The important task of managing investment properties means more than just finding a tenant and collecting rent on behalf of landlords.
Maximising Rental Return
In the first instance, what’s important is an accurate analysis of the current rental market in the suburb and price category of the investment property. Pricing a property too high can result in a period of vacancy whilst pricing it too low inevitably leads to a loss of potential ongoing income.
Selecting the right tenant is also vital to your return on investment as a tenant that is delinquent on his or her payments instantly affects your cash flow. Ideally, you are looking for a tenant who wishes to continue renting your property for more than just one lease period as this will encourage their continued co-operation and minimise your re-leasing costs.
Careful consideration should be given at all times to the costs associated with owning an investment property, particularly when it comes to maintenance and repairs. Landlords can find themselves with overinflated expenses often charged by opportunistic tradespeople and passed on by property managers that lack the experience and concern to know better.
Otto Property carefully reviews any necessary expenditure before proceeding to undertake work by tradesmen that are known and trusted by us. All tradespeople employed by us operate under the same code of ethics which places honesty and dependability as key principles of their operation.
Moreover, by applying our philosophy of treating your investment as if it were our own, we will always explore the simplest and most cost-effective long-term option in facilitating the properties maintenance requirements.
Protecting Against Loss and Damage
The best way that a property manager can protect investors against loss of income or damage to the property is to employ a structured and professional strategy to ensure the best possible choice of tenant. This approach will largely insulate property owners against such events, despite this, things can go wrong.
Unlike other commonly held assets, a property is a physical asset and as such should be insured against all of the things that can occur in nature and in human interaction with the property. Otto Property strongly suggests that its clients take out the necessary insurance that is available including landlord insurance.
The right policy will protect investors against all possible scenarios including loss of rent, accidental or malicious damage and almost anything else that may occur that can have a negative impact on your return on investment.
Daniel Otto has been a part of the property industry for over 15 years, with experience that stretches across real estate sales, investment, rental management and development.
Please reach out if you have any further property related questions.