What are tenants looking for in your investment property?
Paula Banwell from Adept Property Management offers these tips for property investors to get the most out of their investment, right from the start.
Set yourself up for success
Looking at buying an investment property?
Then you should find a good Property Manager BEFORE you make an offer to purchase.
That’s a bit controversial…….Usually, people do that afterwards, but having an experienced Property Manager to help you before you buy can help you avoid some of the common pitfalls of property investment, such as high vacancy rates for less desirable locations or properties.
A good Property Manager will know the best areas to invest. With firsthand experience, they will be able to tell you which areas rent quicker, the target market and what tenants are looking for in a home.
Just as you would get your Mortgage Broker involved to get your finances in order before you buy, it’s also extremely beneficial to get your Property Manager on side too. You can ask their advice about what you should be looking for in an investment property. Too many people buy investment properties with their hearts and not hard facts and good information, gather this first and you will reap the benefits in the future. At Adept Property Management we offer services such as rental appraisal reports that give an in-depth understanding of demographics and rents that can be achieved in a specific area.
A Property Manager can be one of your greatest advocates as an investor. It has been known, that a seller's real estate agent may overestimate the rental return on a property they are trying to sell to make it a more attractive purchase (knowingly or otherwise).
Your own Property Manager will be able to manage those expectations and provide evidence of similar rentals. Plus at Adept PM we can offer a complimentary ‘Core Logic RP Data Estimated Rent Report’, used by the four major banks to estimate income return and gross rental yields.
In rental property management companies that are well looked after, there will be a wealth of knowledge and Property Managers that are good communicators also know owners on their books, that for many different reasons may want to sell a good, proven investment that already has good tenants in residence.
What should the would-be landlord look for in a potential rental property?
It sounds like a cliché, but “Location Location”, is always number one if you want a good choice of tenant and low vacancy rates.
Of course, the purchase price and the rental return for a property would be another major consideration for any investor.
The attributes a property are also important. Tenants like air-conditioning, dishwashers, alarm systems etc. etc…………
Buying an investment property is usually for the long-term, so as to allow it to appreciate in value and also to receive the benefit of any tax deductions, and or tax depreciation that may come with the purchase (this is where you need an accountant and or quantity surveyor). So now you can see that it is really important to get your team of experts in place prior to buying the property.
If you would like any Property Management advice, please feel free to give Paula a call today on 0447 222 895.
Keep your eyes peeled for great deals. Happy Househunting!
Let me know how you get on.
If you'd like help with assessing your personal and financial situation, as well as comparing the loans in the market to see if you're truly getting the right deal for you, then call Bob Malpass now on 0431 862 136, email [email protected] or send us a message via our website for a quick response.
Thanks for reading,