However, many new owners underestimate the time and effort it takes to ensure a good return from a property and the skills required, argues Cassandra Hailstone, Business Development Executive at Trafalgar Property Management.
The key to a successful property investment is proactive management, and it goes further than just collecting the rent, says Hailstone.
It centres on the quality of the tenant and the standard of the unit being marketed. Potential tenants scrutinize the unit as well as the building itself before signing an offer to lease. "So if you want to make a good income from your property, it has to be well maintained. The screening and selection of tenants is also critical. It requires expertise and experience."
She adds that once the tenant has been selected it's then about maintaining a good relationship through regular communication. An empty flat means a break in income stream and this can be disastrous for an owner looking for a steady return.
"Tenant relations become especially important when it comes to managing the problems related to the property. Sometimes tenants face plumbing issues, water problems, power outages, painting of rooms, maintenance and so on. Managing agents should handle all these problems in their entirety taking the hassle away from the owner."
A managing agent will draft and finalising rental agreements, pay municipal accounts, and maintain yearly expenditure and income, trial balance and the increment in rentals and turnover. Owners should always have updated financial reports and can assess the return and success of their investment.
Hailstone advises that choosing the correct type and size of agency for your property is also important. Property management companies range in size according to their dealing processes. Some deal only with rental management, while the larger companies provide a wider service which often also includes sales, should you wish to off load your investment.
"At the end of the day, the right property manager provides peace of mind to the owner and the returns should far outweigh the management fee."
