When purchasing a rental property a savvy investor’s first point of call should be a property manager, multiple property experts have told Smart Property Investment.
When determining the type of property to buy in a specific area, property managers can be crucial in determining what type of dwelling is preferable for tenants – be it a house or a unit – and the key characteristics of desirable rentals, said Real Wealth Australia director Helen Collier-Kogtevs.
The size of the property, and the number of bedrooms, are also considerations that investors should refer to property managers about, Ms Collier-Kogtevs explained.
“An investor will purchase a property in a particular area based on what the tenant wants,” she said.
“Investors should remember that they are buying an investment for someone else to live in, so in that sense they should tailor their investments to the needs of the tenant.”
Interviewing a variety of property managers is an essential part of the due diligence process and is one of the best ways to obtain information about what tenants want, Right Property Group’s Steve Waters said.
“There’s no point buying a studio apartment or a granny flat in a family oriented area,” Mr Waters said.
“You are going to be limited to the type of tenants you attract and the possible cash flow you would be able to achieve.”