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MANAGING THE PROPERTY YOURSELF

by Vivian’s Residential In Uncategorized

25 August 2017

Advertising your property for rent

Tenants often search the internet or in the state or local newspapers to find somewhere to rent (more like gum tree these days)
Listing your property online allows you to list your rental property by location, size, rental cost etc and include a photo.if your property is vacant, it is a good idea to provide only general details of the location (such as the suburb) so as not to invite burglars.
(personally I think the photos on line need to be professional and a lot of tenants that dont want to go to a real estate agent because of black marks against them prey on owners that rent it themselves – sorry we have had to bail out a lot lately and its such a mess)

Choosing tenants

You can download the application to rent residential premises (Form 18) from Department of Consumer Protection.

Your ideal tenant will:

• pay the rent on time; and
• take good care of your property.To help find your ideal tenant, its a good idea to take the following steps:
• get all applicants to fill out the Application to rent residential premises
• get references-employment and personal-and photo identification and check them
• meet the tenant to discuss their references and the premises; and
• if you use a real estate agent, ask them to check the tenants previous rental history

Some young people will not have a previous record of renting, so personal references from ‘responsible’ adults will be important, such as a school teacher, church minister or employer.

Be wary of references as some people just want to be rid of these people although its illegal not to advise you of the problems etc they are never pulled up on it, once they have moved their problem on those people are happy to be rid of them not good for the poor unsuspecting landlord.

You cannot refuse a tenancy because the tenant intends to have a child live on the premises.

Basically you cannot refuse anyone on anything that looks remotely discriminatory – don’t dare be honest or it will come back to bite you. You dont have to accept any application and you dont have to give a reason why – phew lets you off the hook a little bit. That’s why its best you get a professional to rent your properties out…
(The Equal Opportunity Act 198 prohibits discrimination, including discrimination against potential tenants, on a range of grounds including sex, race, age, disability, marital status, pregnancy, family status or responsibility, religious or political beliefs, spent convictions, sexual orientation or gender history)

Minors

Minors (a person who is over 16 years of age but under 18 years of age) may apply for a residential tenancy. (how they can afford it is beyond me) For example, a young person may choose to rent because of their employment or study. A tenancy agreement may be enforced in accordance with the Act against a minor who is a tenant. However, there are protections in the Magistrates Court for minors, such as the appointment of a litigation guardian.

Inform prospective tenants about the property

Being honest and up-front with potential tenants about the positive and negative aspects of the property will reduce the risk of any future misunderstandings (I know that our property managers spend 30-45 minutes going through it all so there is no misunderstanding)

You disclose to the prospective tenants what services, amenities or appliances in the property are or are not available or functioning and if you intend to fix these items.

If fixtures or chattels provided with the property appeared to be available when your tenant inspected it, it is your responsibility to ensure they are maintained unless:
• the items were disclosed as not functioning before the tenancy agreement was signed by the tenant; or
• the tenant could not reasonably have expected the items to be functioning.

To avoid disputes with the tenant, include this information in the prescribed tenancy agreement. For example, if the TV aerial or air conditioner is not functioning it should be disclosed as not functioning.

If the property is not connected to scheme water, the tenant will need to know its availability, quality and the average annual cost of potable water so they can make an informed decision.

In the case of strata properties, prospective tenants should be informed by any by-laws that may affect them, such as the use of common property, parking and whether or not pets are permitted.

I am sorry to say that we all know rents are down, tenants are moving to the cheapest rent they can negotiate and owners are desperate to get a tenant in so they are not doing their checks and balances instead being wooed by 3 months rent in advance – be careful as that’s maybe the only rent you are going to get. (not always) Again I stress to use a professional person one that gives it to you straight.

MAKE UP YOUR DECISION AND GIVE IT A REAL GO!!
SELLING MOSMAN PARK & THE WESTERN SUBURBS!!
KEEPING IT REAL IS OUR MOTTO!!


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USING AN AGENT

by Vivian’s Residential In Uncategorized

25 August 2017

Selecting An Agent is always  the most crucial thing you can do and you should never be judging it on “the fees” alone there is a lot of factors to consider.Selecting An Agent is always  the most crucial thing you can do and you should never be judging it on “the fees” alone there is a lot of factors to consider.

Real Estate property managers must be registered real estate sales representatives operating under the supervision of a licensed real estate agent who is in charge of the agency.

If you choose to use a property manager, then consider:

• the person’s experience in property management. Ask about the agency’s management portfolio and the types of properties the agency managers;
• the property manager’s approach to managing your property, for example frequency of inspections;
• the property manager’s manner in dealing with people; and
• fee’s charged

What to expect of an agent

If you use an agent just to find a tenant and deal with the bond, then you will pay the agency a ‘letting fee’. I you use an agent to manage the property and/or collect the rent, then there will be a fee for that.

