Mistakes Everyone Makes In Mornington Property Management

7 common mistakes everyone makes in Mornington property management

In any business, real estate included, mistakes can cost money and time. As owning property is your route to financial freedom and a comfortable life, you have to eliminate slipups that can topple your investment. If you’re a property manager, you have to do your job perfectly to avoid an early layoff. To succeed in property management, you have to steer clear of these blunders. We got in touch with Aero Property Management in Mornington Peninsula to give us the 7 mistakes everyone makes in property management. Be sure to visit www.aeroproperty.com.au for more information.

Poor everything

Poor planning and record keeping, as well as lack of documentation and a strategic marketing plan, can hamper your property management efforts. To succeed, you need to have a clear plan and an effective marketing strategy. On the same note, you should document everything and keep accurate records.

Overpaying contractors

When it comes to maintenance and repairs, contractors can charge any amount they choose. To ensure a reasonable price, it’s advisable to procure multiple bids and compare them. To get the best value for your money, opt for an hourly rate and buy the necessary materials.

Hiring incompetent workers

Using unskilled workers is cost-effective but can be costly later. Though corrupt workers charge less per hour, they take too much time to complete the job. Their work may be shoddy too. Experts, on the other hand, charge higher rates but complete the job on time and to the best standards. Therefore, look for value, not the lowest price.

Personally performing repairs

Doing maintenance and construction work yourself is not a good idea if you don’t have enough time and the proper skills. When a tenant vacates, the apartment should be repaired quickly before another tenant moves in. If there is poor maintenance or delays in repair, the unit may remain vacant for long. That means a loss of rent.

Tenants doing repairs

Giving a tenant some money to make a repair can expose you to great risk. For one thing, most tenants don’t know how to replace flooring and paint a unit. If they decide to contract the work, chances are they may not get the right expert. Again, if someone gets injured while working, you could be held liable for their medical bills or loss of income, especially if you don’t provide workers compensation insurance.

Not inspecting properties

Don’t wait until a tenant moves out to inspect a unit. Instead, do an inspection on a regular basis. Some long-term tenants can leave extensive damage. To prevent this, make sure you check both rented and vacant units and repair them swiftly.

Deferring maintenance

Maintenance is a headache for most landlords. Property owners normally neglect upkeep until something gets seriously broken. As you may already know, extensive damages are costly to fix. They also lower property value. If your building is not well-maintained, tenants may be disgruntled and decide to relocate. Don’t let that happen. Keep units up to date, fix any damages, and improve the look and standards of your rental property.

Lastly, be sure to screen tenants. Bad tenants are synonymous with damages, late rent payment and inexcusable behaviour. Avoid them like a plague. Also, don’t hesitate to fire bad employees. They may lead to the downfall of your property empire.

Improving Your Property Management Portfolio

4 Ways To Improve Your Property Management Portfolio

When it comes to property management, many investors fail to increase their property portfolio, either because they bought the wrong properties, they tried doing it on their own, they don’t know how to manage their property portfolio or because of fear and poor financial structures. But growing your property management portfolio isn’t that hard at all. This is what you just need to do:

1. Manage your cash flow

Many investors due to weak income, high maintenance costs, low tax depreciation benefits and poor level of growth with each of their current properties; lack money to reinvest. This leads them to pick up huge loans which they can’t afford to service repayments.

But the answer to this is simple; create a positive cash flow! How? Well, apart from accounting for your expenses and revenue, purchasing the right properties on the market can increase your cash flow, service your loans and enable you to afford more property.

2. Improve the value of your properties

Investors often face the dilemma between investing for growth in their property or for cash flow. But from an expert view; why not go for both? After all, your property management portfolio will benefit from that.

That new property you are eyeing can make a big difference in your cash flow, so go for it! Make minor renovations and improvements design-wise so the property reaches the market standards. By increasing your property’s value, you’ll be able to increase your rental income, equity and savings, thereby increasing the speed at which you can purchase more properties.

3. Check your portfolio

Purchasing new property is the best way to improving your property management portfolio. But how well you manage that property can make the difference between buying more property in the future and a frustrating and costly property ownership experience.

Hiring a reputable property manager who understands the area/market and lives close to your property is the way to go. The property manager should help keep your property’s value and rental income up, by keeping accurate cash flow, taking care of your investment, choosing tenants wisely and ensuring they’re paying on time. Don’t hesitate to sack a horrible, inefficient manager who costs you money. 4rooms Property – property management in Adelaide have a team of experienced, and well-trained property managers. The Adelaide community is raving about the 4rooms Property group. Last week they even did a tweet to the 4rooms Twitter profile applauding them for their efforts.

4. Have an investment strategy

Buying any property and putting tenants will make you money, but how sure are you that you’ll get full returns from your investment? Not every property is a good investment, in fact buying property is like gambling, and probably one or two properties will hit the jackpot, literally.

Before purchasing more property, have a good strategy in hand and an end-goal in mind. The strategy serves as a guide on how you’ll make money from the property. What’s more, it makes buying the best property much easier and keeps you focused on your property management portfolio. This saves you time wasted on shopping around for property and helps you grow your property portfolio quicker.

One thing is for sure; buying more property gives you more financial freedom. You just need to be smart, invest wisely, be persistent and of course put these tips into action.

Tenant Management

Being a landlord can be exciting, but that is not always an easy task. If you are lucky and all your tenants are good people, you have scored a jackpot. It is not always the case. A standard practice in property management is a regular household inspection. There are a couple of reasons it is important to inspect properties and a couple of things to take into account.

Landlords and tenants are both protected under the law. If you are a landlord, inspecting the property is your duty. You need to give at least 24 hours’ notice before you do it, and it must happen at a reasonable hour. Take Care of the Property Inspections are necessary to make sure that your tenants have good living conditions. Even little things can quickly turn into big problems. For example, a leaking pipe can turn into a severe flood if it doesn’t get fixed.

Health hazards like damp and mould need to be dealt with as soon as possible. A broken window might be a small thing. Your tenants will appreciate little things getting fixed too. It might be an investment. But it will save you money in the long run.

Sometimes tenants don’t report problems and then blame the landlord for the damage. If you inspect your properties, you can make sure nothing like that can happen. But, inspection is essential to check on the tenants as well You can check if they are fulfilling their side of the tenancy agreement. Even if residents seem good people, you need to check that there is no illegal activity. Some of the best with paying the rent are the worst when it comes to, for example, growing marijuana in the house or flat.

Protect yourself if you are renting out a furnished property, make an inventory of everything that is on the property. It should be in two copies the same as the tenancy agreement. This way you and your tenant can sign it and each has a copy for reference. While performing the inspection check everything you mentioned in the tenancy agreement. Look at the garden if tenants are looking after it.

Look at how clean the place is and notify the tenant if you think they need to do a better job. Your relationship with your tenant will start with good and upfront communication. It will make it better for both sides, and your tenants will want to rent in the long term. It is easier to have the same tenants for a long time rather than lose time and money looking for new ones.