Posts Tagged ‘Landlords’

“It’s sometimes hard to work out when interviewing a new Glenelg Landlord, why they may feel vaguely dissatisfied with their incumbent property management service” said Ms Bonet Principal – Raine & Horne Glenelg.

“When you sart talking to them you know straight away it’s not working for them, but you can’t put your finger on why?”

“Our experience with our Glenelg Property Management business is that most property investors want to communicate with one person for their day-to-day needs” said Ms Bonet. ”They don’t want different jobs to be managed by different personnel (task management); they want their whole portfolio to be looked after (whether they own one property or several) by one person who is responsible for all tasks relating to their properties – arrears, re-letting, repairs and so on”.

When it comes to hiring a property manager, here is a checklist you can run through to reassure yourself that your agent is doing the best thing by your investment. Here’s a checklist thatall Property Investors should ask themself;

1. Does your property manager talk to you on the phone or does he/she send emails or text messages? Most landlords are baby boomers and prefer to discuss things directly when there is a problem so if you feel your property manager is hiding behind emails or text messages when you need to talk, let them know.  
    
2. Do they respond to your requests quickly? Property managers who take longer than half a day to respond to phone calls and emails are letting you down.
    
3. Most landlords prefer minimal vacancy; it’s obvious that even a week’s vacancy is money that will never be recouped.  If your property is vacant, don’t let your property manager ‘give it another week to see how we go’. If it isn’t rented in 10 days, it’s time to drop the rent by 10%.
    
4. Are you getting the best referenced tenants? Keeping the rent at 95% of market value minimises arrears, vacancies and maintenance – and therefore increases net return although the rent is slightly below market. Landlords who go for the highest rent lose money in vacancies and repairs – so check that your agent isn’t setting the rent too high.
    
5. Does your property manager keep you informed about further ‘good’ investments? This could be via an email with links to their website and properties for sale.

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

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 common problem for Landlords and Property Investors is to determine the difference between ‘fair wear and tear’ and malicous property damage caused by a tenant.

Watch this video and discover the difference…

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

One of the most common questions asked when you first become a landlord is -- “Is it worth taking out Residential Building Insurance as well as well as taking out Landlord Insurance?”

See this Youtube Video and then ….read about Landlord Insurance incidents by Amber Cauchi, Claims Officer for Terri Scheer Insurance

Amber Cauchi, Claims Officer for Terri Scheer Insurance strongly believes so; “after seeing the many claims for catastrophic damage that could never been foreseen -- it seems that Building Insurance is worth its weight in gold for Landlords”.

 Taking out Building Insurance on your investment property will ensure that you can sleep at night with peace of mind that your investment property Is properly insured in the event of major damage.

“One example Is a recent house fire which started in an air conditioner situated on the roof. What seemed initially as a minor fire localised to the air condition unit itself, soon spread rapidly into the roofing cavity. This caused damage to the roof tiles, eaves, structural beams, ceilings and even structural walls throughout the property”.

Ms Cauchi went on to say “assessors, structural engineers and builders were all appointed to assess the damage and costs incurred. The damage requiring repairs included structural damage and cracked internal brickwork -- due to the extreme heat, as well as smoke damaged walls, kitchen cabinets and appliances. The costs soon grew, far exceeding initial estimates”.

“With just under $200,000 building damage, $20,000 contents damage and $10,000 loss of rent, the owners converted what could have been a major economic loss, into one which was covered entirely by insurance. Peace of mind in such a stressful and emotional time after such a huge loss could be considered priceless”.

This article was brought to you by Terri Scheer Insurance.

For all of your Glenelg Property Management needs Call Monika Bonet at Raine & Horne Glenelg on 8376 8844 -- We’ll Look After You.

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.

At Raine & Horne Glenelg we understand that many investors rely on the weekly rent to meet mortgage commitments.  You can be assured that every endeavour is taken to minimise vacancy periods.

Listed below are some reasons why properties may remain vacant for an extended period of time.

The rent is too high

The market and the tenants determine rent.  We are constantly monitoring the market rent to ensure that you are receiving the maximum return on your investment.  High rents can lead to long-term vacancies or high tenancy turnovers, which ultimately affects your income.

High Vacancy Rate

If there is a high ratio of properties to tenants (more properties than tenants) it will have an effect on the vacancy factor.  Tenants have more choices and are in a stronger position to negotiate on rents.

