Archive for the ‘Renting’ Category

Moving into a new a home or out of an old one is commonly ranked in amongst the top 10 most stressful things that many people experience. Connecting or disconnecting electricity, gas, telephone, internet and cable television services and organising removalists are just a few of the challenges that moving house brings.

This short video gives details of an excellent FREE real estate service that removes the time consuming work and stressful issues associated with these and other moving challenges and gets you into (or out of) your property sooner and with complete piece of mind.

This is another in a series of short videos from Raine & Horne South Australia’s Team that give useful and practical real estate tips to help people get the best result possible from their real estate experience.

For more tips, hints, market updates and media scoops follow @rhSA_CEO on Twitter or call Raine & Horne Glenelg, your Glenelg Real Estate Agents and Glenelg Property Management Experts.

Most investors agree that successful ownership of residential rental property is all about maximising long term net income.

“Novice investors and property managers often simplify what is a complex interplay of forces and focus on the amount of rent being achieved right now,” Monika Bonet, Principal of Raine & Horne Glenelg said. “Because tenant harmony is a crucial part of the income equation, most experts agree that setting rent at 95% of market value usually achieves a higher income long-term than holding out for a 100% or more. Tenants paying top dollar are more likely to be finicky about the standard of the property, and make more demands for repairs and improvements. Furthermore they tend to start looking around to see what else is available for the money and move on if they find better value.”

Ms. Bonet said that the more often a property is vacant, especially if the advertised rent is high, the more chance there is of vacancy and loss of income.

“Even a few weeks vacancy per year can significantly reduce the investor’s return, thereby requiring an even higher rent to make up for it and setting a negative pattern in motion,” Ms. Bonet said.

According to Ms. Bonet a related factor that is often poorly handled by novice investors is the market rent review.

“Property investment managers carry out market rent reviews on a regular basis and the rents are raised according to supply and demand,” Ms. Bonet said. “Novice investors often think the best approach to raising the rent is to make frequent small increases, but these are seen by tenants as penny pinching and lead to disharmony, increased demands for repairs and higher vacancy over the long-term. Experts say that in most cases rent increases should occur when market indicators show that a 5% increase is warranted.”

Ms. Bonet said that experienced property managers report that the most stable income and long term optimum return is gained by investors who follow the advice of the experts they have selected to manage their investments.

This blog post is brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agents and Glenelg Property Management Experts.

Everybody knows how to check a tenant’s references. Don’t they? After all, secure tenancy forms the foundation of successful investment.

 ”In fact, it’s often a case of a little knowledge is a dangerous thing,” Monika Bonet, Principal of Raine & Horne Glenelg said. “Many people don’t know which questions to ask and how to analyse the information they end up with. Investors need to feel confident their property manager is experienced – after all maximising investment income is entirely dependent upon keeping arrears, vacancies and repairs and maintenance to a minimum and yield and capital appreciation at a maximum.”

Ms. Bonet said that two most important background checks are previous rental history and employment record.

“This sounds straightforward but there are many traps for the inexperienced – it comes down to knowing what the information means in terms of tenant performance,” Ms. Bonet said. “For example tenants might pay their rent up to date upon vacating but might have been a problem during the tenancy. Or someone might be in full time employment for many years and still not be a good tenant. One or two factors are insufficient to build up a profile of the prospective tenant. But too much information might see someone turning away potentially good tenants and ending up with a longer vacancy. Landlords managing for themselves often get too involved to be impartial.”

 According to Ms. Bonet the mistake most inexperienced people make is to rely on personal references.

 ”In all my years of managing property I have never seen a bad personal reference,” Ms. Bonet said. “Friends and relatives just don’t write negative things about those close to them and even if they do prospective tenants are not going to offer bad references to landlords or agents.”

This blog post is brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agents and Glenelg Property Management Experts.

Adelaide renters are paying $15 a week more compared with this time last year and can expect further rises.

