Archive for the ‘Renting’ Category

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.

Tenants + Property = Income

At Raine & Horne Glenelg, tenants are our valuable assets.

Without tenants we have no income.

Our company philosophy is that tenants should be treated with respect… We believe that our positive attitude towards tenants assists us in securing quality tenants who often choose to stay longer in a property.

As property owners you need to be aware that there is more competition to attract quality tenants.  Tenants are more sophisticated and have grown accustomed to better things, to a better standard of housing and living conditions.  They have more money to spend. 

For this reason it is more important than ever to value, respect and care for our tenants’ needs.

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

Looking for a rental… download a Rental Application Form… click here

Who else reads the classified advertising for rental properties and is left wondering what does that abbreviation mean?  What’s an APPT, or LUG, or a HWS?

Here’s a list of the most common abbreviations used by Property Managers  to describe a property with abbreviations with advertising. 

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

 Angus Raine, CEO of Raine & Horne, says almost 50% of landlords will miss out on potentially thousands of dollars by failing to claim depreciation on their investment properties before June 30.

He notes, “Many property investors either don’t maintain an accurate depreciation schedule or have a schedule that is out-of-date.” A depreciation schedule shows depreciable assets such as carpets, blinds, curtains, air-conditioning, fire alarms systems, light fittings and hot water units.

Angus explains, “Landlords can claim up to 12% on depreciable assets and also in many cases 2.5% of the building cost (not the value) of residential properties built on or after 18 July 1985. Depreciation can also be claimed on the cost of improvements made after 26 February 1992 to older properties.”

It’s worth remembering that the cost of a depreciation schedule is also tax deductible. Landlords can expect to pay between $650 and $700 for a depreciation schedule. But get a schedule before June 30 and it can be used to minimise your tax this financial year.

Peter Bembrick, a tax partner with accounting firm HLB Mann Judd Sydney says many landlords are also failing to maximise their full depreciation entitlements. “Often investors depreciate expenses such as carpets, light fittings and blinds, but fail to depreciate property owned by the body corporate that they have a part share in.”

Pre-June 30 tax tips for landlords

1.       Claim all deductions and depreciation prior to June 30.

2.       If you don’t have a depreciation schedule, consider getting one – they are tax deductible and can trim thousands of dollars from your 2008/09 tax bill.

3.       Prepay up to 12 months interest in advance on an investment property mortgage and claim a tax deduction for 2008/09.

4.       Where possible, time a property sale for after June 30 to avoid triggering a capital gains tax liability this financial year as personal tax rates will fall from 1 July 2009.

This story was brought to you by Raine & Horne Glenelg – Your Glenelg Real Estate Agents and Glenelg Property Management Experts – We’ll look after You.

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Rental arrears are a major problem for landlords and property managers, with difficult tenants that refuse to pay their rent or consistently don’t pay their rent on time.

Monika Bonet – Principal of Raine & Horne Glenelg said “We just don’t have this problem with rental arrears, this is not a problem in our Property Management business. Basically we have eliminated rental arrears through our strict tenant selection processes, and our rigorous “ZERO TOLERANCE POLICY” with regard to rental arrears.

“Over the years we’ve experienced difficult tenants that don’t pay their rent on time, can come from any walk of life. The truth is there is no guarantee that a tenant’s personal circumstances may change and they will stop paying their rent on time.”

Monika went on to explain; “To combat this problem, we have implemented a tough ZERO TOLERANCE POLICY with respect to rental arrears. The way it works is;

• same day overdue – an sms alert is sent to the tenant that rent failed to be collected.

• 1 day overdue – a phonecall and sms is made to the tenant to recover the rent. If un-contactable, a first letter is sent to the tenant.
  
• 3 days overdue – a second phonecall and sms is made to the tenant to recover rent. If un-contactable, a second letter is sent to the tenant.
• 5 days overdue – a third reminder letter is sent and a sms and telephone call is made. This is followed up with a personal visit to the tenant at the property.
• 10 days overdue – a Form 2 (Notice by Landlord to Tenant to remedy Breach of Agreement – Notice of Termination) is sent to the Tenant, stating that if the rent is not paid within 5 days, a termination notice will be issued. This is followed up with another personal visit to the tenant.

• 15 days overdue – a Form 7 “Application to the Residential Tenancies Tribunal” is served with the Residential Tenancies for payment of rent soa tribunal hearing can be scheduled.

“The circumstances of the hearing will dictate the outcome of the hearing. If the tenant attends the tribunal hearing and still wants to stay in the property, a payment plan will be put in place to rectify the arrears. But if the tenant then doesn’t pay or misses a payment, a Form 7 is lodged with the tribunal again, seeking vacant possession” says Monika.

