Over the years, the subject of investing in property has become a common topic amongst most Australians because of the level of financial freedom and long-term stability and security it provides.
Although many have dabbled into opportunities like stock trading, bonds, flipping, and cryptocurrency, real estate investing is particularly desirable for many reasons. When the average Australian gets to save enough money, the first thing they end up thinking about is taking the necessary steps to become a landlord.
If your goal in the long-term is to live a life of comfort and stability, investing in rental properties or any other form of real estate will help you get there. Once you acquire a property that best suits your preferences, making the most of your capital can be quite tricky.
Fortunately, two solutions can ease up the money-making process: commercial and residential property management.
The Rise of Property Management
After learning about the realities of making money off property, most Australian investors look for solutions to ease the process of managing their residential or commercial investments. Nowadays, new and old landlords alike enlist the services of a property manager to help them out with the time-consuming tasks of running and maintaining their investments.
Fortunately, such professionals are more common than ever, thanks to the fact that Australian real estate is booming—which means you won’t need to worry about having your hands tied up.
Residential vs. Commercial Property Management
Many investors aren’t aware of the differences between residential and commercial property management because of how nuanced they are. To help you tell the two apart and determine which option best suits your needs, let’s go into further detail:
Residential Property Management
When you opt for Residential Property Management services, a residential property manager takes care of your rental property on your behalf. These professionals possess a good understanding of the Residential Tenancies Act (RTA) and have experience dealing with residential tenants.
The general scope of this service covers both the leasing of residential property and responsibility for day-to-day tasks at tenanted residential properties. With the best residential property managers, any landlord will be able to effectively maximise rental income on their properties and minimise risks.
Here are the tasks that are typically covered in a residential property management service:
- Advertising or marketing properties
- Finding/vetting potential tenants
- Collecting rent
- Responding to tenant requests
- Monitoring lease compliance
- Organising repairs and maintenance
- Making payments
- Keeping financial records
Commercial Property Management
Much like residential property management, commercial property management allows landlords to leave their responsibilities in the hands of another party. It deals exclusively with leasing and managing properties used for business purposes. This task is best left to a professional with a proficient understanding of the Commercial Tenancy Act (CTA).
With this kind of service, you’ll be able to enlist the help of a specialist in managing your commercial office, retail shop, or industrial property. The scope of commercial property requires more attention to detail due to the following fees:
- Legal fees for lease preparation
- Council rates
- Water rates
- Insurances
- Cleaning, maintenance, and security
- Building repairs
- Management fees
- Strata levies
Conclusion
If you are a property investor looking to make money off the rising Australian real estate market, it’s crucial to understand that you don’t necessarily have to handle the nitty-gritty on your own. Through the help of a dependable and reputable commercial or residential property manager, you’ll be able to ensure that your needs are met and well taken care of for better business and more profit!
Own Better is a property management firm in Sydney that helps residential and commercial property owners make the most out of their investments. Get in touch with us today!
