You have bought investment properties to make money. But did you know the key to maximising your profit?
Hire a good property manager!
A study released late last year – The BDRC Jones Donald Australian Private Property Investor Study provided some very interesting reading. Something for you to consider for your current or future investment properties.
The bottom line: landlords who use a good property manager, are better informed of the return they are getting from their investments, and are 15 per cent more likely to earn positive rental returns.
The study surveyed 500 Australians who own one or more rental properties. They were looking to see what their outlook on the market was, if they had intentions to buy or sell, overall profitability and the use of financial and insurance products.
What the end result was, is that 51 per cent of landlords with professionally managed properties enjoyed positive rental returns, compared with 36 percent who self-manage their properties.
What’s more, over three-quarters (77%) of landlords use a property manager in some aspect of their property portfolio. This includes a property manager overseeing the entire management of the property, to using a property manager in more of an à la carte way, such as just collecting rents or tenant management.
Of interest is that a quarter of the 500 surveyed, indicated that they plan on increasing their rent over the next few months, with a large number noticing an increase in tenant demand.
So if you are self-managing, then maybe it’s time to consider employing a property manager.