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Jul 29, 2022
Rent increases? Is there a limit?
In a competitive rental market, rents can increase at an exponential level and can sometimes lead to negotiations in rental prices and some properties being out of reach. There are no guidelines on what a “reasonable” rent increase should be and rental figures are influenced by the supply and demand on rental properties in the local market. How much can my rent increase by? Each state has different rules and regulations on how much the price can go up, the length of time for the increase and the conditions on when rent can be increased. When determining a rent increase, current market conditions will be considered, and comparable properties will be investigated. If you would like to know where your property may sit in comparison to other properties in the area, a search on property portals will give you an indication of what properties are renting or have rented for in recent times. Every instance is determined on a case-by-case basis, taking into account the landlords’ obligations, the current market and the tenure of the property. If the market does increase, you may find in some cases that the landlord chooses not to increase the rent, or they will increase to keep the property in line with the market. In Queensland, rent can be increased every six months but not during a fixed term tenancy agreement unless otherwise stated in the terms of the lease. Is there a limit to the number of rent increases? If you are in a fixed term tenancy agreement, unless it is pre-agreed at the commencement of the agreement, the rent cannot be increased until the term has expired. If you are in a continuation or periodic agreement, rent can be increased, however, in some states, there is a limit to how often the increases can occur. Usually, this will be either six or twelve months. Can you negotiate with your Owner or Agent? Sometimes there are options to negotiate the rent increase with your Owner or the Property Manager. If you choose to negotiate, it helps to investigate the local market and find rental comparisons. Gather the evidence of comparables so that you can present these to your Owner or Property Manager and justify what you feel would be a fair increase. You could also offer to sign a longer-term lease based on the increase. If you do choose to go into a negotiation, it is important to have all of your information and enter discussions in a calm manner and prepare yourself for any outcome that may come from those negotiations. More information? For more details on rental increases in Queensland the RTA is the authority. For a list of state by state rules and regulations check out this realestate.com.au article. Interested in some tips for your upcoming rental applications?
Jul 27, 2022
Preparing for bidding at auction?
Over the past decade, auctions have become a favoured method of sale for real estate agents and sellers in the property market. While this is a great option for agents to use during the sales process, bidding at auction can become an exciting and stressful experience for buyers. Preparing for an auction is a crucial step before you head off to bid, to ensure that you are ready for the day and whatever the outcome is. Secure your finance Before deciding to bid at auction, a key step is to ensure that you have spoken with your financial institution or lender and secured finance. On the day of the auction, if you are the successful bidder, you will need to pay a deposit on the spot. Arranging your finance in advance will also help you to set a limit for bidding at auction and give you an offer range for how high you can afford. It is smart to have your budget in mind before you raise the paddle and be firm on it, with a small percentage of wiggle room as it can be challenging to not get carried away in the excitement on auction day. Attend open homes and decide on a property You may find that when you are entering into the buying process, the first home you bid on won’t be the last. Bidding at auction can be competitive. In a tighter market, there is higher competition for properties, and you may miss out the first, second or even third time. Attend as many open homes as you need to during the hunt for your new home and it is important to keep in mind that each auction may not be the last. When you have found a property or even properties that are suitable, gather all the information from the sales agents that you need to make an informed decision to take with you to the auction. Be prepared on auction day On the day of the auction, there can often be several bidders all vying for the property. You will need to pre-register prior to the auction and provide your ID and details to the selling agent. They will provide you with a paddle to raise when you want to put in a bid against the property. When the auctioneer calls for bids, keep an eye on your competition to scope out how many other bidders are in the race as well as their movements and body language. Be confident and strong with your bidding and keep those guidelines around your budget and finance approval in mind when you are raising that paddle. Bidding at auction can be an exciting time and taking the time to prepare will make you feel far more ready for the process. Attending open homes? What should buyers remember during an open home?
Jul 25, 2022
Renovate or sell? Which option should you choose?
