Important tools for effective asset management
Savvy property investors know they need to treat their investing journey like a business.
And like any business, there are methods you can employ to improve your efficiency, value position and returns.
One of the key factors when achieving property success is effective asset management, especially if you have a growing portfolio.
So how do you put the best strategy in place?
Most investors engage a property manager. For a relatively small percentage of your rental income, a property manager will take care of your assets on a day-to-day basis.
They will organise routine inspections, deal with complaints or requests from tenants and organise quotes for repair work. When the lease is up, they will broker an extension or rent increase.
If a tenant vacates, the manager will list and market your property to attract the best new tenant.
This may all sound like manageable work for one or two properties in a local area, but if you want a larger portfolio spread across different cities and states, you’d be looking at a full-time job without a property manager.
Blink Property was set up for more ambitious investors, with a focus on helping landlords realise their goals through a holistic approach to property management.
Blink’s asset managers will also take care of the day-to-day stuff, but they will seek first to understand a client’s motivation and work with them to achieve their financial investment goals through a tailored approach.
But the key point of difference is that while most regular property managers are usually the most junior staff at a selling agency, Blink managers focus purely on property and portfolio management.
Far from routine
During routine property inspections, Blink managers make recommendations based on the financial impact to the property, work towards improving the income of the investment and maximise its return and value.
They actively seek chances to prevent significant repairs in the future by addressing potential issues at an earlier—and more cost-effective—stage. This approach not only minimizes expenses but also maximizes the efficiency of any necessary work. This could mean suggesting a kitchen is renovated, or a new hot water system with a warranty is installed, rather than organising repeated patch-ups.
If a tradie needs to be called out, a Blink manager will use that visit to have any other fixes or checks done at the same time to save money on future callouts.
Besides having a great manager on board, there are a number of other tools to help you manage your assets.
Understanding market trends and property values is crucial when making decisions about whether to access equity, sell an asset or increase the asking rent.
Analytics tools provided by data companies like CoreLogic, PropTrack and SQM Research will give you insights into value trends, suburb profiles, comparable sales, days on market, vacancy rates, vendor asking prices, average rents and views per listing in certain areas.
Sites like realestate.com.au and Domain allow you to put your property in front of the rental market (or buying market if you are looking to sell). They also offer features that allow you to manage inquiries, schedule inspections, and look at the track records of selling and leasing agents to make sure you are making informed decisions.
Specialised investment software such as Real Estate Investment Analysis (REIA) can help you analyse your portfolio’s performance and can simulate future scenarios, accounting for value growth or falls, rental income and fluctuating financial costs.
These can help you make informed decisions for the future and also plan for hurdles and different outcomes.
Legal compliance can be one of the biggest deterrents for investors wanting a big portfolio. There’s so much complex reading and paperwork to be across to ensure that leases, contracts and transactions comply with relevant laws so you can minimise risks to your investments. Tools such as PEXA for electronic settlements and Lawpath for legal document templates can help you navigate this space efficiently.