News & Insights
Unique to Marshall White, the Project Management Service has been established to help Residential Rental Providers (RRPs) upgrade their properties and increase their overall investment performance.
One of the new service’s first projects involved a ‘tired’ three-bedroom, two-bathroom unit in Toorak, which saw its weekly rent increase dramatically after the Projects Management team transformed the property.
The team re-designed the bathroom, upgraded the kitchen, painted throughout and installed new carpets. Afterwards it felt like a different property.
The Owners were thrilled as the works not only increased the rental return by more than a third, but it also resulted in a two-year tenancy, with a further rental increase in the second year.
The key areas that the Projects Management Service looks for when assessing a property is the condition of the paintwork, carpets, appliances, window furnishings, bathrooms and kitchens. A team member will then coordinate the various contractors and services required to complete the works.
Projects Managements is a value-add upgrade service to clients and differs from the role of Property Managers who are focused on the maintenance and compliance of properties. The Property Managers identify properties with older style interiors which have great bones such as high ceilings and large rooms which are not likely to compete well in the rental market against newer properties which have fresh contemporary interiors.
In this competitive market, it is the Renters’ expectation that the property should be fresh and appealing as well as safe and compliant.
A team member will assess the property and provide advice aligning with the Owner’s budget expectations and future goals for the property. The overall aim is to increase the investment performance by upgrading the property. This in turn increases the rent return, reduces vacancy time, attracts a higher quality Renter, often leads to longer lease terms and increases the property value. In addition, the works can be depreciated as a tax offset.
Major works are completed at the end of a tenancy before the property is advertised for re-leasing. Usually, properties which would benefit from the Projects Management Service are identified by Property Managers at routine inspections so the team have plenty of lead-in time to discuss what works would be required for commencement as soon as the property becomes vacant which minimises the rental loss.