Making the decision to either renovate or sell can be a tough one, especially when the sales market becomes quieter. When planning to sell your home, usually there will be a consideration around the current market conditions, the costs to sell and the emotional attachment that is within your home. Some things to consider when you are weighing up the decision to renovating vs selling debate. Renovate or Sell? What are the costs and conditions to renovate Determining the scope of your renovation will assist with planning and budgeting for major improvements to your home. Are you thinking about a larger renovation, including adding levels to your home and major structural work or is it a more modest kitchen or bathroom renovation? If there are larger improvements, you may also need to factor in a need to relocate during the renovations which may mean renting for a period and storing furnishings and other personal belongings. There may be conditions around the renovation that you choose including preparing documents and negotiating with the council for development applications (DA) to be granted permission to carry out the work. Be cautious not to overcapitalise Before planning to renovate, it is a good choice to have an agent through your home to gain a price estimate on your property in its current condition. One mistake that can be made during the renovation is to overcapitalise on the improvements which don’t lead to a higher return on your investment and can potentially cost you more in the long run. Your local RealWay agent can give you an estimate of the before price and advice on improvements that have the potential to add or detract from your home and the eventual sale price. This estimate may also provide you with the information to decide armed with knowledge when you are choosing to renovate or sell the property. Make a list and check it twice Work out what the benefits versus the disadvantages are when it comes to deciding whether to renovate or sell your property. Write out a list for each option and ask all the necessary questions that you need to consider to work out which option is the best for you and your circumstance. Don’t forget to include factors such as the location and its convenience to your current lifestyle, including access to work and school catchments. Also consider where you would like to relocate to, the reasons for moving and any costs that would be associated with upsizing or downsizing your home.
Jul 21, 2022
Pet proofing your rental home?
Changes in laws across the years and world events have seen a rise in pet ownership in rental properties as more renters are finding it acceptable to have pets in their properties. If you choose to have a pet approved on a residential tenancy agreement, pet proofing will be in your best interest. As with all pet ownership, there are things to consider in the care and use of the property as well as the safety of the animal. Install baby gates and barriers as part of your pet proofing plan Pet urine can do all kinds of irreparable damage to carpets and floorboards. When you decide to bring home a pet, ensure that you have a plan with baby gates or barriers to section them off from certain areas while you are training. It is recommended to install temporary floor covers or puppy pads during the initial process to protect the carpets and floors. Keep in mind that any pet damage that occurs to the property is the responsibility of the tenant and it can quickly add up. Section off part of the yard to minimise damage One thing that many puppies love to do is dig. If you have a backyard, section off part for their use and encourage them not to dig with treats and activities to keep them occupied. If they do happen to find that digging holes is the best fun, make sure that you fill in the holes and returf or reseed the area as needed. Choose safe indoor plants Pet proofing can be a journey of discovery, did you know that many indoor plant species can be harmful to cats and dogs? If you are a lover of indoor plants, make sure that you check that they are not toxic to cats or dogs as this can lead to costly vet bills and expenses. Training is the best reward Obedience training of your pet is key to a great relationship between you and your pet. Your neighbours will also appreciate an animal that is well trained, especially in cases of smaller spaces where dogs may bark during the day when they miss you while you are away. You might like to consider investigating options in your area for dog walkers and sitters who will keep your pet occupied while you are away or at work. Check your rental is suitable and budget for the end of tenancy Before applying for a rental property, check thoroughly for suitability for you and your pet so that you will both feel at home in the new space. If it is an apartment, make sure that there is sufficient space and amenities and that the building allows pets. Make sure that when you are planning to vacate there are funds available to pay for professional cleaning of carpets and flooring and pest control that is required under different tenancy legislation. You will also be responsible for costs associated with any damage to paint, gardens, lawns, and property fixtures. There will likely be many other steps you may find necessary when pet proofing your rental home, depending on your pet and any unique habits they have. By taking as many pet proofing steps as possible you, your pet and your property will have a safe and happy tenancy. What is a residential tenancy agreement?
