The world has suddenly simplified. Like it or not, many of us have been forced into lock-down, juggling working remotely with home-schooling children. For the foreseeable future, there is no more catching up with friends, dining out, going to the gym, or after school activities. Many everyday decisions, such as where we’re going to catch up with friends this week, have been removed from our lives. Despite the fear and uncertainty surrounding our current situation, life for the most part is simpler, with one requirement: stay at home. We have become accustomed to lives of abundance and choice, but often with so many choices we feel overwhelmed. Sometimes, less is more.
Successful businesses are constantly looking for opportunities to “streamline” their processes to be more efficient and responsive, and to ultimately save money. This is also the case when it comes to the business of property management. Property portfolios are often built organically over time. In the same way you suddenly realise one day you have accumulated three different superannuation accounts over the years from previous employers, a similar situation can occur when different management strategies evolve for your properties. For example, different types of properties in different areas may have been acquired over a number of years. Perhaps you lived in one or two of these properties for a period of time, then decided to lease them. Maybe you’ve self-managed, or recruited an agent to manage your property, but one day (probably when the proverbial hits the fan) you realise you are going around in circles. Nothing is getting resolved, and you are losing money. It’s times like this you need to consolidate and simplify.
Here are the three main reasons why it is advantageous to entrust your property portfolio to one experienced property management specialist:
A centrally-managed property portfolio is streamlining at its best. The same process will be applied across all your properties, so if something breaks or a tenant moves out you know what to expect in terms of repairs and finding a new tenant. You will receive a monthly statement for all your properties with management fees and any other expenses, so it’s easy to reconcile your income and expenses for tax purposes. You will also have a single point of contact who is across everything happening with your properties.
A single monthly property statement will ensure you are across your financials, so you can budget and plan for any larger works which need to be completed on a property in the future. This will ultimately save you money since you can strategically plan and obtain quotes for trades, as well as save money for unexpected property maintenance.
Your property manager will know when all your tenants’ leases expire, so you don’t need to worry about missing lease-end dates and having to find new tenants in a hurry. Your property manager can organise a new lease for your existing tenants, or source new tenants before the existing ones move out.
Everyone loves consistency, including your tenants. Life becomes confusing for them if they are dealing with multiple people, such as a landlord, as well as the occasional property manager. If there is a problem with your property, tenants like clarity and knowing who to call, as well as reassurance it will be dealt with swiftly.
If you currently have multiple properties with different property management strategies, it’s time to step back and take stock of what you have, and more importantly what you need going forward. If all your properties are located in one city, such as Canberra, there’s no reason for not having one central management centre, so here’s what to do next:
Review what you have and make notes on:
The type of properties you have i.e. apartment, townhouse or detached house
The tenants in each property, as well as essential details on current rental rate and lease period
Any maintenance required/foreseen for these properties.
Research local property managers and the types of properties they manage. If you can find someone who manages properties like yours, or specialises in properties in your area you can rest assured they know the market and your ideal tenant inside-out. This market intel is invaluable, as they will be on the front-foot with market trends.
Ring around. Whilst you can find most of the info you need on property managers from their website or via email, it is important to speak to your potential property manager over the phone or in person. You will hopefully have a long and valuable relationship with your property manager, so it is important to find someone you trust and have a good rapport with. Speaking to as many property managers as possible will also make you feel more comfortable with your final decision.
One you’ve made a decision, sign your properties over and start enjoying life (or focus on more pressing issues). Streamlining the management of your property portfolio will be one of the best business decisions you’ll ever make – financially, as well as mentally. There isn’t really a value you can place on having a single point of contact for all your properties, especially in the current global situation we find ourselves in. Don’t wait any longer - call us.