Property Management Update

Aug 21, 2019 | News

James Group Property Managers have had another successful quarter, with a high level of interest shown from investors looking to expand their property portfolio given the attractive rate of borrowing currently on offer with the drop in the OCR rate having a flow on effect to interest rates.

Purchasers are creating investmentstrategies that are reflective of their goals. For those investors looking at retiring in the short term, they are looking for strong cash flow to live on. However, we are seeing the younger investor, looking for capital gains – something that’ll be worth double in 10 years. 

James Group Property Managers are employed by the owner(s) of the property to supervise the operation of the premises. This will include handling all day to day issues that may arise with tenants, as well as several specific services such as;

  • Lease Management: This includes negotiating terms of the lease and discussing lease requirements with tenants before they expire- we aim for 100% occupancy.
  • Building WOF: Ensuring that the Building Warrant of Fitness is renewed and kept 
    up-to-date.
  • Maintenance: Ensuring that maintenance contracts are expertly negotiated and in place for the Commercial premises.
  • Accounting: Not only paying accounts on behalf of the building, but providing;

           (a) Monthly financial reports of monies received and expenses
           (b) Year-end summaries of all the properties income and expenditure

Although this list is not extensive, these are some of the services that you can expect from your Commercial Property Management team at James Group.

OCR Rate
We have seen the OCR rate drop from 1.5% at the beginning of May 2019 to 1.0% in August 2019.

“The current extreme low interest rate environment not only represents an opportunity for new buyers to enter the market, but for existing mortgage customers to pay off as much of their debt as possible,” says ANZ managing director Antonia Watson.

The market sentiment around further lowering of the OCR is positive as the forecast interest rate track eases to 0.9 per cent in late 2020. The prior monetary statement in May showed the OCR tracking going from 1.7 per cent to 1.4 per cent in March 2020 before lifting in late 2021.

Commercial and Industrial Property offerings dwarf Term deposit rates even before considering the bonus of capital uplift.

5 REASONS WHY YOU SHOULD HIRE A PROPERTY MANAGER

Being an investor can be both fun and rewarding, however it can also be hard work if not done correctly. Hiring and trusting in a property manager can be a critical part of your investment journey. Property Managers are experts in their field and can act as the primary communication channel between you and your tenants to resolve disputes, handle enquiries and also any day to day requests.
 

1.   Cost of hiring –  A Property manager can be included in the operating expenses. Working closely with our in-house agency division means that we are always up to speed with the latest market rental information and can be immediately appointed to minimise vacancy. Alongside this, If your property is vacant, we don’t charge a fee! When the property is occupied, management fees are generally paid for by the tenant.
 
2.   Market knowledge & Experience – finding a reliable handyman or contractor can be a big headache associated with maintaining a property, however if you know what to do and who to call it makes the process a lot easier. Property managers generally have long standing relationships with tradesmen, so this makes it a lot easier to arrange after hour contractors.
 
3.   Time – having a full-time job and spending time on your investments can be difficult to manage and takes time away from your other commitments.
 
4.   Deal with stress well – Are you a level-headed person who is tolerant of dealing with tenants? If not, you will probably want an experienced property manager to handle any of the unpredictable problems that can arise
 
5. Understanding the Law– It’s important to understand the any rules and regulations to ensure that you’re acting in accordance with the law. You need to understand your lease, which is a binding contract between you and your tenant, and therefore needs appropriate attention. 

So, how do you get started?

Call us on 0508 DEAL DONE to speak with any of our experienced property managers or check out our ‘contact us’ page to make any online enquiries.