What Actually Drives a High Performing Investment Property

Nicola Michaels of LongView on property management, presentation and proactive maintenance

From the Property, Straight Up podcast, hosted by Mel Dennis of Domain & Co.

Buying an investment property is only half the job. What happens after settlement, how the property is marketed, who manages it, and how proactively it is looked after, determines whether that asset builds wealth or quietly goes backwards. That is the subject of the latest episode of Property, Straight Up, where Mel Dennis sits down with Nicola Michaels, Senior Business Development Manager at LongView, to unpack what actually separates an average investment property from a great one.

Nicola has spent seven years at LongView and works across all of Metropolitan Melbourne, from the inner suburbs to fast growing pockets in Pakenham, Officer, and the outer west and north. LongView also operates in Brisbane, giving owners with properties in both cities a single point of contact rather than a patchwork of agents.

A Market of Two Speeds

According to Nicola, conditions vary sharply depending on location. In the inner suburbs, roughly 20 kilometres from the CBD, vacancies remain low and rents are climbing. Nicola points to a drop of around 10 percent in the number of rental properties on the market, driven by legislative change, rising costs for landlords, and interest rate pressure. Less supply against steady demand means rents keep moving up.

Further out, particularly in Melbourne’s greenfield growth areas, the picture flips. New construction is adding stock quickly, so rents are rising more slowly and vacancy periods can stretch longer, especially where pricing is not set correctly from the start. Getting the rent right from day one, Nicola says, is one of three factors that determines how quickly a property leases, alongside presentation and marketing.

Buy With Your Head, Not Your Heart

Nicola’s clearest piece of advice for investors is to separate personal taste from what actually rents well. She sees many buyers gravitate toward properties and areas they themselves would want to live in, rather than what the rental market wants. A property with genuine mass appeal ticks boxes on location, proximity to schools and shops, walkability, and a neutral, adaptable interior that lets a tenant picture themselves living there.

This is where a buyer’s advocate earns their keep, helping investors look past emotion to the data on rental appeal, and flagging maintenance that could lift the return before a property is even settled. As Nicola puts it, the numbers do not lie.

What Separates a Good Investment From a Great One

An average investment property pays its rent on time and keeps its tenants happy. A great one does that and builds wealth, delivering a strong rental return while the asset itself gains capital growth. The difference, in Nicola’s experience, usually comes down to the advice an owner had at the point of purchase and the team managing the asset afterwards.

Choosing an Agent: Do Not Shop on Fees Alone

One of the biggest mistakes Nicola sees is owners choosing a property manager based purely on management fees. Handing over a property worth close to a million dollars while saving less than the price of a daily coffee on management fees, she argues, makes little sense if it means sacrificing expertise and service.

Before handing over a property, Nicola recommends owners do real due diligence on a prospective agency. Look at how properties are marketed. Ask how many open for inspections are run each week, including Sundays, when people who work Saturdays can attend. LongView runs opens across Saturday, Sunday, and midweek for the majority of its vacant properties, which Nicola says leases properties roughly a week faster on average.

Marketing That Actually Gets a Property Leased

Presentation matters more than ever now that renters do all their searching online. Nicola describes LongView’s approach as a polished presentation package: professional photography, a virtual tour, and virtual styling where appropriate, so a listing stands out against everything else a prospective tenant is scrolling past. Floor plans matter too. Nicola says renters consistently ask for them, and a listing without one raises doubts about what might be missing.

Good marketing does not stop once a listing goes live. Behind the scenes, a strong property manager follows up every enquiry, gathers feedback from each inspection, and flags small, worthwhile fixes, a built in robe, a repaint, that could help secure the right tenant faster.

Choosing the Right Tenant in a Changing Regulatory Environment

Tenant selection now sits alongside a fast moving compliance landscape. Since the safety compliance changes introduced in 2023 and the 14 minimum standards, requirements continue to expand into energy efficiency, heating, insulation, air conditioning, and window and door standards. Nicola’s advice is to work with an agent who stays ahead of upcoming legislation, so any necessary upgrades are planned for rather than rushed through at the last minute.

