The top three questions to ask a property manager

The top three questions to ask a property manager

Posted on Tuesday, September 30 2014 at 1:48 PM

By George Kafantaris

Finding a great property manager is one of the keys to having a successful ‘set and forget’ investment.

It means you’ll be able to safely leave your property in someone else’s hands, knowing the rent will be in your account at the same time every week or month and the home will be well maintained, along with its value.

We’ve all heard nightmare stories about terrible property managers. So how do you find that gem of a property manager – one who has your best interests at heart and will go out of their way to attend to the small details?

What you shouldn’t do is just pick the one with the cheapest fees. Your asset is worth a lot of money and consequently you should be looking for someone who will provide the best service rather than simply charging the lowest rates.

You should interview a few different property managers before making a decision, and while there’s a raft of things you should find out before engaging the services of a particular property manager, here are three questions that are a must-ask.

1 How much experience do you have?

An experienced property manager will have thorough knowledge of the relevant rules and laws that affect your property and tenants. They’re also likely to have come across most scenarios regarding maintenance and tenant issues, so they’ll know the best way to respond and consequently be able to take the best possible care of your property. In addition, an experienced property manager will be able to identify a bad tenant right off the bat, which is invaluable to the success of your investment.

A property manager who has good experience in the industry will also be able to accurately gauge tenant demand for your property and set the right rental rate to attract tenants. They’ll also be able to conduct regular rent reviews and ensure the rent accurately reflects the market, including increasing the rate at appropriate times, which will give you the highest possible return for your asset.

Property managers who are committed to their career are more likely to go that extra mile for you and your property. But rather than simply looking at the experience of the individual property manager you choose, you can look at the collective experience of the team they operate in, as you’ll be able to access all of this expertise. 

2 How many properties do you manage?

It’s the norm for property managers to handle around 100 properties, unless their duties are split between other team members. Some companies have leasing consultants as well as property managers, which means the latter can focus solely on maintaining your asset and taking care of the tenants. Ask the property manager you’re considering what their workload is, as you want to ensure they have enough time to tend to your property properly.

A good property manager will conduct regular inspections of your property and will provide reports to you as the landlord, including photographs. Regular inspections are essential as they enable the manager to pick up on any problems with the property before they get out of hand. For example, they might discover that a tenant is failing to treat the property properly, or pick up on maintenance issues that might cause costly damage to your property in the long run. If problems are picked up early they can be remedied quickly and the value of your property can be maintained.

3 How do you find and screen tenants?

Finding a good tenant is the first step in risk management for your investment, so it’s very important that your property manager has a thorough selection process in place. To find out what this involves, you can read my previous column on choosing great tenants.

You’ll also want to ensure your property isn’t left vacant for long periods of time, so it’s important to ask a potential property manager how they plan to find a tenant for your property. There are two main factors that will lead to your property being rented quickly: the way it’s presented (which includes the quality of the advertisement); and price. If your asset remains on the market for a longer period of time, some property management companies will offer incentives to attract tenants, such as offering a rent-free period or throwing in an iPod, or even a holiday.

George Kafantaris is the principal of property management company Property Portfolio.www.propertyportfolio.com.au

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The six most common mistakes self-managing landlords make

The six most common mistakes self-managing landlords make

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Australian Run Property Manager to Serve 15 Months in Prison for Maintenance Fraud

When you are undertaking repairs to your rental property are you certain that the works are being completed satisfactorily on your behalf. You might be wise to seek some proof from your property manager if you are in doubt about the work or uncomfortable with the financial deductions from your rental statements. 

A former property manager from the Run Property Group in Melbourne has been found guilty of jailed after stealing $580,000 through a web of fake invoices and contractors.

Between 2005 and 2011, Leigh Aizen fabricated more than 400 fake maintenance work invoices through the Run Property agency where he was employed mostly for uncompleted maintenance on behalf of property investors and home owners of rental property under his care. At times, no work was ever undertaken.

Such was the sophistication of his underground operation, Mr Aizen created false maintenance companies and paid himself by sending the payments through a web of international banks and offshore accounts.

The court heard that the "elaborate" and "sophisticated" scheme was set up due to pressure from Mr Aizen’s then-partner to maintain her extravagant lifestyle. But the breach of trust of his employers and clients led County Court judge Gabriele Cannon to sentence Mr Aizen to a minimum of 15 months' prison.

