Thursday, October 06, 2016

Health check… What’s the pulse of your investment portfolio?

In the world of medicine, they say prevention is the key. We all know it's important to see a doctor or dentist for regular check-ups, and while sometimes these visits occur less frequently than recommended, it is certainly on our radar to be as proactive as possible. This is particularly necessary to ensure we can ask the important questions of our health care professionals, we are aware of what is going on with our wellbeing, and also to ensure a plan can be put together should further action be required. 

When it comes to property investing, we believe the same principals apply. At Toop&Toop we think every investor should be asking the important questions of their agency to ensure their property portfolio remains healthy.

So what are the important questions we believe you should be asking? The big five areas are:

1. Property Condition.
What steps are being taken to monitor the condition of my property during a tenancy? Am I receiving property reports and photographs after each routine inspection?

2. Maintenance.
What is the plan to reduce my costs? Are there any preventative maintenance packages available to me? How do I ensure maintenance is being reported promptly?

3. Rental Income.
What are rents doing in my suburb? What can I expect from my rental income at lease renewal time?

4. Tenant Selection.
What processes are in place to ensure the right checks and balances are completed in the property application stage?

5. Legislation.
How well versed is my Property Manager with the relevant legislation? Am I being adequately advised of my rights under the Act?

Whilst many landlords adopt an 'out of sight, out of mind' approach to their investment properties and managing agent, this will only work if your health check comes back positive. 

Where this often falls down, is when there is a complacent agent involved. Suddenly the 'out of sight, out of mind' approach can create big issues, from not only a rental return point of view, but also the overall upkeep of your property.

We feel a health check of your portfolio is crucial to ensure optimal returns are being achieved. Being aware of what is going on with all the essential components of your management is imperative.

With winter now behind us, and before the typical busy period hits, we suggest that this is the time to chat with your agent and ask the important questions.

At Toop&Toop our role is to ensure everything is heading in the right direction with your portfolio's health and to help ensure you have peace of mind. If you want to check the pulse of your investment portfolio, give our team a call today!

Suzannah Toop

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