Putting Service Guarantees in Writing

Nicola raises a point that many owners are not aware they can ask for: a documented service guarantee. LongView will return three months of management fees if it does not meet its own published service standards. It is a response to a common problem Nicola sees across the industry, owners going a week or more without a returned call, no movement on marketing, and no update on pricing. Despite this, investors are often slow to switch, and Nicola estimates it typically takes around four significant service failures before an owner changes agents, even though moving costs the owner nothing.

Practical Ways to Lift Rental Return and Cut Vacancy

Nicola’s suggestions are straightforward and do not require a large outlay. Fresh, investment grade carpet, blinds, and light fittings, updated door handles and tap ware, and swapping oyster lights for downlights can lift a tenant’s first impression without a major renovation. Combined with strong marketing and the right tenant selection, these small changes reduce vacancy and support a higher rent.

Proactive Maintenance Protects Long Term Value

Because an investment property is not something an owner sees every day, small issues are easy to miss until they become expensive ones. Nicola’s advice follows a simple principle: prevention beats cure. Regular attention to roofs and gutters, servicing air conditioning, and organised pool and garden maintenance protect the property and keep it presenting well for the next tenant, or for a future sale. Engaging a gardener as part of the tenancy also means the property gets a regular set of eyes on it every month, something most time poor owners value even if gardening is not their thing.

Reviewing Performance Regularly

Nicola recommends owners review how a property is performing at least every six months, including a formal rent review. LongView benchmarks against comparable properties and factors in the quality of the existing tenant before recommending any change, since losing a good tenant over a rent increase can cost more in vacancy time and another leasing fee than the increase would have earned.

She also draws a clear line between property management advice and sales advice. A property management focused agency like LongView has no financial incentive to push a sale, so its guidance on whether to hold, improve, or sell is unbiased. Where an owner wants a sale ready appraisal or a broader view on their options, that is where a vendor’s advocate such as Domain & Co comes in, working alongside LongView rather than in competition with it.

A Real World Example: The Property That Sat Vacant for Months

Nicola shared a case that illustrates how much a change in management can matter. A client’s newly purchased property sat vacant from early December through to February under the previous agent, blamed on holidays and school terms. The garden had been left to die over summer, there was no floor plan on the listing despite one being available from the sale, and pricing had not been reviewed. After LongView took over management, arranged a clean up and garden works, corrected the price, and rebuilt the marketing, the property was tenanted within two weeks.

Key Takeaways for Investors

• Buy with the rental market in mind, not personal taste, and get professional guidance before you purchase.
• Do not choose a property manager on fees alone. A small saving on management fees is rarely worth the cost of poor service.
• Ask prospective agents about their marketing standard, their open for inspection schedule, and whether they offer any written service guarantee.
• Stay ahead of compliance requirements rather than reacting to them.
• Review rent and performance at least twice a year, and factor in the value of a good existing tenant before pushing for an increase.
• Budget for proactive maintenance. It is consistently cheaper than fixing what it prevents.

Final Word

The conversation is a reminder that the purchase is only the beginning. A high performing investment property is the result of an ongoing partnership, sound advice at the point of purchase, sharp marketing, careful tenant selection, and proactive management, all working together over years, not weeks. As Nicola puts it, the simplest thing any owner can do to protect their investment is to engage a genuinely professional agent.

To hear the full conversation between Mel Dennis and Nicola Michaels, listen to this episode of Property, Straight Up. For more on LongView’s property management services, visit longview.com.au. To talk through your own property strategy, get in touch with the team at Domain & Co.

This article is based on the Property, Straight Up podcast episode featuring Nicola Michaels, Senior Business Development Manager at LongView, in conversation with Mel Dennis of Domain & Co.