Your Gripes About Landlords

To round things out for the year, lets talk about landlords, complaints about landlords that is.

So being a landlord, it's good to know what people don't like about us. That way we can either fix it, downplay it a bit, or ignore it and hope it goes away.

What do you think are common gripes tenants have about landlords?

Repairs and Maintenance:

More to the point, a lack of interest in the property once tenants are in. Calls to have things repaired fall on deaf ears and regular maintenance is a pipe-dream. As I've said time and time again, nail this one and you will not only have happier tenants, but you are protecting the asset and also maximizing the possibility of increase revenues out of it.

‘Twas the Night before Christmas…

On Friday 21 December True’s ‘physical office’ closed down for the Christmas break and all business operations were transferred to our ‘cloud office.’  This meant that while the rest of the team were having a well-earned break, Anne and I would be handling all inquiries from prospective tenants; queries from landlords; maintenance requests from tenants; conducting inspections of properties available for lease (well, Anne actually as she says I scare the children); and generally, running the show remotely from our home in Melbourne’s Eastern Suburbs.

On the Sunday evening we were sharing a bottle of ice-cold wine (it had been a stinker of a day with temperatures into the high-thirties) with some friends on our decking at home when at about 7.30pm the business phone rang which Anne answered.  All we could hear was one side of the conversation with comments such as “Are you OK?” and “Is there any damage?”

How We Look After Your Property With Inspections

You have an investment property and you are considering using True Property Management as your property management company - great. Let me tell you one of the ways we look after your property.

Inspections

Inspecting your rental property is important part of property security and peace of mind. If your property is vacant then we endeavor to visit the property each week to ensure all is secure and in tip top condition. Once there are tenants in the property for 3 months, then we start regular house inspections every 6 months.

During the inspection we are looking at everything and will advise you on any of the following:

Finding High Growth Suburbs - Checklist

So are you hoping for a high growth property for Christmas? If you are, then have a look at this checklist from yourmortgage.com.au this will help in tracking down a few beauties.

Checklist for finding high growth suburbs

Looking for Property Between $200k- $400k?

When you are looking to invest in property you are looking for the sweet spot, a great price with a great location, and capital cities are the locations that a lot of investors have property.

The Property Observer recently published an article - based on RP Data - discussing which capital cities had properties under $400k.

Hobart and Adelaide were the winners with close to 3/4 of houses coming in under that figure and Adelaide had just over half of sales under $400k.

Some Properties Gain Value, Some Don't - Why?

When you buy an investment property the idea is for it to be a money maker, both month after month with rents, and in the long term with capital value.

But why do some properties take off and others don't? 

Not all properties act the same way, even if they are similar property types, such as a brand new 4-bed 2-bath single dwelling.  

Keep in mind this is not an exhaustive list of reasons for the lack of capital growth, but to illustrate just a couple of areas as to why not all properties act in same way.

Population growth

• Just because there is massive population growth in a certain area doesn't guarantee a low vacancy rate. If that population growth also coincides with an oversupply of property, it doesn't matter how many people are there, if there are too many properties they will not be filled.
• If you have town planners that are holding back on releasing more land for development and the area is a desirable place to live there will be an under supply of property, which of course will drive up the prices. 

Don't be fooled: population (doesn't always) = profit!

Shortcuts 

For developers to maximize their profits - due to rising labour and material costs - they often take a few shortcuts. These can include squeezing multiple houses onto a relatively small piece of land, which means each property only has a small slice or land. Or, to try and get that lucrative 4th bedroom sacrifices need to be made, such as the kitchen. Rather than the kitchen having it's own defined space, it's tagged onto the living area.

So if you have a new development with 4-bed dwellings, next to an older established neighborhood (with comparable properties), it is likely the older properties will have more land and more kitchen space (even if it's dated) and hence more value, perceived or otherwise.

How are the neighbours?

