Wednesday, November 27, 2013

Be Prepared for Tenant Silly Season


 


 


 


 


 


The silly season is here. It’s a scary thought; Christmas is less than 4 weeks away! We all know it’s coming, but every year, sadly, some tenants get caught out and don’t prioritize their rent. According to the Wyndham Weekly ‘A steep increase in the number of renters being evicted from their homes has reached crisis point, according to Wyndham social workers.”


It is reported that police are executing at least 22 eviction warrants Wyndham Vale shire every month.

As a landlord, what does this mean for you? Well, a few basic points to make sure you’re prepared in case things go pear-shaped include;


  • Make sure your landlord insurance is up to date and it includes rental default cover.

  • Don’t depend on the rent. Smart landlords either pay their mortgage themselves or have the funds sitting in an offset account. When the rent comes in, it goes into their offset account. If your mortgage is due to come out within a week of your tenants rent being due – you’re only asking for trouble! Even good tenants have the occasional slip up and can pay their rental late. If you depend on those funds coming straight in, you could default on your mortgage payment costing you more!

  • If you’re looking to add to your investment portfolio. Seek sound investment advice – join our Landlord Coaching program! Don’t just believe what a sales agent is telling you, do your research and make sure you can afford the property you want to buy. You need to make sure that you can afford to pay the mortgage on your investment for a minimum of 3 months without a tenant after the property is ready to lease.

  • Speak to your property manager. If you have any concerns about your particular situation, there is no harm in seeking advice. My motto is to prepare for the worst, and hope for the best.

At Investors Choice your tenant risks are much lower than landlords with typical sales focused agents and we are proactive in our communication with tenants, advising them of the importance of prioritizing rent over the Christmas period. As always we will work hard to get you great results and keep you well informed.


Michelle



Be Prepared for Tenant Silly Season

ICPM 100% Landlord Satisfaction!


 


 


 


 


Every year our landlords rate our performance and one of our landlords will win 6 months free management by completing three multiple choice and three short answer questions.


Nearly all the staffs have had their landlord satisfaction surveys sent out and the reviews so far have provided an amazing 100% satisfaction rating. The main feedback so far has been to build on the already strong communication and I have already implemented two procedure modifications to provide more information during rent reviews and lease renewals.


Please help us by taking the 2 minutes required to complete our very short performance review if you have not already. The final staff surveys will go out over the next few days and we look forward to more great feedback that we can work on to make you more money with less hassle.


I will announce the winner of six months free property management once all surveys have been finalised.


Daniel



ICPM 100% Landlord Satisfaction!

Daniel’s Market Update – Maribyrnong, 200k could have been made in 5 Years!

  • Maribyrnong is one of Melbourne’s most densely populated suburbs and is a busy business and retail arm of the west. Despite having all amenities within its area limits and being just several kilometers from the CBD, house prices have been more volatile than just about any other suburb in the west.

  • The price of houses in Maribyrnong rose slightly in early 2008 before dropping the same amount in late 2008 and early 2009. Prices then soared by more than $125 000 (23%) until early 2011, before dropping again by 2012 to the 2009 low. In 2013 prices are again at the 2011 high with another 23% increase over 12 months (Figures 1).

  • If investors had known this trend was coming and brought a property at the two market lows and sold at the two highs, about $200,000 was up for grabs with two property purchases over a 4 year period. Isn’t it easy when we see the past trends? This rapid market change is largely to do with the economic trends in the retail and business sectors that support much of the population in Maribyrnong. This fluctuation is also influenced by a large number of new apartment releases that compete in some part with the more traditional small houses in the area.

  • Maribyrnong unit prices rose from 2008 to 2011 by 50% and then dropped until 2013 by half of the previous gains (Figures 1). The lack of market recover compared to houses is because of an oversupply of apartments and strongly supports the old adage that land appreciates and property depreciates!

  • Due to the desirable amenities in the area and the proximity to the CBD, Maribyrnong rents have increased relatively consistently from 2008 to 2013. This highlights the reason why investors purchasing for cash flow tend to stay very close to major cities.

  • As I have mentioned in past columns, the western Melbourne property market is still recovering and now is looking like a great time to buy. Today I saw a news article about the increased population predictions for Melbourne’s suburbs and those people will put pressure on the property market, which will in turn drive up rents and property values.

Please give me a call if you are considering a property purchase in Melbourne’s west.
Figure 1: Median Sale and Rental prices for houses in Maribyrnong from 2008 – 2013



Figure 2: Median Sale and Rental prices for units in Maribyrnong from 2008 – 2013




Daniel’s Market Update – Maribyrnong, 200k could have been made in 5 Years!

Saturday, November 23, 2013

How Can a Property Manager in Truganina Help You Keep Good Tenants

Working with a property manager in Truganina can help you to retain good tenants. If you own renal property, then you know that keeping good tenants comes with many benefits. First, this ensures that there are no periods when rental units remain unoccupied, thus enabling your rental property to generate income to its full capacity. Good tenants also make payments in time, meaning that you won’t have to cope with rent defaulters.


There is no doubt that having good tenants will benefit any property owner. However, keeping these tenants can be a challenge. So, how do you go about it? Well, the answer to this is simple; provide excellent living conditions to keep your tenants happy and encourage them to stay in your rental property. Here are some useful tips on how property managers in Truganina can help you achieve this goal.


