Celia Burbery, Auckland Property Management’s General Manager, speaks with Sheldon Rodrigues about the most likely killers of profit for an investment property.
Rental Property Profit Killer #1: Pricing your property
One of the jobs of our property management company is to maximize the rental returns for landlords. Depending on the rent levels throughout the market in the area of your property, we will try to achieve a premium value for your investment property. However, letting a property sit unoccupied for weeks on end hoping to get the best price is not always the wisest move. It can be much more beneficial to decrease the weekly rent level slightly, rather than go for week without any rent being paid. The financial recovery for an unrented property takes much longer than renting at a slightly lower rate. Pricing for the best rate is advice that a property manager can give landlords to help them avoid this rental property profit killer by getting their property tenanted at the best rate possible, as soon as possible.
Rental Property Profit Killer #2: How can landlords help themselves with vacancy rates?
Contrary to popular belief, even though rental property is a high supply-and-demand industry, tenants do have choices. Keeping property maintenance and cleanliness at a high level is more attractive to tenants. It’s the little things being maintained that show prospective tenants the kind of tenancy they can expect. To avoid vacancy as a rental property profit killer, it is best to keep your investment in good shape to make it desirable so it will rent more quickly.
Rental Property Profit Killer #3: Rent arrears
Possibly the most obvious profit killer, rent arrears are a scenario where prevention is better than cure. At Auckland Property Management, all tenants sign an arrears policy that outlines the various steps that will be taken if rent is in arrears during their tenancy. Within the first seven days of arrears, tenants know how Auckland Property Management will be going about recovering their arrears if they miss a rental payment. This policy has helped with the rate of arrears.
A property manager can help landlords make the most of their investment properties by addressing these rental property profit killers.
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For any related questions that you might have, feel free to contact Auckland Property Management Ltd in Auckland who has over 20 years’ experience managing properties all the way from Bombay to Orewa. Auckland Property Management Ltd 145 Manukau Road Epsom, 1023, Auckland, Ph: (09) 638 2500 Fax: (09) 639 0873, Email: firstname.lastname@example.org, Postal: PO Box 28510, Remuera,1541, Auckland