You have a role in educating your clients about the assessment of the performance of their individual investments and their overall investment strategy. You also have a role in helping your clients understand how to monitor their investments and here we provide a process that can be used for this. Performance monitoring is about identifying the variables that can be controlled, and managing them effectively.
Let’s take a look at what should happen at the 12 month mark. There are six main steps in this process:
- Review investment returns;
- Assess other assets and non-rental income;
- Review the loan structure;
- Review property management;
- Review the investor’s tax benefits;
- Other useful considerations.
We will now discuss the six main steps in more detail.