Real Estate Institute of SA figures show the median weekly rent in Adelaide hit $310 in the December quarter, up 5.1 per cent on the $295 weekly median from the 2009 December quarter.

Industry experts attributed the increasing rents to a tight market and interest rate rises.

The rise in weekly rent came despite a 5.5 per cent increase during the past year in the number of properties available for lease.

REISA president Greg Nybo said the rises were to be expected in Adelaide’s rental market, where the vacancy rate had hovered at or below 1 per cent for much of the past year.

“What we are now starting to see is the reality of a very, very tight rental market,” Mr Nybo said.

“When you have so many people looking for a limited product, rents are going to go up accordingly.

“A lot of landlords have also adjusted their rents with increases in interest rates and ongoing price rises for utilities.”

Statewide, the median weekly rent increased 5.5 per cent during the past year to $290. Mr Nybo said the larger statewide increase could be reflective of the state’s expanding mining sector and a mostly strong year for farmers.

“If the job is there and people are moving to the country for employment in mining or agriculture, it’s going to make for limited stock, which again means higher rents,” he said.

Mr Nybo said that with interest rate rises forecast for this year and no sign of demand letting up, similar increases in rent could be expected in 2011.

 Property Investors: Are you getting the right rent for your property in this market?  Find out what rent you should be getting…

Simply enter your property details and we will email you a free appraisal as to what your Glenelg or Western Coastal investment property should be renting for.

 Click here for an appraisal form

This blog post is brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agents and Glenelg Property Management experts.

Source: Adelaide Now

With property value growth flat over the September quarter and the market transitioning from a period of strong growth to relatively flat conditions, we have long expected that rental market activity would start to pick up.

Data included within the RP Data-Rismark Home Value Index shows that the anticipated improvements in the rental market are starting to come to fruition.

During the last quarter, capital city house rents nationally have increased by 3.3% and unit rents by 0.6%.  At the end of June 2010, the combined capital city gross rental yield for houses was recorded at 3.9% and 4.8% for units.  As at September 2010 there was a slight improvement recorded with house yields increasing to 4.0% and unit yields recorded at 4.9%.

RP Data’s weekly rental listing data is reflecting the fact that rental accommodation is becoming much shorter in supply.  This week’s data showed that over the last four weeks there had been a total of 77,646 properties advertised for rent nationally, the fewest number of advertised listings in 19 weeks.  Total rental advertisements peaked during mid July with 91,498 advertisements over the month.  Since the peak, rental advertisements have fallen by -15.1%.  This result highlights that the rental market is tightening with fewer properties being available for rent.

Although the improvement in rents and yields has been slight to date, the higher interest rate environment, significant reduction in first home buyers and falling building approvals are all likely to contribute to heightened rental demand.  With these factors in mind, we expect that whilst the growth in residential property values is likely to be flat for at least the next 12 months, rental rates are likely to increase.  The higher interest rate environment will make it even more difficult for first home buyers to enter into home ownership and will likely dampen building approvals and commencements.  As a result, the lack of significant new rental market supply will result in ongoing tightening of rental vacancy rates, increased demand and subsequently competition for rental stock and ultimately higher prices being paid for rental accommodation.

Source: rpdata.com, RP Data-Rismark Home Value Index

Simply enter your property details and we will email you a free appraisal as to what your Brisbane or Gold Coast investment property should be renting for.

This blog post is brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agents and Glenelg Property Management Experts.

Embracing the power of the internet and Social Media can seem extremely foreign to most real estate agents at first, yet most real estate agents after discovering Social Media find it so much easier to leverage the power of Social Media to help them build their profile, increase their network of potential clients and advertise their properties online.

So what does this mean to the old fashioned and expensive marketing of properties in Newspapers?

Well over the past couple of years we have seen a serious decline in the spend that real estate agents are making on real estate newspaper marketing.

