3 Property Management Options to Make Higher Profit from Your Gold Coast Apartment
Are you shopping around looking for a good Gold Coast property manager? Please read this article to “see” for yourself would we be able to deliver your expected outcome.
Our office manages properties for “out of town” property owners. We specialize in “short-stay” or in other words “vocational rentals”. The reason for it is simple – we make money for our clients.
We offer 3 property management options:
1) We turn your property in the “vocational” rental and manage it for you
2) “Guaranteed rent” We rent your property from you
3) We conventionally manage your property
Below you will find which option pays the most and which one of them can provide more certainty, as well as what makes Vlad Ivanov’s team a good Gold Coast property manager.
Would you agree many things in life happen due to higher force (whatever you prefer to call it the Great Architect, Jesus or Muhammed or Buddha or Krishna…
Please allow me to show you how we help other people and if there is a fit, you might want to contact us to discuss your situation.
Some of the property investors we know of “accidental” meaning they had to become due to other circumstances in their lives. For example, they had to leave beautiful Gold Coast and go back to New Zealand to look after the family or due to a job opportunity. Surely you can add many other instances…
What Makes a good Gold Coast property manager?
A few of us became property investors intentionally yet others, on the other hand, became property investors intentionally. These people want to grow their passive income. They do understand the power of leverage of using other people skills, money and energy.
Let’s drill even deeper so that there aren’t unturned stones left:
1) Money – mortgages allow people to borrow as long as the current level of debt is serviceable and banks are happy to lend you more.
2) Skills – people typically buy properties due to emotional approach – on the other hand, professional investors buy “numbers” meaning they do buy property, yet they look for numbers not for the condition or the state of the property.
3) Energy, this is the hardest one to explain – we all know it exists we even know we use it yet the hardest part is to use any given form of energy for our advantage. Imagine if humans could collect all the energy storms produce. What if could use the energy we waste on conflicts for the better intentions?
Property Investing is FUN yet Property Management Can be Different
Now back to property investing – some people decorate properties exactly in accordance with Victorian era yet others want to express their bohemian, inheritance plus many others who think they can now legitimately offload everything what they no longer need to their rental property.
In our work, we use people skills and knowledge and we harvest their energy in order to help our property investors to collect as much money as possible.
For example, we use property designers – hey help us to turn the property from “flat” conventional “dull” premises into attractive modern luxury property people want to stay in and pay money for.
We use builders yet only those ones who can deliver high-quality work for a reasonable market price.
Luxury living on the Gold Coast
A couple of words about “luxury living on the Gold Coast”- if we take money in other words, the cost of living (rent) out of consideration -where would you want to stay? In a grotty unhealthy smelling dark flat or in a modern beautifully decorated apartment? If yet unsure and the smell of spilled beer reminds you about your “younger” years – ask your life partner – which one to choose. The point here is- it can be the same property yet with or without the high rental approach.
In other words, we as a team want you to have as much money as possible from your Gold Coast apartment and this is what we think makes us good Gold Coast property manager.
What makes you a different Property Management Company?
Our clients live in New Zealand or other parts of Australia and invest in Gold Coast for one only reason, let us explain: Would you agree when you are holidaying you normally spend a “bit more” and typically want to stay in a nice place often much better to compare to our own residence?
Now imagine you have the ability to tap into it and offer your property for a short stay. Vocational rentals produce much more money to the investors- typically rent amounts on the Gold Coast fluctuate 100 to 300% in comparison to “permanent” pool of rental properties.
Here is an example: Imagine, your property can be rented out for $500 weekly on a permanent basis and the only money for you to pay would be inspections, minor accidental damages, letting fees and the usual – council and body corporate fees.
Long Term vs Short Term
In this example, we assume that you have One Bedroom & One Bathroom apartment in a very nice building and this is the reason why use $500 as the weekly rent. To provide you with an idea in Q1 a similar apartment can be permanently rented for as much as $580
$500X52 weeks = $26,000
Minus 8% Property management fees and inspections $2,080
Letting fee $500 paid by the tenant
Body Corporate fees and building insurance $110X52=$5,720
Council and water charges $1,500 per quarter =$6,000
Landlord insurance $250 (this amount isn’t included in our calculations)
Your gross profit before mortgage cost is $12,200
“Short Term” rentals
Now allow us to show you the reason why you should consider “Short Term” rentals
Let’s assume your property is located in the highly desirable area of the Gold Coast tourists yet for demonstration purposes we are going to use “conservative” approach:
For this example let’s assume that your property is going to have 90% occupation
365X90%= 328 days
328 X $170 per night = $55,760 Please note this amount is extremely “conservative” and most likely you should expect at least
Our property management fee is 20% = $11,152
Cleaners (we have agreements with local contractors) (328 nights /2)X$70=$11,480 This is a variable due to the fact that occasionally your apartment will have a night stay or a week and even two.
As above – Body Corporate fees and building insurance $110X52=$5,720
As Above Council and water charges $1,500 per quarter =$6,000
Internet provider $1,200 (annually)
Power $2,400 (annually)
In total your gross profit before mortgage cost $17,808
It’s really easy to see
As you can easily see by letting us manage your apartment you can make $5,608 more from the same apartment. This amount is very conservative yet we think it is better to plan for a modest return first and be pleasantly surprised later.
Typically the difference between “Short Stay Rental Amount vs Permanent Rent” is about 100% meaning you can simply get as much as twice more money on your investment.
The next step is to call us and discuss your apartment.
Details we need to know:
2) Condition – this is not really important due to the fact that if you want us to manage your apartment we can happily offer a full renovation of your apartment. In other words – the condition of your Gold Coast apartment should not stop you from making more money from your investment.
The second option to make a higher profit from your Gold Coast apartment.
Our “Guaranteed Rent” package.
This is how it works: We rent your apartment from you. We pay market price. For example, your upmarket apartment needs a bit of “love & care” and we organise it and manage the whole process on your behalf. Once your apartment is ready we are going to provide all the necessary furniture. Our preferences are towards high quality, modern comfortable furniture. We provide everything that would be needed in order to make your guests comfortable.
Once a year we review our rental agreement to ensure you get as much as possible for your Gold Coast Property and both parties are happy. Meaning you and us.
Advantages of “guaranteed rent”:
1) No vacant periods. You get your weekly payments once we get the keys and our contract is signed.
2) Our initial payment can be an upfront payment for one month or even for three months if you need a lump some money now.
3) One month vacate notice. As you would appreciate we rent your apartment from you and lease it to our guests. This is how we keep our business, therefore we do need one month notice.
4) We can buy your apartment for the market price and settle in one week. All due to the reason that we know how much profit your apartment can provide to a property investor.
Please complete the form below if you want to discuss this option or alternatively call us now.
The third option to make a higher profit from your Gold Coast apartment.
This is a hybrid option where we lease your apartment for a period of 8 months on a permanent basis and the rest of the year we use it as short-term accommodation.
The hybrid option allows us to make you as much money as possible taping into both options. This is what in our own view differentiates us and makes us a good Gold Coast property manager.
We recommend this option if your apartment located in a not so preferable by Gold Coast tourists areas. Meaning when it is a “hot” season here and plenty of tourists creating high demand for apartments you can make a higher profit from it yet during low season time we rent and manage your apartment on your behalf by placing a permanent tenant.
You pay our fees accordingly: during the low season, we charge 8% for permanent tenancies. For high season when we use your apartment for “short-term” we charge 20%. You receive your payments fortnightly.
Contact us using the form below or alternatively call us to discuss your Gold Coast apartment options.
If you want to read more about “Short-Term” Property Management please click on “Gold Coast Short Term Rental Property Management”