Success is often a sum of many parts, and property investment is no exception to this rule.
When it comes to building a successful and lucrative property portfolio, teamwork can be the key ingredient that maximises returns.
One of the advantages Momentum Wealth brings to property investors is the benefit of a true team of experts who all work together to achieve the best possible results for clients.
And this couldn’t be truer of the partnership between our buyer’s agents and property managers.
So, how does this collaboration benefit our investors?
One reason lies in the higher quality of our investment purchases. When our buyer’s agents are searching the market for suitable properties for investors, rental performance is one of the key factors we keep in mind.
Our buyer’s agents work with our property managers, gathering regular feedback on which areas and types of properties are in demand, which are commanding the top rents, and which are experiencing the lowest vacancy rates – real-time insights that simply can’t be matched by data.
These valuable insights refine our property search, so that we can recommend locations and properties that we know will rent well and deliver better long-term results for our clients.
And it’s a relationship that works both ways.
Working together to maximise investors’ cashflow
Even before our buyer’s agents place an offer on behalf of a client, they’re thinking well ahead to the management process.
They’ll often push for a specialist clause to be added to a property’s sale contract, which gives our client early access to their new property ahead of settlement. This can be incredibly important for investors.
Having early access gives our property managers an opportunity to closely inspect the property, research market rents for the exact location, and devise a suitable leasing strategy.
Importantly, they can use this time to identify and recommend any improvements or value-add opportunities which can produce an uptick in rent, even organising contractors ahead of time to complete the works.
In some cases, this early access means we can even start advertising to prospective tenants sooner.
In this way, investors can potentially have a tenant ready to move in immediately or just after the property settles. This maximises their cashflow – and rent returns – from the outset.
Case study: Driving 57% uplift in rent for our client
In early 2021, an investor approached Momentum Wealth for support in their first investment purchase.
Based on our client’s brief, our buyer’s agent identified an ideal opportunity in the Perth suburb of High Wycombe.
This specific property was already tenanted, with the existing tenant paying $350 per week in rent.
However, having earlier leased a smaller property on the same street for $450 per week, our property management team knew this was well below the property’s current rent potential.
With the existing tenant deciding to vacate prior to the settlement date, our property managers leveraged the early access clause added by our buyer’s agent to inspect and identify cost-effective improvements prior to settlement, arrange quotes from our contractors, and show the property to prospective tenants.
Thanks to the early access clause, we were able to arrange for minor renovations works to be completed on the property immediately upon settlement, with the new tenants ready to move in on completion for a weekly rental price of $550.
This marked a 57% increase in weekly rent compared to the previous period, totalling an additional $10,400 per annum for our client.
Together with strong property price growth in the area, the improvements also contributed to an immediate capital gain, with the property re-appraised in March 2022 in the low $500,000s – a significant uplift on the initial purchase price of $446,000.
Leverage the combined expertise of a buyer’s agent and property manager
Applied in practice, it’s easy to see how collaboration between different aspects of the investment process can drive benefits from both a cashflow and growth perspective – ultimately delivering better returns for your portfolio.
Looking for support in your next investment purchase? Get in touch to organise an obligation-free consultation with our team.