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Apr 3, 2023
Attracting good tenants for your investment property
Owning an investment property is a great way to build equity for your future whether that be planning for the short term or into retirement. One of the challenges to ensuring that your investment runs smoothly is finding a great tenant. A tenant that maintains a clean rental history and looks after the property can reduce any stress around your rental and will ensure that the tenancy ticks along smoothly. Retaining a good tenant ensures that you can minimise a loss in rental returns as the longer a property sits vacant, the more you lose in potential revenue. Meticulous tenancy screening It is part of the Property Managers role to ensure that they carry out thorough reference checking for all applicants on your property and will then communicate their suitability with you. They will also conduct regular routine inspections and provide feedback to you and the tenants where there are concerns that need to be addressed. A key aspect to finding good tenants is maintaining a property that is appealing and priced right to attract the best possible applicants who will take care of the property and pay rent on time. Perfect property presentation Property presentation is important and before renting your property, our property management team can walk through the home with you and provide recommendations on potential improvements that appeal to great tenants. You may need to consider a refresh of interiors like paint, carpet, and blinds or an update to appliances like dishwashers, air conditioners, dryers, and kitchen appliances. Many of these items are considered to have a life span of 10 years and updating these can give the property a new life and attract the best tenants. Depending on the age of the kitchens and bathrooms, it may be recommended to update these rooms. These more extensive works can take time and are a considerable investment. Knowing what is needed can help you plan for future renovations. Professional cleaning and maintenance Before showing the property to prospective tenants, ensure that it is clean and that the lawns and gardens are well maintained. This helps to create a benchmark at the start of the tenancy and ensures that the tenant is moving into a well-maintained home. If you prefer that the lawns and gardens are maintained to a particular standard, it is recommended that this is included with the tenancy as not everyone has a green thumb. As with any investment you need to consider expenses for day-to-day bills as well as repairs and maintenance costs. Contact our property management team who can provide recommendations and help you to find the best tenants for your investment.
Mar 27, 2023
Reasons to contact your property manager
Whether you are a seasoned renter or new to renting, you may not always be aware of the reasons or when you should contact your property manager about your tenancy or the property. For the most part, you won’t need to contact your agent on many occasions and when you do need to, they will usually have a process in place for how to contact them and time frames around responses. Some of the reasons that you may need to contact your property manager may include the following. Repairs and maintenance During the course of your tenancy, there will be repairs and maintenance that may be needed at the property. This may be anything from a leaking tap to an oven element not working or a burst hot water system. The urgency and time frame required will depend on the type of repair that needs to be completed and its use. As an example, a burst hot water system or flexi hose under the sink requires urgent repair, while a loose door handle is non-urgent. All repairs must be reported in writing and at the start of your tenancy, you will be provided with information on how to report the repair either through a portal or via email to your property manager. You will then be able to easily follow up on the progress online. Alterations to the property There are legislative requirements around what alterations can be carried out to a property and before you begin installing tv brackets or painting walls, it is important that you contact your property manager to be aware of your obligations as a renter. If permission is required, they will ask you to put in writing your plans for minor alterations and seek authority from the Owner. This will ensure that both the Owner and you are compliant with the required legislation. If you do make alterations, be aware that you are responsible for any repairs needed when you vacate the property if damage occurs. Vacating the property When you decide to vacate the property, it is important to be aware of the required notice periods and that any notice must be in writing and taken from the day that the property manager receives it. Usually, an email is sufficient for notice to be given and if you are unsure of how much notice you must give, contact our property management team and they can advise the correct notice period. They will then send you confirmation of the notice received as well as information in the lead-up to the vacate including any rent owing and how to get your bond back. What happens if I break my lease?
Mar 15, 2023
Are there risks with self-managing my property?
Owning a rental property is a great way to build your investment portfolio and diversify your assets as you plan your life into retirement. When you do purchase you will find the decision to either have the property managed or self-manage. Employing a property manager to take care of the intricacies of property rentals can remove potential stress from the day-to-day care of the property and tenant management while maximising your investment. Alternatively, you may have the time and the resources to self-manage the property. If this is a strategy that you choose, be aware of the risks and benefits around self-management. One of the financial benefits of self-management is there are no management fees charged from an agency. These fees can range from management fees to letting fees, leasing, representation at tribunal, advertising and marketing and other ancillary fees. You will also have a more hands-on approach with the management of the property as you will be dealing with the tenants, rental payments, and day-to-day maintenance. You will meet with and approve tenants and are required to build a relationship with them throughout the tenancy. While there are some benefits, it is worth weighing up the financial costs with the implications of self-managing, especially should things go wrong. Hiring a professional property manager can reduce stress and risk as they have the most up-to-date knowledge and training of the relevant acts and legislation surrounding rental properties. They are able to navigate any challenges that may rise with tenants including representation at tribunal and insurance claims if required. A property manager will manage the collection of rental funds and ensure that the tenants are paying their rent on time per the agreed schedule, and should they fall into arrears, will take the relevant action that is required. The time it takes to show tenants through properties, process applications, and prepare the required lease documents and condition reports add up and a property manager and their team can give you back these precious hours by including it as part of their service and fees package. Consider how much your time is worth and analyse the costs and risks that are associated with self-managing when weighing up your time and deciding whether to have the property managed by an agent. Your time is precious, and a property manager can help you get this time back, efficiently managing the process. They will also have a list of licensed and insured preferred suppliers that will attend your property and ensure that work is carried out to a satisfactory standard at a reasonable cost and help to mitigate any losses to you. If you would like to compare self-management to having your investment property professionally managed, contact our property management team to discuss how we can help.
