Most investors wish to diversify their investment so that if market conditions result in losses for one asset class, they will make money elsewhere. One of the most popular investment options in real estate, since people always require a home to stay.
However, most property investors have busy professional and personal life. So they do not have enough time to manage their property and get the best possible returns. They also find it difficult to do property maintenance, finding repairpersons, and supervising their work. One way to overcome this problem is by hiring a reputed real estate management company like Frasers Property.
Image by Gerd Altmann
The profit which an investor makes from the property he purchases depends to some extent on the resale value of the house. Most investors will resell the property after a few years. Additionally, the property owner can maximize the profit they make from their investment by renting out the property until it is resold.
Yet, because the process of finding a suitable tenant for the property is very time consuming, many property investors leave their investment property vacant. One of the main advantages of using property management services is that they will find the right tenant for the property.
The property managers will take care of all activities related to finding a tenant, like promoting the property to potential tenants, showing them the home or apartment, and finalizing the lease deal with the tenant.
They will also negotiate with the tenant to get the best possible rental deal for the investor to maximize his profit. They will use their extensive network to find the right tenant in the shortest period so that the home is not vacant for longer periods. A background check will be carried out on the tenants to minimize the risk involved in leasing out the property.
Since the property is a high-value investment, the property manager is trained to protect the interests of the investor. He will also handle all the legal matters for the property, preparing the lease documents for the property when it is rented out.
All the paperwork for renting the property will be completed, after consulting lawyers specializing in real estate. At the end of the lease period, we will ensure that the tenant vacates the property. If the investors wish to sell the property, the property manager can also help him in completing the legal formalities.
One of the main advantages of using a property manager is that the maintenance and repairs of the property are all handled professionally. Even if a property is vacant, due to environmental factors like heavy rains, some parts of the property will get damaged. If a tenant is living in the property, it will usually require even more repairs. The property manager will periodically inspect the property to check if there is any damage to any part of the property or whether repairs are required. Often the roof is damaged after a few years, the pipes may start leaking or the paint will peel off. All inspections are documented for record purposes.
Finding suitable repair persons can be a major problem for investors who are not familiar with the area where they have purchased property. However, the property managers usually have their own repair staff for all kinds of repair work, like plumbing, electrical work, roofing. So after the property inspection is completed, the property manager will arrange for the repair work, supplying the material required. Regular maintenance of the property will greatly reduce the cost of repairs since any problems are fixed at the initial stage itself. Tenants will also pay higher rent for well-maintained properties.
Real estate investors will receive regular updates on their property from the property manager handling it, an app is provided so that this information is available easily. They will also receive financial statements for the property, for personal finance purposes and analysis. These statements can be provided monthly or annually.
The manager will also receive all the bills for the property and arrange for payment of the bills after approval. He will also ensure that the monthly rental is paid to the investor, setting up a direct debit for the tenant. The property managers are well trained, experienced, and try to ensure that all investors get the best possible returns on their property investment.