I want to buy an investement property but don’t want to manage it. What should I look for or go about in finding someone to manage the investment for me.
Property Management Gauranteed on Payneham road are very good.
My brother uses them, I manage my own.
My recommendation would be to ring around and get an idea of what different companies offer and what they charge and choose one that meets you needs.
http://www.pmgaustralia.com.au
Happy Investing
Joshua
Multiple Property Strategist
Investor Finance
[email protected]Jodhua,
Thanks for replying. As I don’t know much how to manage an investment property, base on your experiences what sort of questions should I ask ?
heres some to get you started (others might like to add to them)
1) biggest question of all – COST. what percentage or what fee do they charge?
2) Inspections – procedure, how often etc.
3) Management agreement- if you enter into an agreement what term are you locked in there for? what is the break cost if you want to break agreement (in case you want to sell etc)
4) Who will be managing your account?
5) how many properties are they managing per agent? (Too many can result in poor service)
6)How many properties are they managing in that same area? (If they know the area they be able to givea more accurate rental appraisal)
7) How will they market your property to occupy it? (some media rescources get better results)
Will they set up rental agreement with tennant and collect and lodge bond with bond board? (most do this)
9) Are you able to accompany agent on inspections if you so desire? (might be good for future if you ever manage them your self to get to know what they look for)
10) Another biggy is ARREARS… How do they attack rental payments that are in arrears? How long before action is taken? How long before tennant is evicted?
11) Accounting method… Are they able to recieve and pay council rates, water rates, strata fees etc? Do they provide monthly or quarterly statments regarding your income and expenditures?There’s heaps more but that should give you idea before making calls
Hope this helps
Joshua
Multiple Property Strategist
Investor Finance
[email protected]Hi there hhn,
I manage properties in Adelaide and I’m also an investor.
I would be happy to assist in the management of your property. Please feel free to give me a call or send an email anytime!0412 437 582 or [email protected]
Xenia
Investment Property Management
http://www.adprop.com.auThanks Xenia. I have email you.
Is there any one that uses propery manager? Could you share your experiences please (positive and negative)?
Hai
Hi, this is my personal experience of being a landlord in Adelaide. The overall cost of ‘holding’ a conventional 3BR property is around $2000 – $2500 per year. It may go up to $4000 if there’re maintenance & vacancy costs.
My previous manager (I chose a local man for the hills area) charged me ‘high’ rates 8% of everything including maintenance but he made sure there was no vacancy. I was working overseas and was happy to pay.
Currently, residential property yields 4.5% in Adelaide. I recently bought a development prospect that gives 5.5% yield. The positive aspect is that vacancy rates are very low now.
Most investors start out by being cashflow negative then use their own saving efforts to pay off the loans & continue like that.
Let me know if you’re interested in talking to me & maybe we can arrange a meeting.
Good luck,
Kum YinI totally agree with Kum Yin, a reduction in vacancy rates should offest the cost of property management.
We also see alot of private landlords charging their tenants below market rent because they don’t really know how to calculate the full potential for their particular property. This is another area where a good property manager will result in higher yearly profits [biggrin]
Investment Property Management
http://www.adprop.com.auHI,
When it comes to managing your property think of it in these terms.
Would you ask your Dr for a discount on an operation, or are you happy to pay a fair price for the service that you get.
If you are able to easily negotiate the rate that the property manager charges down, how do you think they will go when they are negotiating on your behalf to secure a high rent???
Dont just look at the % that they charge you look at the added extra’s. It is becoming more common to charge for inspections, rent renewals etc. The manager that i use charges a flat 12% + 2 weeks letting fee and $5.50 admin nothing more. They dont charge to re sign so if you have a tenant that stays for 4 year s it only costs you 2 weeks rent (my old property manager would have charged at least 5).
But when its all said and done the good property managers charge about the same (the ones that discount do so for a reason – they cant keep the business that they have)Think about it
Rob
if your in debt $10,000.00 its your problem, if your in debt $1,000,000.00 its the banks!!
Will they set up rental agreement with tennant and collect and lodge bond with bond board? (most do this)
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