Stay detached from your investment property

Why you should stay detached from your investment property

We’ve all heard those nightmare tenancy stories: the students who neglected to notify the owner of broken fittings; the elderly couple who didn’t notice the rising damp in the bathroom; the MIA tenants who failed to pay rent on time. On the other side of the coin, we’ve all heard about that friend-of-a-friend property investor who breezes by, luxuriating in the rewards of a passive income.

The answer?

It all comes down to your level of emotional attachment. And in the case of investment properties, the weaker the binds, the better.

If you’re feeling the pressure of property management, here are five ways to take yourself out of the equation.

Accept your knowledge gaps

As a property investor, you’ve more than likely made sure you’re informed about market terminology, trends and the basic legalities, like tenant’s rights. Unfortunately, you don’t know what you don’t know.

“What you think might be damage to your property might be classified as fair wear and tear,” explains Marcel Dybner, head of property management at Besser & Co. “It can cause a fair bit of dispute if you don’t know the law well.”

Recognise when it’s time to let go

There’s a list of responsibilities that go hand in hand with property management. As the owner and manager, you’ll need to take care of maintenance, handle inspections, repairs, rental increases and evictions if necessary. If you’re feeling the effects of property-management strain — less time, less energy, arguing with tenants — it might be time to hand over the job to the professionals.

Do your research

Nightmare tenants? You can bring in a property manager at any stage of the tenancy.

“First, chat to your friends and family who own investment properties,” Dybner says. “Alternatively, get on to domain.com.au and search for your suburb and properties similar to yours.

“Have a look through the agent listings. Well-written descriptions and good photos are an indicator of professionalism.”

Let technology be your saviour

When it’s time to hand over the reins, don’t judge a book by its cover. Dybner recommends opting for a tech-savvy property manager over the investment veteran.

“A lot of people make the mistake of going for someone who is older and appears more credible. When it comes to modern-day property management, a lot of it is technology-based. It’s actually the younger generation who are proficient with these tools and they can manage the property more efficiently.

“At Besser & Co, we take a digital, comprehensive, ingoing condition report with between 150 and 400 photos of the property, all labelled and marked by room. This usually removes any doubt as to if any maintenance needs to be done and if the bond is to be returned in part or in full.”

Reap the benefits and relax

While you might feel like your investment property has a life and personality of its own, investing in property needs to be a business decision. Investing in a property manager puts up a figurative barrier between yourself and your tenants, so that when tough decisions need to be made, a professional property manager can negotiate the best result without sentiments getting in the way.

Take your feelings out of the equation. Viewing your investment as a business venture can help you be more pragmatic. You’ll be all the more balanced for it.