Monika explained; “I have had these eviction cases, where the tribunal will then state a date and time when the bailiff will attend the property to evict the tenant. And I can say I have been there standing on the footpath with my locksmith to take possession of the property whilst the bailiff evicts the rent defaulting tenant. It is not a very pleasant experience, but it has to be done when you have difficult tenants who just refuse to pay their rent.”

“You will then witness your homeless ‘non-rent-paying’ tenant with all of their possessions on the footpath, and al-the-while protesting with abuse for all to hear”.

“We have generally found that tenants can’t hide from our ZERO TOLERANCE procedures, and they will either pay the rent or vacate before the Form 2 is issued.”

“Throughout this process we communicate with our Landlords and a Form 7 seeking vacant possession will never be issued without discussing the situation with our Landlord’s first.”

Monika Bonet is the Principal of Raine & Horne Glenelg. Raine and Horne Glenelg are Glenelg Real Estate Agents and Property Management experts.Should you have any need for Property Management services call Raine & Horne Glenelg on 8376 8844

This story was brought to you by Raine & Horne Glenelg – Your Glenelg Real Estate Agents and Glenelg Property Management Experts – We’ll look after You.

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Smart investors are taking advantage of temporary rental vacancies by renovating and upgrading their properties.

According to the Real Estate Institute of SA (REISA), increasing levels of home ownership by First Home Owners had led to a rise in rental vacancies in many parts of Adelaide over the last 12 months.

Like any asset, an investment property required periodic maintenance and experienced property owners were using this time to protect their investment.

Regular maintenance of rental properties is essential in order to maintain the value of an investment – both in terms of the capital value and the rental returns.

During the course of any property investment, the rental market will experience highs and lows relating to purchasing trends and population movements. Current market conditions create an ideal opportunity for property owners to ensure their investment is properly looked after.

Eight years ago, Will and Kate Burton rented out their older-style flat in the inner eastern suburbs when they moved into a larger home further from the CBD.

The Burtons say that for almost all of that time their flat has been occupied.

When a long-term tenant vacated the property recently, the Burtons decided it was time to undertake some renovations, not only to improve their chances of renting, but also to improve the value of their investment.

“When we first lived there 12 years ago we did some minor renovations and redecorating. Now it looks a bit tired, particularly compared to some of the newer apartments in the area,” Kate said.

The couple decided to use the time the property was vacant to upgrade and repair, and spoke to their property manager about what improvements they could make to attract quality tenants and to improve the property’s value.

“I think our flat has a lot of charm and I know many people prefer the older style of flat. We didn’t want to do any renovations that detracted from the style, but we did want it to look fresh and bright,” Kate said.

“Some things we can do ourselves, like repainting, ripping up the carpet and polishing the floorboards, and upgrading the security. We’re also looking at upgrading the kitchen and bathroom – not spending a fortune but repainting and replacing some worn and dated fittings,” she said. “I think it is important to look after the place anyway and if the property looks good I think tenants are also more inclined to look after it.”

A poorly maintained residence didn’t encourage good tenants. It also reduces rental returns and devalues the property in the long term.

Apart from the property owner’s legal obligation to keep a rental property in good shape, by regularly upgrading and maintaining the property you might be able to charge a higher rent, particularly when the market picks up again. Using a temporary vacancy to maintain your investment property might mean you are able to turn a down time into a period of greater profitability.

This story was brought to you by Raine & Horne Glenelg – Your Glenelg Real Estate Agents and Property Management Experts – We’ll look after You.

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Source: The Daily Telegraph

• More homes to be built in Adelaide, Melbourne
• Sydney in lowest rate of growth in 50 years
• Rents tipped to soar across the nation

MORE homes will be built in Adelaide than in Sydney in 2009, proof that the housing crisis engulfing the nation’s biggest city is reaching alarming proportions. Figures obtained by The Daily Telegraph show an estimated 7300 new dwellings will be built in Sydney this year, the lowest rate of growth in more than 50 years and roughly a third of the homes built in 2003.

The bleak projections are in stark contrast to Melbourne, where an estimated 23,000 new dwellings will be built this year. In Adelaide - a city boasting a population one quarter of the size of Sydney - about 7500 new homes are scheduled, while Brisbane expects 13,450 new homes to be built. The outlook gives credence to economists’ fears that Sydney rents will shoot up a further 12 per cent in 2009, on top of last year’s 8 per cent rise. Such a rise will take the average rent for a three-bedroom house over $400 a week.

This BREAKING NEWS is brought to you by Raine & Horne Glenelg – Your Glenelg Real Estate Agents and Property Management Experts – We’ll look after You.

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