allow this to happen, you are opening up the very real possibility of payment issues and costly maintenance or upgrades that aren’t required but you do because you like the people over looking at the property as an investment.
One of the best solutions to avoid potential personal issues from clouding your decisions is to have your investment managed by Salvan Property Management.
As property managers local to Adelaide, Salvan act on behalf of your best interests, so you don’t have to become personally involved with the day to day management of your investment.
Keep Your Property Fresh & Updated
You are competing against many other rental properties available on the market, so it’s important if you always want to receive the most rental return to keep your house, unit or apartment in top condition.
Before placing tenants, or in between tenancy occupation, take a look around the place objectively. A fresh coat of paint, updating electrical appliances or air conditioning systems will help attract good quality applications and people who’re happy to stay and pay your mortgage for long periods of time.
Increasing the properties value with capital works is also a sound business decision that increases your property value. Neglecting to keep on top of maintenance or allowing the dwelling to look dated will not only make attracting great tenants harder, it will cost you more later down the track when you look to sell and realise your financial goal.
Property managers from Salvan can help you with what’s a good financial decision and what maybe not by knowing what’s being offered for rent close to your investment. Feed back at open inspections is also recorded and passed on to back up any general advise on what would be worth attending to.
You want to maximise your return on the investment you’ve made. Near the end of each tenancy period, it’s wise to look at the rent charged and the market of similar properties. Even though during 2021 and for the next few years, mortgage increases are not likely, it’s a good practice to make sure you’re inline with the market. Don’t get greedy though! You don’t want to lose a great tenant that pays on time and looks after your house like it’s their own. Often keeping just below what you could realise is better than having a vacant property for a period of time plus advertising costs, just for the sake of putting the price up.
Again having your property manager advise you would be prudent as they’re at the cold face of what’s happening to the market.
Use Good Tradespeople
Having a stable of trades on hand, able to respond quickly and produce quality work at reasonable prices sounds easier than it is. Plumbers, electricians, painters, cleaners, general handymen/handywomen and gardeners are all going to be required at some stage. A good relationship with these important people will is important.
Salvan Property Management have a number of alternatives for each type of trade professional, so the best person to attend the job can be chosen, saving you time, heart-ache and money.
Use An Experienced Property Manager
Not all property managers Adelaide real estate companies employ operate at the same level of enthusiasm, or will have the same level of interest in you and your property. For most it’s a job and one that requires many landlords to make a good living from their employer. The risk is becoming a number and as we at Salvan hear regularly, a constant change in the property manager you’re assigned to.
At Salvan, the person you sign up at the start with, will be with you for the journey.
Attention to detail, handling issues promptly and being proactive are hallmarks of the company.
Natalie Salvati (Principal of Salvan) is a registered Real Estate Agent (RLA 276287) with over 20 years experience in the property management market, looking after metropolitan Adelaide landlords, or as we like to say ‘property investors’.