Why Invest in Property?
Investment in property is one of the most stable forms of growing your wealth. Whilst markets change, and prices of property rise and fall, the cycle always continues. The key is to buy when the market is down, and sell when the market is up – this will almost always guarantee a return on your investment. If you would like to grow or start an investment portfolio, talk to us to find out more about what options there are for investing in property.
As an investment property owner, you want to know that your property or properties are being managed by a team of professional, ethical and caring people. This is what Professionals Cairns Beaches strives to achieve for all of their investment property owners (Landlords). Professionals can offer you a personalised service, from purchase through to finding a quality tenant who will treat your property as their home. We pride ourselves on quality of service.
Property management is an industry that undergoes legislative changes constantly, so it is important that you can be assured your investments are being managed by people who are informed and follow the right procedures to get the maximum return for you. By choosing Professionals Cairns Beaches, you are choosing a Property Management team that is fully trained in all aspects of property management and who understand the obligation of landlords and tenants.
Tips for Investors
Investing in a property can get you profits in the long-run, when the property appreciates. But in the meantime, there will be expenses that you will have to bear as a property owner. If you want to make the most of your property investment, here are a few tips from our experts to help you.
Invest in Properties You can Afford
The thumb rule for making profits with real estate investments is to buy a property that you can afford. Do not opt for properties that deplete all your savings. Also, invest in properties in growth areas if you are looking at long-term profits with property value appreciation.
Don’t Neglect Ongoing Costs
Appreciation of property value isn’t the only thing to think about when buying a property. The costs that you have to incur on maintaining it and the income you are likely to generate from it should also be considered, given that you are investing in a property for rental income. Do not underestimate ongoing costs – these include cost of regular maintenance and management of property, repairs, replacement of fixtures, renovations etc.
Be Realistic About Returns
Real estate investment can get you higher profits when compared to other investment options. But the price of properties you wish to buy is also relatively high. So be very clear and practical when you calculate the returns. Also, don’t expect to make profits right after you buy a property; real estate appreciates in value over long periods, which means you need to be patient for the property value to go up before you even consider selling it for capital gains.
Be Practical
Don’t build a property or purchase one for luxury, unless you want to live in it. When you want to invest in a property that you wish to rent out, build or buy a property where people can live comfortably, both in terms of price and lifestyle.
Negative Gearing
Negative gearing can be positive only when you understand the concept and are willing to wait for the returns. Avoid negative gearing unless you are very clear about it.
Benefits of Property Management
Property owners who place a premium on their time are the people who often see the greatest return on their investment in a property manager. A reliable and efficient property manager can help you add significant value to your property, which is why many real estate investors prefer to have their properties managed by Professionals. Whilst many investors think they can save money by managing their tenants and properties themselves, in most circumstances, this is not the case.
Why Use an Agent
A professional real estate property manager knows the rental property market inside out. He or she is well aware of the processes involved in renting and managing properties and be experienced in managing the relationship with both landlords and tenants. The agent knows the associated legislation and legal process and ensures that all procedures are followed thoroughly. A property manager takes care of everything from screening potential tenants to collecting rent, successfully arranging repairs and overall upkeep of the property.
Selecting the right property manager
Selecting the right property manager is one of the most fundamental decisions you’ll make and can make a difference not only to your overall returns, but also the enjoyment of your investment.
Over the last few years, property management has undergone a significant transformation, from simply a rent collection service, to a dynamic investment management and service system. This changing scene has brought about the need to appropriately manage new legislation and the consequences to ensure fairness for both owners and tenants alike. This includes, in some regions, the Strata Titles Act, Residential Tenancies Act and deregulation of fees charged.
It is important to realise that together with the legislation comes a greater onus on owners and agents to follow the requirements of these laws.
Now more than ever, it is prudent to ensure that your property is professionally managed by entrusting it to a manager who is trained, experienced and equipped to meet these ever changing needs.
Property managers work within a licensed Real Estate Agency. It is therefore the agency owner who is ultimately responsible for the property, so it is essential you choose a reputable name you trust when selecting the business for management of your property. It’s a big decision that creates a medium to long term working relationship and you need to feel comfortable with the company you’re dealing with. Rest assured, when you choose Professionals, you will be joining thousands of happy Australasian property investors and owners who have put their faith and confidence in us to professionally manage their property.
Our property management services
Once you have entrusted a Professionals agent to manage your property, you will be exclusively authorising that agency to act on your behalf. We will then appoint experienced property managers, who will be responsible for the day to day management of your property and tenancy. You can also take advantage of our flat fee guarantee.
