Purchasing any investment property is a big step, especially if it is your first foray into the real estate market with the view to generating a passive income. For many, it will be one of, if not your biggest business asset, so you want to make sure that you take all the necessary steps to ensure that you get the returns that you deserve. Not only do you want it to generate an income, but for almost all investors, increasing the value of your capital is also critical.
A company such as www.smartservice.co.thcan advise you on ways that you can get the most from your investment, helping you to get higher occupancy rates as well as seeing your investment, therefore your capital, increase in value. All this is very achievable if you can make the right choices. It is something that all effective property management teams do can help you to reap the rewards that surpass your expectations. It is the same for individual units as well as entire buildings. Here are just a few tips.
- Conducting regular maintenance and routine repairs
It is easy to overlook that your property could depreciate if you don’t perform the necessary maintenance. A professional property management company can organise a written maintenance schedule to ensure that all work gets completed as and when it should. Any routine repairs can also be done, and keeping on top of things could potentially increase the value of your property. If you were thinking of selling it as a going concern, tenants and the aforementioned maintenance schedule could not only make it a more attractive proposition, but could significantly increase its value.
- Using quality tradespeople
If you get any work carried out on your dwelling, either home improvements or regular maintenance, professionals must complete it. A management company will have all the connections and contacts with tradespeople who are respected for the quality of their work, plus thanks to the agency using them regularly, you may get the jobs completed at a favourable rate. Naturally, saving money will reduce your capital outlay, while quality work can only increase the value of your property.
- Services and amenities
In some condos, professional management teams act as the juristic people and make all the day to day decisions about the running of the building. They should ensure that all the communal facilities and amenities are in full working order and that public areas are kept neat and tidy. The upkeep of the building overall will have a significant effect on the value of your property. You may have the best unit in the building, but if the rest of the condo is poorly maintained, then no one will want to move in.
When you are looking to purchase your investment property, it is worth establishing who the management team are and doing some due diligence into their track record. It may seem like an unnecessary effort, but it is actually essential in both maintaining and increasing the value of your property.
- Keeping on top of trends
Like with everything else, trends change and staying abreast of these changing trends can add value to your investment. Of course, it would be foolish to make changes continually, but an experienced property manager will be able to make suggestions about improvements. Bathrooms and kitchen are some of the first areas that start to look dated, but the style of lighting and windows can also add age to a building.
In a city such as Bangkok, many properties are sold fully furnished, so should you be considering selling your investment, it might be worth replacing any older TVs or any other items that look dated. An expert will be able to make suitable suggestions about which changes are worthwhile and will add value.
- Finding the right tenants
Finding and keeping quality long-term tenants has long since been a challenge for lessors around the world. Having a suitable lessee will add value to your property simply by keeping it well maintained, clean and getting any work done as and when it is required. They also have an intangible value themselves, which once again makes them an asset if you are looking to sell as a going concern. Experienced property managers will vet any potential tenants, thus removing the stress and hassle for you.
Obtaining references and experience will help optimise their chances of finding the right people for your property. The decision or suggestions that they make will have a significant impact on determining whether your investment property is a success. It illustrates perfectly why choosing the right property management company is so important.
- Go for the best you can afford
If you are looking to purchase an investment property, the ones that consistently do well are the ones aiming towards to higher end of the market. They are less susceptible to changes in the market and economic conditions and built with longevity in mind. Not only is likely that the build quality will be of a higher standard, but the management teams will be more professional, efficient and effective. It is something that is connected to point #3; if the condo is poorly managed, it will negatively impact on the value of your unit.
Finally, a quality property management company will use quality software to effectively oversee the running of a condo, apartment or village. The software can be used to ensure that maintenance is conducted when required, ensure that all communal fees are paid, as well as guaranteeing that enough staff are working, especially when it comes to security. It will make an already good management team great, thus increasing the reputation of the development and adding value.
Software can help management companies effectively manage your property on an individual basis by knowing when contracts are due for renewal and when scheduled maintenance needs to be completed. Essentially, having quality, state-of-the-art software can guarantee the smooth running of your investment, adding value both now and into the future.