Property managers key to high yield success
, a leading property expert told Smart Property Investment.
Investors buying in areas with a higher population of lower income families, such as We
Finding the right property manager can make or break strategies in high rental yield areasstern Sydney, may need to rely heavily on their property manager, according to propertybuyer CEO Rich Harvey.
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“A lot of people ask: ‘If you buy in a dud area like Western Sydney, will you get bad tenants?’ and it's not necessarily the case,” said Mr Harvey.
Areas such as Penrith and St Marys can be profitable for investors looking for low entry points into investing, however they have their own challenges with reputedly high crime rates and a less stable environment for employment.
“You need to put the right tenant in the home.”
With prices in the $200,000 to $250,000 price bracket and rental returns of around $320 a week, a seven per cent yield, he explains that it is crucial to manage who will be renting the property to make sure the most can be made from these returns.
If an investor does not recruit the right property manager they run the risk of their properties ending up occupied by tenants with poor backgrounds that may be the cause of extra maintenance fees.
“That’s something we manage by choosing the right property manager, screening tenants and having insurance.”
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