Mar 3, 2023
Borrowing when purchasing property
The key to buying a property in any market is to ensure that you have pre-approval, the funds available to purchase with all additional costs and that you can feasibly service the loan repayments at the current rate and subsequent increases. Purchasing a property is one of the biggest investments that you can make in your life and to avoid potential future stress points, it is crucial to borrow an amount that is within your means and at repayments that are comfortable for your budget. Interest rates will change, as will property markets and waiting for them to decrease may mean missing a property that you fall in love with. Choosing a property that you can afford now can mean getting into a home sooner. Assess your capacity When approaching any debt, it helps to look at it with a healthy and realistic mindset. A lender has a responsibility to assess your affordability based on your circumstances and will use a guide on how much they will lend. You will have a choice over how much you eventually borrow based on what they set as your pre-approval. Look at the monthly repayments on the loan and determine if they are affordable for your needs. If they are not, consider scaling back your property price buying expectations and only borrow what you can afford. Interest rates may rise Banks will increase interest rates in line with market and inflationary changes and when considering how much to borrow, take this into account. While rates will rise, your property purchase will also have the potential to gain equity. When setting up your first mortgage talk to your lender about the options for you to lock in the best possible rate. Also remember that you will have ongoing property running costs like council and water rates, strata levies and other utility costs in addition to repairs and maintenance. Plan for the future Think about what the future may hold for your property plans. You may decide to stay in the property long term, it may be a stepping stone or an addition to a property portfolio or you may need to sell in the shorter term. Property purchase is usually a long-term investment in which case there are gains that can be had over time on your investment. Talk with your financial advisor about an investment path that is right for you. If you have pre-approval and are ready to buy, contact our sales team to help as you get started in your property purchasing journey.
Feb 27, 2023
Lawns and gardens maintenance, tenant or owner?
Owning a property that has lawns and gardens is a nice addition to your investment property. In terms of who is responsible for maintaining these areas, there are a few rules of thumb to go by. Tenant responsibility A tenant is responsible for areas such as regular mowing and edging. The frequency of this will depend on the season and how fast the lawns grow. In the warmer months, it could be expected that the tenant would need to mow fortnightly, while it may be left monthly in winter. They will also be responsible for the weeding of garden beds and lawns and are encouraged to fertilise the lawn regularly to maintain its health throughout the seasons during the tenancy. In drier months, you may offer to provide discounts on water usage to ensure that the lawns and gardens are kept in good order in line with potential water restrictions that may apply. Where possible, rainwater tanks and recycled water options are a great addition to the property and can get through these drier months. Tenants could also be expected to clear small branches, leaves and smaller objects that have fallen from trees and could fit into the green waste bin or go out with the council collections. Landlord responsibility Owners are responsible for carrying out larger lawns and gardens maintenance tasks at the property and the extent of this will depend on the range of the landscaping. Pruning of shrubs and trees as well as cutting back and clearing larger branches away from the house and fence line could be expected and planned for as part of a larger maintenance schedule. Staying on top of these can reduce the potential for property damage during storms and adverse weather conditions. Installing an irrigation system can support with watering of lawns and gardens, however any repairs to this need to be factored into the regular maintenance schedule as part of the owner’s costs. If there is a particular style in which you would like the landscaping maintained, it is worthwhile investing in gardeners to ensure that the lawns and gardens are to standard. Not everyone has a green thumb and if you would prefer to outsource the task, there are a range of trades available to take care of this responsibility and ensure that the lawns and gardens are cared for. Our property management team can assist in arranging the relevant trades.
Feb 15, 2023
Rentvesting, is it the right strategy for you?