Any fees you pay to an agent are likely to be tax deductible.

If you decide to engage a property manager you will need to give the agent written authority to act on your behalf. The document, Exclusive Authority to Act as Managing Agent for Residential Premises, is generally used for this purpose. The agent will have a copy of this agreement. It provides for you to nominate a fixed term for the management of the property.
If you use another agent to find your tenants after you have given exclusive authority to one agent, you could be liable to pay a fee to each agent.

If you use services provided by property managers can include the following:

• advice on matters such as rental values, rent reviews, insurance and any repairs that should be done before the property can be let;
• advertising for tenants;
• selecting tenants and letting the property (in my opinion number one)
• collecting and lodging the bond with the Bond Administrator (the Department of Commerce) in accordance with the Act;
• collecting rent payment;
• preparing a property condition report at the start of the tenancy and checking the property’s inventory;
• inspecting the property and ensuring it is suitably maintained;
• paying accounts, such as water service charges, council & strata rates
• providing you with end of month statements
• attending court on your behalf in any disputes with tenants; and
• at the end of the tenancy, preparing a property condition report and finalising matters relating to the bond.

Make sure all matters you want the agent to handle and any specific conditions are listed as clear instructions in the agreement. For instance, before signing the agreement you should ask yourself these questions:

• How often do you want inspections to take place (the Act allows for four routine inspections in a 1-month period)? Yes every three months a lot of damage can be done within that time
• Do you want a copy of the property condition reports and inspection reports? Yes would want a copy of the inspection reports as they are done
• If a rental payment is late, do you want to be told? – I know I would as it would affect my payment plan from the bank
• How do you want to receive information?

Once you sign an authority for an agent to manage your property, it is binding on both parties for the agreed management period.  (If someone disliked us and wanted to move would be gutted but wouldn’t hold them doesn’t make sense to even though I have known agents to charge 6 months letting fees to let those clients out)

Make sure the agent gives you a copy of the agreement.
Remember an agent cannot be responsible for the conduct of tenants. (tenants have that many rights, you have to choose wisely in the beginning)

There is a lot of money tied up in your property I dont understand why you wouldn’t want it managed professionally.  Unless you have done your property management course how do you know all the rules and reg’s, even myself I struggle to remember them all, but the Property Managers deal with them every day so they are on top of it. I have heard people say for $15 I am going to another firm within a year they come back and their properties have not been well looked after and its hours of time to get them back into good shape, all which could have been avoided in the first place.  I am known to lots of people I am hard but fair, but I have a pair of eagle eyes and there is not much that doesn’t pass through myself and Sharon my Senior Property Manager is better than myself.  Alesha who has been with us for six months I have not tried and tested her as yet ha ha but thats coming.  People like her and owners as well so off to a really good start and she is in the late 20’s which is also good.  Make a good decision use a professional !

MAKE YOUR OWN  DECISION AND GIVE IT A REAL GO!!
SELLING MOSMAN PARK & THE WESTERN SUBURBS!!
KEEPING IT REAL IS OUR MOTTO!!


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GETTING STARTED FOR RENTALS

by Vivian’s Residential In Uncategorized

24 August 2017

As with any business, you must expect and plan for some losses or unforeseen expenses and also accept others may not always be as careful about the use and care of your property as you are.
It is very important to maintain full insurance cover on the building and any furnishings. It may also be a good idea to take out rental protection insurance (also known as landlord’s protection insurance) to cover any losses of rental income if, for example, the property becomes uninhabitable, your tenants do not pay the rent or there is a vacancy for some period.

Agent or DIY?

Once you have decided to rent out a property, one of the first decisions you will need to make is whether to manage the property yourself or employ a real estate agent to do it for you.

It needn’t be all or nothing. You may employ an agent just to find tenants and handle the bond details and then manage the property yourself, or you may just want an agent to collect the rent but do everything else yourself.

If you don’t live near the property, we would highly recommend using a local agent to the property. An agent may also be the best choice if the house has been your home. Sometimes it’s hard to be objective when tenants don’t keep the house exactly as you did, even though they may be considered good tenants by most people.

Managing a tenancy is like running a small business and your tenants are your customers.

Personally unless you are a very firm and strong person I wouldn’t advise you to manage your own property, the laws are very strict and there is so many nuances that years of experienced property managers know how to handle. Also having a young property manager who does not even own their own home so doesn’t understand the feelings associated with home ownership. Different if they have been doing property management for 4+ years as they have learnt under someone else. Personally would not give my property to anyone that hasn’t had at least 5 years’ experience. That experience you will pay for and it’s worth it.

