What’s involved in managing an investment property?
By Administration Team
Thinking about buying an investment property, or in the process of buying one? You’re probably wondering how much time and effort you’re going to have to put into managing your property once you’ve bought it. There is a lot involved in managing and maintaining an investment property. Do you have time to do it all yourself? You could manage your own investment property if you have the time and organisational skills; however, it is a whole lot easier to let a professional manage it for you.
There are many aspects to managing an investment property that you need to consider before deciding whether or not you want to hire a real estate agent to take care of things for you. We’ve broken down everything you need to consider:
Finding and organising tenants can take up a lot of time. Advertising for new tenants can be very difficult, especially if you haven’t done it before. Once you have a list of potential renters, you then need to have a screening process in place. Then, once you have chosen your tenants, you need to organise leasing agreements, make sure all legal requirements are met and discuss a rent collection plan. You also need to organise inspections and know what to do if tenants damage the property or don’t pay their rent. If this is your first investment property, this can become very overwhelming. A professional property manager will be able to take care of all of this for you and do it properly. They are experienced at choosing the right tenants and managing legal documents.
If you want to manage your own investment property, you need to get up to date with all of the relevant legal requirements and legislation. You need to know about the laws surrounding rent increases, tenant rights, rent collection, bond claims and your rights as a property owner. Qualified property managers are aware of all legal requirements and can look after these things for you. If you don’t have the time to spend reading up on all the laws in your state, then using a real estate agency to manage your investment property is the best option.
Records should be kept of any legal document, rent payment, repairs, tenants, and inspections. This way you can keep track of all activities and refer back to any documents when necessary. This is particularly useful if there are any issues with tenants paying rent on time or property damage.
It is important to keep tenants happy to minimise turnover. The happier they are with the property, the longer they will rent it. When tenants request a repair or maintenance to the property, you should try and organise it as soon as possible. If you’re not always going to be available to organise repairs/maintenance, hiring a real estate agency is the best option so you can keep your tenants happy.
At Peake Real Estate, we offer property management services and can look after your investment property for you. If you’re worried about not having enough time to manage your property, or you’re not really sure what you need to do to maintain your investment property, Peake Real Estate can help you! Contact us or visit our offices in Berwick or Officer and let us take care of your investment property.