"At the end of the day it was your decision to remain in the relationship with your [then] partner and commit the offences which I now sentence you," the judge said. "This was no spur of the moment offending ... but a lengthy course of conduct which you continued until you were discovered," Judge Cannon said.

The property manager has also since repaid $450,000 of the $580,000, and intends to pay back the remaining balance - Thankfully for the victims of this unsavory breach of trust! 

When you are authorizing substantial maintenance works and repairs on your rental property be sure to sight proper quotation documents and supportive photographic evidence of the subject repairs before you instruct your property manager to proceed with the works. If you are being asked to spend considerable amounts of money then you are wise to seek a second quotation from another contractor. I also recommend that if you are in a position to talk with the contractors directly before approving quotes inn order to satisfy yourself that the work is necessary and that all repair options have been taken into consideration. 

When the works are complete your property manager should confirm same with you and confirm the payment amounts that are due to the contractor. You should ensure that your property manager has personally inspected the works on your behalf and can send you some photographs of their inspection. For substantial and costly repairs you should seek to inspect the work yourself if you are able. 

Article Modified by Chris Snell, Property Manager, Australia, 

Article sourced by Written by Steven Cross  Friday, 06 June 2014

http://www.rpmonline.com.au/news/12470-15-months-jail-for-pm-who-stole-over-half-a-million?utm_source=Residential+Property+Manager&utm_campaign=Residential_Property_Manager_Bulletin06_06_2014&utm_medium=email

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Australian Commission of Audit Video News - Budget is looking like hell

Shared by Chris Snell, Property Manager, Rental Success Blog
The Australian Commission of Audit has handed down its report to the Australian Government. There are some fundamental flaws in the current levels of expenditure and the options available to claw back some of the debt and reduce the continuing escalation of expense does involve some tough love for the Federal Treasurer Joe Hockey. The pressure will now fall on all Members of Parliament to gauge the public sentiment and lobby within the party rooms to resolve a safe strategy on Budget Night in less than two weeks. View the brief video of the status of play at this time.

#Australia Politics Live: Joe Hockey releases Commission of Audit report http://t.co/6LldDC6NgP via @smh
— Chris (@rentalsuccessAU) May 1, 2014

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Trending rental market is good reason for rental management companies to promote good rental management services

Many years ago the Aussie dream of home ownership was both the promotion of government and your grandparents. The concept of being a renter for life was something you did in the UK not in the lucky country, Australia. Well rental management companies and property managers need to pay attention. The tide is turning and the need for continuing rental management services has become exactly that. A report released today by realestateVIEW.com.au presents research data to suggest that the many renters are in the market place for the long haul and they are not ashamed of being tenants. This is good news for the property owner who simply wants good people to, "rent my home".

 "The Housing Sentiment Report – examining the lifestyle preferences and affordability concerns of over 1200 buyers and renters – shows one third of tenants have been in the rental market for five-plus years, with affordability a major deterrent to entering the market.

What is preventing them from buying? 

• Half of renters believe they can’t afford a deposit; 
• 32% believe they can’t afford mortgage payments 
• 28% of renters haven’t bought a property because they can’t afford to buy where they want to live 
• 25% think the market is overpriced 
• 22% believe it’s cheaper to rent 
• 18% have difficulty obtaining finance 
• 16% don’t want to be tied down to one place because of a mortgage 
• 12% have already bought an investment property

As a property investor you need to take some of this data seriously and start to think about your role as a landlord. The future is rosy for investors but the rental success to be enjoyed will depend largely on the rental management company being engaged and the level of rental management services being delivered. Tenants are your customers and if you're not prepared to deliver excellent rental management services at least ensure you have a property manager who is. 

View my free report, 5 Costly Mistakes Landlords Make with their Investment Properties, follow the link for instant access. Written by Chris Snell, Property Manager, Rental Success Blog.

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Property Management Rental Property Nightmare - Fully Furnished Disaster Video

Leasing out your home as a rental property without the engagement of a good rental management company who can provide you with quality rental management services can present you as the landlord with problems at the conclusion of the tenancy. This video highlights the issues that you might be confronted with if you are not rent out your home professionally. There may be a few things that this unsuspecting landlord could have done at the start and during the tenancy to intercept and prevent some of the tragic things that has happened to them and their rental property. Avoid making the same mistakes - get your free copy of Costly Mistakes Landlords Make - a free report.
Submitted by Chris Snell, Property Manager, Rental Success Blog.

