Investing in property has long been a popular way for Australians to build wealth. As a long-term investment, it offers several benefits including a number of potential tax advantages that can result from investing in a well-managed property. Let’s take a closer look at these tax advantages.
Word of mouth
Hiring someone to manage your rental property is a big decision so it’s worthwhile doing your homework. Referrals from real estate agents and other property owners in your area can provide an excellent source of information and unbiased feedback.
References and testimonials from clients provide insight into service levels so do check these. If possible, talk to both landlords and tenants. Find out how quickly complaints are resolved, how long it takes for repairs to be done, how easy it is to contact the property manager, and whether or not they follow through on all that is promised in the property management agreement.
Do an online search for property management companies to read any client reviews or complaints that may be listed online.
Look at current work
A big part of the property manager’s role is getting your property seen by as many prospective tenants as possible. Once you’ve identified a list of potential property managers you’re interested in working with and you’ve checked their references and reviews, take a look at their current rental ads.
Are the ads professional and compelling? Check for any spelling or grammar errors as well as photographs of the property being advertised – are they good quality images? Are the ads being shown in a variety of places – both online and print? Look at the types of properties they manage: Are the properties clean and well-cared for or do they look rundown and in need of maintenance?
What does the property manager do to ensure potential tenants have time to inspect the property – are they using online technology that allows for prospective tenants to book a viewing day and time that suits them? This may help in sourcing better quality tenants and result in lower vacancies.
Interview property managers
Draw up a shortlist of property managers you feel meet all of the important criteria and interview those companies, so you can compare them and decide which you feel most comfortable working with.
Questions to ask when interviewing and choosing a property manager:
- How much experience do you have in property management? Experienced property managers will attract the best tenants and deal with those that become difficult.
- What is your process for reviewing potential tenants? How do they determine suitable tenants? Do they conduct police checks, credit checks, employment checks?
- How many properties do they currently manage? Do they represent a large number of clients, hence a trustworthy and successful business, or are they just too big, managing a vast number of property so potentially unable to provide you with the service and attention you may need?
- How do they handle any repairs to the property or complaints from tenants? Will the property manager seek approval before undertaking any repairs, and will they deal with any tenant issues themselves?
- What are the costs involved? Typically, fees are charged for sourcing clients and ongoing management of the property.
Buying an investment property
If you are considering adding to your property portfolio, it can make sense to have a property manager take care of your investment. And, just as you would do your due diligence when buying the property, so too should your choice of property manager be handled. Mortgage Express’ sister company, Harcourts, has a team of experienced property managers available in most regions throughout Australia.
If you’d like advice around buying an investment property, managing your finances, or adding insurance cover for any eventuality, get in touch with a Mortgage Express broker.
While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Finservice Pty Ltd (Mortgage Express) for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. A Disclosure Statement is available on request and free of charge.
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