What's been happening to the neighbourhood recently?  Has the once thriving area started a downward slide? It can be just a matter of a few streets and it could make the difference in values increasing, stagnating or heading in reverse. 

Lets talk about schools

Do you think a property placed within the zone of a top ranking high school would generate more capital when compared to a property that is in the catchment area of a lower ranked school?  Schools are big business, and parents will go to great lengths to get their kids into certain schools, hence driving rents up in those areas.

So what have I missed? What are other areas that impact values of comparable dwellings?

Don't Pay Too Much

One of the keys of being a successful property investor is getting to the property before the competition and getting the property under market value. But how do you do that - how do you avoid being fleeced?

Well it comes down to planning.

Numbers

You need to do lots and lots of research! The numbers don't lie and you need to have accurate historical data to make informed decisions. Some (but not all) of the areas you need to cover in your research are:

• Median price in the suburb that you are investigating - past 12 months, 5 years and 10 years
• Track property sales in the targeted suburb. Which ones are going to auction, which are being passed in. Ask for price guides from agents. (Keep a closer eye on comparable properties)
• When you are looking at a particular property, find out what it last sold for, when and how long it stayed on the market.

Property Investment Traps

A few weeks ago news.com.au wrote a great article about how to avoid investment property traps. I couldn't have written it better myself, so here it is again. You can find the original article HERE

Property investing need not be depressing if you follow some simple rules. Picture: Getty Images

PROPERTY investment has been the backbone of many multi-million-dollar empires.

You only have to scan the list of the world's wealthiest people to see how bricks and mortar, commercial property, development and residential rentals can offer rich pickings.

Australia continues to have one of the highest property ownership rates in the world.

However, there are traps for the unwary. Financial mistakes can turn a perfectly-positioned investment property into a nightmare. We asked four experts for their top five financial traps for property investors.

Great Tenants for your Rental Property are Determined by YOUR attitude! PART 2

Last Time, we discussed how your personal attitude impacts on the quality of tenants that you attract. Now lets discuss the attitude of your property.

How well dressed is your property?

You turn up to your property viewings, smartly dressed, with organized paperwork and an air of confidence about you. Does your property present the same attitude?

What type of tenant would be attracted to this property?

Without fail, all good tenants want to rent a place that looks good. They want to show their friends and family a place they are proud of. They want to live in nice surroundings.  Bad tenants don't care. Bad tenants just want a place to crash. They will bypass the fantastically presented property, because they know more will be expected from them.

Great Tenants for your Rental Property are determined by YOUR attitude! PART 1

What attitude does this person present?

You have a great property and now you need to fill it with a great tenant.  We have talked about how to raise rents, so now we need to get the good tenants in the property that will allow you to do just that,

Good tenants  - those who take care of your property and stay there for some time - are attracted to properties with specific qualities. 

The idea is you need to give off the aura that you will only accept great tenants! You do this by letting potential tenants know that you will not tolerate tenants who disrespect the property, disrespect you by not paying their rent and you will in no uncertain terms, tolerate those who undertake illegal activities.

How do you present this information without being heavy handed and negative?  In a manner that is respectful and professional. The following points, work no matter what neighborhood, no matter what town, no matter what income level or the value of the property or rent they are paying.

What is your attitude?

If you ran a shop and a potential customer was in your store looking at buying a $15,000 item, how would you treat them? Once you figured out that they weren't just tyre kicking, you would treat them very well!

Why Am I Not Getting Higher Rents?

So you've bought a great a property and it's been rented out for awhile, but hang on, why am I not getting more rent? The value of the property has increased, so shouldn't the rent?

Recently I looked at how to increase the rent without losing tenants. Now here's a look at why you may not be able to increase the rent, even if you wanted to.

Your property needs some love

If your property is not looking sharp, then you will not get rent increases. There will be no competing tenants for your property if the paint is peeling, the carpet is threadbare and the yard is overgrown. Spend some time and money on making it look the best it can be.