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Rental Management Companies - real estate agents lack ethics and honesty ...

Choosing the right rental management company is a complicated task nowadays given the large number of rental management companies offering rental management services. Whilst rental property management companies are beginning to present themselves as being different to sales companies, both are managed by real estate agents and the relevant statutory requirements. In fact every standalone office requires a licensed estate agent to actively operate and oversee the business.

Rental management services are often overlooked by owners and investors as they pursue discounted rental management fees. Believe it or not ... real estate agents and subsequently rental property managers are notorious for being untrustworthy and dishonest. In fact, the Roy Morgan Image of Professions Survey 2014 (Australia) has confirmed that real estate agents rank among the lowest trusted professionals in Australia. A sample size of 644 men and women across Australia were simply asked to rate or score people in various occupations for honesty and ethical standards. Roy Morgan's survey concluded that, “Once again Car Salesman (3%, down 1%) rank at the bottom of the list – a position they have held for over 30 years. The only other professions in single digits for ‘ethics and honesty’ are Advertising people (8%, down 1%) just behind Real Estate Agents (9%, down 3%).” Number one in the rankings were nurses followed by pharmacists and then doctors. At the bottom of the scale were car salespeople (30th), advertising agents (29th)and real estate agents at 28.

Focusing on rental management fees alone will come at the expense of good quality rental management services. The classic catch phrase of, "pay peanuts and you'll get monkeys", might be a little far fetched but it does beg the question, are rental management services more important in the long run than cheap rental management fees? Given that real estate agents have consistently ranked in the lowest end of the scale of ethics and honesty it might be time that you reviewed your current services agreement with your existing rental management company. Perhaps it is time you reflected on the rental management services you have received from your existing property manager during the past year. Perhaps it is time for you to visit some alternative rental management companies and seriously think about engaging a professional property manager from a credible rental management company who will deliver the proper rental management services you deserve.

Are you feeling uneasy about your rental management company and the rental management services being provided to you for your valuable investment property? Get this free report today, "landlord mistakes", it might be a good step in the right direction. Written by Chris Snell, Property Manager, Rental Success Blog.

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Mining Boom Cools and Vacancy Rate Booms in Western Australia

1 in 5 vacancies due to broken leases 
According to an interview between the Residential Property Manager Online News, Tenants are leaving the rental market in droves as low interest rates and affordability present a true buyer’s market in Western Australia. Speaking to Residential Property Manager, president of the Real Estate Institute of Western Australia (REIWA) David Airey said the rental market was undergoing a period of pain. “Things are definitely slow, we’ve had a big increase in vacancies across the state due to the downturn of the mining boom," he said. “The rental market is also suffering from tenants vacating properties in record numbers.” According to data gathered by REIWA, 20 per cent of all vacancies on the market are as a result of a broken lease, with the previous tenant becoming a first home buyer. The tenancy lease data gathered by REIWA is derived exclusively from members of the association and allows property managers to specify why the lease was broken. “We currently have a vacancy rate of 3.8 per cent, which means there are 4,500 properties available, an increase of 100 per cent from last year,” Mr Airey said. But Mr Airey said the market was due for a correction after booming for years. “We’ve had three years of extraordinary growth and owners are still enjoying good results from their investments, but I am expecting more pain before things begin to stabilise,” he said. Artcile written by Written by Steven Cross on Friday, 21 March 2014 http://goo.gl/omsdez shared by Chris Snell, Property Manager, Rental Success Blog

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Smart Investors Get Tax Depreciation Schedules

Tax Depreciation is something that every property investor should undertake. Whether you own one property or multiple properties, a tax depreciation scheduled prepared by an industry specific depreciation valuer can save you thousands of dollars by offsetting substantial depreciation offsets against the income yield of the rent property. Watch industry expert here to learn more: BMT Tax Depreciation is one of Australia's leading expert and are the only company I endorse to prepare quality reports for property investors. submitted by Chris Snell, Property Manager, Rental Success Blog

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A House of Horrors, Rental Property Nightmare

A HOUSE of horrors riddled with mould and infested with the stench of damp soil and cigarettes has been abandoned by public housing tenants, leaving behind a clean-up bill worth more than $20,000. Get your free report "landlord mistakes"

The five-bedroom house in a quiet Northcote street will take more than a month to clean and sanitise after eight years of damage and neglect from the former tenants.

