Property Management: Making your investment work for you
media

Baxton.me
29 September 2017

Property Management: Making your investment work for you

The whole point of buying an investment property is to make it work for you, bringing you a return in terms of both rental income, and capital growth. Baxton Property Management, which manages more than $1Billion in properties for professional investors, and for mums and dads looking for an income, offers some tips on how to make sure it does.


There’s no return on empty premises

Every day that your investment property stands empty, or each week that passes while you wait for it to be ready to rent out, is costing you dearly in lost returns on your investment. Empty premises are empty promises. You know the property promises a return, but without a rent-paying tenant, that promise is as empty as the premises are.

If you have just bought a rental property, try to speed up the cosmetic improvements or renovation programme, to reduce adding lost income to the costs involved in the renovation or touch up. If you have been renting out the property, but the tenant has vacated the premises, make sure to do what it takes to find a new, and suitable, tenant.

Find out what the local vacancy rate is and work out a plan with that in mind. The size of the pool of tenants looking for rentals will determine the amount of advertising spend, as well as affect the amount of rent you can charge, and what sort of terms you should apply to renting it out.

In a boom period when rentals are in high demand, it should be fairly easy to charge a reasonable rental for the premises, and be very selective with regard to tenants. When times are tough, and there are a large number of vacant rental spaces, you might consider renting your premises on a daily basis, in order to avoid another day of no return and risk not meeting your budget.

Keeping your property in market shape

Don’t wait for something to go wrong. Make sure your property is properly maintained at all times, so that you don’t start a downward slide in the value of your investment and the quality of tenant it will attract. Be sure to have a capital expenditure budget to cover costs of big projects like refurbishing the kitchen or bathroom, and the smaller items like painting, gutters, carpets and blinds. Putting aside 5% of your annual rental income is a good place to start.

Keeping your property in market shape (and relevant to that market) is a major part of making your business plan work. If you did the required research before purchasing the property, you will have chosen it carefully with a particular market in mind. You will have bought close to the university if you saw the advantages of renting to students, but not if  you wanted to rent it out to a family. In that case you would have bought a different sort of house in an area near schools, work and shops. Make sure your property is in the right condition to attract the tenants you are looking for.

Keep good tenants happy

A good tenant in your property, is worth a hundred elsewhere. If your tenant pays rent on time, keeps the property clean and in good order, and is pleasant to deal with, that tenant is definitely worth his or her weight in monthly income. Trying to squeeze an extra few dollars out of such a tenant might be counterproductive, if you are not as lucky with the next one.  You could end up losing a lot more than the extra bit you tried to get the good tenant to pay.

Consider using a property management company

If you haven’t already contracted a property management company, it’s worth considering doing so. Property managers, like Baxton Property Management, are experienced at maintaining and administrating properties, as well as selecting and keeping tenants.

Visit the Baxton website to find out more about the services it offers, and how it can contribute to helping you make your investment property work for you.


RELATED ARTICLES

FOLLOW US

#1 – Australia’s Property Management Specialists

We hope you enjoyed this article

The information contained in this article is based on the authors opinion only and is of a general nature which is not indicative of future results or events and does not consider your personal situation or particular needs. Professional advice should always be sought relevant to your circumstances.

See more articles below

You May Also Like

Investment Property: Tax Warning on Property Traps

Investment Property: Tax Warning on Property Traps

Preparing for retirement in a day and age when gold watches and generous pensions are...

Baxton.me

24 May 2018

media
Rent out Property in Hobart: Location, Location, Location

Rent out Property in Hobart: Location, Location, Location

When it comes to property, location is an important deciding factor that not only determines...

Baxton.me

7 Feb 2018

media
Choosing the Perfect Rental Property in Hobart

Choosing the Perfect Rental Property in Hobart

With demand for rental property in Hobart at an all time high, you might think...

Baxton.me

6 Feb 2018

media
Renting Property in Hobart: Will You Get Your Bond Back?

Renting Property in Hobart: Will You Get Your Bond Back?

If you’re renting property in Hobart, you’ll be asked to pay a bond. Should you...

Baxton.me

5 Feb 2018

media