Apart from holding multiple residential and commercial properties, including caravan parks and motels across multiple states, Property Alchemy’s Penelope Valentine also provides property management services for her fellow investors, particularly in the Northern Beaches, South Coast and eastern and western suburbs of New South Wales.
As an investor and a property professional, Ms Valentine works to understand the fluctuations that have been happening in most major property markets in the country, particularly in Sydney and Melbourne, which continuously see value declines following the end of the property boom.
However, despite the negative headlines in the media, she remains positive about the assets that she holds and manages in the capital cities.
According to Ms Valentine: “I think there’s so much hype in the media but the media needs hype to sell, right? Actually, we’re just going through a market cycle. I don’t know whether people remember, but these cycles happen.”
Right now, it’s business as usual, and the investors who are able to thrive in the current market are those who continue to make logical decisions, as usual.
“Properties may take a week longer to lease, but there’s things you can do to lease a property, and it’s not just all about dropping the rent. It’s price presentation and positioning, too. We can always find great tenants if we make sure to listen to what’s going on in the market react quickly.”
“You can’t just keep doing the same thing and expect a different result. You have to be proactive and you need to have a great database. You’ve got to do a bit more hustle—that’s what it’s about,” the investor and property manager highlighted.
Being able to hold and maintain assets for the long-term has become more critical to property investment success as the Australian property market continue to go through a softening phase.
As such, identifying the right property manager could spell the difference between thriving in the market and delaying a wealth-creation journey. Ms Valentine believes that every investor must understand the process of the property manager before ultimately getting them onboard.
“A lot of people just go to an agency and then get given a property manager. They don’t know if that property manager just started their career a couple months ago or if they’re on their way out or they’re aspiring to be a sales agent or if they’ve been trained properly,” she said.
Ms Valentine strongly encouraged investors to take the time to conduct a few interviews in order to get acquainted with their entire process and understand how it can fit into your broader investment strategy.
At the end of the day, it’s going to be a relationship between the investor and the property manager and as such, understanding is key to fruitful collaborations moving forward.
“Understand who’s going to be communicating with you and how do they operate, what do they do differently from other property managers,” she said.
Finally, Ms Valentine stressed the importance of tenure in order to avoid the hassle of having to ‘start from the bottom’. According to her, the average tenure of good property managers is 18 months.
According to her: “If you start building a relationship with a property manager and they know everything about one of your properties, then they leave and you get someone new coming in, you have to educate this person again on what’s happening with your property, what happened with the last tenant. It’s a lot of work for an investor. When you choose to give your investment property to an agency or property manager, understand how they operate.”
In today’s market, the resilience and discipline of property professionals are becoming more important for investors who want to continue to thrive in the business of creating wealth.
By making sure that they got the best managers, investors can continue riding the waves of the property market and ultimately maximise the wealth-creation potential of their portfolio, Ms Valentine highlighted.