Every wall in the house, which is only 15 years old, has new or patched holes.

Mould is creeping from the ceilings down the walls and the skirting boards in most rooms are rotten from moisture.

The tenants abandoned the property in January.

There were six people living in the house, including children.

get the full article at the Herald Sun Newspaper Group http://goo.gl/ytiKwF

nervous about your investment property? Get this free report today "landlord mistakes"

Submitted by Chris Snell, Property Manager Melbourne, Rental Success Blog
Source of edited article article - MICHELLE AINSWORTH - HERALD SUN  - MARCH 30, 2014 10:30PM

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Rental Property Renovation Educational Video

Property improvements may be obvious to the trained eye and inexpensive. The challenge is to take the time to observe and identify the tasks to be undertaken. First impressions are a first principal for any marketing and leasing your rental property should be no different. In this very simple video clip you can identify areas that will improve the first impression of any tenancy prospect. See if you can pick them?

 

Submitted by Chris Snell, Property Manager Melbourne, Rental Success Blog

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Property manager pleads guilty to 16 shocking charges of deception

Residential Property Manager Magazine has reported that a Western Australian property manager has been fined $10,000 after she deceived landlords, tenants and even her employers over a two-year period.

Josephine Wei-Wei Liau of Mount Pleasant pleaded guilty earlier this month in the Perth Magistrates Court for 16 charges of various instances of misleading and deceptive conduct.

Consumer Protection told the Court that Ms Liau’s misrepresentations included advising owners of properties in Yangebup and Mount Pleasant that she was representing the agency, when in fact the agency had no record of the properties being under their management. Ms Liau used the agency’s logo in statements sent to the owners.

Ms Liau also deceived owners by lying about the amount of rent that was actually being paid.

One Mount Pleasant tenant was paying weekly rent of $950 while the owner of the property believed only $800 was being paid.

Another tenant was paying $380 in weekly rent while the owner was advised that $350 rent was being paid. When the tenant’s rent was subsequently increased to $400, the owner understood the rent payments had remained the same.

In both cases Ms Liau retained the difference.

Ms Liau made a similar misrepresentation regarding a water bill for a Willetton property.

She demanded six months’ rent in advance, totalling more than $30,000 from a tenant, and taking longer than 14 days to lodge bonds with the Bond Administrator.

The former property manager also advised clients she had a real estate agent’s licence when she only held a certificate of registration as a property manager from March 2010 and March 2013.

Magistrate Zempilas said the offences were serious and commissioner for consumer protection Anne Driscoll said such serious deception is unacceptable.

“Property managers have a trusted position as the liaison point between a property owner and a tenant, so they must display the highest standards of honesty and integrity as required by law,” Ms Driscoll said.

“Those who choose to profit from misleading and deceptive conduct in the real estate industry will face prosecution and suffer financial penalties as well as serious damage to their reputation.”

Don't fall victim to a crooked property management. Claim your free report today by clicking this link.

Submitted by Chris Snell, Property Manager Australia, Article Written by Steven Cross

Source: http://www.rpmonline.com.au/news/12119-property-manager-pleads-guilty-to-16-shocking-charges?utm_source=Residential+Property+Manager&utm_campaign=Residential_Property_Manager_Bulletin17_03_2014&utm_medium=email

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You might have been hearing about how the current economy is making real estate a buyer's market, but do you know how to use this to your advantage? Professional property managers and rental property companies do specialise in assisting investors and home owners rent out their property. Before you can start finding your tenant you need to know how to buy a rental property in the right place and space. This article has advice on how to approach buying real estate in a logical manner that will make sure you get what you want at a price you can afford.

Tips On Making Money With Rental Properties

Buying Rental Properties

1. Find a location of rental properties you want to invest in that are surrounded by local amenities such as parks and malls. In a large city, a property near public transportation is especially profitable. The more things to do that are close to the rental property will draw in more potential tenants and allow you to turn a profit quicker than a rental property that is in the middle of nowhere.