In more recent times the rise of rentvesting has provided options for those who would like to get onto the property ladder while still living in their area of choice. Purchasing in an area that shows signs of long-term growth and a good rental yield can help in starting a property portfolio while renting in a different suburb that may be closer to work, schools, or amenities. Why rentvest? Rentvesting means that while you cannot afford the property prices where you want to live, you can still get on the property ladder. You may be at a stage in your life cycle where you need to be close to schools, have relocated for work or there are lifestyle choices that are appealing to you. Just because you are renting in one area, doesn’t mean that you can’t begin your own wealth creation and investment options while building a strategy towards your retirement. Researching areas of higher yield can provide insight into potential growth areas and options to begin your journey. Your bank can talk with you about your borrowing power and will consider potential rental returns during your assessment. While you are renting, you will also reduce costs to maintain the property you rent as this becomes the landlord’s responsibility. Potential negatives of a rentvestment strategy Building your property portfolio can provide dividends for the future however there are some downsides to this approach. You will lose any exemptions that exist for primary dwellings and capital gains tax and any profit made when you sell the property at a later date will be subject to this tax. Renting where you want to live will also mean that you have less control over any longer-term outcomes as your tenancy will depend on the needs of your current landlord. They may need to carry out work on the property or decide to sell depending on their circumstances. If you do not research your areas thoroughly, you may find that you are paying additional funds toward a mortgage over your investment as well as any rent increases adding more pressure to your cost of living. This can leave you suitably out of pocket and speaking with a financial advisor about the best approach for you and your situation can be worthwhile. If you are in the market to purchase your first or subsequent investments or are a rentvestor looking for a new home, contact our property management and sales team to talk about your options.
Feb 1, 2023
Landlord insurance needs a health-check
One of the factors of owning an investment property is ensuring that you have a good landlord insurance policy in place, especially at the times of year when there is potential for an increase in incidents. While many companies will offer landlord insurance, not all are created equal, and it is wise to look around and select a policy that is right for you and your circumstances. Once you have that policy in place, carrying out a health check annually to check that it still meets your needs is worthwhile to guarantee you are covered. Aside from rent arrears cover, accidents and incidents can occur to the tenants, property or visitors. Taking out the right policy is a sound investment in protecting you and your asset. Rent arrears cover Check the conditions of your policy around the requirements for rent arrears cover. Some policies require that a fixed-term lease agreement must be in place, and it is imperative that this is communicated with your property manager. Some policies will also require the equivalent of the weeks or several weeks’ rent as an excess and knowing this prior to purchasing the policy can save you in the long run. Others may require a flat rate on claims. Locks and devices requirements As a landlord, there is a duty of care to ensure that all door and window locks are functional and secure. If these are not the case and the tenant has a break-in, any policy they hold may be void and as a landlord, you may be required to mitigate the loss. In addition to a tenant’s loss, there could also be damage to the property, in which case your insurer may not cover the repairs if the property did not have adequate security in place. Accidents and injuries cover The tenants are responsible for any damage that they may cause to the property, as are their guests however accidents do happen, and a good policy will protect the ‘what if’s’ of potential accidental damage that may occur. Sound insurance policies will also contain a public liability portion to cover the tenant and any of their guests for any injuries that may be sustained due to an accident at the property, especially if as a landlord you have not maintained the property to a sound and secure standard. Fire safety requirements as part of your insurance policy You are required to ensure that all fire safety devices like smoke alarms are working on the property prior to and during a tenancy. There are third-party companies who can also assist with annual checks on your behalf. Failing to have the correct fire safety installed and in working order could mean that your investment is not protected should a fire occur, and you may find yourself out-of-pocket significant costs. If you would like to know more about health checking your current investment insurance, speak with our property management team to work out what is right for you.
Dec 21, 2022
Tips to help your rental application
A rental market that has limited availability of properties and a larger number of prospective tenants can create a level of competition that means that you may not be approved for the first or even subsequent rental properties. To combat this, we have put together some tips on what property managers will look for when assessing your application to ensure that you are well-prepared. Have all required documents ready Similar to a job interview, it is important to be prepared to apply for the property in advance of inspecting and putting forward your application. One mistake that applicants can make is not providing all documents with the application which can mean that your application will not be assessed at the same rate as those who have provided all their information. Collate all ID documents, payslips, proof of address and rental history in advance and have it ready to apply and submit as soon as you have inspected the property and determined that you would like to put forward an application. Check your rental history If you have a recent rental ledger, this helps to submit your application as well as the details of your current property manager or landlord. Before you begin the search for a new home, carry out a health check on your rental history including looking at your rental ledger. When assessing your applications, a property manager will look at the rent paid, and the paid-to dates and check for a history of late payments. Even a few days late consistently can impact your rental history and chance of being at the top of the list so it is important to ensure that your rent is paid on time. The property management team will also speak with your current property manager or landlord to check on your rental history and if you have only been in the property for a short period of time, they may check past references to confirm the history. Employment and personal references To help your rental application, before submitting an application, ensure that you have advised your work and personal references that you have put their names forward to provide information on your work or their relationship with you. Your work references will be assessed including the length of time in the role, the income per year to assess rental affordability and information on your employment while personal references may be called for verbal reference. Stand out from the crowd On the day of the inspection, introduce yourself to the property management team, ask any questions that you may have and look through the property thoroughly. Submit your application as soon as the inspection is finalised using the details provided and the team can begin processing your application as soon as they have it. If you have any questions about our available properties or would like to be included in our database to hear about properties before they come to the market, contact our property management team today. Read another quick article with more tips for a successful rental application here.