How to get into the Property Game

With 2013 right around the corner, a lot of us are thinking about what we plan to do to make it the 'best year yet'. Maybe you are considering trying your hand at property investing (if you haven't already). You may be a little overwhelmed with the amount of information that is out there and you are looking at making the leap, but you don't know where to start.

Here are a few points to consider:

1 - Make sure your job is secure

The economy is recovering and there is a lot more confidence in the market. Hopefully that translates to your job. If you are looking at using banks as your primary source of mortgage funding, then you will need to show them that your job is nice and secure, and that it's not likely to end anytime soon. (That is a little like crystal ball gazing.)

Capitilising on the Holidays

We're heading into Christmas, we're all tired and scratchy and would really like a break. But is that the best idea if you are a real estate investor?  You could use this time to your advantage and capitalise on everyone else taking a break.

Maybe this year consider taking your holiday in the middle of the year and use this time to fortify your position instead and take on the new year with a bang!

Competition

Since everyone else is hitting the beaches and the market slows down until about February, this is a fantastic time to negotiate. Make offers from late December to mid January and you might just swing yourself a good deal because there are no other buyers around. 

More Renters Means What?

This figure was from 2011, and it's still growing!

There is a trend in Melbourne: there are more people renting. This is likely due to the economy and uncertainty. There have been changes in the housing market of late, with sales on the uptake, but over all renting is very popular and looks like it's becoming more so.

Australian Census data (from 2011) shows that although the number of homes being purchased or owned was higher than in 2006, the proportion of the number being owned has dropped from 70% to 67%. Keep in mind that these figures are from last year, and no doubt that trend is continuing. 

Rent Guarantees and Off-The-Plan Purchases

Here are a couple of incentives, that look great on paper, but you do have to know what you are doing. These are offered by developers to get you buying.

Rent Guarantee

A rent guarantee is just what it says. The property developer will guarantee a certain rent rate for a period of time - often 2 years. This seems like a fantastic idea if you are a little worried about the deal. But beware, you are paying for it in the long run.

Investment Property Red Flags

When buying an investment property, there are factors that you need to consider to ensure the property is a good deal.

Today we are looking at the 'RED FLAGS' and it more often than not comes down to numbers.

You know doubt are aware of how supply and demand impacts property: you are looking for a property that will provide good capital growth, in an area where the supply of properties is low, and the demand for living in the area is high. 

Yes, We're talking about Nightmare Tenants!

How could you get through the door?

We don't  like talking about it, but it happens. (I think we all know people in the category of 'I tried it once, it was awful, so I'm never doing it again!')

The nightmare tenant. It usually happens when landlords self-manage their rental properties and due to inexperience or not being a 'tough nut' end up with a tenant (or tenants) who are less than desirable.

So what are the common ways tenants can be a nightmare:

How to Raise The Rent, WITHOUT Losing Tenants

You are in the rental property game to make money. So how do you successfully raise the rent WITHOUT losing your tenants?

First things first, in Australia make sure that you have a clause in your tenancy lease agreement that stipulates the increase or the method of calculating the increase!  Without this there is no legal way to go about it.

A lot landlords think the only way to raise rent is to wait for tenants to move out - but this is not the case. If you handle it carefully and sensibly, you won't necessarily lose your tenants and you will be increasing profits. It can be a daunting task for some landlords as they don't want any confrontation, don't want to rock the boat, don't want to deal with tenants moving out or maybe they are too friendly with their tenants! However, if you want to increase your profits, it has to be done. There is a right way of going about it.

How do you minimise Tenant Turnover?

Note the smile on the tenants faces!

The key to minimising tenant turnover is keeping a tenant happy. It really doesn't take all that much to do that. I wrote about the cost of tenant turnover the other day, now we talk about keeping them. 

I wrote a post a few months ago about the topic which highlights a few 'above and beyond' activities that some landlords find useful in keeping tenants happy.