If you’re still a bit unsure about how your real estate agent should be using Social Media to market your property or perhaps you’re wondering what the fuss is all about with Facebook, Blogging, Twitter, YouTube, etc then you may want to check out this video which demonstrates the strength of Social Media and what you might expect to see happening in the future.

This article was brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agent and expert in Glenelg Property Management.

Watch this video … to get the latest in the South Australian Property Market Updates

This video is to brought to you by Raine & Horne Glenelg your Glenelg Real Estate Agents and Glenelg Property Management Experts

Failure to maintain a rental property can have serious consequences if a tenant is injured

 The Residential Tenancies Act clearly states that the landlord must maintain the property in ‘good’ repair, in a state that is fit to live in and in a state that complies with health and safety codes, local government by-laws and supply authority regulations.

 These tenancy laws have been written to protect individuals from injury and poor living standards.

As a managing agent it is our duty of care to ensure that the property is in good repair and safe for the tenant.

If a member of our property management team recommends improvements, maintenance or repairs at your property, it is to protect your investment.

The following are examples of high risk repair areas that could lead to tenant injury:

•  Steps and railings that are not secure or have white ant activity or dry rot;
• Electrical points and wiring that are loose, frayed or not working;
• Floor coverings that have tears, loose threads or ripples;
• Broken or insufficient external lighting;
• Faulty electrical appliances;
• Uneven or loose pavers;
• Roof leaks;
• Windows or doors with faulty locks;
• Broken smoke alarms;
• Faulty pool gate locks or fencing;

Our office carries out regular routine inspections to ensure that the property is kept in a safe, well- maintained condition.

If a member of our team reports repairs, maintenance or improvements it is important that you work with us to ensure that it is rectified in a timely manner.

 A well-maintained property will maximise the rent achievable, attract a quality tenant, reduce vacancy periods and improve the long-term capital asset value of the property.

 Our office highly recommends that you organise the following inspections to ensure that your property is safe:

• Building inspection
• Pest inspection
• Electrical inspection
• Pool inspection (if applicable)


 

 This article is brought to you by Raine & Horne Glenelg your Glenelg Real Estate Agents and Glenelg Property Management Experts

A question we are commonly asked by prospective “first-time” tenants is… “How do I get my first rental property?”

Watch this video, it explains the process of how you can get your first rental property;

This video is brought to you by Raine & Horne Glenelg -- your Glenelg Real Estate Agents and Glenelg Property Management Experts

A pet friendly investment property can generate more prospective tenant interest, achieve top market rental value and reduce vacancy periods…

Watch this Youtube Video from a Property Manager in Missouri…

At some stage in our lives most of us have owned a pet.

However, when it comes to renting out a property to tenants who have pets, we can often be cautious and in some cases refuse pets.

There are many tenants who have pets that are excellent and keep the property in a first class condition.

The decision on whether you choose to accept pets or not is a personal decision for each property owner.  However, it is important to be aware that being pet friendly can create more interest in a property, often achieve the highest possible market rent and ensure that the property is rented in the quickest possible time.

Pets are like tenants!  They must come with references. 

You also need to be cautious in the type of pet accepted to be suitable to the property.  Dog types such as rottweilers, german shepherds, pitbulls, etc. are often not ideal for the standard investment property, however, accepting these larger dogs can further increase the interest in a property.

There is a stigma that pets can cause increased wear and tear on the property, as well as attracting noise complaints. But when you think about it – these issues can also arise with tenants who do not have pets.

At Raine & Horne Glenelg our office has special pet clauses that can be included in the Tenancy Agreement to protect you.

If you have an investment property in Glenelg and would like us to mange your property as a pet friendly one, please feel welcome to email our office or send a written confirmation of your instructions (including a detailed description of the type of pet/s you would allow) so that we can prepare a Management Agreement and Lease specific to your investment property.

This property management article was brought to you by Raine & Horne Glenelg your Glenelg Real Estate Agents and Glenelg Property Management Experts dealing with property management in Glenelg and western and coastal suburbs of Adelaide.