Property Management Companies typically provide the following services for their clients:

1. Marketing & rental of vacant units, including detailed tenant screening practices.  This will help find and retain quality tenants.
2. More efficient rent collection process.
3. Answering daily maintenance requests.
4. Provide preventative maintenance to the units, which will help to decrease vacancy periods and increase the overall value of the property.
5. Legal issues including, evictions, inspections, security deposits, leases, bond lodgement, condition report, etc.

When interviewing companies to perform property management for you and your properties, consider the following items:

1. Cost involved
2. Your preferred communication style, phone, email or correspondence
3. Their policies and procedures on all the services they offer, including where they advertise vacancies, accounting practices, maintenance, legal department, etc.

Your choice of the right property management company can provide peace of mind when dealing with your investment properties.  Therefore, take your time, interview more than one company, compare costs and services and check references before making your final choice.

We are here to help you with your full process!  From finding and purchasing your first investment property to management that property for you.  We look forward to working with you!

Location:  This is the foundation for this business.  Know your areas, do your research on the location you are considering to purchase within.  Google searches, economic reports help – but a real estate agent that markets within the area you are considering can be a valuable asset for you.  They know the sales, they know deals and they know what’s working and what’s not working in different areas.  Always keep in mind transportation flow or accessibility, nearby amenities and schools.

Legal Knowledge:  Be sure you know stuff, not only the purchase of your first investment property, but what happens when you rent out this property?  Are you familiar with the laws pertaining to being a landlord?  Read up or ask a property management agent for help in this area.  You don’t want to get involved with a tenant issue unprepared.

Insurance:  Research why types of insurance you’ll need as a landlord.  Get quotes and learn as much as you can from your insurance agent.  You don’t want to find yourself caught without the proper insurance on  your new investment.

Maintenance:  Have a way to keep your investment property maintained.  You’ll need to check local health and safety laws for landlords to make sure you are up to date and not liable for any negligence claims on the property.

Finding Tenants:  The easiest part of this task is to outsource this to a property management firm.  They’ll find the tenants, take care of the lease agreements, condition reports and bond lodgment.  Some companies offer direct payment or the ability to pay electronically which will help you keep on track with your finances.  Property Management companies will also supply you with an overview of expenses and income.  They’ll also suggest repairs, concerns and keep you notified of anything that may be of a concern to you.

We hope these initial 5 tips for buying your first investment property help you.  We’re here to answer any questions you might have and of course, we’d love to help you with your property management needs!

Australia’s unemployment rate for October 2010 has increased to 5.4 per cent, which was a complete surprise to most analysts. Despite the creation of over 29,000 jobs for the month, unemployment still increased, mainly due to the large increase in the number of people looking for work as the participation rate surged to a record high 65.9 per cent. Victorian unemployment also increased during October, increasing to 5.6 per cent, with the participation rate also increasing to 65.9 per cent from last month’s 65.7 per cent.

National retail turnover decreased by 1.1 per cent for the month of October in seasonally adjusted terms, the first decrease in eight months. Victorian turnover also decreased for the month, falling by 0.7 per cent, following last month’s 0.7 per cent increase. In trend terms the Victorian retail sector posted modest growth of 0.3 per cent for the month, while national retail turnover remained unchanged. Though the recovery in the retail sector has not been very consistent, the recent strength of the Australian dollar should help retailers discount products for the upcoming holiday season, leading to an increase in consumer spending.

An increase in the November cash rate and the excess increases in mortgage rates by the big four banks are the reasons behind the decrease in consumer sentiment for the month of November. The Westpac – Melbourne Institute Consumer Sentiment Index decreased by 5.3 per cent to 110.7 in seasonally adjusted terms, following a 3.4 per cent increase last month. The current conditions index decreased by 5.1 per cent, while the expectations index decreased by 5.5 per cent for the month. The main decreases in sentiment were in the component indices about economic conditions next 12 months and next five years as well as in the component index reflecting family finances vs. a year ago.

Scource – Real Estate Institute of Victoria

For Australia, the terms of trade are at their highest level since the early 1950s, and national income is growing strongly as a result. Recent information indicates that, as had been expected, private investment is beginning to pick up in response to high levels of commodity prices. In the household sector thus far, there continues to be a degree of caution in spending and borrowing, which has led to a noticeable increase in the saving rate. Asset values have generally been little changed over recent months and overall credit growth remains quite subdued, notwithstanding evidence of some greater willingness to lend.

Employment growth has been very strong over the past year, though some leading indicators suggest a more moderate pace of expansion in the period ahead. After the significant decline last year, growth in wages has picked up somewhat, as had been expected. Some further increase is likely over the coming year.

The exchange rate has risen significantly this year, reflecting the high level of commodity prices and the respective outlooks for monetary policy in Australia and the major countries. This will assist, at the margin, in containing pressure on inflation over the period ahead. Over the next few quarters, inflation is expected to be little changed, though it is likely to increase somewhat over the medium term if the economy grows as expected.

Following the Board’s decision last month to lift the cash rate, and the subsequent increases by financial institutions, lending rates in the economy are now a little above average. The Board views this setting of monetary policy as appropriate for the economic outlook.”

Source – Real Estate Institute of Victoria

Such high demand for properties coupled with strong population growth, rent prices are rising and tenants are finding it increasingly difficult to find a suitable property. This ultimately means residential property investors are in a strong position.

Honestly, does this look like a recession? Confidence soars; home loans at 11-month high. The number of new housing loans is at 11-month highs, lifting by 0.4 per cent in February. First home-buyers account for almost 27 per cent of home loans taken out – the highest on record. Banks account for over 92 per cent of all loans – a 33-year high. Consumer confidence surged to 13-month highs in April.