2. Understand the setup of the utilities in rental properties. If you are considering a multiple unit rental property, it is important to pay attention to the way that the utilities and heating system have been set-up. Take note of the number of gas, water and electric meters either inside or outside of the home to determine how many services are connected to the property. If there is only one connection, be aware that you will most likely need to include utility costs in the rent payments. You might also want to make a call to the local zoning commission, so that you know if there would need to be any major changes to the utility services. There could be significant costs involved in splitting or combining services and you will want to know this in advance.


3. Learn how to attract good tenants. If you are going to purchase rental properties it is absolutely imperative that you carefully market your units in such a way that attracts the best tenants possible. Marketing is important and you should pay careful attention to how other owners are marketing their properties, particularly those with low vacancy rates.


4. When purchasing real estate to use for rental properties be sure to do a careful assessment of the neighborhood. Look at the cars parked in the street. Old cars can tell you a lot about the neighborhood in which the property is located. Trash on the sidewalk or worn down houses can tell you that the neighborhood is less than great and at what level you can expect to rent the property.


5. Look for rental properties in student areas. A college or university neighborhood is a great place to look for a rental property to purchase. In most cases, the vacancy rate will be minimal, and most of the time students pre-pay their rent for the semester or even the entire year. The one drawback is that some students only want 3 month leases; however, if you form a relationship with the school's housing office, you will most likely have no problem at all finding tenants.

Research potential properties before purchasing them. If you are considering a rental property, evaluate the following features before signing the closing documents.

One of these is sustainability. How is the condition of the property and how much upkeep will it require in the future?

The second thing to consider is the location. Especially with property that you plan to rent, location can make all the difference. You need to ensure that your tenants can get to where they need to go and that the property is near commonly used retailers and service providers.

The third thing to consider is the median income of the property's area. This will not be the same as the physical location. You want to remember that any low rent area will be worse than any high rent area. You should also keep in mind that concerns about location are not as high a priority for high rent areas. Locational issues do become more of a factor in areas with a lower rent.

This article will help you take advantage of the current buyer's market in real estate. Make sure you follow the tips to get the best out of your real estate buying experience. You can get what you want, at the price you want, with the benefits that buyers can get with the state of the economy.

For more tips on making money with rental properties, please click this link

Article Source: http://EzineArticles.com/?expert=Sam_E_Watson
Blog Posted by Chris Snell, Property Manager Australia, Rental Success Blog

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Tips For Investing in Rental Properties - Tips to Become Successful

Tips For Investing in Rental Properties  

Tips to Become Successful

Whether you want to invest in real estate as a full time job or just make some extra money, don't be afraid of the current state of economic affairs. Investing in real estate has and will always be a great way to make money. Professional property managers and rental property companies now specialise in rent out your property for you. There are numerous rental property services that you can hire now and enjoy peace of mind with owning an investment property. Here are some tips for investing in rental property.

When it comes to the type of property you purchase, of course you want to look for a good value. Lately there are tons of houses available through auction or foreclosure. You can also find many deals that are in pre-foreclosure. Look around in the neighborhood that you are interested in. You might find some good deals without doing a lot of online searching.

Claim your free report, 5 Costly Mistakes Landlords Make with Their Investment Properties - click this link.

Look for motivated buyers. When investing in rental property you want to get the best deal possible and you're more likely to get a better deal when the sellers want to close quickly and move on. Some motivated buyers are: 

• people who have already bought their next house. Right now they are paying two mortgages. Or sometimes they can't close on their new deal until they have sold the old house.
• a couple who is going through a divorce. Most will try to sell the joint property to make a clean break.
• a landlord who is unhappy with current tenants or unable to handle the responsibility of rental properties. Some people may start out in real estate thinking it's a good business idea, but just don't have what it takes to be successful.
• an out of town property owner. It can be very hard to manage a property when you're not close by to make inspections or arrange for maintenance. This owner may be looking to unload the out of town property and find something closer to home.

Another tip for investing in rental property successfully is to find property in a good location. You can get top rental dollar for a place that is close to popular amenities such as public transportation and eating places. If you're targeting college students with no cars you want to find a place within walking distance of the things they need to get to. Figure out who you want to market to and think about the things that they will want. 

Avoid the costly mistakes landlords make - follow this link and claim your free report today.

Submitted by Chris Snell, Property Manager Melbourne, Rental Success Blog.
Article Source: http://EzineArticles.com/?expert=Reese_Evans

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Rent My House and Make the Tenants Live Like I do

"Tell the tenants we never used that room to watch television..."

