Property Investment Companies: 7 Things to Look for
Are you hoping to prepare for your financial future? Property investment is one of the best places to start. Even new investors can quickly learn the ins and outs of the industry.
However, it’s important to choose a property investment company you can trust. Choosing the right company can be the difference between an investment that adds to your portfolio, and one that drags you down.
With so many property investment companies available, it can be difficult to choose the best one for you. Read on to learn what you should look for when choosing a property investment company.
What do the most trusted property investment companies have in common? What are the things you should actively look for? Read on for all you need to know.
How to Choose Between Property Investment Companies
Investing in a property is a big deal, and can be the difference between retiring in style or barely getting by.
But not all property investment companies will offer the same knowledge and expertise. Here are 7 things you should look for when choosing between property investment companies:
Whether you’re brand new to investing or you’ve been doing it for some time, it’s important that your property investment company has the experience to guide you through the process.
Ask to see examples of solutions they have found for other clients. Consider whether their business is growing, or if it has been stagnating. Good signs include:
- Offices throughout Australia
- A number of years of experience
- A large team of experienced agents
When you’re comparing companies, you’ll also notice that some offer extra services that can save you money and make life easier.
For example, a competitive property investment company will often be able to lay out an exit strategy for your investment. This is when most people will make their biggest gains.
Some companies will also offer financing assistance and will have relationships with some of the best lenders available.
2. Local Experience
You probably wouldn’t take your car to a rookie mechanic right? Instead, you’d find a mechanic with a wealth of experience working on your type of vehicle.
The same goes with property investment companies. Look for a company that has experience working in your target market. They should know the city you’re looking to invest in and be knowledgeable about the neighborhoods you’re looking into.
This means that the company can tell you about the employment profile for the area and whether the government has planned any infrastructure projects for the future.
Another key consideration? References. Once you’ve narrowed your search down, ask for names of past or current clients that are happy to be contacted. Give them a call and ask about their experience with the company.
Property investment companies will often include testimonials on their website. These are great, but speaking directly with past clients will allow you to ask questions and put your mind at rest.
While you’re looking at references, now’s the time to check that any claims the property investment company makes about its past successes are actually true.
Look at records for occupancy rates, property repairs, and maintenance costs for a few properties the company has managed or sold to ensure they match what the company is advertising.
4. In-House Management Services
Companies that have in-house management services have a leg-up on the competition. It means that they’re looking after your property so you have one less thing to worry about.
However, a property investment company that has an in-house management service isn’t necessarily going to be the best choice unless they’re well qualified to handle the property management.
Check that they have any necessary licenses or qualifications, and ask for references from clients that have used their management services.
The best property management companies will usually have separate departments for property maintenance, finding tenants, and collecting rent.
This is one of the most important aspects, and it’s overlooked when it’s time to compare property investment companies. Communication between you and the company is crucial and should flow quickly and smoothly so the partnership will be a success.
You can often see how good the company is at communication early on in the process. When you reach out to a company, how long does it typically take them to get back to you? Do they respond to your emails within an acceptable time period? Are they willing to answer any questions?
Ask each company how they keep in touch. How do they handle repairs or delinquent tenants? Will they ensure you’re updated about any developments? Make sure the company is happy to comply with your preferred method of communication.
6. Honesty and Competency
When you’re looking for a trustworthy property investment company, be sure to follow your instincts. If they’re not willing to allow your involvement or disclose details about a certain property, consider that to be a red flag.
A company you’re going to trust with your investments and work with long-term should be more than willing to disclose all details- particularly when it comes to numbers.
In some cases, if the numbers don’t quite add up, or you lose out on an investment, it may not be due to dishonesty, but poor business practices or inexperience. That’s why it’s so important to verify that the company is trustworthy and knows what they’re doing.
Unfortunately, there are many property investment companies that take advantage of newbie investors or offer unrealistic promises. When you’re investing in real estate, especially if your properties are out of state, you need a company that will give you peace of mind.
7. A Great Team
Teamwork makes the dream work.
That’s why the property investment company you choose should have an experienced, close-knit team with a wealth of skills.
They should also be willing to work with you and take your concerns and opinions into consideration throughout the process.
Look for a company that takes the word “partnership” seriously. They should educate you about your options and be available whenever you want to reach out.
Ready to Get Started?
Investing in property is an excellent way to secure your financial future. And with a great property investment company, you can build a solid portfolio while minimizing risk.
If you’d like to learn how we can help you grow your portfolio, get in touch today and let’s talk.