Your Investment Needs To Be Treated As An Asset!!!

Unlock the secrets to maximising your property investment returns by choosing the right property manager. Many investors meticulously select their financial advisors and mortgage brokers, yet overlook the strategic importance of a skilled property manager. In this episode of Talking Property Management, I'm Samantha Eason, here to shatter misconceptions about property management being merely about rent collection and minor repairs. Learn how the wrong choice can lead to costly mistakes, as we explore a real-life example of a client who suffered financial losses due to inadequate management practices.

Together, we challenge the status quo and emphasise the vital role a great property manager plays—from minimising vacancies to enhancing property value with strategic improvements. At Exclusively Managed, we treat property management as an asset, not an expense, and prioritise long-term success. Discover the essential questions every investor should ask to align their property manager with their investment goals, ensuring your property's future is secure and prosperous. Get ready to rethink your approach and elevate your investment strategy with insights from this episode.

If you have any questions or scenarios you would like us to discuss on an upcoming episode, please email samantha.eason@exclusivelymanaged.com.au or visit https://www.exclusivelymanaged.com.au/

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Transcript

Speaker 1: 0:34

Welcome to another episode on Talking Property Management, the show where I dive deep into the strategies that help you build a sustainable and profitable investment portfolio and also highlight some things in the industry you may not know about but should know about. You may not know about but should know about. I'm your host, samantha Eason, and today we're tackling an issue that so many property investors overlook, and it's one that can make or break your investment. When you think about your financial advisor or your mortgage broker, what do you consider? Most likely likely? You're looking for the best. You want someone with expertise, a proven track record and the ability to provide personalized service. But here's the thing most property investors don't apply the same level of care when choosing a property manager, and and that is where things go wrong let's break this down. When you're selecting a financial advisor, you're likely looking for someone with excellent credentials, someone you trust to give you tailored advice that maximizes your wealth over time. You want someone who will work with you to meet your financial goals right. The same goes for a mortgage broker. You expect them to navigate the complexities of the loan market and secure you the best deal, ideally someone who looks beyond the surface to find a solution that's tailored to your circumstances.

Speaker 1: 2:22

So today we're diving into a common but critical mistake that many property investors make when it comes to managing one of their biggest assets. Too often investors focus on finding the cheapest or most convenient property management option or, worse, they assume all agencies will manage their property the same way, and that mindset can seriously damage your investment. I've seen firsthand how not all property managers operate at the same level, in fact, and if I'm going to be completely honest, some don't even follow the agency's own standards or the standards aren't ingrained in the staff within the agency, and this can lead to costly oversights. This can lead to costly oversights. For example, we had a client who joined exclusively managed this year after being with a well-known franchise for less than 12 months. They expected great results because the franchise handled their property purchase perfectly, but when it came to property management, the experience was entirely different. The property management team failed to lodge and receipt the tenant's bond when they moved in. This single oversight ended up costing the owner above two and a half grand. And to make matters even worse, when the owner had to file an insurance claim less than six months into being a first-time investor, she received a significantly reduced payout. Why? Because without that bond in place, the insurance didn't cover the full amount. This situation is a harsh reminder that property management is not a one size fits all service. The cheapest or the most convenient option may not end up being the best, and it may be the most expensive mistake you've made. So let's dive into why.

Speaker 1: 4:36

Property management is often undervalued and I'm speaking from experience with other agencies I've worked in. Many investors see it as a hands-off service, just collecting rent and fixing the occasional leaky tap. Unfortunately, even some principal agents at larger companies think the same way, and I hate to break it to you unless you're with a boutique agency that specializes in property management. This misconception is all too common, but here's the reality.

Speaker 1: 5:10

Property management is far from simple. It's a strategic role that plays a critical part in your investment journey. A great property manager doesn't just deal with the day-to-day issues. They work to maximize the value of your property, from insuring high quality tenants and minimizing vacancies to insuring on property improvements that boost rental yields improvements that boost rental yields. Their role is essential to your long-term success as an investor. So if you're thinking property management is just routine maintenance and rent collection, it's time to rethink that perspective.

Speaker 1: 5:54

A good property manager is an asset, not an expense asset, not an expense. A good property manager isn't just focused on here and now. They're thinking about the future, where your investment will be in three years, five years and even 10 years. They strategize to ensure your property delivers long-term returns, not just short-term fixes. Well, actually, not all property managers do that, but at Exclusively Managed we do.

Speaker 1: 6:33

And even with that, so many investors don't take the time to research their property manager the same way they would their financial advisor or mortgage broker, and it could be the fact that they're not asking the right questions. Why? Because on paper, most property management services seem identical, and we've talked about this before. Every agency's websites say the same things, promising five-star tenants, low vacancy rates, minimal rental arrears and even the zero stress, zero risk. But what's often left unsaid is that many of these agencies are juggling huge property portfolios with limited staff. They simply don't have the resources to provide the personalized service they advertise. The result though? Well, it's bad for you. You end up facing longer vacancy periods, you end up with poor tenant selection and you end up with If you picked a property management agency based on saving a few dollars in fees. Well, those savings quickly disappear in lost rent, costly repairs and constant tenant turnover. You need to remember investing in a good property manager is about protecting and growing your investment for the long haul, not just cutting costs today.

Speaker 1: 8:12

Now let's flip the coin. A boutique personalized property management agency might charge slightly more, but you're paying for expertise and individual attention. They have the time to screen tenants thoroughly, ensuring you have reliable long-term tenants who take care of your property. They conduct regular inspections and stay on top of maintenance issues before they become costly repairs, exclusively managed, for example. We are a boutique personalized property management agency and that's exactly what we do for our clients. We have the local market insights and knowledge. We can price our clients' properties optimally Not too high to drive away tenants, but not too low to leave money on the table. You need to price it right, but not too low to leave money on the table. You need to price it right. You pay more because you aren't having a team that's overloaded with more work and less resources. And as a property investor myself and working alongside some of the top agents in Australia and experts, I understand the importance of both short and long-term strategies in property investing Our approach for our clients focuses on maximizing their property's growth through our proven methods, ensuring strong returns and sustainable value over time. Whether you're aiming for immediate rental income or long-term capital appreciation, we've created strategies to help our clients, properties and their investments succeed.

Speaker 1: 10:05

So here's the thing when you're choosing a property manager, you're not just hiring someone to handle rent collection. You're hiring someone to protect and grow one of your most valuable assets. You wouldn't cut corners on choosing a financial advisor or a mortgage broker, so why would you do it with your property manager? And it's time to change the way we think about property management. Rather than defaulting to the cheapest option, the agency that sold you the house consider a smaller boutique agency, someone that offers actual personalized service, has the attention to detail and, most importantly, a proactive approach to managing your property. I'm going to leave you with this thought A good property manager is not an expense. They're an investment. When they perform well, your property performs well, and isn't that the whole point of investing?

Speaker 1: 11:12

Next time you're reviewing your investment team whether it's your financial advisor, broker or your property manager don't settle for the most convenient option. Do your homework. Talk to the smaller boutique agencies. Find out how they will protect and enhance the value of your property. It could make all the difference in your investment success. So that wraps up today's episode. If you found this conversation helpful, be sure to subscribe and leave us a review. We'd love to hear how you're building your investment portfolio and what topics you'd like us to cover next. Thanks for tuning in to Talking Property Management with Samantha Eason, and remember that smart decisions lead to better returns.