If all your properties are managed by different real estate agencies, you may be missing out on some great benefits. In this article the team from LITTLE REAL ESTATE explains how by consolidating you will be better placed to maximise the return on your investment property portfolio.
Achieving the best possible return on investment is a key focus for any property investor. Whether an investor has one, five or 20 properties, this goal is usually on their mind.
Having multiple real estate agencies managing your properties means you aren’t likely to be receiving comprehensive guidance on how to maximise the value of your portfolio as a whole.
If you have investment properties across multiple agencies, then consolidating your property portfolio and selecting one managing agent is something that’s worth considering. The benefits it can have for your portfolio and your greater financial picture can be very rewarding.
Single point of contact
One of the big hassles of having your investment properties managed across multiple agencies is the multiple points of contact you need to engage with. Each individual contact point requires its own amount of allocated time that includes meeting, reviewing, consulting, chatting and in some instances travel.
When you consolidate your property portfolio you will deal with a single agency. Time cost should be reduced, which will allow you to spend your time more efficiently. This will also give you more time to spend on other things in your life.
Consolidation can also simplify the administrative burden thanks to having a single point of contact. Having a single source to get your information and documentation from means that your information should all arrive at the same time and in the same place. You won’t have excessive correspondence from multiple different parties leaving you flooded with emails and unsure where to find the information you need at a glance.
Having a single point of contact can also allow for an investor to become more familiar with their property manager and the agency that they work for. You can develop a better, personal relationship with them as you will be spending more time with them thanks to the consolidation of your portfolio.
You also have an opportunity to familiarise yourself with the values and vision of the agency and really see if they match your own. Evaluate your needs and principles and then decide what kind of property management you want for your investment.
A holistic strategy for your entire portfolio
By consolidating your investment property portfolio, your property manager can potentially gain a better understanding of your portfolio and help it grow. This possible growth can not only be applied to return on investment (through increased rental yields) but through the expansion of your portfolio as a whole. The monitoring of your assets to ensure that you have sufficient return on investment from all of your properties is a goal that you both mutually share.
It’s important to remember that real estate investing is a marathon, not a sprint. The efficiency, informed decision making and collaboration that come with utilising a property manager are all just steps along the journey to real estate accomplishment and financial stability.
Only settle for the best
A common occurrence that can come with property investment is to simply go with the company that the property was purchased with for property management. Adding to or creating your property portfolio is a stressful experience that, once the finish line is in sight, can cause people to just settle and do anything to complete the process.
Examining the market and comparing what different property management agencies offer is a vital step to take. An exceptionally low management fee may seem like a great deal but you may be missing out on better service and more strategic long-term savings opportunities.
A crucial part of buying an investment property and using property management is getting the best possible service and price.
All Home Loan Connexion clients with investment properties can apply here for six months of FREE property management. This offer is also obligation-free, meaning if you are unhappy with the service you can cancel at any time.
The money that you save from this offer could go a long way to helping you, whether it’s used to pay down your mortgage or reinvested into repairs and maintenance for your investment property that could increase its value.
Make life easier
The ultimate goal of your property manager should be to make your experience as an investor the smoothest one possible. To that point, the best real estate companies will actively work to make sure their service is beneficial.
With their main roles including advertising your property, receiving enquiries during the leasing process and the selection of tenants — a property manager does the heavy lifting to ensure an investment’s returns are the best they can be.
An investor needs a property manager because they do all the administrative tasks that many investors do not have time for. You may not hear from your property manager every day but they’re just taking care of everything behind the scenes.
Consolidating your property portfolio with a single, trusted property management agency is the best way to make your investment journey as easy as possible.
Change can be great
As an investor, you may have been with the same property management agency for an extended period of time. If you are unhappy with their service, it’s very easy to just accept it because you are already using their services and cannot be bothered switching. It can be a great deal of work doing the required research to find the best possible option for you.
It is worth it though because finding the right property manager could make a real difference to your investment experience and your future.
There are some circumstances though that simply don’t allow for change. For example, you may have a fantastic experience with a metropolitan agency that you think would be ideal for your property in another city or in the country but they do not operate there.
In these circumstances it is still very worthwhile to do your research. Looking for the best possible deal is a process that you should consider.
The final word
Even the savviest property investors can encounter problems when they own several investment properties but have them managed across multiple agencies. While there are some valid reasons for this to happen, by consolidating your property portfolio with a single agency you may be able to save yourself from experiencing a number of problems.
Little Real Estate is Australia’s largest independently owned real estate company. If you are looking for a manager to look after your investment property speak to Angela Paradise on 0429 495 269. To get your Management Fees FREE for 6 months click here.
General Advice Warning: The advice has been prepared without taking into account your objectives, financial situation or needs. You should therefore consider the appropriateness of the advice, in light of these objectives, financial situation or needs, before following the advice. We recommend that you speak to your accountant and financial adviser to help you determine whether direct property investment is right for you.