This is a question that you need to ask yourself often. Once a year at least, because just owning property is a milestone many people don’t reach and it’s expensive, thus you have to take it seriously. Then onto having a property as an investment where people and families live on a long term basis is also something to think about in terms of your responsibility towards them.
In this article we tackle the very important question “Are you managing your property the right way?” from multiple angles; from the investment side to the business side.
Is your rental property up to standard?
Your property must be lawful and in good condition and it must also comply with Healthy Home Standards. Did you know this? Your property must also meet all legal requirements before being rented out. What are those legal requirements?
The property management team at The Rent Shop – Auckland City knows exactly what is required for your rental property to be up to standard and if anything is not, they will help you get there.
Not adhering to these standards, rules and regulation can land you in deep water and you can end up paying large amounts in legal fees or paying back the rental income that you have earned.
Are your tenants safe?
In continuation of Healthy Home Standards, having a ‘safe to live in’ property is vital, literally, to you and your tenants. Safety in terms of lockable doors, gates and garages as well as structural integrity like the roof, ceiling and walls.
These are items that is a non-negotiable IT MUST BE WORKING rule. Get this wrong and you will be the responsible individual who has to deal with this. But, as mentioned before, the team at The Rent Shop – Auckland City take a good look at any property they take up for management and gets everything in order before a single tenants steps on foot inside.
Are you asking a fair and reasonable rent?
So once you know you have a safe property and you’ve managed to get tenants, have you been asking the right rental fee? To calculate the correct rental fee experienced property managers takes a look at the location, the size of the property, number of bedroom, the property condition and the features. Only then a fee is determined. Have you done it this way?
If not, you might be losing out on valuable investment income. If you don’t have the time or skill to do a proper rental fee calculation, get in touch with The Rent Shop – Auckland City and get the right rental fee.
Property Maintenance and the right tenants
Do you do regular inspections? When last did you visit or see your property investment? More questions you need to ask yourself and then make sure that you do indeed do inspections. You don’t know what your tenants might be doing in or to your hard earning property investment!
To get good tenants, every time, starts with a properly established process when the time comes to find new tenants. You don’t just want to take the first application that comes in just for the sake of having someone there. You run a huge risk of seriously undermining or damaging your property investments.
Start with a screening process to determine whether your prospective tenants can indeed afford the fee, and also if other landlords have had bad experiences with them. The two most important things to look for in tenants are if they are good payers and if they will look after a property. These two things make a world of difference when it comes to your tenants.
We know we are repeating ourselves but the Property Managers at The Rent Shop – Auckland city can get you the right tenants!
Is it profitable?
The basic calculation of profit here is simple; it’s the rental fee received minus the property costs. This is your profit. For a couple of years you might be paying more into the property than what you get out, but over time the rental catches up with thecosts and you start looking forward to making real profit. And one day it will be paid off, and then the rental fee is ONLY profit. Simple right?
But . . . what about maintenance costs? Any property requires a fair amount of maintenance and a lot of that is up to the landlord to sort out. Like broken plumbing, leaking roofs, damaged pavement or cracking walls. There are a lot of things that can break or damage purely by the forces of nature or else. So, this is another cost that must be managed between the tenants and the landlord.
Apart from collecting any arrears in rental fees and doing regular inspections, a property manager makes this particular task a whole lot easier by focussing by taking care of all of the maintenance for you. The handle any disputes you might have with your tenants too!
Property Managers really do make owning a property a peaceful experience.
When asking whether you are managing your property the right way or not, the fact is, having a property manager and property management company doing it for you make a BIG difference all over. From the experience to the profitability. Try them, you will thank yourself you did!