PM’s EARN MORE FOR LANDLORDS
Landlords who use the services of a property manager are 15 per cent more likely to earn positive rental returns compared to those who try to self-manage, new research has found.
A study by research consultancy group, BDRC Jones Donald, shows 51 per cent of landlords with professionally-managed properties earn positive rental returns, compared with only 36 per cent of those who self-manage. The BDRC Jones Donald Australian Private Property Investor Study is the first of its kind in a decade.
The national study surveyed 500 Australians who own one or more rental properties. It sought to identify their outlook on the market, intention to buy or sell, overall profitability and the use of financial and insurance products.
“The Australian Private Property Investor Study found that a majority of private investors rely on the professional advice and support of real estate agents to maximise their investment returns,” BDRC Jones Donald managing director Dr Roger Donbavand said.
The study also showed that landlords are receiving positive financial returns, with 26 per cent breaking even on their investment, 35 per cent supplementing their normal income from their rental returns, and six per cent living solely off rental income.
Source : Residential Property Management (January 2013)