Most property investors know the benefits of engaging a property manager to oversee their rental portfolio. A good property manager will help you maximise the value of your investment by selecting the right tenant, overseeing regular maintenance and repairs, and ensuring all legal and financial documentation is kept in order.
But why use a property manager to help you buy an investment property?
The answer comes down to knowledge and experience. Property managers are enmeshed in the communities in which they operate. They understand how the market works, what tenants are looking for in a property, and what trends are worth pursuing.
In this blog, we’ll explore these points in more detail and highlight how a property manager can help you navigate the complexities of purchasing the right investment property.
The benefits of using a property manager
Local expertise
Property managers have extensive knowledge about the property landscapes in which they operate. This knowledge is invaluable for prospective investors. A property manager can help you identify the right location and the right property to achieve your investment goals.
They can also help you see past hollow promotional slogans and spot hidden property treasures. From ruling out deals that really are too good to be true to identifying emerging suburbs that are about to attract a lot of interest, your property manager will help you make a smart and informed investment decision.
This extends to setting the right rental price once you’ve acquired your property. The location of your suburb and the property type will play a crucial role in determining how much rent you can charge. A skilled property manager can advise you on the best price, as well as small changes you can make to the property to justify a higher rental price.
Search and analysis
Apart from their own expertise, property managers have access to various tools, databases and professional networks that can help inform your investment decision.
An example of this is CoreLogic’s RP Data. This platform provides access to detailed property and sales data, from valuation estimates to market trends and suburb-level analysis. Further, there are a variety of industry-specific databases and subscription-based reports that property managers can use to access more granular data than what is publicly available online.
Property managers also have access to property inspection tools that provide a holistic assessment of a property’s value. By enabling thorough inspections that identify maintenance issues and assess the property’s overall condition, you can look beyond the sale price and get a better understanding of the actual costs and risks involved in purchasing a property.
Negotiation and purchase
By the time you’re ready to make an offer, your property manager will have developed a detailed and accurate valuation of the property. The valuation will take into account the property’s rental potential, likely rental income and the local tenant demand. By sharing these insights, your property manager can help you develop an informed offer and approach purchase negotiations with a clear strategy in mind.
Legal compliance
Alongside a solicitor, a property manager can help you review the details of your sales contract to ensure there are no hidden clauses that inadvertently go against your interests.
Based on the characteristics of the property, they can also advise you on any special conditions you should include in the contract. For example, they may identify that the property has undergone significant renovations. In this case, it may be wise to include a condition that the current owner can prove that all relevant renovations were council-approved. In doing so, your property manager helps protect your interests as a buyer.
This knowledge of legal compliance is also useful when it comes to managing your investment. A property manager will ensure you have the right documentation on hand at tax time. They’ll also help you identify all appropriate tax deductions relating to the maintenance of your investment.
Selecting your next investment property
Are you thinking about purchasing an investment property? Our team of experienced property managers are here to help. Get in contact today, and we’ll arrange a time to talk with you about your investment goals.
