Have you ever wondered how investing works? I mean how it really works. Not the big picture creating wealth stuff but the actual nitty gritty of making money. If you have, then look no further than Property Management.
You see, creating wealth is not found in the process of buying of an asset or even the planning phase but rather it’s in the actual running of the asset.
When you own it and it starts making money then clearly that is the only time you are creating wealth. If you want to see how creating wealth works then Property Management truly defines investment in action.
That’s because Property Management look after the property (asset) and actively manage the rent (yield or return). We check the condition of the property regularly and comment on what we find. At the end of a lease we suggest what rent is competitive in the current market and what action you could take to improve the result, such as adding a security door or ceiling fans or even regular garden maintenance.
If you were to have other investments, such as paper based managed funds would you have the same level of hands on activity?
You see, Property Management is the end product in a long process that starts with a very simple premise. Creating wealth.
Once that decision is made you start to formulate a plan, seek advice to clarify the plan then have someone purchase the asset designed to get the results the plan calls for. Eventually the purchased assets create wealth. But the activity of investing is most clearly shown in the management of the asset. Where managed funds may be carefully selected to run over a 3 or 5 year period before being reviewed, property management has a hands on approach that touches your investment in one form or another every month. Whether that is collecting and distributing the rent or inspecting the property and reporting on its condition, we are actively involved.
Nowhere else can investing be seen to be happening.
What is investing anyway? Is it buying assets that grow so the capital can be realised in the future or is it creating a passive income. Maybe it’s both? Whatever your vision is, there is nothing surer than having a monthly deposit into your bank account to make you smile.
If we agree that property is the engine that creates wealth then Property management is the technical support to keep everything humming along smoothly. It’s like the automatic transmission in your car. You don’t have to know how it works you just have to know how to use it.