What to do with a Negative Cashflow Property

Maybe you invested in a property and at first it looked like a positive cash-flow property but now it's not shaping up that way. The property you purchased may have needed bigger repairs than you anticipated, or it's remained vacant longer than you bargained for or the maintenance numbers you used to calculate your return initially, fell short.

If you have a large stable of properties that can cover the cost of this one negative cash-flow property, then it's not going to make such an impact. But, if you are feeling the pinch you could try some of these ideas. Keep in mind however, you need some expert advice on these options, get your property investing team on the case and figure out which might work best for your situation.

How to get your Rental Bond back - Fast.

What's the fastest way to get your rental bond back from your landlord? If you have vacated the property then make sure you follow these steps and you will get it back in flash. There is nothing worse than it taking weeks or even months to get your money back, which is usually earmarked for some other purpose. So here's the best way to get your money.

Items Tenants Look for in a Rental

So what are the tops items tenants look for:

1 - Location - Where is your property? How close to schools, shops, restaurants and cafes. Know who you are targeting. If your property is way out of town with a huge backyard, then don't expect the professionals who work in the CBD to be too interested.

Location is  the number 1 factor people look for. They are more likely to bend on other amenities if the location is right.

2 - Number of bedrooms- The number of tenants is proportional to the number of bedrooms they will be looking for. It's unlikely that a single professional male, will be looking for a 4 bedroom. Conversely, a young family of 4 is not going to be looking for a studio in downtown.

Make it as a Landlord

I'm sure you have read a hundred articles about being a successful landlord, and you know what, they all say the same thing, because it's the basics that you need to get right, and it's amazing how many new landlords can get it so very wrong.

So here are some basics that you need to really 'get' if you want to have a good time being a landlord.

Consider employing someone to do it for you

Yes I'm a property manager so I would say something like that. But think about it. Depending on your personality do you think it would be better to hand over the task (or at least some of it) to someone who has done it for years and is good at it?  If you don't like doing your own DIY, if you don't like uncomfortable conversations about rent and looking after the property, if you don't like having to organise and conduct house inspections, then reconsider your position on hiring a property manager.

How to Renovate a Tenanted Rental Property

The point of being a landlord is getting the maximum rent out of your rental property. This often means buying a rental property that needs some love and putting a bit of sweat (and money) into it, to get those returns. But, what if you property needs work and there are tenants already there? Do you wait until they move out to do the work or do you work around them?

It would make sense to wait until they move out, but there are reasons against this - what if they are long-term tenants and they aren't planning on moving anytime soon?

What if the work is going to take sometime and you don't want the down time between tenants?

Ways Investors can use Leverage

I am no expert on investing in rental properties. I can mange them and look after them, but there are people who know far more than me when it comes to investing. I came across this article for a couple of months back that i thought was interesting and you could benefit from.

Pete Wargent wrote this article for propertyupdate.com.au 

As someone interested in property investment you would already understand how leverage magnifies your investment returns.

However, let’s look into this a little more closely firstly for real estate investment and then how you could use leverage as a share investor… Suppose you have the choice of acquiring one of two assets, providing returns as follows:

Asset A (property)	Asset A (property)	Asset B (shares)	Asset B (shares)
Asset value	$100,000	Asset value	$100,000
Rental yield	4%	Dividend yield	5%
Capital growth	7%	Capital growth	9%

How to Screw Up your Landlord Business

Being a successful Landlord requires a lot of practical know-how from all aspects, from property maintenance, tax implications, tenant relations etc. So how do landlords destroy their businesses?

It's very easy unfortunately.

Moving House? Minimise Damage to your Belongings.

Moving is not usually on people's list of 'Fun Things to Do', because it's time consuming, and it's physically and mentally draining. Add to that - things break, which is frustrating!

So what are some of the most common items that break in transit, and how do you minimize the breakages? 

Glass and Pottery:

It doesn't really come as much of a surprise that glass would be the #1 item to undertake damage. So it behooves you to make sure that you protect it well. The more precious it is to you (like your great-grandmother's china) then the more time it will take, to prepare it for moving.

Get the right box. Nothing to big. You don't want to put 20 kilos of glassware in one box, you're asking for trouble. 

Wrap the items individually and try and make sure they are not touching each other. But not too tightly. You don't want the spout of your teapot to break off because you were a bit too enthusiastic with wrapping.

How to Create a Fool-Proof Condition Report.

Do you have a comprehensive, clear and fool-proof Condition Report (otherwise known as a walkthrough Checklist)? 

The walk-through checklist is very important, as it can be used as evidence at a later date if there is a dispute between tenants and landlords when the property is vacated.  It also can clear up any misunderstandings at the end of the tenancy as to who is responsible for cleaning, what items are required to be returned, replaced or left with the property.

It is vital that this report is thoroughly gone through and both owner (property manager) and tenants agree on the contents of the Condition Report BEFORE signing it.

Here is an example for you to look at. You will notice a few key features: