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Investment property managers

  • 23-01-2015 9:11pm
    #1
    Banned (with Prison Access) Posts: 153 ✭✭ malin182


    Hi, my dad is currently looking to buy a 2 bed apt in Dublin city and I was wondering if anyone knows of a good company who will basically look after everything - someone who will have a good knowledge of what to buy in terms of building quality, area etc and follow on with getting tenants in and managing the monthly rent and maintenance.

    He is currently dealing with O'Keefe Property management but they dont appear to be dealing with things quickly and he was wondering if there are similar companies out there.

    Thanks


Comments

  • Closed Accounts Posts: 4,180 ✭✭✭ hfallada


    TBH I wouldnt bother with an investment property. Even with someone managing it. There is too much risk and poor returns compared to investing in an index such as S&P 500 index. The risk is spread across various industries and companies, which helps to minimise risk. I serious doubt the returns after tax and using a property manager would make it worthwhile investing your money in an apartment


  • Banned (with Prison Access) Posts: 153 ✭✭ malin182


    hfallada wrote: »
    TBH I wouldnt bother with an investment property. Even with someone managing it. There is too much risk and poor returns compared to investing in an index such as S&P 500 index. The risk is spread across various industries and companies, which helps to minimise risk. I serious doubt the returns after tax and using a property manager would make it worthwhile investing your money in an apartment

    Thanks hfallada,

    Not to belittle what you said but I am a financial advisor myself and while I agree what you are saying to a certain extent he is very fixated on rental income. He was already getting rental income from my late grandmothers house but the siblings wanted to sell so he is using the proceeds from the sale to continue this. The problem is he has no experience in the investment property market. So thats why I am looking to see if someone can recommend someone.


  • Closed Accounts Posts: 4,180 ✭✭✭ hfallada


    malin182 wrote: »
    Thanks hfallada,

    Not to belittle what you said but I am a financial advisor myself and while I agree what you are saying to a certain extent he is very fixated on rental income. He was already getting rental income from my late grandmothers house but the siblings wanted to sell so he is using the proceeds from the sale to continue this. The problem is he has no experience in the investment property market. So thats why I am looking to see if someone can recommend someone.

    Honestly knowing several LLs, who own hundreds of properties between them. Very few of them would recommend residential investment property. If you get someone to manage them, you lose about 10% of the rent as a management fee. The management fee for the apartment block will probably be another 10-17% of the rent again. So straight away a decent chunk of the rent is gone on fees. Plus there is maintenance costs and the risk of a tenant not paying rent and having to wait for the PRTB to do something about it. Commercial property is probably an easier option.

    Another choice is buying into a student accommodation residence. They were built for section 50 and most of that is/has expired. So expect them to be coming on the market soon. A management company does all the work for you and you basically get a cheque in the post every 3 months. They do all the maintenance, finding of tenants, cleaning etc. There is no work involved. However most of the "management companies" running them are full of people you wouldnt trust running a cake stand. They dont get the best rents and cant understand the basics of economics. But they are an easy opinion. There is a handful of them in Dublin 9, that I know of eg Shanowen hall.
    I dont know of any in town or for UCD. Thats probably the best choice your father will have

    Here is one for sale

    http://www.myhome.ie/residential/brochure/34-block-b-shanowen-hall-santry-dublin-9/2945962


  • Registered Users Posts: 2,984 ✭✭✭ Taylor365


    hfallada wrote: »
    They were selling for 150k not so long ago!


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