Monday, December 27, 2010

How to End a Tenancy Agreement

Steps for a tenant to end (terminate) a tenancy

  1. Give the landlord/agent written 'notice of termination' (see below) with the right amount of notice. If you are posting the notice, allow 4 extra days for delivery.

  2. Remove all of your belongings. Clean and take photos of the premises. Leave the premises as you received them except for fair wear and tear.

  3. Invite the landlord/agent to inspect the premises and complete the final condition report. They do not have to do this before you give them the keys. (This is why you take photos.)

  4. Attend the final inspection by the landlord/agent, if possible. Participate in the inspection and get a copy of the condition report.

    You can complete a final condition report, without the landlord/agent, to go with your photos. Get a friend to assist and witness your condition report. You do not have a right to go back into the premises once you have handed back the keys.

  5. Lock up the premises and hand back the keys to the landlord/agent. Get a receipt for the keys.

Tuesday, December 21, 2010

Late Rent - Dealing with Arrears

So, you've done your homework, signed up a tenant and still found yourself in an unfortunate situation. From here on out, it is a process of damage control. It is highly likely you will lose money. The key to limiting your losses is speed. Act immediately.
  • Tackle overdue rent immediately. A tenant should be two to four weeks in advance at all times.

  • A bad tenant will make all types of excuses for not paying the rent. Do not accept any excuses except those that would genuinely affect their ability to pay. Compromises can be made for legitimate difficulties, particularly for tenants with a good track record.

  • If rental arrears occur, take note of whether you had to call the tenant to chase the rent, or whether they notified you of their difficulties. The latter is usually a more positive sign.

Wednesday, December 8, 2010

Bad News Banks, New Online Tool Will Save Borrowers Money

MORTGAGE holders will be able to compare costs for switching banks with an online calculator launched by the Australian Securities and Investments Commission. 

The move comes ahead of a series of banking reforms that Treasurer Wayne Swan has promised will be released later this month.

ASIC launched the new tool which allows mortgage holders to assess whether changing mortgages will help them pay off their home loan faster and how long it will take them to get ahead after paying an exit fee to their previous financial institution.

A mortgage exit fee can be as high as $1000 and the cost has led to a brawl between banks and Mr Swan in recent months.

Last month ASIC changed the rules for banks, restricting them to charging exit fees that reflect the cost to them of closing a mortgage early.

Concerns had been raised that banks were charging excessive mortgage exit fees to stop people refinancing when they found a better deal.

ASIC chairman Tony D'Aloisio says the regulator has seen a sharp increase in the inquiries it has received about switching home loans in recent months as interest rates have risen.

"Recent interest rate rises have been hard on borrowers," he said. "Until now it's been difficult to work out whether another loan would leave you better off after all the exit and entry fees.

"Shopping around could save borrowers thousands of dollars in repayments.

"We've noticed a large spike in inquiries about bank switching and exit fees in the last couple of months."

Mr Swan said the calculator would help Australian families assess the savings they could make by switching to a more competitive offer.

"I've been working closely with our regulators for some time now to develop a package of new reforms to help build up more competition in the banking system, and I'll release those reforms this month," Mr Swan said.

The tool allows mortgage holders to input details of an existing loan, including the exit fee, and compare it with any new loan they are offered.

The calculator will then tell mortgage holders how long to wait before a cheaper loan will represent an overall saving after switching costs, which loan will be paid off faster and what can be saved in minimum monthly repayments.

Mr Swan is being pushed to withdraw the Government's deposit guarantee for the big banks and extend it for building societies and credit unions.

The controversial move is intended to divert billions into smaller lenders, enabling them to grow their mortgage businesses and provide a real alternative to the big four.

The idea has been put forward by Mark Bouris, head of Yellow Brick Road, the financial services company, in its submission to the Senate inquiry into banking competition.

Mr Bouris met with the Treasurer on Friday and afterwards Mr Swan told The Sunday Telegraph he admired Mr Bouris's business model and wanted to see more like it.

Yellow Brick Road has a partnership with Gateway Credit Union, which involves taking Gateway's funds, rebranding the money as Yellow Brick Road mortgages and distributing them through YBR's 45 branches.

Mr Swan is considering a variety of measures to increase the market share of mutuals.

The Comfort Factor


Over the past few years our predictable Melbourne weather has been anything but predictable with drought turning to heavy rains followed by high humidity akin to Northern Queensland.  This has significantly changed the way prospective tenants prioritize their list of “must haves”.  

Air Conditioning is now high on their list of priorities, particularly at this time of year when Melbourne temperatures soar.  While you may not recoup the initial outlay for air conditioning immediately, as it does not increase the rental value significantly, it will certainly ensure the property is leased or re-let in a shorter time period of time thereby increasing the net return on investment.

With 2010 having just been declared the hottest year on record it may be time to consider your options regarding providing year round climate control.

Australia Moves to Melbourne's West

Australia’s fastest growing region is no longer the Gold Coast but rather Melbourne's West, a new study has found.

According to KPMG research, over the 12 months to June 2009 the municipalities of Wyndham and Melton faced a population boom with 18,000 new residents, exceeding the Gold Coast with 17,000.

KPMG demographer Bernard Salt said housing affordability had played a large part in the region's recent population boom.

“There are new house and land packages on the market in Werribee for less than $280,000, compared to Melton South where packages start at around $260,000," Mr Salt said.

In addition to the increased population, the West is projected to add 175,000 people and 82,000 dwellings throughout major growth areas of Werribee and Deer Park over the next decade.

“Population growth at this pace and scale means more demand for social infrastructure such as houses, shops, schools, roads, medical centres and sporting grounds," Mr Salt said.

article by Matthew Sullivan

Tuesday, December 7, 2010

Cleaning up a Rental Property

TIPS FOR GETTING A RENTAL BOND BACK

Cleaning your rental property up to a standard where you get your bond back can be a nightmare.  By separating your property into rooms and making a checklist of everything that requires cleaning, you can work through the house one room at a time in a systematic fashion, ensuring nothing is missed.  

All rooms will require that the windows are clean, skirting boards wiped down and a mop to the ceilings if they are marked.  If the carpets are showing signs of your stay it may pay to get a commercial carpet cleaner in.  Vacuum under any furniture left in the house and ensure all tiles and/or lino is clean.

Kitchen:
Probably the most time consuming room, start here while you are fresh.  Take particular care to clean:
  • Oven
  • Microwave
  • Dishwasher
  • Cupboards (in, under and on top of)
  • Whiteware (inside and out, underneath)
  • Sink