If you plan to purchase an investment property for the first time, one of the key issues you have to consider is to manage the property yourself or use the services of a real estate company that has a property management department.

Many first time investors make the mistake of trying to management the property themselves. Common problems that first time investors encounter when trying to manage their own property is that they set the wrong market rent, fail to do proper background checks on tenants, not complying with current legislation and to failing undertake regular maintenance of their property.

The end result is that they can lose thousands of dollars either through high vacancy rates, bad tenants and small maintenance issues that become major problems because they where not addressed at an early stage.

One of the most important tips when buying an investment property is therefore to get a professional company to manage your property.

An average investment property in Perth now costs around $400,000, so it is important that this valuable asset is managed by a company that has a strong reputation in property management. The benefits of using a property management company can include:

* Timely collection of rental payments
* Rental statements detailing income and expenditure
* Payment of your property expenses. e.g. Council, water rates, body corporate fees, trades accounts, insurances, etc
* Regular programmed property inspections with reports and recommendations
* Annual financial statement to assist with your tax return
* Ensuring that your property complies with current legislation i.e. electrical safety switches.
* Recommendations on property improvement to maximise returns
* Assessing market rents to maximise your return
* Preparing of lease documentation, ensuring all legal requirements are met
* Arranging maintenance and quotes from reliable trades people
* Organising property renovation or refurbishment

It is also important to remember that the fees charged by a property management company are tax deductible.