I recently discovered that I’m losing over $5000 per year. My CBD property should have been earning me $100 per week more than I was receiving.
And I had no idea.
My property manager is a great communicator who makes regular phone calls to me. I always know what’s going on. This high level of communication is important to me. He is trustworthy and I would recommend him to anyone. Unfortunately, however, he’s not the right manager for me because he is not an expert in CBD properties.
Property rents, like property values, can increase dramatically from one year to the next. You should always know the market level of rent for your property. Ensure your investment property is properly appraised by someone who is an expert in the area, every year. It isn’t expensive; it may cost $200 (at most) which equates to $4 per week rent.
I have now committed to having an appraisal on my investment property every year, three months before the rental agreement expires. I ask an expert the following questions:
- What is my property worth?
- How much rent should it earn?
- What simple things can I do to increase either or both?
If you find out your property manager isn’t the expert you wish he was, you have enough time to change managers without losing any income. You could increase your yield or perhaps even discover a huge chunk of hidden equity. Who knows where that might lead?