Monthly Archives

August 2018

How to make the most of a Property Manager

Q: We have recently purchased an investment property and have been strongly advised not to manage it ourselves but to use a property manager. How do we make sure we get the most from our property manager? Cheryl P.

A: We passed your question on to Delanie Horrobin, of Super City Rental Management, who responded:

Every landlord is different, with different needs, different investment motivations and different expectations of a property manager. Communication between all parties is key. For this reason we like

to discuss some of the following questions to help us customise our service to your requirements as a landlord:

  • What is most important to you in respect to how your property is managed?
  • How often would you like to hear from your property manager?
  • How would you prefer us to contact you? Phone, email, text?
  • Are there any chattels at the property we need to be aware of or that you are considering adding?
  • Do you have any concerns around the management of your property now or in the future?
  • Have you ever used the services of a property manager before, and if so what did they do well and what could they do better?
  • Are you interested in ongoing advice on how to grow your portfolio?
  • Do you prefer a low or high level of communication from us around minor issues or updates?
  • Do you understand the importance of ongoing property maintenance and how this can affect your investment return?
  • Do you have an investment goal or strategy?
  • Are you interested in ongoing advice on how to grow your investment portfolio?
  • Do you have a landlord insurance policy?

This helps ensure that expectations are set and continue to be met throughout the working relationship.

 

Choosing to have your property professionally managed is a big commitment. Whether it’s the family home or part of a million dollar investment portfolio, you

need to ensure that your asset is being maintained to the highest standard.

Here at SuperCity Rental Management, we understand that; so give us a call to hear more about what we have to offer.

Understanding Property Valuations

How much is this property worth? It’s a common (and smart) question to ask. Recently we’ve noticed a lot of confusion when it comes to property valuations. It’s understandable because there many different ways that people value property. Here are three of the more common ones:

Capital Value

Capital value (also known as Rateable or Council Value) is set by your local council and determines how much your annual rates charge is. Capital value isn’t property specific, it’s a general guide to your property’s worth based on other properties in the same area and the most recent sale prices for the property. This means it won’t include any

appliances, improvements and/or additions you’ve made since you purchased it.

A capital value is often used when buying and selling as an indicative price, although we discourage this – they are notoriously inaccurate and can be very misleading. Keep in mind too that they’re only updated every three years.

Registered Value

A registered property valuation is an assessment of a property’s market worth according to a registered valuer. It will be based upon a full inspection of your property as well as comparable sales in the area.

You’re most likely to need a valuation when you’ve had an offer accepted on a property, and you need finance (a mortgage). Most banks will require a property valuation done by a registered valuer as part of a finance application. A property valuation can also be done for other reasons including:

  • Calculating how much you should pay for

a property

  • To find out how much a property is worth

when selling

  • As part of a home loan refinancing application. Your bank requests a valuation to get an impartial and expert opinion on the market value of the property. The Valuers Act 1948 ensures that a valuation done

by a registered valuer is reliable so banks count on this. This is important to them when they consider the risk associated with lending you money.

Property Appraisal

An appraisal is carried out by a licensed real estate salesperson and, similarly to the registered valuation, is based on recent

comparable sales. What a real estate salesperson will also take into account is the current state of the market in your area, and how long properties are taking to sell. Remember that real estate salespeople can inflate your property’s value to flatter you, so bear this in mind when talking to them about selling.