Case Study : Underperforming Property

Primary service : Property Management

Looking after an investment property is paramount if you want good returns. Without a property manager undertaking periodic rent reviews and compiling a property depreciation schedule, the investment will not live up to its potential.
This was the case for a property investor who was hurting from low rental returns and a rapidly deteriorating property. They engaged CPS, renowned rentals agents who quickly transformed the investment.


Put simply, the client’s investment property was underperforming – and they wanted a better return on investment. Yet there were three things standing in the way:
Low rent – there had been no proactive rent increases
No periodic inspections – the property was in poor condition
No property depreciation schedule – they were not maximising tax deductions.
By fixing these issues, the client would be able to hold the property longer and maximise the gains.


The client took the first step in the right direction by changing the managing agent to CPS. Once CPS came on board, they made some immediate changes:
  • A property inspection highlighted some minor repairs which would improve the condition of the property
  • Photos were taken of the condition of the property for future reference
  • The tenant was notified of a $25 per week rental increase (60 days notice in writing), with the promise that outstanding repairs would be taken care of, and future repairs would be proactively managed
  • A property depreciation schedule was completed for tax purposes
  • Landlord’s insurance policy was reviewed to ensure the owner was covered in case of loss of rent or accidental damage.
CPS also took over paying the utility bills, reducing the client’s workload at tax-time; and referred the client to a property finance specialist to review his finance structure.


Since CPS came on board, the property return has increased by 10-12%, and the client has an extra $2,000 in his pocket at tax-time thanks to more prudent management of his finances.
With such strong results, the client has transferred his other two investment properties to CPS.

He said: “I was so happy with the professionalism of Jacob and the CPS team. They turned my property from a burden to a performing asset, which I feel secure in keeping for the long term. It now only costs me $50 per week to hold my property, and I am so happy now that I am considering buying another property.”