MAKE YOUR OWN DECISION AND GIVE IT A REAL GO!!
SELLING MOSMAN PARK & THE WESTERN SUBURBS!!
KEEPING IT REAL IS OUR MOTTO!!


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BOARDERS & LODGERS

by Vivian’s Residential In Uncategorized

24 August 2017

Too understand your legal obligations and to try and avoid costly court disputes (which you wont by the way) you should work out if you are providing accommodation to a tenant, boarder or a lodger. Boarders and lodgers are a special group of home dwellers in terms of the law. Unlike most people who rent, they are not covered by the Act, however, it is important to know they still have certain rights (of course they do everyone seems to think they have all the rights in the world).Too understand your legal obligations and to try and avoid costly court disputes (which you wont by the way) you should work out if you are providing accommodation to a tenant, boarder or a lodger. Boarders and lodgers are a special group of home dwellers in terms of the law. Unlike most people who rent, they are not covered by the Act, however, it is important to know they still have certain rights (of course they do everyone seems to think they have all the rights in the world).

A tenant has exclusive possession of the premises whilst they are renting whereas a boarder or lodger has exclusive occupation of their room. A right of exclusive possession means the right to exclude anyone, including the landlord, from the premises or the room they rent. This is different from ‘exclusive or occupation’ or use, where the occupant can have their own room in which no one else can stay with their permission.

A boarder is an occupant who shares the landlord’s house, pays rent and receives some services from the landlord such as cooking and cleaning. A lodger is similar to a boarder, but may not receive services from the landlord.

The following factors may assist you to determine whether you are renting to a tenant, border or lodger, however only a court can make a binding ruling about this. Depending on the documents that make up the agreement and the circumstances of the situation, a person is more likely to be a boarder or lodger if:

• The landlord exerts control & authority over the whole premises, meaning the boarder or lodger is entitled to live in the premises but cannot call the place their own.
• The landlord provides attendance or services (such as cleaning, linen or meals) which require the landlord, or his or her servants, to exercise unrestricted access to and use of the premises.

• There are house rules which are enforced
• The landlord/owner representative lives on site
• The term of the agreement is for a short period of time (less than six months)
• You and the tenant only need to give a very short period of notice to leaveThe landlord is the person who provides the room(s) and gives the boarder or ledger permission to live there. The landlord keeps control and authority over the house, even if the boarder or lodger has a key, and can come into the house without giving any notice.

Just because the boarder or ledger’s room has a lock, it does not mean they have exclusive possession of the room. The ‘house rules’ may state the landlord is allowed to enter the room under circumstances without the boarder’s permission, for example to clean the room.

If the agreement includes cleaning, linen or meals, the landlord needs unrestricted access and so the occupant does not have ‘exclusive possession’.
Be aware there are other factors that may impact on whether the occupant is a boarder or lodger. Each case needs to be determined by looking at the particular agreement reached between the parties.

MAKE YOUR OWN DECISION AND GIVE IT A REAL GO!!
SELLING MOSMAN PARK & THE WESTERN SUBURBS!!
KEEPING IT REAL IS OUR MOTTO!!


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TRAVELLING

by Vivian’s Residential In Uncategorized

15 August 2017

These days so many people are doing all the bookings themselves with the internet being such a wonderful place for you to research all flights, hotels pretty much everything you need really. What most people forget those is that when you use a Travel Agent is that they remind you about your passport and the validity of it.

Believe me the trauma of looking at your passport and seeing you only have a couple of months left on it strikes the heart pretty hard. Panic and the realisation you are just not going to be able to get one in time.

Never under estimate the benefits of your Travel Agent !! I certainly wont.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!
SELLING MOSMAN PARK & THE WESTERN SUBURBS!!
KEEPING IT REAL IS OUR MOTTO!!

 


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BANKS CLAMPING DOWN ON LENDING

by Vivian’s Residential In Uncategorized

15 August 2017

I read an article about Citiis clamping down on 90 postcodes around Australia.

Really you think so – of course they should. Areas where they are just banging up so many apartments who do you think is going to live in these apartments then? Seriously banks get your act together, seriously councils you get your act together also and stop approving so many. What is it called GREED that’s what it is.

Concerns are that strong building approvals could lead to an oversupply of homes (you got it exactly – but I think you are too late the horse has bolted)

Wow loans for properties in the suburbs which are mainly in Sydney and Melbourne, will require a deposit of 35 percent. (wow thats a lot)

The new guidelines, have now been distributed to all mortgage brokers and its been in the Australian Financial Review, this will appy to all apartments built less than two years ago and to any apartments on the list – and here it is.

Western Australia
Perth 6000
East Perth 6004
West Perth 6005
Subiaco 6008
Claremont 6010
Maylands 6051
Victoria Park 6100
Perth Airport 6105
They are also saying that if you are considering a new property investment in Melbourne of the Brisbane area, be wary of inner city off the plan apartment developments.

