When investing in property, any savvy investor is looking to maximise their total returns. As your property portfolio expands, it can become time consuming. Having multiple real estate agencies managing your properties may reduce the comprehensive guidance needed to maximise the value of your property portfolio.
If you have investment properties across multiple agencies, consolidating your property portfolio and selecting one managing agent is something that’s worth considering. Here are some advantages of consolidating your property portfolio.
Benefits of Consolidating your Property Portfolio
Single point of contact
Having one primary contact will reduce your administration burden. It will provide consistency in the service received, communication and expectations.
As your property portfolio accumulates, having multiple agencies managing your portfolio creates the multiple points of contact you need to engage with. Each individual contact point requires its own amount of allocated time that includes meeting, reviewing, consulting, chatting and in some instances travel.
Having one agency manage your property portfolio will reduce your time commitments. You won’t have communication being regularly received by various companies while having a personal relationship with one company will increase your trust and confidence in investing.
Better strategic planning
By consolidating your investment property portfolio, your property manager can potentially gain a better understanding of your portfolio and improve the strategic advise around leasing the property, re-letting and/or increasing rental returns over time. Having this control, will enable the properties to be better monitored and managed.
There is much more advice required to strategic planning, but this is a very useful method to maintain consistency in comparing the investment returns.
Improves costs effectiveness
When consolidating your property portfolio, having a Property Manager take responsibility of monitoring each investment will allow you to negotiate the general fees of your agreement. Fees can range depending on the property type, location and value of the asset. However having them managed by one entity will certainly provide you with more bargaining power. If you have various Property Managers looking after single assets, they are more likely to charge you at the highest market rates. If you consolidate these, you will be able to reduce the fees to a highly competitive cost structure.
Improves time efficiency
Managing property can be quite time consuming. Having a Property Manager will instantly reduce the commitments involved to sourcing a tenant, managing the tenant, ensuring the property is taken care of and collecting the monthly rent. There are many good Property Managers in the industry, however consolidating these will allow you to manager a single contact rather than multiple. They will also have professional contacts that can fix any problems promptly. This will have your time constraints heavily reduced, making property investing a much more fun experience.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
July 2018