Your property manager/s will act as guardian/s of your property and will provide a range of ‘personalised’ services that all include:
- Professionally screening and selecting tenants
- Providing a detailed explanation of the owners/tenants rights and obligations
- Receiving rents and issue receipts
- Arranging for repairs and maintenance to the property
- Paying of accounts such as water services and council rates
- Processing any insurance claims that may arise
- Exercising the owners/tenants rights to terminate leases and tenancies
- Reletting the property at the end of each tenancy in the event of a vacancy
- Preparing and checking the property’s inventory
- Doing all such lawful things as may be directed by the owner in writing from time to time
- Professionally and accurately reporting on the condition of the property at the inception, during and end of each tenancy
Your responsibilities as the owner
Owning an investment property is one of the most popular methods throughout Australia for acquiring wealth.
However, you’ll need to be aware of the sorts of responsibilities that you will have as an owner. The most obvious responsibilities are:
- To provide the premises in a reasonable state of cleanliness and repair having regard for the age, character and prospective life of the property.
- To comply with all requirements in respect of health, building and safety laws in so far as they apply to the premises.
- The owner is responsible for ensuring that the property is kept in good condition. Some expenditure incurred for repairs (not of a capital nature) can be an allowable tax deduction against rental income.
How to set a fair rental price
Setting a rental price is one of the most critical decisions you will make as the owner of the property. Your Professionals property manager is best qualified to assist you with determining a fair market rental value for your property.
The condition of the property must be considered when assessing rent. Location of the property is also relevant, as is the length of term offered.
Some owners make the mistake of setting the rent too high and consequently not attracting a tenant. This will waste your advertising dollar, along with the loss of potential rent whilst trying to secure a suitable tenant willing to pay the higher rate.
Finding a tenant for your property
When you buy an investment property, or rent your home, it’s important to secure long term tenancies where possible to maximise the investment returns. As local estate agents in the Cairns Beaches region, we are able to offer landlords a service that’s much more than just ‘finding tenants’. Our property managers have an excellent knowledge of local market rents, supply and demand and assistance in preparing a property for rental; experience in tenant negotiations, and an award-winning property management service.
Renting or letting a property is about more than a simple online listing or a card in a window: the process can be highly personal and often involves numerous complicated steps.=
Our leasing program is designed to achieve maximum exposure for your property in order to obtain better tenants, paying the best possible rent with fewer vacancies. A good quality, long term tenancy proposition is far more attractive, than constant turnover in tenants.
To find out more about letting through the Professionals Cairns Beaches contact our Team today.
Looking after your investment
Once you have confirmed acceptance of you new tenant, we move quickly to arrange all the appropriate documentation including:
- The Residential Tenancy Agreement
- The Condition report
- An inventory of any fixtures and fittings (if furnishes)
- Bond Lodgment Form
- Other documentation according to the terms of the lease
Your Property manger will also ensure your property investment is well maintained and protected. Professionals carry out thorough routine inspections. Final inspections are carried at the end of the tenancy.
After each inspection we will provide you with a written report which includes photographs.
Rent Collection & Disbursements
At Professionals, we understand that accurate and timely financial management of your rental income if crucial. A comprehensive statement will be emailed to you monthly detailing any income or expenses each month. An end of financial year report can be issued in July each year at an extra cost to assist you with your financial report for tax purposes.
All rent collected is held in our trust account until the funds are released directly to your nominated bank account. The funds can be released twice per month- mid month and end of month.
If you would like to change your bank account details or disbursement frequency, contact our Team today
Maintenance & Repairs
Professional’s presence and reputation means we have been able to attract the best quality tradesmen at the best price to ensure you get great value for money.
You Property Manager can assess a maintenance request and decide the best course of action to take at a minimum cost and disruption to tenants.
As required, your property manager will:
- Arrange quotes where required
- Obtain your approval to proceed with repairs
- Prepare work orders for appropriate repairs to be carried out by professional and qualified trades people that we recommend, or you nominate
To find out more about our maintenance process, contact our Team today
We hope you’ve found value in the information provided. Please note that this information is intended as a guide only. Professionals companies, members, directors, offices and employees do not give warranty as to the accuracy, reliability or completeness of any information provided on this website and shall not be liable for any loss or damage suffered as a result of anyone relying on information provided. Professionals recommend you seek independent advice from your own real estate, financial, taxation, and legal advisors before entering into financial or other transaction.