An investment property is a smart way to generate extra income and benefit from the security of a bricks-and-mortar asset. If you buy in the inner city, you also have the option to one day live in your apartment yourself and enjoy the exceptional lifestyle of CBD living.
However, unlike shares or a savings account, an investment property demands time and money. One decision you’ll need to make is whether to appoint a property manager to deal with the day-to-day issues of keeping your tenant happy and maintaining your asset.
Here are some key questions to ask yourself when deciding if you should self-manage your property:
Should I try the DIY approach?
It’s often the case that managing a property is best left to a professional. This is especially true if you have a demanding lifestyle or don’t live nearby. Some ways a property manager can save you time include:
Finding the right tenant: Property managers will have a database of people looking for apartments, as well as the means to advertise and market your property widely. They will then screen tenants carefully to ensure they are reliable.
Your property manager will also take care of all payments, ensure rent is paid on time and chase arrears.
Viewings, interviews and administration: Finding the right tenant means showing a range of candidates through your property. A property manager will handle this time-consuming process for you. So your property is rented and you are receiving income as soon as possible.
A local property manager also opens up the possibility of buying in a place other than where you live. This allows you to tap into local property trends to invest successfully.
Setting a rental rate: a property manager will be used to negotiating and setting a reasonable and achievable rental rate as they will know how the local rental market is faring.
Knowing the small print: A property manager will be up to speed on what is required from landlords. Anything from smoke alarm laws to tenancy agreements will be looked after.
Can I easily solve problems with my property?
With an investment property, things will often go wrong at the most inconvenient times. The fridge might break while you are away on holidays. The hot water might stop working. Or the power may go out just when you are in the midst of a demanding week at work.
Whatever the problem, if you have a property manager, your tenant will call them, not you.
Experienced property managers will have the right contacts for every domestic breakdown, from reliable plumbers to electricians and gardeners. Because we have long-standing relationships with our suppliers, they charge us reasonable rates. And we can pass these on to you. We can also connect you with people who produce high-quality work, should you wish to handle this yourself.
Tenants who are paying high rent to live somewhere central tend to have high expectations of service A good property manager will meet them, plus take care of any difficult conversations.
Can I save on tax with a property manager?
The Australian Tax Office allows investment property owners to treat all property management fees and advertising fees as tax deductions, so you can deduct their fees from your taxable rental income.
Your property manager may also be able to share advice on other parts of your property which depreciate in value and help you organise a depreciation certificate so you can claim more at tax time.
Talk to us
Here at Boutique Property Agents, we have more than 20 years of combined property experience in the Hyde Park precinct and surrounding suburbs of inner Sydney. We are experts at looking after our clients’ most valuable assets.
We are always happy to talk to property investors looking to buy in Sydney’s coveted inner city, particularly the beautiful Hyde Park precinct and go through our property management services. Please feel free to give us a call today.
We look forward to helping you achieve your investment goals.