It’s fair to say now is an ideal time to invest in property in Perth. The low levels of vacancy rates indicate a shortage of accommodation, which could ultimately lead to rent rises over the next 12 months. Furthermore, interest rates are at a record low and the property market is only just beginning to rebound meaning there are still some excellent buys around.
However, selecting and buying the right investment property is only part of the equation when it comes to growing wealth. The other side of the equation is managing that property. To leverage the capital growth and earning potential of your investment, you need to treat your property as a small business. That’s what all astute property investors do.
Here are 4 key traits all successful and profitable landlords have in common:
1. They have a good relationship with their property manager
Astute landlords understand that the more on the ball their property manager, the more secure and profitable their investment. Why? Because a property manager acts as an intermediary between a landlord and their tenant. A good property manager does a lot more than just collect the rent each week. A good property manager is proactive, providing regular reviews and advice about up-to-date market knowledge to ensure the landlord continues to earn what they should in the current market. They also understand both the risks and consequences of a rent increase.
2. They are on good terms with their tenant
Just because you use a property manager doesn’t mean your relationship with the tenant doesn’t matter. To the contrary. Keeping on good terms with your tenants can go a long way toward making the relationship more beneficial for all parties. This doesn’t mean you have to know them personally. It’s just wise to keep the lines of communication open. Astute landlords are open to reasonable requests from their tenants in regard to property maintenance and upgrades. Tenants will also respond better to a rent increase if they are treated with respect and understand your motives. While it may be a landlord’s market right now, the tide will eventually turn, and when it swings back to being a tenant’s market (meaning there are higher vacancy rates) you will be glad you looked after your tenant well.
3. They know their own strengths & weaknesses
Even property investors who have been investing for years and own multiple properties don’t manage their own portfolios. They understand the value in paying a management fee to leave the day-to-day running of their properties to a good property manager. After all, they are the ones with access to the most up-to-date market research and are across all the legislation changes etc. Astute landlords also appreciate that there is a lot more involved in property management than many people think.
4. They educate themselves
Handing over the day-to-day management of an investment property to a professional property manager doesn’t mean having nothing to do with the it at all. Successful and profitable property investors stay up to date with real estate trends and market conditions in the location of each investment property they own. They read a lot of relevant articles, watch videos and regularly refine their investment goals and portfolio.
In short being a successful and profitable landlord is about having the right support, being fair and staying abreast with the latest property investment and marketplace information. Is 2021 your year to invest in property?