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How To Manage For Success

Sarah Dawson outlines the basic recipe for maximising the potential of your asset.S

By: Sarah Dawson

1 January 2016

Owning an investment property is an exciting opportunity and if managed correctly, can provide you with a high-value asset. I have compiled some insights and strategies which can help ensure your investment maximises its potential.

As with any long-term goal, having a strategic approach to investing and managing the investment will put you in good stead for property success. But how can you manage a property to maximise capital growth and rental return on your investment?

Good Tenants

This may sound like common sense, but having respectful tenants will make your life a lot easier, not to mention it will decrease the risk of damage to your property. Having good tenants will often lead to long-term residents of your investment, which means less work for you, less vacancy in the property and a greater return.

To ensure the success of your investment, there should be a clear understanding of the expectations involved by both parties, as outlined in the tenancy agreement. Communication should also extend to the management of repairs and maintenance. Tenants have the right to notify the landlord or property manager of repair and maintenance issues. To help maintain the value of your property and the happiness of your tenant, these issues should be fixed promptly.

Maintenance

Poor management of maintenance issues can result in a strained relationship with your tenant. Not only this, if your property is not maintained to a high standard, it can result in property depreciation.

To avoid any major issues with your tenant, think about replacing any outdated systems such as air conditioning, heating or the oven, all of which can cause more trouble than they’re worth in the long term.

Property Manager

To maximise your property’s potential, it is worth considering if a professional property manager is right for your investment. A property manager will collect your rent, work on marketing campaigns, conduct tenant screening and manage maintenance for your property. Using an agency reduces the stress and time involved with managing the property so you can continue to expand your investment portfolio.

Well managed and well-kept properties can generate high rental returns in the long term.

Property investment is a long term investment and property value is likely to increase over time. Your rental prices should reflect these trends. Some investors are often scared of losing their tenants with a price increase but if you have a well maintained property and are fair and reasonable with rent increases, you will attract premium tenants.

Sarah Dawson – Head of real estate sales, Rockend.

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