Jul 20, 2022
Tips for your winter open home
Inclement weather can sometimes put a dampener on the number of people who may come through your open home and when it comes to a winter open home, as with any season, you want to show off your property in the best possible light. The winter months are a great opportunity to show how warm and cosy the property can be during the winter months, during the cooler weather when people will want to hibernate and spend time indoors. Present your home in the best light The winter months bring shorter days, which can lead to interiors appearing darker, especially in many different lights. Consider the colour of the walls in your home and the soft furnishings, do they show an air of light and warmth, or something a bit dark and dreary. Even if you don’t paint the walls, look at how the property is styled. Your agent can help you with professionals who will assist with real estate styling suitable for your property that will appeal to potential buyers. Where there are breaks on rainy days, take advantage of good weather to make sure the gardens, landscaping and lawns are presentable and where possible, allow for natural light to flow through the home. Prepare for wet weather during a winter open home During winter, it is inevitable that there will be rainy days. You can prepare your home for days when these elements and potential buyers might wreak havoc on the property. It is wise to continue with your open homes throughout the rainy days as this can often be when serious buyers will be out looking. Ensure that there is somewhere for storage of wet weather gear like umbrellas, boots or coats, or an area for people to dry off rather than walking wet and muddy feet and clothing through your home. Plastic sheeting at the front door, that can be purchased from the hardware store is a great option to protect flooring and it can be gathered up easily after the inspection. Open as many blinds as possible to let natural light through and turn on lights as well as heaters to warm the property up before and during the inspection and give it a homely feel. Agents will often recommend using candles and music through the winter open home to make the property feel like home. Another easy reading article with tips for making great first impressions for your open home...
Jul 15, 2022
Tips to a successful rental application
A tighter rental market can often mean that there is more competition when you are looking for your new home. This can sometimes lead to stress around the rental application process, and you may find that you are applying for several properties. There are a few things that you can do to ensure that you have a great rental application, that will help the property manager in the approval process with the owner. Rental applications need correct identification All rental applications will ask that you submit 100 points of identification and will usually provide you with a list of acceptable IDs and the point weighting of each. You will be asked for primary and secondary IDs, so having these ready is the first step in ensuring you are submitting the required documentation. Examples of primary ID would include a driver’s licence, passport, and proof of age card while secondary ID might include a birth certificate, bank statement, utility bills, car registration, Medicare card or health care card. Rental applications require pay slips You will need to provide at least 3 recent payslips showing your income over the previous weeks or months to show affordability. One mistake that applicants make is not providing enough payslips, which can lead to delays in processing the rental application. The property manager will look at this information to work out if the rent is affordable, based on your income and provide this ratio to the owner. If you are self-employed, it is important to include a statement from your accountant or bank statements showing income and proof that you can afford the rental that you are applying for. Show rental history If you have been renting through an agent, provide a copy of the rental ledger and the details of your current property manager so that they can be contacted to verify your details and provide a reference for your tenancy at your current home. If you are renting privately, your current landlord could provide a letter and details so that they can be contacted to provide a reference. For homeowners who are entering the rental market, providing proof of ownership of your current home and an explanation of why you are looking to rent will ensure that your application is processed faster. Provide a cover letter A cover letter included with your rental application can assist with putting your application ahead of others who may also be applying, providing information about you and your rental history. In cases where you have pets include a photo of the pets and their details. This can help in processing the application and presenting it to an owner for approval. What is a Residential Tenancy Agreement?
Jul 13, 2022
Why should I hire a property manager?