One of the big mistakes that home owners make when they rent out their house is that they feel like they are trying to "rent my home". This creates huge problems from an emotional perspective. More often than not, the trap for the home occupier become landlord is that they expect a new tenant to live like they did.

Tensions arise during an owner visit to the property during the tenancy. Here the owners come landlord conducts a walk through the property. At this stage the landlord has come to realise that the property is not being occupied in a way that meets with their approval. A perfectly satisfactory tenancy may be in place and the new residents might well be the prefect tenant ... but the emotional owner is really struggling with the thought of having to let go of the past.

A few thoughts to help you focus:

1. Your home was your home when you lived in it.
2. Your home is now your house and part of contractual agreement where somebody pays rent.
3. Your tenants will set up their home as they think fit for their enjoyment.
4. Your house, when rented out will make various homes for multiple tenants over time.
5. So long as your tenants are not damaging or neglecting your house then allow it to be their home.

Continue to remind yourself that your house has taken up a whole new function for you whilst you rent it out. Embrace the new purpose of the tenancy agreement in place and you will be sure to embrace the new found freedom you are enjoying in your new home somewhere else. Wishing you rental success.

Written by Chris Snell, Property Manager, Rental Success Blog

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Buying A House Or An Apartment?

Buyers Guide .... Buying a House or Buying an Apartment? 

When you are looking to rent our your home or when you are looking to buy an investment property there are significant differences to take into consideration the differences for their use as a rental property.

Everybody thinks a 2 bedroom unit is the perfect investment property model to buy. However you might be misled. This might be investor suicide to think that your 2 bedroom flat is going to rent out easily but nobody told you about the 75 other similar properties in the same suburb or city street being promoted for lease at a cheaper price to you. You are at risk of sitting vacant and on the market for a long time.

If you are doing some research ahead of your purchase for your investment property then you are wise to take into consideration the competition within the rental market place you might well find that there is a shortage or a particular property type and a subsequent consumer demand. It might mean that you actually end up purchasing a 2 or 3 bedroom house on a small block of land, or a 3 bedroom two story townhouse.

Click above to claim a free report on the Costly Mistakes Landlords Make

Speak to a local property manager or a leasing agent specialist in the the areas that you are interested in. Too many people only talk to a property manager about the cheapest property management fees and the best property management agencies factor. However I argue that you should be interview your property management office during your buying process. Buying an investment property should not be rushed and should not be something you buy like you would buy a property to occupy for yourself.

Remember that most sales people are exactly that! They are not going to spend much time on matters related to property management, leasing out your property, choosing the right investment property to purchase, and nor will they spend much time discussing rental property vacancy rates. Wishing You Rental Success!

Written by Chris Snell, Property Manager, Rental Success Australia Blog

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The Cost Of Being A Landlord - Can You Afford It?

The Cost Of Being A Landlord - Can You Afford It?

Property Managers more often than not bear the brunt of the ugly landlord who can't afford to keep up with the daily costs of owning an investment property. 

This relationship tension is further tested when the tenant reports a need for urgent repairs at the rental property. How will these immediate repairs be carried out when the landlord cannot afford to pay for the tradespeople and the materials. 

As a property investor it is critical that the landlord has a buffer funds account to meet the urgent repairs. For instance, a burst hot water system that is irreparable and must be treated as an urgent repair can cost anywhere within the vicinity of $2,000 - $5,000 to supply and install a replacement system.  

Before you jump into the thrill of becoming a property investor do some due diligence and be sure that you can afford to meet your responsibilities as a landlord. Click on the link to get your free report, The 5 Costly Mistakes Landlords Make With Their Investment Properties

Written by Chris Snell, Property Manager Australia, Rental Success Blog

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Monkeys Manage Rental Properties - Discount Property Managers

Tight Landlords Buy Low Fee Property Managers

One of the most common and costly mistakes landlords make when they are searching for the best property manager to manage their rental property is the mistake of shopping around based on low management fees.

More often than not, the agent who is prepared to give generous discounts with their own money is sure to do the same with your money and your investment property. This might seem absurd but some investors become so mean in the negotiation process that they actually lose sight of the main game - securing a good property manager. Discount property management fees will produce discounted property management services. Get help to "Rent out my property," or "Rent out my property well"  .... the choice is yours.

