Manage
Are You a Lazy Property Investor?
REAL STORIES
Discover the answer with MRE’s DIY test!
Investing in real estate can be exhilarating, yet how you actively manage your investment can significantly impact its success. Take a moment to consider your approach. Within a few minutes and some simple steps, you can assess how engaged you are with your property investment. Ready? Let’s go!
Phase 1. The Google Check
A simple start, type in your property address followed by Domain Report. What you discover could be eye-opening.
So what exactly are we looking for here?
Marketing material assessment – An attractive presentation is key: Check the images and floor plans that have been used to market your property and then ask yourself: Are they showcasing your property at its best? Are any key rooms missing from the lineup? Does this meet your expectation as to how your property should be marketed?
Market time – How long did your property stay on the market? More than 28 days can indicate issues, whereas under 10 days could suggest your investment was priced too low. Vacancy is costly – each week is almost 2% of your annual return.
Online marketing reports are crucial
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Phase 2. Email Your Property Manager
Now it is time to get in touch with your property manager. Here is some assistance if you don’t know where to start.
Key elements to request:
Condition report: This document is crucial as it outlines the state of your property at the time your tenants move in. This document is the backbone of any dispute resolution when the tenants move out. How does yours compare? Does yours leave you feeling protected?
Routine inspections: ideally these should start 3 months from the move-in date and continue on a 6-month basis. The format and thoroughness of this report can vary between agencies. It could be a sentence in an email, a bunch of photos or a walk through video. What has your experience been so far? Do you feel comfortable with how the tenants are keeping the property?
Rental increases: With increases permissible only every 12 months, timing and accuracy are essential to the effective management of your investment. A proactive agent will discuss a potential increase well in advance, any rent increase needs to be issued to the tenant 60 days before it takes effect so a good agent will speak to their clients 9 months into a 12-month lease to discuss a rent increase to take effect at the end of the lease term. Reflecting on your experiences here, how well-timed was your communication? Has your rent increase been late or missed, and how does the price of your property compare to similar properties on Realestate.com.au today?
When was the last time you requested a condition report on your investment?
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Phase 3. Compliance Checks
Disclosure statement: Have you signed one of these recently? You should have! From March 2021 these are required to be signed by owners when a new tenant moves in, a new lease is signed, or when a lease goes from fixed term to month to month. If you haven’t seen this in your records, this could indicate that your leases are invalid, and you can face remuneration.
Is your gas, electrical and smoke detector checks up to date? Since March 2021 these checks are not just advisable, they are mandatory for your investment. While this isn’t a cheap exercise it is essential for the safety of your tenants. Gas and Electrical checks are required every two years and smoke detector checks every single year.
Have you signed one of these recently?
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Phase 4. Evaluation Time
After running through these steps, it’s time to reflect. How did you and your agent fare? Are you on top of your investment, or have you found areas where improvement is needed?
Investing in property is not a set-and-forget affair. Being proactive can not only save you from potential legal headaches but can also ensure your investment grows healthily over time. If you’ve discovered you’re more on the “lazy” side of the scale, worry not; it’s never too late to take charge and steer your investment towards success and call MRE on 03 9829 2900, today!
Be a proactive investor, today
Contact MRE's Business Development Managers today and ensure your investments reach their potential