How do you maintain your property portfolio if you own many properties?

Discussion in 'Investment Strategy' started by realestatefellow, 22nd Sep, 2018.

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  1. Beano

    Beano Well-Known Member

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    I do use MoneyWorks Gold a full ledger package for the financial accounts , monthly/annually reporting , budgets, taxation . Property details , workings , cash flows , breakdown etc on excel so having the Summary ,property leases , renewals , IM , correspondence on Property director would be handy.
    Interest and principal I do not assign to properties as it too difficult and pretty meaningless.
     
  2. PeterYB

    PeterYB Active Member

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    I think the industry benchmark for professional property manager is about 100 per person so I just used spreadsheets for figures and a beefy scanner to manage all the paperwork. Everything is stored on computer, backed up in 2 different clouds. For day to day management I defer to the PMs who are quite good.
     
  3. Beano

    Beano Well-Known Member

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    But for your own properties you can handle a lot more than 100 tenants as you have a personal interest.
    You can't compare this to a employee who is "just doing his job".
    Ps but you do have to employ contractors to do the maintenance . (Especially when in multi countries)
    I am only talking about administration and filing tax returns.
     
  4. PeterYB

    PeterYB Active Member

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    I see the value in what you are saying. However to make use of comparative advantage I would hire a property manager full time if I ever get to 100 properties. I'd much rather work on my day job.
     
  5. Beano

    Beano Well-Known Member

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    I actually quit my day job when one year one tenant''s increase was more than my annual salary!
    So much more fun seeing the income grow by maximising rentals from your own effects than being employed by someone else.
     
    Bunbury, Cousinit and inertia like this.
  6. PeterYB

    PeterYB Active Member

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    yeah I didn't want to retire, but I am still a property investor :) since I earn much more than a property manager it makes sense to outsource that job if I ever get to 100 IPs
     
  7. Beano

    Beano Well-Known Member

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    It's not 100 IP it is 100+ tenants but I am merging tenancies as the small tenancies are a lot of work and little reward.
    I will probably end up with 90 tenancies but with increased rental.
    Lot of my tenancies are coming off fixed terms and growth has been eye watering.
    The pending tax bills looks really scarey
     
  8. PropDir

    PropDir Well-Known Member Business Member

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    Hi all,

    Thank you for the discussion, including the suggestions. We heard about the thread so wanted to respond so you have it directly from us.

    We have launched Phase 2 of our product which addresses a number of items noted in this thread. This includes ability to capture financials at a transaction level, replicate transactions, bulk update transactions, and a number of additional in-built smarts.

    Transactions are captured within 'transaction groups' for easy management including income, expenses, loans and capital expenses. You can also specify any type of transaction frequency (monthly, fortnightly, twice per month, weekly, quarterly).

    We have also developed a portfolio forecaster enabling you to forecast your property portfolio going forward 10 years based on real suburb-level median data. We have built research reports and market activity reports capturing capital growth and detailed demographic information covering all suburbs in Australia.

    Please take a look in the PropertyDirector.com.au signature below if you would like to use it. A free trial is available.
     
    Last edited: 20th May, 2020
    Brody Hales likes this.
  9. Brody Hales

    Brody Hales Active Member

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    Hi Prop Dir

    I subscribed to you a while back and still got my trial which you guys extended given I was a early user. I got 5 properties

    I logged in this week and I love the new property forecaster. Can you advise what the forecasts are based on.

    after my trial, which plans provide the forecaster again?

    And can you advise please how do I get access to the capital growth reports.

    thanks
     
  10. PropDir

    PropDir Well-Known Member Business Member

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    Hi Brody,

    Thanks for the note, and glad to hear you like the forecaster. Responses to your questions below:
    • The forecast is based on historical (annual) capital growth of each suburb being forecasted based on annual median house prices growth last 30 years per suburb. Your input selection in the forecaster form allows you to specify how many years it is based on (last 10 years, last 20 years etc).
    • The forecast also takes into account your loan repayments based on the data you inputted for each property (takes into account interest rate, loan balance amount, whether you selected P&I or Interest-only loan). This will give you an equity position after 10 years as you pay off your loan.
    • All of our plans have the forecaster included.
    • We do not provide access to the capital growth reports in the free trial. You will need to upgrade to one of our higher plans to get this - we have to pay significant data costs for this data, particularly because we allow investors to compare up to 6 suburbs at a time.
    Hope this answers your questions. I would suggest you either PM me directly or contact us via our website if you have any further questions. We also have a help guide here providing step by step details of our key functionality for future reference - Help | PropertyDirector.

    Thank you.
     
  11. Brody Hales

    Brody Hales Active Member

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    Thanks prop dir, help guide is good
     
  12. PropDir

    PropDir Well-Known Member Business Member

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    Hi cartart - can you provide some info/insight on how you transitioned from many smaller investments to less bigger investments?

    I have a few questions below:
    * How did you deal with the banks to get loans - did you simply use the capital you had in your 40 properties (after selling) to fund your additional loans?
    * Our of interest, how many new investments did you purchase? And were they residential properties, commercial, or a combination of the two?
    * A clear benefit I can see of owning less number of investments (but bigger investments) is that it will presumably be easier to look after and manage your portfolio. However isn't it a risk to focus your investments on a few big bets?

    Thank you.
     
  13. Beano

    Beano Well-Known Member

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    I think getting the portfolio to about ten tenants is a easy number to handle.
    Getting rid of all the sub $1m net pa properties
    That will give you nice tidy $10m pa plus portfolio
     
  14. PropDir

    PropDir Well-Known Member Business Member

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    Thanks Beano. Yes, 10 max may be a better number of tenants to handle (not saying it will be be easy!)
     

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