Buying an investment property is an excellent way to set up your financial future. But it is a long-term strategy and how your property is managed along the way will have a big impact on just how successful your financial strategy is.
While the premise is simple - buy a property, have the weekly rental help pay it off and, at a time in the future, when it’s increased in value sell it off or use the income to support you in retirement - there’s so much more to property investment than that. Including lots of traps that can eat into your profit.
At Barry Plant we deal with the complexities of managing investment properties day after day. With over 34,000 properties in Victoria under our care, we have to be ahead of the game. It’s a highly regulated activity and our property managers undergo continual professional development to ensure they are up to date on every facet and able to deliver a high level of expertise to our clients.
Here’s a list of areas where professional property management can take the stress out of managing your investment property - and add value.
Promoting your property
From advertising your property online - via social media and to our extensive database, through to holding open home inspections, your property manager utilises the strength of our network to make sure all suitable renters find out about it.
Finding the best renters
From sorting through all the applications, to checking references and financial status, it’s a time-consuming job to find the best renters for you to choose from. But hard work by a highly skilled property manager at this stage means less problems down the track.
Understanding the market and rental collection
An experienced property manager understands the local market - what properties are worth, what’s in demand and what your weekly rental should be. Setting the rent at the right price reduces vacancy time and also helps to attract quality renters. As well as advising you how to best market the property, your property manager will ensure that the rent is in your bank account as soon as practicable.
Inspections are critical to ensure that your property is in good condition and is being looked after by your renter. Inspections that are carried out by an experienced property Manager can also help detect maintenance that needs to be carried out before it becomes a major problem. Undertaking preventative maintenance is key to a successful investment strategy. Detailed Inspections must be carried out regularly throughout a tenancy and at the end of a tenancy to protect your asset.
If a renter has reported a problem, or your property manager has picked up an issue at a routine inspection, we will work with you to get it fixed. We have a list of suitably qualified tradespeople who are insured and are experts in their field. We constantly source the best trades to work for our clients.
Then there’s compliance and the critical processes that all Residential Rental providers must adhere to under Victorian law - changing batteries and testing smoke alarms, testing for carbon monoxide from heaters, testing gas and electrical facilities and much more We coordinate this for thousands of our clients, playing our part in minimising their risks as an investor.
The Victorian Government has introduced the biggest changes to the Residential Tenancies Legislation in over 20 years. More than 120 reforms were introduced in March 2021 with the intention of making renting in Victoria fairer and safer. In particular, there were significant changes made with the introduction of new ‘minimum standards’ and ‘safety related activities’. These two changes have significantly impacted Rental Providers as well as the whole property management community. These standards are compulsory for every Victorian residential rental property - old or new, flat, unit or house and penalties apply for non compliance. It’s your property manager’s job to advise you on your obligations as well as informing you of any issues or requirements around any plans you may have and then ensure that the letter of the law is adhered to. The value of a competent property manager who understands the changes and can help you to navigate your new obligations should not be understated.
Nobody wants to go to the Victorian Civil and Administrative Tribunal, but sometimes it’s unavoidable. If you do end up there, rest assured that your Barry Plant property manager is highly trained in every aspect of legislation and extremely competent in representing you at the Tribunal.
There are significant tax deductions that you can claim on your investment property - but you need your paperwork to be detailed,and accurate. We provide you with documentation on every aspect of your property in order to ensure that you can maximise your deductions and to save your accountant time at the end of the financial year.
If the regulations change and it affects your property, we’ll let you know as soon as we do and we’ll provide you with advice on how to handle any issues that may arise. And as the market changes you can be sure that your Barry Plant agent has the finger on the pulse. We offer clients complimentary appraisals for both sale and rental so that you are well informed.
Yes, it does cost you money to have a professional property manager, but it’s a tax deductible expense and one that can literally save you thousands. Poor advice, bad decisions and bad management can result in a high level of risk to you as an investor and a substantial reduction in the return on your investment.Understanding the high value an experienced property manager, supported by a long and established brand brings to the table, will help you to achieve your investment goals.