While it may sound easy enough to buy a home, renovate and then rent it to a tenant, ideally for more than the monthly mortgage payment, successfully managing your own investment property requires the mindset of a business professional. Without experience, it can quickly turn into a disaster.
Property management is a specialist profession in its own right. Like most professions, the speed at which new laws are emerging, means that it is a challenge to keep up to date with all your responsibilities as an owner. Accordingly, it has never been important to engage a qualified property manager to look after your rental property.
A good property manager is often underestimated, they are tireless workers, working in a thankless and often times unforgiving profession. However, a great property manager can add thousands to your investment and provide peace of mind and the knowledge that you are complying with your obligations as a landlord.
Have Clear Investment Goals
Before buying an investment property, ensure that you do your due diligence. We recommend you consult with your accountant and thoroughly consider your investment goals. Research is critical when buying an investment property. A most valuable resource is a great property manager who is a local area specialist for the area where you are looking to buy.
A qualified property manager can assist you to assess the viability of your investment. They can provide rental valuations, expectations re: vacancy rates, tips to maximise the value of your tenancy. They can also minimise the cost of arrears and reduce the risk of damages, both to the property and the tenant. The bottom line is, a great property manager does everything to help you sleep peacefully, free of the worry of owning an investment property.
Your property manager together with your accountant and a great property depreciation specialist, should form the core of your investment buying team.
I can vouch for the capability of the property management teams at Ray White Toronto & Wangi and Creer Property at Charlestown.
In addition, there is a plethora of free online information which is particularly useful to first time investors.
Location … Location
The old real estate adage is location … location. This saying applies to property management as much as it does with sales. Your buying decision should be based on sound investment fundamentals.
Investigating the best investment options for you can be stressful and challenging. For this reason, I would recommend working with a local area property management specialist. If you are looking at buying an investment property in Toronto, Kilaben Bay or Wangi we recommend the team at Ray White Toronto & Wangi. If you are looking at buying an investment property in Charlestown, Redhead or Warners Bay we recommend Creer Property at Charlestown.
Hire an Agent
Don’t make the mistake of trying to manage the property yourself. There are reams and reams of tenancy and property legislation that make it almost impossible for the private investor to be across all of their responsibilities. Accordingly, it has never been more important to engage an experienced property management specialist to manage your investment property.
We understand the significance of owning an investment property and the challenges confronted with ownership. As such, if you are looking for a property manager to look after your investment property, we highly recommend two outstanding property management firms. For property management in Toronto, Kilaben Bay or Wangi, contact Scarlett Mackay from the property management team at Ray White Toronto and Wangi. For property management in Charlestown, Redhead or Warners Bay, contact Larissa Wood from the property management team at Creer Property.
Check Tenant References
As keen as you may be to get a tenant, it’s not worth the risk of rushing in without checking your tenant’s credentials. The best decision you can make is to appoint a property management specialist to do this for you. They are experts at ensuring the rental application is completed correctly, obtaining credit reports and take the time to verify references including employers and former landlords. Complying with tenancy laws has never been more important and appointing a property management specialist to do this for you is crucial.
Assess Investment Viability
Investment viability is assessed during the due diligence stage when you are considering your investment goals. As part of this process you should also assess the costs of owning that property, including lending costs, land rates, utilities, strata fees, insurances, repairs and maintenance and property management fees. Failing to undertake a thorough assessment may ultimately be extremely costly and may turn the viability of your investment from a GO to a NO.
Another important part of your investment team is your lending specialist. They can ensure that you get the best loan that suits your purposes.
It is crucial that you consider the taxation implications of owning your investment property. A useful tip is to contact a tax depreciation specialist. Capital Claims is a great tax depreciation specialist who services the greater Newcastle and Lake Macquarie area including Toronto, Kilaben Bay, Wangi, Charlestown, Redhead, and Warners Bay.
Finally, consult with your accountant and discuss all financial matters that may impact on the viability of your investment property purchase.
In Conclusion
Surrounding yourself with experts in their chosen field is crucial in all parts of life, it is especially important when looking at buying a rental property. As indicated above, a property management specialist can assist you with many of the challenges discussed. We are proud to work with two of the best property management firms in Lake Macquarie. If you need assistance with property management in and around Toronto, Kilaben Bay or Wangi, call the property management specialists at Ray White Toronto and Wangi. With 20 years’ experience managing residential and commercial properties, they will look after your most valued investment.
Likewise, if you are looking for a property manager in Charlestown, Warners Bay or Redhead, call the property management specialists at Creer Property. With over 30 years’ experience, the expert property management team will be able to look after you.