The key I feel in tenant retention is professionalism!

Yes, it may be self serving, but a very experienced property management company who has 'seen it all before' is your best bet. I know where you can find one…Here! 

But bottom line to happy tenants is respect:

How much does it really cost a Landlord when a Tenant moves out?

Reducing tenant turnover is paramount to being a profitable landlord. Not only does it chew into your time when you have to get the rental property ready, market it and then show up for viewings,you are losing income! So what are the actual costs  when a tenant moves out?

This is what you want to avoid!

So what does it actually cost? 

These are by no means exact numbers for your rental property.  Only you know how much:

• You are renting out your properties for 
• What your mortgage payments are
• How much work that need to be be done on the property before turning it over

But if you are new in the landlord game (or you have been there a while but you really haven't thought about actual costs) this will give you a general idea of what the outlay is.

NSW Property Investing Hotspots

With rate cuts dropping and with interest in purchasing properties on the increase, people are asking 'where'? Where are the hotspots?

John McGrath from McGrath.com.au sits in with Switzer.com.au and discusses where he thinks the next investment hotspots are, along with his opinions on what's happening in the property market.

Is this 'The Grass is Greener' Behaviour?

I found this article compelling in that it states that a third of Australian households would move for financial reasons, yet at the same time it states that financial confidence is also rising, being at a 2-year high. Do you think that is contradictory, or is just normal 'the grass is greener' behaviour?

You can find the original article at www.propertyobserver.com.au but below I have reposted the article. 

Queensland the top destination for those prepared to “pull up stumps”: ING Direct

By Larry Schlesinger
Friday, 19 October 2012

Nearly a third (31%) of Australian households would consider re-locating to another state for financial benefit with Queensland the preferred destination, according to the latest ING Direct Financial Wellbeing Index.

Divorce and Renting

It's an ugly reality, sometimes relationships breakdown and there is no repairing it. If you are heading towards divorce court and are renting a property, you need to be aware of a few things.

Someone has to pay the rent! 

It's unlikely that both parties will want to be living in the same place, so someone will be moving out. It is also likely the person moving out, feels that the person still in the rental, needs to make sure the rent is paid on time and in full. However, if both parties have signed the lease, then BOTH parties are legally responsible for the rent and the care of the property until the lease ends.

Finding a GOOD Tradie

So you need to find a tradie, and this is someone you can have in your back pocket for future changes and upgrades to your rental property.  We've all heard the horror stories of tradies not showing up on time, not following directions, blowing deadlines and having poor workmanship. All these things can turn a profitable job into a nightmare and not to mention blow the budget and wreck your profits, so what do you do?

1. Ask Around

Do you know people who have used trades before and have had a good experience with them? Do you have a friend who's a builder who can vouch for his/her mates? Once you get a few names, then talk to the people they have done jobs for, ask questions about, the timeliness, quality of work and how easy they are to work with. 

If getting recommendations is turning into a problem, go on-line and find out who people are recommending.

Won't They Ever Learn?!

Published on behalf of Tony Warren, Director

The property management industry appears to be regressing….. going back to some practices of the past without a thought for the problems they could be facing.

The frequency with which we are being asked by prospective tenants if they could ‘swing past and pick up the keys’ to inspect a property is being marketed as available for lease is growing rapidly.  When told that this not our business practice and would they like to make a time that suits them to inspect the property, they are very appreciative.

In the ‘Dark Old Days’ of property management, tenants would call at the office, leave a minimal deposit and then inspect the property unaccompanied by the property manager.  As the incidence of theft from vacant properties; or damage to the property; or the keys failing to be returned (when the deposit taken would not cover the cost of replacing the locks), the industry reacted by initially increasing the amount of the deposit taken.  From my memory, which is a bit vague after all these years, it increased from $10 to $30.