If you own one or even more investment properties, there are many reasons to hire a qualified property manager to take care of your assets and who will ensure that the essential areas are taken care of. A good property manager will take the potential stress away from you when it comes to management of the property on a day-to-day basis with thorough knowledge of legislative requirements and advise you of your responsibilities as a landlord. Lease the property When you hire a property manager they will market and show the property to prospective tenants. They will also put any applications through rigorous checks to verify factors such as identity, income and previous rental or ownership history and provide you with the details to decide on a tenant of choice. The property manager will prepare all lease documentation and an ingoing condition report detailing the condition of the property at the commencement of the tenancy and prepare the property for move-in day. Manage the property through the tenancy Another reason to hire a property manager is so that they can manage the property while tenanted. Throughout the tenancy, there will be regular repairs and maintenance items that will occur due to use and fair wear and tear. These repairs may range from leaking taps to appliance repairs, hot water systems or more major maintenance. They can arrange relevant trades to carry out the repairs and pay the invoices as they arrive, keeping track of the essential paperwork that you will require for tax time. When you hire a property manager they will also conduct routine inspections of the property to check the condition that it is being maintained as well as repairs and maintenance that may need to occur. They will also recommend potential work that may need to be done in the future to maximise your investment which will allow you to plan for future refurbishment or improvement costs. Handle disputes From time-to-time disputes can happen, whether it be due to factors such as rent arrears, breaches during a tenancy, managing repairs and vacating challenges. When you hire a property manager they will assist with negotiating through these challenges, talking with the tenant and you as a landlord to resolve the dispute. Should any matters require referral to the tribunal to resolve, they will also appear as a representative on your behalf to resolve the matter. Manage accounts While rent is paid each month, a property manager can also pay bills such as council and water rates, strata levies and maintenance invoices on your behalf from the rental funds. You will then be provided with a statement and a copy of the bills so that you can take them to your accountant at tax time. Provide professional recommendations As a trusted advisor in managing your investment, your property manager will provide professional recommendations on work that may need to be carried out to the property to maximise your investment. They will also keep an eye on current market conditions and advise you on potential rent increases, and the best time to implement increases while maintaining good tenants. If they are working with a sales team, they can also provide a market appraisal for sale so that you can keep your finger on the pulse of your property value. Making the decision to hire a property manager has many benefits and is one of the best choices to make property investing a great experience. Thinking about buying an investment property somewhere different? Have a look at what is available in Ipswich. What is a Residential Tenancy Agreement?
Jul 12, 2022
What is a Residential Tenancy Agreement
A residential tenancy agreement, lease agreement or tenancy agreement is the legal document that is required when a Landlord/Owner/Property Agent and Tenant/Renter enter into an agreement for the Tenant to rent a property for a specified period. A tenancy agreement is a legally binding document, and it is important that all that enter into the agreement understand the terms and conditions of the agreement and its requirements. Each state and territory have some similarities in the regulations of a tenancy agreement, however, there are also some differences. It is recommended that all agreements are in writing, even if there are verbal agreements in cases where an Owner is renting to a friend or family member. The tenant and owner should read through the agreement to be aware of and understand the terms that they are signing and agreeing to. While there are slight differences across states and territories, all Residential Tenancy Agreements must have the following. *The start and end date of the agreement and the period that it is for. For example, 26 or 52 weeks. *The amount of rent to be paid the frequency of rent payments. They could be weekly, fortnightly or calendar monthly. *The Owner, Tenant and Agent names and contact details and the address of the property. *Any standard terms that are outlined in the legislation with requirements for both the Owner and the Tenant. *Any special conditions that are outlined and agreed with the Owner/Agent and Tenant before the agreement is prepared and signed. As an Owner, if a Property Manager is preparing and entering into the agreement on your behalf, there will be agents fee that you will be responsible for, including letting fees, document preparation fees, marketing, and photography fees. These are usually in addition to the monthly management fee as they are costs above the daily management inclusions of a property. A Property Manager will prepare the lease documents and sign on your behalf once the tenant has signed the agreement. They will also prepare an ingoing property condition report to include with the tenancy agreement which outlines the condition of the property at the commencement of the tenancy. This document will then be referred to when the tenant vacates to compare the condition at the start and end of the tenancy. Once the Residential Tenancy Agreement is signed, the agent will provide a copy to the Owner and the Tenant for their records. These agreements, also know as lease agreements provide security for all parties involved. New to being an investment property owner and looking for assistance with Residential Tenancy Agreements?