They have never seen anything like the current levels of apartment construction before and it could result in short-term oversupply. This will weigh on any potential for further capital gains – there could even be some downward pressure on prices (already happened here in Perth I am afraid) and also on the rental yields (seriously you dont need to be a road scholar to work that out).

One thing is for sure Perth makes all the same mistakes as the Eastern States and all I can say is there will now be an oversupply of apartments everywhere (except Mosman Park)
ha ha as there is not many being built in our MP or Cottesloe precinct.

Regardless we have to make sure that you are all informed of what’s currently going on.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!
SELLING MOSMAN PARK & THE WESTERN SUBURBS!!
KEEPING IT REAL IS OUR MOTTO!!


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ARE YOU IGNORING RETIREMENT

by Vivian’s Residential In Uncategorized

10 August 2017

Are we prepared for retirement?  How can we be with the Government changing the rules every 5 minutes – you see the goal post in sight and then they go moving it again.

They keep changing the rules around all the time so you plan for your money to work for you then they change the game plan.

Retirement is then, this is now

For many Australians retirement seems a long way off.  We are so busy worrying about paying off the mortgage and maintaining our standard of living that retirement planning isnt on the radar. For some, it’s not even a consideration.

This lack of preparation for retirement is a symptom of a ‘living for today’ mindset that’s emerged in Australia today. More Australians are living pay-cheque to pay-cheque to support a more luxurious lifestyle than their parents.  They are forgoing financial planning for regular travel and entertainment and other lifestyle factors which Australians are now confusing with standards of living.

There’s little left over after our lifestyle expenses, so the majority isnt feeling positive or confident about their retirement plans.

Ignore retirement and it will go away 

Do we think if we ignore the concept of retirement planning, in favour of managing the demands of today’s lifestyle, the problem will simply go away, or well just sort it out later? Or is that we feel retirement is too far away to plan for?

Ironically, if we pretend retirement isnt there , it most certainly wont be – at least not how we may imagine in the back of our minds.

Well if you are ever going to stop working or cut back on your hours, you’re going to need a big nest egg to support you.

How big is your nest egg?

With couples needing $58,922 per annum for a comfortable retirement and $34,064 per annum for a modest retirement, and singles needing from $23,000-$43,000 per annum for a modest to comfortable retirement, those who are not prepared will face a significant shortfall.  Especially if you retire at 65 and live for 25 years.

Women and the young are least prepared

Australia today reveals women are almost twice as likely to feel unprepared for retirement as men. Young people (aged 25-29) and those who live pay-cheque to pay-cheque are also more likely to feel unprepared for retirement.

For many women, career breaks to have children often means less super, and a lower annual income when they return to the work force. While for those under 30, retirement seems too far off to worry about.

In my opinion some women are lucky as they have brilliant husbands who have a whopping big super (helps if you dont get divorced of course).  Those women are just entitled to that super as they have stayed home and raised the family and if you think that’s a plum job give it a go !!.

All I can say you need to start planning putting that little bit extra away into your super no matter how long away it appears to be because one day you wake up and it hits you in the face !!.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!
SELLING MOSMAN PARK & THE WESTERN SUBURBS!!
KEEPING IT REAL IS OUR MOTTO!! 

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STATE HOUSING OUTDATED

by Vivian’s Residential In Uncategorized

10 August 2017

For years I have said that State Housing should be selling up its current buildings, homes and using that money to build far better homes in an area where its closer to cheaper shopping.

On Sunrise today (fuelled by Sydney) they were talking about how outdated State Housing has become and they really need to overhaul the system. Yay !! really is it because they realise that those poor people that are on welfare are struggling where they are living?

Its unrealistic for people to think that if you are on welfare you can afford to live in a premium suburb and try to get ahead you would be struggling to keep a float.

For a long time I have said to the “top dogs” why are you not maintaining your homes/apartments they look disgusting, most of them still have their asbestos roofs still. There is the common answer always “money” no money to spend. Come up with a better answer than that, perhaps you should be looking from the top down as the budget you guys get is absolutely huge and you keep buying apartments in all different areas trying hard to put people in all areas of Perth. It doesn’t always work and the trouble that the police have trying to keep the harmony is ridiculous.

Anyway glad that someone else is starting to blow this trumpet as its one that should have been blown a long time ago.

I am not against State Housing but its just so outdated and needs to be totally over hauled with policy & procedures in place to protect their tenant and the surrounding neighbours against the anti social behaviour – in some cases on both sides.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!
SELLING MOSMAN PARK & THE WESTERN SUBURBS!!
KEEPING IT REAL IS OUR MOTTO!!


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