114 | PROPERTY T & T Property Management T T Russell Fredric Maximising property profitability T & T Property Management has a vital role in maintaining and maximising the long-term profitability of a property. Investors engaging a professional property manager reap multiple long-term benefits through the astute management of their portfolio, T & T Property Management owner Tony Mennell says. Compliance has also become a considerable challenge for landlords in addition to other responsibilities such as maintenance, further reinforcing the need for professional management which is also a huge time saver, Tony says. “If you miss something or you don’t have your insurance documented or your healthy homes requirements done there is fines now, so there’s a lot around compliance. Also, we deal with the day-to-day administration so it’s a massive time saving for someone that’s in full time employment and they’re renting a property.” Tony highlights that T & T Property Management has a vital role in maintaining and maximising the long-term profitability of a property. This is achieved by due diligence in the very beginning through an accurate appraisal of a house’s rental value, for which T & T can benchmark against its portfolio of hundreds of properties as well as having a good knowledge of the wider market. “We can make sure they are getting the full rent. A couple of people have said to me in the past they have good tenants, but their property is under-rented. In some cases I’ve heard of a couple of hundred dollars a week people are missing out on. That’s quite a significant amount.” T & T has the professional systems and cloud-based software to manage and document rent reviews and inspections. The company can assist potential investors to appraise properties that may be suitable for renting and what rental return would be achievable. Once T & T are engaged, staff will take care of everything from advertising a property, vetting tenants, making sure it is compliant with regulations and its ongoing management which includes facilitating annual rent increases. This is important to ensure that a property does not lose investment value over time due to inflation creep, Tony says. “We’ve never really seen it quiet in the nine years we have been operating.” “We can help from there to grow their portfolio as well.” “We send out a newsletter every three to six months, and from our database we can filter down to people that are interested and we send them property information that might meet their criteria. That criteria differs from one investor to another and some prioritise the rental return over capital gain or vice versa. The range of rental return on capital investors are seeking on properties in Invercargill is currently 8% to 10%, Tony says. “It depends on whether they are trying to grow equity and capital gain or whether they want a higher rental return to lower their debt I suppose. Different investors have different ideas on how they want to achieve things. There is always good demand for rental accommodation in Invercargill and it is a town that offers good opportunities for investors, Tony says. “We’ve never really seen it quiet in the nine years we have been operating. There are more and more tenants looking for properties, but we’ve never struggled to put a tenant in a property over that time.” Drivers to demand in Invercargill includes people moving due to its affordability, for tertiary study at SIT, and for working on major construction projects such as the now completed Invercargill Central mall. Although buying and renting a property is strongly driven by financial considerations, the relationship aspects of property management are pivotal to the ongoing success of a portfolio. “A good tenant-landlord relationship is based on mutual respect, trust, and clear communication. Building and maintaining this relationship can lead to a positive and stressfree rental experience for both parties.” 027 867 1926 allseasonsdecorating@outlook.com www.allseasonsdecorating.co.nz Proudly Supporting T&T Property Management 027 232 9432 ollie@ollieselectrical.co.nz • Residential Electrical • Commercial Electrical • Espresso Machine Servicing For all your roofing requirements, contact Coats Roofing today! 027 282 6546 coatsy161@gmail.com
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