As an investor in Melbourne’s changing property market, you’re likely always on the lookout for ways to optimise your returns. But have you really scrutinised how your Melbourne investment property is performing? Are you aware of all your expenses, and are you managing them effectively? This blog discusses these crucial aspects, highlighting the importance of proactive management and regular planning sessions with your property manager.
Investing in property is more than just collecting rent. It's essential to regularly assess the financial health of your investment. Are you running the numbers on your property? This means looking beyond the surface and examining all your expenses. Consider maintenance costs, property management fees, insurance, and taxes. Are there areas where you can reduce costs without compromising the quality of your property?
We at BISE Property emphasise the importance of this practice. Unlike many property managers who focus solely on collecting rent and addressing tenant-reported maintenance issues, Jess goes the extra mile. We conduct regular reviews with our clients to evaluate their property’s performance. This proactive approach ensures that every dollar spent is working towards maximising your returns.
Managing expenses is a critical aspect of ensuring your investment property remains profitable. Are you aware of all your outgoings, and do you have a plan to manage them? If not, it’s time to sit down with your property manager and devise a strategy.
Consider when you last had a planning session with your property manager. Have you reviewed the past 12 months' performance, discussed the rent you're achieving, and scrutinised maintenance expenditures? We suggest that regular planning sessions can reveal insights into areas where costs can be cut. For instance, recurring maintenance issues might be addressed more effectively with a proactive maintenance plan, potentially avoiding costly after-hours call-outs.
Victorian land tax is another significant factor that can affect your investment's profitability. Recent changes in land tax rates for 2024 have left many property owners reassessing their budgets. According to the State Revenue Office Victoria, these new rates could have a substantial impact on your financial planning.
How is your property manager helping you go with these changes? A proactive manager, like us, will work with you to understand the implications of increased land tax and find ways to mitigate its impact. This might involve adjusting your rental rates or finding other cost-saving measures to ensure your investment remains viable.
Ultimately, the goal of any investment is to generate a return. Is your property manager actively working to maximise your rental returns? This involves more than just setting a competitive rental rate. It’s about regular rent reviews, strategic upgrades to the property, and ensuring it remains attractive to high-quality tenants.
Our team is dedicated to this approach. By keeping ourselves posted on the market trends and legislative changes, we ensure that our clients’ properties are always performing at their best. For example, proactive property maintenance can not only reduce vacancy rates but also justify higher rent, thereby boosting your overall returns.
At BISE Property, our emphasis is on a collaborative, transparent approach. We value client input and work closely with them to design solutions that align with their goals. Regular communication and detailed reporting ensure that you are always well-aware of your property’s performance.
Property investors should brace for more changes in 2024, particularly with rising interest rates and change in investor landscape, among other changes that are expected (Conisbee, 2024). This underscores the importance of having a proactive and knowledgeable property manager who is competent in handling these challenges effectively.
Investing in Melbourne’s property market can be highly rewarding, but it requires diligent management and regular performance reviews. If you haven’t recently evaluated how your investment property is performing, it might be time to sit down with a property manager who prioritises your financial success. We are committed to providing a seamless, collaborative journey, ensuring your investment yields optimal returns.
For expert property management that goes beyond the basics, contact us at BISE Property today!
