In a rental market that remains highly competitive; we are coming up against more resistance from private landlords when offering our property management services.
The most common opposition stems from a private rental market that is entrenched in a DIY culture which is coupled with a significant rise in vacancy rates. This has resulted in more than a few questionable decisions being made with regards to tenant screening and selection.
Whilst we certainly understand how a negative market trend can make private investors nervous; as a professional property management company we also understand that this is simply part of property investment. This cyclical nature of the residential rental market is true to its nature and is the reason why properties must be considered as long term investments.
So, When faced with a downward market trend, why should private investors consider professional; property management services? Is this yet another expenses eating into their dwindling income when rents are reduced?
To answer these questions; we put to you a recent example of a private landlord who had very similar thoughts. He had purchased a two bedroom property in a desirable location which to his delight included a tenant. Wow!, an income from day one he thought as he happily proceeded with the purchase.
Unfortunately, he had never viewed the interior of the property being told that the tenant was sensitive to viewings because of her younger children. Upon settlement he made a time to walk through the property and was horrified to find that she and her three young children had not cared for the property at all, with rubbish piled high at the back door, filth throughout the house, damage to the walls, smoking inside and out and general uncleanliness.
He issued a 14 day letter to rectify the issues at hand, with a re-inspection scheduled for that time. During this time rent topped being paid and when he arrived for the next inspection he was denied access by the tenant and threatened by her partner.
In dismay he called Quinovic Merivale, seeking help. He had been a tenant of ours and during that time he had found our management very thorough, but also very fair. He knew that we were the ones to sort out this horrific situation.
Quinovic quickly followed the necessary steps through tenancy tribunal and got the tenant evicted, the bond refunded and the necessary orders in place to recover the costs to cover cleaning and damages. The property now has a new tenant in place who is paying their rent on time and treating the property like their own home.
This is just one example how a professional property management company can take the stress out of owning a rental property. We also strongly suggest that you have a thorough inspection prior to purchasing a property (even moving rugs and larger furniture) to ensure you know exactly what you are buying.
Even though rents are lower than the last few years and some investors are feeling the pinch, employing a professional can give you the assurance and insurance against loss of rents and high remediation bills with the promise of efficient service through the use of effective policies and procedures.
And of course we are tax deductible