A good property manager might be charging a management fee that is one or two percent higher than the other but chances are you are going recoup that in better services and better result standards. I suggest that you break-down the calculations and bring it back to the dollar difference per week. In some instances the desperate landlord is squabbling over a fee gap of $2 - $5 per week. Surely the services of a better property manager at the added cost of a cup of coffee is value money and seemingly a good investment.

We've all heard the throw away line "pay peanuts and get nothing but monkeys", I wonder how you'd feel about a monkey managing your investment property?

Claim your copy of my free report, 5 Costly Mistakes Landlords Make

Written by Chris Snell, Property Manager Australia, Rental Success Blog

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Population growth to drive the rental market and reduce vacancy rates

AUSTRALIAN PROPERTY NEWS - One of the country’s most respected demographers says a jump in population growth will drive property market gains.

KPMG partner and demographer Bernard Salt says the doubling of the rate will underpin the upswing in property. “We have built a property industry in this nation predicated on 220,000 people per year, give or take, for 60 years. Over the last five years, that jumped to double that rate,” he says.

“I’m sorry, but you can’t double the rate of the population into this nation in five years and not have a profound impact on the demand for property.”

Salt’s statistics show the nation’s population growing to around 416,000 people per annum.

“The rate of growth in this decade is twice the rate of growth over the previous 60 years.”

He’s also particularly bullish about Queensland’s real estate potential.

“I think there are strong demographic reasons why you should be in property over the next 12 months in this state.”

He notes Queensland property has been dealing with negative impacts over the past two years and the GFC, the 2011 floods, north Queensland cyclones and the rise of the Australian dollar had all taken their toll on the market. However, Salt believes it has now turned a corner.

“This is an ascendant market,” he says.

“Interest rates are low, the dollar has dropped and there’s been an absence of two or three years of natural disasters. We’ve taken the hits in terms of property sector cutbacks and you have, today, all of that behind and you’ve got these demographic drivers pushing in an upwards direction.”

Salt also points out there’s growing interest in Brisbane from overseas immigrants.

“It’s (Brisbane) emerging as a market competitive to Melbourne and Sydney as a destination for overseas people coming into Australia.”

This positive outlook is supported by data released by the Real Estate Institute of Queensland (REIQ).

The institute’s December quarter median house price report found the volume of house sales hit their annual peak of activity in the last three months of 2013.

REIQ chief executive officer Anton Kadesh says their data indicates the southeast Queensland market is gaining traction.

“The September quarter, or spring selling season, historically records the high numbers of sales. Last year, however, the December quarter trumped it with the preliminary numbers of house sales peaking at just shy of 10,000 for that three month period,” he says.

The REIQ’s most recent data shows the average time it takes to sell a home in Brisbane has reduced to 74 days, with average discounting from list prices sitting at about six per cent.

Submitted by Chris Snell, Property Manager, Rental Success Blog. Article written and posted on Wednesday, February 26 2014 at 3:25 PM by Australian Property Investor Magazine

 http://www.apimagazine.com.au/api-online/news/2014/02/double-population-growth-to-drive-the-market

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Should Australians Invest in Property - Buy Property? Video to watch

Submitted on Rental Success Blog by Chris Snell, Property Manager, Melbourne, Australia

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What is a Lease? Landlords and Tenants ... Tenancy Responsibilities and Entitlements

What is a lease? 
A lease is more technically referred to as a residential tenancy agreement. It is a legal contract between two or more parties namely the tenant and the landlord. It is a written document and signed by all parties.

What does a lease do?
A lease outlines: the amount of rent and how it is to be paid the length and type of tenancy the amount of bond required other conditions and rules. A lease establishes the agreement between the landlord and the tenant and imposes obligations and entitlements upon both parties.

Fixed term – a fixed-term agreement is for a set period of time, usually six or 12 months. After a fixed-term lease expires, a tenant can sign a new fixed-term lease or roll automatically onto a periodic lease.

Periodic lease – a tenant will usually roll over to a periodic lease (commonly called a 'month by month' lease) when their fixed-term lease ends. Normally, when a lease becomes periodic, the tenant does not sign a new lease, but must still follow the rules set out in the original agreement. A tenant on a periodic lease does not have to sign a new fixed-term lease, although if they do not they risk the security of their tenancy. The original agreements between the parties remain unchanged and carry on in continuation ... the only thing suspended is the fixed term that was originally agree upon.