8 Creative ways to Sell your House

There are endless ways to sell your house, some are more successful than others. The end result is that you want it sold as fast as possible, for the maximum price. I wrote an article recently on how to maximize the house price, now it's time to find out how to sell your house as fast as possible. 

By now you would've heard about the tech savvy guy who sold his house (way above reserve) by utilizing his social media skills.

And then there is the house with it's own Blog, Twitter, Facebook, Pinterest and Google Plus accounts 

But what other ways can you drum up interest and hopefully sell your property quick smart? Well here's a few ideas, some more realistic than others:

Help! I'm an Accidental Landlord!

So you found yourself being an 'Accidental Landlord' - you didn't start out intending to become one, but that's what's happened. Did you inherited a house from your parents? Or maybe you have found yourself in a situation where you need to sell your house - you've already moved, or the mortgage payment is too much and you need to sell, but the house is not selling and you don't want to lower the price anymore. So what do you do? What can you do?

One of the options is Renting it out. Congratulations, you're now an "Accidental Landlord"!

This will bring some money in while you either decide what to do with the house, or the market improves. By renting it out, you will be bringing in income to cover the mortgage at the very least, or hopefully, earning some income that you could reinvest in more property later.

Maximise The Sale Price of your House

It's house selling season and everyone wants to increase the value of their house, but what are some of the best tips on maximizing the sale price?

A touch of paint

Paint, paint paint. Paint interior and exterior surfaces. If you are unsure what colour to paint, look at what colours are being used in new developments and choose similar shades. The colours of the developments have been chosen for a reason, so use their research to your advantage. 

A race around with the mower

Spruce up the gardens. Make sure that the lawn is mowed, the garden is weeded, maybe put down some new bark, plants and trees. Make it look fresh and inviting, so buyers will walk through the front door. 

Say Bye Bye

Get rid of the junk! No broken down cars and bikes in the yard, and no clutter on the inside. You want your property to look as big as possible, and nothing makes a place look smaller than too much stuff and especially junk.

10 Dumb Things Landlords Do.

We've all heard of landlords doing dumb things, here are 10 of them. I know there are more.

1 - Not screening  the tenant

Did you get your tenant to fill in an application form, did you call references, do you know if they are really working? Do you know anything about the person who is going to be living in your property? Make sure if you get the information to follow through with it and check. Just because it's written down doesn't make it true.

2 - Disorganised chaos

Are you a landlord who doesn't call back tenants because you can't find their name or number which you wrote down somewhere but can't remember where you put it? Use your Smartphone to organize yourself, or Evernote or some other system. 

You Can Take a Holiday!

It's starting to warm up down and we are all dreaming of our Christmas holidays, but one of the hardest things about being self-employed is taking a holiday. Who is going to handle any crises that may come up? How will you get paid? But it is important to everyone to take downtime. So how do you work it so that you can take a holiday and come back recharged and refreshed? Yes it is possible to take a break from the calls and requests.

My first suggestion would be to hire a property manager and you will never have to worry about taking a holiday, but if you like going it alone, here are some tips on making a holiday a reality.

Find a "Bob"

While you are away things will happen that need to be addressed so find a trusted friend or a relative ("Bob" )who can take over managing the property(ies) in your absence. Make sure that they are:

• Trusted - you can not worry while you are away, so you must be sure that Bob can handle the job and not make mistakes that could damage your reputation.
• Bob must be reliable in all aspects of the job
• That Bob isn't going to be put out too much (make sure they live within a short drive of  the property(ies)
• Bob must be relativity handy.
• Bob must be willing to do it! 

I would also set up some kind of remuneration for them so that they take the role seriously. Consider even writing up a contract. 'He' may be your best mate or your cousin, but don't take him (or her) for granted.

It sure is a tall order, but once you find the right person, the rest is simple.