Poor Presentation

It is important that the property is maintained in an excellent condition to attract the same quality of tenant.  A tenant will often have a choice between two or three properties.

Accessability to local transport

Often the property can be maintained in an excellent condition, the rent is priced at market value and yet it still remains vacant.  This could be due to its location.  Tenants today (due to the supply and demand of properties) can be choosey.  Often they require a property that is close to town, shops, clubs, the beach or water, transport or schools, etc.

Every endeavour is made to locate a quality tenant to suit your investment property, and at Raine & Horne Glenelg we will keep you updated on a regular basis on our progress with sourcing a tenant for you.

If you have a rental property and need professional Property Management, find out how Raine & Horne Glenelg can accelerate your leasing… read more

First impressions are critical when a prospective tenant inspects your property.

First, decide what sort of tenant you are targeting.

There are tenants who want to save money and are happy to live in a property that is not in first class condition. There are others, such as professional people, who are happy to pay top rent, but expect the property to present at its absolute best.

There is no doubt that well presented properties achieve top rents and usually attract the best quality tenants. That adds up to a higher investment return, together with fewer and shorter vacancy periods.

Here are some valuable property presentation tips

1. Tend the gardens, mow the lawns and clean the windows, paths, gutters and outside paintwork. These are all things seen from the street, and you don’t want prospective tenants to dismiss the property before getting to the front door.
2. Repair or replace leaking taps, sticking doors, broken light fittings, loose door handles, rotten floor boards, leaky gutters and torn flyscreens.
3. If you are thinking about painting, only paint those areas that really need it unless you plan on doing the lot. New paint may only make those areas left unpainted look even shabbier. Use light, neutral colours as strong colours may not be to the tenant’s taste. If paint is generally in good condition, touch up the scruffy bits.
4. If your property is in a noisy area (such as a main road) inspection times should occur when the noise is at its lowest.
5. Get rid of odours that you may not notice but prospective tenants will, such as cigarette or pet smells. It may be worth having the carpets and curtains cleaned, neither of which is very expensive.
6. Open the curtains and blinds to let the sun and the view inside. Nobody likes a dark house, and the view will make the rooms feel bigger.
7. Have the property clean, tidy and uncluttered at inspection times.
8. If your property has a pool, ensure the pool and the surrounds are sparkling clean. You want the prospective tenants to think it is an asset, not a burden. If the filter or the pool needs professional repairs, it is better to do it now rather than putting it off. The repairs are usually tax deductible.
9. Ensure that all electrical wiring and power points are safe. This includes any electrical appliances to be included with the property.
10. Take out comprehensive insurance cover on the property (including public liability). You don’t want to be sued by a prospective tenant who accidentally injures themselves while inspecting the property.

This Newsletter Article was brought to you by Raine & Horne Glenelg - your Glenelg Real Estate Agent and Property Manager.

Are you a tired burned out Landlord – looking for some options… read more

Raine & Horne SA is helping property investors have a greater understanding of their buying power thanks to an advertising system new to Australia. 

The ‘Select Invest +’ advertisements list an indicative weekly ownership actual for the property by taking into account a range of factors including mortgage repayments, tax deductions and rental returns. 

The program and its associated cost calculations has been designed and reviewed in conjunction with Fair Trading, Trade Practices, Finance and Land Agents Acts to ensure compliance, clarity and legitimate benefits for both buyers and sellers. 

Raine & Horne Financial Services spokesperson John Martin said the new advertising method will provide new and existing investors with a realistic view of how the purchase would affect their hip pocket. 

“Property investment is still high on the priority list for South Australians, with property prices still affordable and good rental returns,” Martin said. 

“The most common question that I am asked is how much will an investment property really cost per week or per month.” 

“Once investors, particularly first timers, see just how much an investment property could cost – it either encourages them to do so or stops them from making a big financial decision that may not be viable.” 

The program is anticipated to effect how real estate property is advertised nationwide and is yet another exciting Australian first in less than 12 months from Raine & Horne’s South Australian Team. 

Raine & Horne SA CEO Kevin Magee said in the current climate it made sense to give investors a greater understanding of the financial aspect of buying rental properties. 

 “For me the most exciting aspect of this program is that with all indicative ownership costs being based on a couple having a combined yearly income of $100,000, it goes a long way to demystifying property investment and make it much more understandable and consequently accessible to everyone, not just those on high incomes.”

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.

Return to Raine & Horne Glenelg Website

 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.

Return to Raine & Horne Glenelg Website