How to choose a Property Manager

These days the market for property management and sales is very competitive on fees, we see numerous agencies struggling to compete with well established companies, the only leverage is to drop the fees, to reel you in!

Investors who have been in the market for some time have the heads up, they know quantity  is no comparison to quality, unfortunately most likely having had to fork out a small fortune to rectify the damage caused by employing an agent who promises you the world for next to nothing in management fees. We have seen this scenario all to often.

So how to you choose an agent?

Firstly you need to know what your expectations, are, make a list and make these clear to your chosen agent. You are paying for a service, it's that simple.

If you are new to the market, find out as much information as you can about what's expected of you as an owner, many issues are resolved quite simply by understanding what your responsibilities are. A good agent will know what these are.

Experience is the number one asset an agency can offer you.

All good agents are up to date with legislation, this is a very important factor, the agent must hold a current licence, don't be shy about asking to see the licence and other relevant documents.

Put everything in writing, these days with technology and smart phones, it's so simple  to send a quick email.

Has your agent ever owned or currently own a property of their own? This is not essential, however it does give you a little faith knowing that you have someone who understands how it feels to pay a mortgage or can recognize maintenance issues in the early stages.
Does the agent live local? Agents who live 50 miles away or have never lived in the area can tend to overlook inspections or bond Inspections, or forgetting to follow up.  

Who will take care of your property if your property manager is on holiday?You want to ensure that there are procedures in place, you don't want your property forgotten about.

All good agencies provide you with dated photos for routine inspections, you are paying for this service, make sure that the inspection is actually conducted, if you are local perhaps attend every now and again.

Is your property safe? Is there anything that you are aware of that is a possible hazard- Yes? Then FIX IT, turning a blind eye could very well land you in trouble, if your agent also turns a blind eye then that's Double trouble.

We are strong believers in the old saying, "what you sow is what you reap", always do the right thing, there are no guarantees with any type of investment, but if you get the have the right agent you are on the right track.

So how do you choose which agent to sign up with?

One who ticks all the boxes, Century 21 Boardwalk Rockingham, living local with over 100 years combined experience 

EBM INSURANCE 10 Tips for Avoiding Under Insurance

EBM’s 10 tips for avoiding underinsurance

 

For investors and homeowners alike, insurance can provide cover for losses and damage due to unforseen events, however, insurance can be worthless if you don’t insure for an adequate amount.

 

In light of this, we would like to share an article from this month’s Property Investor smartbook, detailing EBM insurance broker’s 10 tips for avoiding underinsurance.

 

Even the best insurance policies can leave property investors exposed if they don’t insure for an adequate amount. The General Manager of RentCover landlord insurance, Sharon Fox-Slater, describes underinsurance as “rife” in Australia’s property market.

 

“Study after study shows that Australians tend to underinsure. Every time there’s a major disaster, such as the recent New South Wales bushfires, we hear about more cases,” said Ms Fox-Slater.

 

“If you insure an investment property for $200,000 and the actual rebuild costs $400,000, you risk being caught severely short.

 

“Most investors don’t deliberately underinsure but it’s not easy to accurately estimate the costs of rebuilding.

 

“It’s often more expensive to start again than to build from scratch because there’s demolition to consider, and construction costs rise over time.”

 

Ms Fox-Slater offers the following tips to avoid being underinsured:

 

- The most accurate method of estimating rebuilding costs is to approach a quantity surveyor for a written replacement cost estimate – other professionals who can help include architects and builders.

 

- If you use online calculators, choose ones which ask detailed questions, such as whether your home is on a slope. Compare the answers from at least three, then add a margin for safety – and ask a builder for an opinion on the final figure you come up with.

 

- Increase your sum insured every year to keep up with construction costs. According to the Australian Bureau of Statistics, the cost of building a new home raised an average of 7.7 per cent each year in the decade to 2008. 

 

- Remember to include supplementary costs associated with rebuilding, such as demolition, professional fees, council fees, gardening costs, and the cost of meeting modern building standards.

 

- Keep the big picture in mind – deliberately underinsuring your property might save you a few hundred dollars in premium, but lose you tens or hundreds of thousands of dollars if you need to claim.

 

- Do your homework and try to avoid becoming one of the many people who only read their policy document after a loss.

 

- Shop around when renewing your insurance but remember to look for “value” and features not just the cheapest price.

 

- If you’re not in a strong enough financial position to cope without rent for six months to a year or more without rent while a rebuild occurs, take out landlord insurance.

 

- Keep your sums insured up to date, accounting for improvements, renovations and new possessions you acquire.

- Take photos of your investment property to help you remember what fixtures and fittings are in place should you need to claim.