Leasing your investment property for the first time

So you have successfully navigated your way through market information, statistics, what seemed like endless open homes and auctions. Now you’re sitting on the property investor ladder, eager to let your investment go to work for you. It’s time to get a tenant in there…but first you must decide how you are going to go about it.  

As a new landlord it is important to consider all options when looking to rent out your investment property for the first time. Understanding how much of the rental process you are willing and able to take on yourself will help you to decide if the services of a property manager are required to ensure you achieve maximum returns on your investment.

Self-managing your investment property

Whilst managing the property yourself as a landlord is achievable, it is important to have a strong understanding of all that is involved in managing a rental property and if the lifestyle you want to lead will allow for the time needed to do this effectively.

A few things that are advantageous when managing your investment property yourself;

• Living within close proximity to the property is a big advantage as inspections and giving access to handymen and tradies for urgent repairs won’t be a time consuming exercise.
• Having a good understanding of the tenancy laws will ensure that you do not get caught out legally and spend time and money in tribunal for something you could have easily avoided
• Good relationships with handymen and tradespeople will mean that you can rely on them for fair and accurate quotes and consistency of work. Being able to call upon these people with urgent repairs at the last minute is extremely beneficial.
• Having plenty of spare time to deal with the common issues and ongoing management of the property and the tenants. It is a lot more work than just sitting back and watching the rent roll in, a common misconception of the industry.

If this sounds like the position you are currently in or can find yourself in, then self-managing can be a rewarding experience, especially if you are the type of person that like to be hands on and highly involved with all aspects of your investment.

However, often as a first time investor, spare time and an in-depth knowledge of the industry are not things that you will have access to on your own. It is in this situation that we recommend putting your property in the hands of a reliable and experienced property manager and partnering with them to learn the ropes and ensure you get the most out of your first investment.

Enlisting the help of a Property Manager

If you are already busy with a full time job and spare time is at a premium, then you may find it overwhelming when you need to run inspections, do condition reports, organise repairs, attend tribunal etc. Or you may want to ensure that you continue to have the time to lead your current lifestyle. In either case it is a good idea to enlist the services of a property manager to handle some, or all of the responsibility to lighten the load.

While managing the property yourself will save you money on management fees, investing in a good property manager will save you more money in the long term, and here is why;

• Property managers have an in-depth knowledge of the rental market in the area and won’t let your property go under a lease for less than it is worth.
• Property managers can provide advice on what may need to be updated in your property in order to achieve the best price possible.
• They have access to strong avenues for marketing. If they work for a real estate company, then the buying power they have for online and print advertisements means smaller advertising bills and more exposure compared to what you can get on your own.
• Property Managers often use the help of dedicated leasing experts at open homes to ensure that the inspection and application process for the property runs smoothly.
• They are able to tap into their local database of prospective tenants currently looking for properties like yours in the area.
• Property managers are able to screen every potential tenant, follow up references and check finances so that they only put good quality applicants in front of you.
• Property managers have established relationships with a number of tradespeople and handymen and can often get work done at short notice and for a better price.
• They have a thorough understanding of the tenancy laws and will go into bat for you should any problems arise. They are also kept abreast of any changes or updates to tenancy and property laws and regulations
• They will take care of absolutely everything from condition reports and bond management to paying bills on your behalf. So that you can focus on your next investment or the more important things in life.

A good property manager will maximise the return on your investment, save you time and money, and give you piece of mind as they are there to assist with any issues or questions you may have. They are more than just a property manager; they are an asset that you can utilise throughout your investment journey.

If you would like to discuss options for your investment property further or would like advice on anything to do with managing your property, feel free to contact us or drop into our office. Our experienced property management team would be more than delighted to have a chat about your investment strategy going forward.