The No #1 Property Expert You Need To Grow Cash-Flow and Capital Growth
Being a successful property investor isn’t about being an expert in all things. It’s about building an investment team, all of whom have an integral role in making your investments a success.
The most valuable person in your team will vary, depending on what phase you’re in. Investment phases are:
- Acquisition phase: when you are buying property
- Holding phase: when you own numerous properties and are growing your cash flow and capital growth over time
- Lifestyle phase: where you are able to use your passive income to live the life you want
Here I discuss the most valuable person in your investment team when you are in the holding phase.
Unsurprisingly this is your property manager. Why?
I’ve said it before, but real estate investment isn’t a get-rich-quick scheme. To do it well and grow the highest amount of capital value you need to allow for 15-20 years. So, doesn’t it make sense that the most valuable person to you in that time frame is the person looking after your property day in, day out?
The key is finding the right property manager, because if you choose the wrong one, their influence can result in some bad outcomes.
How can we choose the right property manager?
UNDERSTAND WHAT THEIR ROLE IS
A property manager should do a lot of things for you, but the one thing they shouldn’t do is offer investment advice. News flash here people – most property managers or real estate agents aren’t property investors. While they may be the person you talk to most often about your property, they are not the right kind of expert to give you tips on when to buy or sell, or where or what to invest in.
A property manager should be able to tell you when to increase rent rates, or when you need to renovate or make improvements so you are still able to charge the rents you want. In short, they should have the skills and knowledge to maximise the rental potential for your property.
DON’T CHOOSE A SALESPERSON TO MANAGE YOUR PROPERTY
If a property manager is telling you to sell your properties and not giving you support on how to maintain and maximise them for rent – run! The right property manager isn’t trying to make you sell your property so they can make some cash. The right property manager cares about minimising your risk and maximising your asset.
DON’T GO FOR THE CHEAPEST OPTION
Scrimping and penny-pinching when it comes to what you pay your property manager is a quick and easy way to getting a dud. Think about what your property is worth. Then imagine handing a suitcase full of that amount in cash to the cheapest bodyguard you can find. Feel safe in the knowledge that your cash is being well looked after? Probably not. In the world of property investment, property managers are not a high cost for you, so don’t be cheap. Do some research and you’ll find that the companies charging slightly more, have the reputation and history to back it up. They know how to manage properties so that investors like you can grow wealth.
GET A CHECKLIST
Positive Real Estate have a checklist of questions you can ask prospective property managers to find out if they’re the right person for you. For this and more why not join one of our free events?
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By Jason Whitton
Group CEO Positive Real Estate