So, Your Tenants Left You With Fleas? 5 DIY Tricks for Effective Flea Eradication

We are lucky enough to have a guest blogger today. Shaun Peterson, of Pink Pest Inspections from Sydney writes about a topic that no one wants to think about, but we will have to deal with at one point or another. FLEAS

Is your home currently being taken over by fleas? If yes, then it's time for you to learn how to get rid of these annoying little insects once and for all. Spring and Summer are the two seasons you can expect to see the most fleas, as these are the times of year that they really start to make themselves known. Although fleas love warm and humid temperatures, they also survive in colder temperatures, which can make them a nuisance all year round.

Since fleas are one of the more common types of insects that are found in one's home,

most people tend to know some of the more common ways of getting rid of fleas, like treating pets with flea control medicine and setting off foggers inside the whole house. Today we're going to give you a few lesser-known tricks that have proven to be very useful.

Abandoned Rentals and How to Prevent Them

It's not something that you want to face, and luckily doesn't happen very often, especially if you have screened the tenants well, but it is something that you should be prepared for, and try and avoid at all costs.

Disclaimer: This is just a guide at some steps to take, if you have an abandoned property on your hands then get the right advice! This summary covers some Australian rules and some US rules, so make sure you know which ones to follow.

So what can you do to prevent it?

Make friends with the neighbors! 

This is probably the best deterrent there is.

• If you own a block of apartments, then make sure that all the tenants know that if you see tenants moving out and it looks a bit on the suspicious side, to give you a call. 
• If you own a single dwelling, then give your contact details to some long term residents who live close by and tell them the same thing.
• Make sure you find a (polite) way to inform your tenants that their neighbors will look out for them and if there are any issues that they will call you. This is a nice way of saying "you have been forewarned".

Micro Apartments Vs McMansions

Are you micro or a macro person?

Micro Apartments  

I came across this video of a tiny, tiny, TINY apartment awhile ago and thought 'wow, who would want to rent this place? But it turns out it's not as uncommon as you might think.

In expensive cities like New York (the above video) and San Francisco, people are doing what they can to downsize their possessions and their rent.

In San Francisco there is a 'Lego' development in progress which is made up of 300 sq feet (about 27 square metres) units, that are being built off site then shipped and assembled like building blocks. This sort of living definitely appeals to a certain market, with a highly organized space!  But what about the other end of the scale?

The Best way to Protect your Property is to Maintain it!

To ensure that your rental property stays in tip top condition you need to maintain it. Maintenance doesn't have to be a big problem, if you keep on the little stuff. You maintain your rental pretty much how you keep on top of your own residence. 

By keeping on top of the little stuff, you will have a better shot at enjoying long term tenants. There is never any guarantee that by looking after a property you will have long term tenants. But you can be sure that if you don't look after your property, then you will have NO shot at having satisfied long term tenants. It pretty much guarantees that you will either have a high turn over, or long vacancies.  So what should you focus on?:

• Preventive measures and ongoing maintenance
• Repairs
• Upgrades

How to become a Successful Landlord

No, you won't look like this guy, you will be MUCH better!

So you are a Landlord, how can you be the best that you can be?

Follow the Rules!

Find out what the rules are for you area and follow them. Health and safety, handling the money, tenant and landlord rights. Here's some general information.

Protect your Asset

Get insurance. Do not under insure your pretty. Also consider how you legally want to own the property, is it under your name or a company name? Find out which is the best way for your situation. 

What Rent to Charge

So you have a rental property and you want to rent it out, but how much is the right amount?  There are a lot of variables involved to determine the right price. 

First of all the easiest way of course is to employ a property manager. They will be able to tell you what a fair market rate will be. But even if you employ a property manager it is also a good idea to do some analysis yourself. If you do, you will feel more comfortable with the rent rate, and you will also feel fully involved in the process. You don't want to be in a position where you find out that the property manager is over or under charging your tenants.

1st Step -- Research

Find comparable rentals in the area of yours and go to the showings. Look at the property, ask questions on how long it has been vacant. Look at not just the number of bedrooms and bathrooms, but other amenities like dishwashers, waste disposals, heating/cooling, spa pools etc. 

