Is it time to hire a property manager for your Melbourne property?

Melbourne has gone through some extremely rapid value gains over the last few years, with CoreLogic RP Data reporting an 11.52 per cent value rise over the last 12 months alone. That’s even faster than Sydney. It’s a good time to be an investor in Melbourne, but the rental market is in something of two minds: Rental properties are in high demand, but yields aren’t keeping pace.

Could a property manager help you get your portfolio moving again?

Are you balancing your rental property properly?

A slowing rental market

First, a challenge: Rental yields in Melbourne have slowed – what are you going to do about it?

At the end of June, Melbourne had a solid rental yield of 3 per cent according to CoreLogic, which puts it in the lower bracket nationwide. Rents across the nation have stagnated somewhat, and while Melbourne is still experiencing increases, they aren’t keeping up with value rises.

This is where a property manager comes in. Rather than having to rely on your own knowledge of what to charge in rent for your portfolio, a property manager has years of experience in evaluating not only where to start the rents, but also when and how to increase them to keep your wealth building. Furthermore, they will be able to advise you on ways to improve your Melbourne property if you want to attract a higher premium.

Remaining in high demand

Meanwhile, rents may have slowed, but the rental industry itself is still booming in Melbourne. According to the Real Estate Institute of Victoria, vacancy rates in the state capital have dropped below those of regional Victoria for the first time in about three years.

This could easily be a by-product of the rapidly-increasing population of Melbourne, as it solidifies it’s reputation as one of the best cities to live in across Australia. For your investment portfolio, this likely means you have some new tenants to settle in, or the opportunity to fill any already-vacant homes as demand heats up. Knowing who to hand the keys over to can be a daunting prospect, but a property manager can take care of this too, as well as ensure that all the legal requirements are fulfilled to the letter of the law.

Ultimately, property managers take the guesswork out of the day-to-day processes of your investment property. It isn’t just about easing the load and letting you get on with the rest of your life, it’s about making your portfolio in Melbourne work more efficiently. The investor outlook in Melbourne is a solid one, with high value gains, but with the current nationwide rental issues, it pays (literally) to have experts on your side to work your way through it.

If you’re interested in furnishing yourself with the experience of a local property manager, make sure you get in touch with the team at Nelson Alexander.