Respond to Tenants Quickly


If you are a property owner and have other things to do other than manage your property, it can be hard to maintain a balanced schedule. But, this does not mean that you should ignore or postpone conversations with tenants. Sometimes tenants make suggestions on how to improve living conditions, or they can complain about fixtures that need repairing. If you are unable to respond to these issues promptly, it is a good idea to hire a property manager. Property managers can address problems quickly even you are not around, thus leaving your customers happy and satisfied.


Draft Good Tenancy Agreements


It is important to draft good tenancy agreements. This is a standard business practice when it comes to managing rental properties, so it does not apply only to property management in Truganina.


If you want to reduce the chances of tenants moving out to other rental properties, then you have to come up with good tenancy contracts. Drafting a good tenancy agreement allows you to come up with acceptable living terms to all kinds of tenants. Some property managers can help you come up with good policies that even allow pet owners to be your tenants. This in turn raises demand for your property, but at the same time ensures that respectful practices amongst tenants are maintained.


Keep in mind that these are just some of the ways in which property managers can be of help. Engaging a property manager in Truganina will not only help you keep good tenants, but this will enable you to manage your property more efficiently even when you are not around.


 



How Can a Property Manager in Truganina Help You Keep Good Tenants

Property Managers in Truganina Will Handle Eviction Effectively

If you are a landlord and happen to have a tenant that has defaulted on rent payments or violated terms of the tenancy agreement, property managers in Truganina can help you to handle the eviction process effectively. Evictions are usually very delicate legal matters that must be handled according to the law.


So, before you decide to show up at the doorstep of your tenant and forcefully remove them from your property, keep in mind that there are local laws that must be followed. Ignoring these laws can be a costly mistake because you might find yourself on the losing end of a lawsuit.


The downside though is that some property owners are simply not conversant with legal statues relating to the eviction process. Fortunately, you can engage a property manager in Truganina to handle evictions on your behalf.


How the Property Manager will Initiate the Eviction Process


Usually, the initial stages of trying to make a tenant vacate your property do not require any legal representation. You just have to end the tenancy agreement and issue an eviction notice to the delinquent tenant. Your property manager can handle the process for you, which also includes maintaining constant communication with the tenant being evicted.


Property management in Truganina is not different from what takes place in other parts of the world when it comes to initiating the eviction process. In most cases, three types of eviction notices can be served.


  • When a tenant fails to pay rent as agreed, you can issue a rent payment notice. The notice should also give the tenant a set amount of time to pay up or vacate the property.

  • A cure notice is issued when a tenant is in direct violation of the lease terms in the tenancy agreement. Perhaps the tenant is using a residential property for business or harboring a pet despite your no-pet policy. This notice also allows the tenant to rectify the violation or move out.

  • Unconditional eviction notices are served when tenants commit serious violations or default to pay rent for several months. In this case, the tenant is required to vacate permanently once the eviction notice has elapsed.

What Happens If The Tenant Does Not Vacate?


The time tenants are given to vacate typically varies from state to state. Some local laws also put into consideration the length of time a tenant has been occupying the property or if the evictee is an elderly or disabled person. However, if the tenant does not vacate once the period given in the eviction notice elapses, you can file a landlord-tenement complaint. This will allow you to forcefully evict the tenant and recover the property.


With help from property managers in Truganina, you can easily find legal representation when handling tenant evictions.



Property Managers in Truganina Will Handle Eviction Effectively

Property Management in Truganina - Use Social Media to Your Advantage

In recent years, property management in Truganina and other parts across the globe have been changing for the better, and all thanks to the power of social media. Rental agencies, both large and small, use online social networks to manage their businesses. If you are new to this concept, you must be wondering what is in it for you.


Well, the benefits of using social media to manage investment property are plenty. They range from providing property owners with a free marketing platform, to empowering them with an efficient communication medium. Here are all the benefits of building a strong social media presence to manage your rental property.


Free Exposure and Publicity


Social media networks are free to join and very easy to use. If you are on a small budget and have several vacant units that you want to fill, spreading the word on social networks will only be a fraction of what it costs to run TV and print advertisements. In fact, it costs nothing to share photos of unoccupied rental units on Pinterest, Facebook, Google+, and other popular social media websites. This is just one of the main reasons why property managers in Truganina and all over the world use social media as an advertising tool.


Communicate with Tenants Efficiently


Social media platforms enable property owners to communicate efficiently with tenants. You can update your residents about upcoming repair and maintenance work with a simple tweet, or share the latest news affecting rental rates on Facebook and Google+. Encouraging communication via social media ultimately means more savings to property managers. This is because virtual communications will phase out the conventional method of sending out notes via paper mail. Tenants also get updates in real-time since social networks can be accessed even on mobile phones.


Take a Proactive Approach to Customer Service


Any property manager in Truganina, or elsewhere, is obligated to provide quality services to his or her tenants. Social media websites can help property owners to take a proactive approach to customer service. Using these platforms will allow you to maintain a transparent business environment, where tenants share what they feel about general living conditions. Encouraging such feedback from tenants will allow you to offer better services.


In conclusion, it pays to leverage social media when managing property, especially in today’s technology driven society. You get to use a free marketing and communication platform that also allows you to improve your business. With these benefits, it is no wonder why more and more real estate investors are using social networks for property management in Truganina and other parts around the world.



Property Management in Truganina - Use Social Media to Your Advantage