Buying your first real estate investment can sometimes give the impression that you have just stepped into a dream dimension; a place where you can literally earn money while you sleep.
But in reality, it can also be a rush in itself. And, by working with a real estate manager who does not put good projects to the ground, an investor can very quickly work over time, these valuable and fleeting opportunities to secure a tenant, or to maintain it more, more likely to get lost .
"There is no doubt that being a real estate administrator is a difficult task. However, as an investor, it is imperative that you have an excellent property manager, who takes care of your valuable assets, "says Grant Foley, director and buyer agent for Grant Foley Property and member of PIPA (Property Investment Professionals of Australia).
"To really evaluate the quality of a property manager, I would recommend at least a formal face-to-face interview, as well as interviews with arbitrators provided by the property manager."
He himself owns 18 properties, and with an investment portfolio exceeding $ 9 million, Foley is not a novice to understand the backup an investor needs to more and more.
An experienced and versatile property manager should eventually be able to keep property in good condition and generate smooth profits.
"Extra effort and rigor in looking for a great property manager right from the start could save you a lot of pain and extra costs. That's if you're wrong, "says Foley.
"Real estate management is about people. Inexperience, lack of continuity and lack of organization, communication skills and problem solving are the most common frustrations among property managers. "
But from what moment can you detect if a person warned of a tenant, trying to generate profits or to get a profit, has just fallen under your radar?
In fact, it's up to you, as an investor, to take this call – and that starts with knowing the right questions to ask; immediately after this initial handshake and well before signing them.
"Apart from basic notions such as agency service level agreements, fees and associated fees, you want to get an idea of ​​the quality of the agency's employees", says Foley.
To steer you on the right track, the investment and real estate pioneer recommends investors to start by asking 8 questions to a potential property manager:
How many years of experience do you have as a property manager?
How many years have you been working in this suburb / in this agency?
How many properties do you manage?
How many properties do you currently have vacancies?
Will you be my main contact?
Share with me a complex problem that you have recently resolved?
Tell me about how your team / office works. What processes and systems do you use to make sure everything works properly?
Can you please share 3 owners as referees who would be willing to speak on your behalf?
But if an interview can help you detect alarm signals in advance, the actions always speak louder than the words. And so, such adage continues to dominate as a key indicator of a property manager's ability to secure tenants, maintain rental income and overcome barriers.
Saying this, here are three things your property administrator should do:
Agree to take marketing to the next level
"Over the last 15 years, the combination of real estate strategies has undergone a major transformation from print advertising to online directories and now to social media," says Miguel Donnenfeld, co-director and chief production officer. from JustClickVideos, the first video automation platform of its kind to enter the real estate market.
"Those who were first to embrace online technology have benefited from early adoption, and I think agents who take seriously the new opportunities offered by social media," he says.
"Videos are, in my opinion, the next step in the evolution of visual content to attract tenants and buyers."
The time for real estate managers to limit enrollment to a few powerful sentences is over. The videos could very well be the next wave of effective, visually – directed marketing, the JustClickVideos platform to appear next to all nationally listed properties by 2021.
Donnenfeld sees video as the most powerful and effective communication tool in today's digital landscape, believing that social media is changing the game today to attract the right buyers and tenants.
"I can foresee a future where those who do not have videos on their properties will miss a segment of the market that will exclusively use videos to perform their initial filter and their selection of realizable properties to rent or rent," he says. .
"This is how the new generation thinks and seeks information. It's a matter of time for those who do not adopt the video will be left out. "
Be proactive in exploiting a range of tools and strategies
According to Donnenfeld, a results-oriented real estate manager will use all the means at his disposal to attract as many potential tenants as possible and best suited to his needs.
"We now assume that the real estate agent or manager will know his suburbs as if he were on the palm of his hand. Add to that an agent who uses the right tools – so you have an excellent one, "he says.
Donnenfeld encourages investors to question their real estate manager's approach: "Are they adopting new technologies and making the most of the benefits of this exciting and evolving digital market to attract the best buyer or tenant?" your property? He asks.
"Or do they leave that to fate?"
A property manager wishing to use a number of strategies will not only help maximize an investor's rental income, but will also help ensure that tenants reside in the investment property for as long as possible.
Being able to search for unique niche routes can also potentially elevate the ownership of similar ones that flood the market at any given time.
"Make sure your agent is up to date with technology and trends, especially digital," Donnenfeld advises.
To be able to think standing up and stay connected, whatever the circumstances.
The unexpected can always happen, so it's important to team up with a real estate administrator who can overcome a problem or adapt to a sudden change in circumstances. that it is the case of a tenant who files a complaint, of a tenant who must leave a property on its own terms or of the rental application taking a dip.
"A good property manager will obviously have many years of professional experience, knowledge of the sector and the local market. They will have a high level of emotional intelligence and will be confident and authentic communicators, "says Foley, director of Grant Foley Property.
"They will also have to be very organized, be a crack negotiator and a complex problem solver."
It's as much about a real estate manager's success as their attitude throughout the process – because even goals that seem to be the most targeted can be deflected by the wind.
Asking a real estate administrator to stay in touch with you and constantly maintain a property at a high level is definitely a tick in the right box. However, the investment property could be built on shifting sands if they then choose to fade from the background or reduce contact with you in more difficult times.
Foley says that nothing beats a personal word of mouth recommendation.
"Before you interview all the estate management agencies of a selected suburb, networking with other real estate investors can be a good starting point to help you discover the information on the identity of the best real estate agency or manager in town, "he advises.
"Groups such as the Australian Real Estate Investor Council (AICP) hold regular meetings among their members, where investors come together to share their experiences, learnings and ideas on real estate investing " In all areas ".
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