Also go online and find out if there is a wide range of prices for comparable rentals or if they are are all within a tight figure. The more detailed the search, the more reliable results you will produce. Don't just look at one website, look at several and ask lots of questions.

Can You Change Your Property Manager Mid Lease?

I get asked this question a lot: Can I change my property manager during the lease, or do I have to wait for the lease to be up?

I wrote about terminating your property manager here.

But the short answer is you can change anytime. 

You do not have to wait for the lease on the rental to end, before ending your contract with the property manager.

Incentives from Landlords

I came across an article about a Landlord in Los Angeles who was trying to rent out her apartment, by giving the new tenants a rescue dog and a monthly rental discount (for adopting the dog).  What the landlord offered was a discount of $150 A MONTH if somoene adopted the dog 'Big Louie'.

It got me thinking as to what landlords do to attract tenants to their properties.

Adopting Big Louie is one of the more extreme measures I've heard of (some would think that this is not an incentive in the slightest).  There have been plenty of schemes that I know that landlords have tried to attract tenants when vacancy rates are high.

How to get the Smoke out.

No one likes walking into a place with the lingering smell of smoke. It's very off putting for potential tenants, especially if they are non- smokers. So what happens if you buy a property and it smells like smoke, or you have found out your previous tenants didn't follow the rules and now the house smells like smoke? How do you get rid of the smell?

Vinegar

Vinegar is an acidic agent containing mainly acetic acid and water. Historically it's been the most available mild acid. And while you don't want to put it on your carpets or any fabric (can bleach and stain those!) you can put it on walls (diluted with water) to absorb the smell. Vinegar in a bowl can be used to absorb onion odors while cooking so you can bet it's going to get the smoke smell out of walls and linoleum floors. Distilled white vinegar with water on a clean cloth is all you need to get your hard surfaces smoke free. 

Renting To Relatives

They always say you never do business with family, but how about renting to a relative? Do you give mates rates or go market rate? 

I think you need to have clear communication and clear guidelines to make it work, but it can really work well. Here's how. 

Charge what the market will bear.

Child Safety In Rental Properties

Renting to families is a smart move.  Parents tend to be stable, they don't want to move around a lot and are reliable and responsible. To ensure that they remain in your property for a long period of time, it's important that your property is safe for children. (It goes without saying that it should be safe in general, but there are a few other considerations when it comes to children.)

Parents are ultimately responsible for their children's safety, but here are some things to keep in mind when you are renting to families:

Pools/Spa: If you have a pool or a spa on your property does it comply with Australian Law ? All states and territories have laws, make sure that your pool  complies.

Letting Tenants Decorate: Yes or No?

It's can be a tough call, do you let your tenants decorate or not? You don't want your tenants to live in a sterile place without any personalisation; by allowing your tenants to personalise their living space, you are increasing the likelihood that they will be happy tenants and stay a while. However, are you opening the floodgates for tenants make more and more (unapproved) changes, which means you spend more time and money correcting the changes when they move out?

So which side of the line do you stand? The Yes or the No? Or is there a way to create a happy medium? A way to keep control of the quality of the property and the happiness of the tenants?

Yes - Let the Paint Brushes Fly!
There are some distinct advantages to having tenants be involved in decorating their space, after all it is their home, even if it is your house.

FAQ #4: How are Rental Collections Handled?

When you sign on with True Property Management you will have a lot of questions, in the past we have featured a few of those FAQs which you can read here:

FAQ #1: Should I take out Landlord Protection Insurance?
FAQ #2: When you find an applicant for my property, how do you qualify them?
FAQ #3: Why Choose True Property Management for your Australian Real Estate Management?

