Property Management Know How from Australia’s Best

Introduction by Geoff Doidge

When someone asks me how I choose a Property Manager to manage my properties, the answer is simple. I choose the very best available.

How do I know who the best available is? I seek out those who’ve won top industry awards, by recognized property management associations and regulatory bodies, such as the Real Estate Institutes in each State and Territory of Australia. Some of the larger Real Estate companies also have their own ‘in-house’ awards for their top professionals, so there is no shortage of information on the very best Property Managers out there.

Wouldn’t you love to talk to the best Property Managers around and pick their brains? Imagine the clever ideas they’d have, the years of experience they could draw upon and the down to earth practical knowledge they’d be able to give us!

Well, we’ve done just that! We asked some of Australia’s top Residential Property Management experts what they would say to property investors around the country in the New Year of 2009.

Our Experts

 
Alex Scott
Principal, Top Notch Property Management, ACT
2004, 2007, 2008 Canberra Times REIACT Awards for Excellence - Residential Property Manager
2008 REIA Australian Property Manager of the Year

 
Carolyn Wright
Licensee & Owner, Your Property Manager, Melbourne, VIC
2007 Century 21 Property Manager of the Year (VIC)
Property Women Presenter

Karen Herbert
Principal & Owner, Position One Brisbane Property Centre, QLD
Australian Property Investor Magazine - Panel Expert contributor
REIQ Trainer

Rob Druitt
Principal, Druitt First National Real Estate, Perth, WA
REIWA President

Naomi Spiteri
Residential Property Manager, Peter Hill First National Real Estate, North Sydney, NSW
2008 First National Property Manager of the Year (NSW)

What is your number one tip for someone looking for a tenant?

Alex : "Consider all applicants, check references thoroughly, be realistic about the fact that your investment property will deteriorate over time, even with the best tenant in place."

Carolyn : "Ensure your property is in good repair and is CLEAN when putting it on the rental market!! Be prepared to keep your property in ‘good repair’ as it is a cost of being a property owner. Spend money on items that will increase your returns such as heating & cooling, a fresh coat of paint and/or new carpet can do wonders and doesn’t have to cost the earth."

Karen : "Maintain your property!  Tenants indicate that they are “shopping more” for less expensive property after the hike in rental prices that has occurred this year.  To avoid any potential vacancies you need to have a well maintained property.  One of the major reasons that tenants move out of a property after rental increases is that the property is not maintained and repairs are not adhered to."

Rob : "Good, independent references from another agent (from the applicant's previous lease/property manager)."

Naomi : "My number one tip for someone looking for a tenant is first impressions are the best impression. An applicant applying for a rental property should treat meeting the Property Manager or Landlord directly as a job interview. The applicant should be presentable and approachable. All references should be thoroughly checked to ensure the applicant is suitable for the property. The landlord and the Property Manager need to be certain that the landlord’s asset will be cared for."

What would be your message to residential property investors right now?

Alex : "... to be prepared that in order to secure a good tenant, you may not get quite the premium rent that investors have enjoyed in the last 12 months but there are plenty of people looking for accommodation so keep your property well presented, answer all enquiries - get as many people through the door as possible and have a slush fund for maintenance because there will ALWAYS be maintenance!! Look after your tenant and they’ll look after you."

Carolyn : "Hmmm…. You could ask this question to twenty different people and get twenty different answers. I am an investor who looks to ‘buy & hold’ and now is possibly a great time to start looking for a great buy and with the potential for excellent returns but you still need to do your ‘due dilligence’ and to shop around.

Research the areas you intend to buy in and remember that Main Roads & Secondary Main Roads can be limiting. Look for quality properties in desirable locations where supply is low – this is known as ‘scarcity value’. If you buy something older style, make sure it has the potential to be a ‘gem’ once renovated.

Tenants are looking for the following:-

• Close to shops, schools, transport & beaches are always a winner
• Renovated or improved and in very neat & clean order
• Heating & cooling are fast becoming essential items
• Space & light
• Car parking
• Updated or new kitchens & bathrooms
• Energy efficiency & water saving technology is becoming increasingly popular
• Bigger fridge spaces & less yards & maintenance (generally speaking)
• Neutral colourings are a bonus
• Consider including ‘garden maintenance’ in the rent as it takes the onus off the tenant"

Karen : " Buy, buy, buy!   Having purchased my first home at a staggering 17.5% interest, I understand how attractive an interest rate of 6.5% is to an investor in this current market.  As interest rates continue to tumble, stock at the bottom end of the market will be snapped up and therefore newer stock that comes onto the market will come on at a higher price."

Rob : "Look for opportunities - of which there are - because of prices coming down."  In Rob's area, they are seeing investors start to come back into the market for the first time in about 2 years.  "The market has come back on average 10-15% and rentals have increased over 30% in the last 3 years - the natural cycle."

Naomi : "My current advice to a residential Property Investor would be if they are looking to increase their portfolio of assets, this may be the time to do so, as the prices for residential dwellings has eased and the demand for rental accommodation is evident. Investing at the right time is crucial to maximise the return for an asset."

And what should residential property investors look for in a Property Manager who is going to manage their asset!

Alex : "Somebody who takes pride in their important job! Someone who is well informed, proactive and approachable. Experience of course is great but only if combined with enthusiasm and drive!"

Carolyn : "Look for a Property Manager who has a vested interest in the business they work in!   Ideally your Property Manager may also be a Landlord and perhaps even been a tenant at some point. Meet them and interview them – preferably not over the phone. You need to get a gut feel about them and to have confidence in their ability to represent your property. Be a tenant for a day and make enquiries on properties that are For Lease with their agency. How are you treated as a potential tenant?   Would you as a Landlord be pleased if you were a potential tenant of this agency? If not, then would you want them managing your property? How does the Receptionist of the agency treat you when you call?   Whether you are a Tenant or a Landlord, you are potential business and you should be treated as such.   Make yourself a checklist of things that are important to you and sit down to discuss these things with your prospective agent. Are they happy to sit with you for an hour to explain the process in which they lease & manage a property?"

Karen : "An educated agent who is up to speed with all the current legislation, who communicates well and understands the importance of keeping abreast of fluctuating trends.  An agent who will look after your valuable investment as if it were their own!"

Rob : "A number of things : The backing of a good, solid company who is experienced in the particular market place.  The Property Manager must be a good communicator who keeps the landlord closely informed of what's going on and is good at following (the landlord's) instructions.  In summary - the landlord must feel as though they can work well with the Property Manager"

Naomi : Naomi told us "Property Management is no longer about just 'collecting the rent' " and in fact "to fulfil the needs of your clientele it is (of) utmost importance to be up to date with the continual change of legislation by attending seminars and having a track record of training within the industry.  The most vital attribute of a Property Manager is communication ... as this assures Landlords that their assets are in capable and knowledgeable hands."  Being a landloard herself with her partner, Naomi's appreciation of an investor's property as an 'asset' is evident, as she says "When choosing a Property Manager ... it is important to know that he or she is confident in managing ... to maximise the return of your asset."

There's more ...

Find out what's happening in markets all across Australia. Read on to discover the growth of median rentals all around Australia over the last 3 years ... and we ask our experts their opinion on their local market.  Click here to read more from Alex, Carolyn, Karen, Rob and Naomi.