So for FAQ #4 how are Rental Collections handled here are our policies:

• All rents are due either monthly or fortnightly in advance
• The vast majority of our tenants utilise our DIRECT DEBIT facility from their bank accounts for rent payments
• If your tenant is 5 days late with their rent, they are personally phoned, faxed, emailed or sent an sms message
• Tenants who are 10 days late with their rent are personally phoned or visited by a property manager
• If the outstanding rent is then not paid within 2 days, we will contact you to update you on the situation and seek your instructions regarding the possible termination of the tenancy
• Once the tenant is 15 days late with the rent and subject to your instructions, we serve the tenant with a Notice to Vacate requiring the tenant to vacate the property within 14 days.

If you have any further questions feel to contact me at anne@truepmvic.com.au

Commercial Property Management

Some investors, once they have a few residential properties, will start looking at commercial properties to invest in. Commercial properties differ significantly from residential properties in terms of their maintenance, leasing and management.

If you have a single residential property, it is feasible to manage the property yourself. If you have several residential properties or properties that are not within close proximity to your residence, then employing the services of a property manager is a very smart idea.  When you invest in commercial properties, unless you have  A LOT of experience with managing a commercial property, I would leave it to the experts.

You will be required to oversee:

How to Be a Successful Long Distance Landlord

There is a very real chance that any property that you purchase as a rental, is not in the same town that you live in. So how can you make sure that you can be the best landlord that you can be, considering that you can't keep a physical eye on things.

This is a great article that popped up recently from Rentjuice.com 

I would definitely highlight tip number 1!

Not all landlords invest in properties that are steps away or a quick drive from their own residence. Some landlords choose to purchase rental properties that are hours away or even out of state.

July Article Round Up

I can't belive we are now in August! The Olympics are on, we are making it through winter and before we know it spring will be on us.  

So what articles did I enjoy during July?

WA Carves Home For High Earners 

Australia’s highest earners no longer reside in Sydney’s Eastern Suburbs or within Inner Melbourne, but in Western Australia, according to the results of the latest census.

Moving Day Horror Stories

When Greg and Sally Slack moved from Colorado to Missouri in 2004, they took along two very excited golden retrievers and towed a boat.

How to Spot a Bargain Neighbourhood

Sketch of Waterfield Street, Coburg, a proposed new development.

It's the essential skill of getting the right property at the right price. Finding the next up and coming neighbourhood. So what do you look for? 

Well news.com.au wrote a great article the other day. Here are their suggestions:


JUST because a suburb has cheap property doesn't mean it's the next real estate hotspot.
There are simple steps you can take to find a property hotspot and one of the most obvious indicators for future capital gain is whether people with money are moving into cheaper areas.

Signs of gentrification

The Dreaded Inspection.

As a tenant, your two biggest gripes will no doubt be maintenance issues not being addressed and inspections.

The former comes down to the Property Manager and the latter is unavoidable as it is part of the agreement of renting. So lets talk about some gripes of house inspections and then some tips on how to handle an inspection.

Gripes:
Unannounced - Although legally there is a requirement to provide tenants with notice, sometimes misguided Property Managers will show up unannounced, or won't show up at all. 

Annoying Property Managers

It's always important to look at the things you might be doing wrong. So I thought I would look at some annoying things Property Managers do. I'm sure I have been guilty of a couple of these on occasion - don't hold it against me. I have probably forgotten a few too. So let me know. I'm sure you will.

So what are Property Managers so good at doing wrong?

Maintenance:
Not responding to maintenance issues fast enough and then the repair not being to a high quality.

Using Social Media to Manage your Rental Properties

Social Media is not going anywhere and you can use it to your advantage if you have rental properties that you self-manage.

If you are unsure how you can leverage social media, this article From Zillow  may help. Tis is written with apartment complexes in mind, but these is still great ideas that maybe useful to you.


Social media allows you to be much more connected to your residents. It’s a great tool to help you improve your business, offer better service and build relationships with your tenants. A great social media presence can also act as a marketing tool to attract future tenants and build your business’s credibility.