One of the problems with poorly written tenancy agreements is that confusion may become present during the tenancy because things lack clarity. It is important that a landlord is confident about the tenants understanding of the lease agreement. It is also the duty of the landlord to ensure a good understanding of the lease agreement being prepared for signing.

Written by Chris Snell, Property Manager, Rental Success Blog

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Self Managed Superannuation Funds - Tips and Traps for Owners of Self Managed Funds

Investing in property with your superannuation funds in a self managed superannuation fund is one of Australia's fastest growing pools of buyers into the investment property market. There is need for self control, due diligence and professional planning. Don't become a victim of hasty self managed super fund set ups ... "While negatively gearing a property investment within a SMSF can be a tax effective strategy, there are traps that you should be wary of" ... this special report is well worth your viewing:

Submitted by Chris Snell, Property Manager Melbourne Australia, Rental Success Blog

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Investment Property - Where to Buy in 2014 - Today Show

 Get a copy of this FREE report, 5 Costly Mistakes Landlords Make With Their Investment Properties,
Video clip sourced and submitted by Chris Snell, Property Manager Australia, Rental Success Blog.

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Good Property Managers Are The Foundation of Good Property Management Companies

Choosing a good property management company is certainly something that you will need to do when seeking professional services to lease out your rental property. However appointing a suitably qualified property manager is more important. Too many things are left to chance when an unsuspecting property investor appoints and agency based on its profile without doing due diligence on the person who will be acting for you and your property. Needless to say there is a endless list of things to be wary of, but I propose just a few points of reference to get you started.

5 Things to consider when choosing a good property manager 

to manage your rental property...

1. Professionalism - have you spoken over the telephone or met the prospective property manager in person? Did the person appear professional and demonstrate a sense of being in control of the situation?
2. Clarity - was the property manager able to grasp quickly and relay back to you with clarity the important components of your situation and the discussion? Were their communication skills attentive and engaging? Did they offer you assurances of the tasks at hand?
3. Local Knowledge - did you receive some indications from the property manager that they possessed some local knowledge of the area surrounding your investment property? 
4. Expertise - the property manager should be able to convey to you their professional industry expertise. You should be starting to feel that this property manager does have a degree of competency that makes you feel that this person is going to serve you well. 
5. Reasonable - do be really confident that your property manager is the right professional for you, I recommend that you listen to your inner instinct and go with your gut feeling. Are the things that the property manager is conveying to you sounding fair and reasonable? or, Are they sounding far fetched and unreasonable? 

Choosing a good property management company is certainly worthy of some consideration but the person delivering the property management services is more important. If you are not getting a good vibration from your likely property manager candidate there is only one to do ... keep searching and interview another one - Common sense must prevail!

If you like what you have just read you might like to learn more by visiting my special report on the 

5 Costly Mistakes Landlords Make With Their Investment Properties.
Written by Chris Snell, Property Manager Melbourne Australia, Rental Success Blog

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Abandoned Property - Nightmare Tenant Experience

Not only was this tenant reportedly in arrears of rent payments but when the landlord visited the property to collect some back pay of rent he was greeted with a most unpleasant surprise.




Submitted by Chris Snell, Property Manager Australia, Rental Success Blog

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Valentines Day - all things bright and beautiful .... really?

Happy couples do look good on paper - particularly when they are applying to rent your investment property. But have you really performed due diligence with their fairy tale?

The thrills and excitement of young love can be so encouraging.

Sing it with me - "Wise men say .... only fools rush in ... but I can't help, ... falling in love with you....."

A lovely young couple caught up in a new world of setting up house together may not really be aware of what they are getting themselves into. A good way to offset the emotions with some good old fashioned common sense is to simply make some inquiries about the nature and depth of the relationship. 

• How long have the happy couple been together? 
• Have they occupied a home together in the past? 
• Who will be responsible for managing the monthly rent payments? 
• Do they have parental support or the support of friends? 
• Have they prepared some basic budgets to anticipate their living costs?
• Are their commitments to university or industry education programs?
• What part-time, casual or full-time employment arrangements are in place?
• Who is backing them up while they get established? 
• Will professional guarantees be signed by any third party on their behalf?

 It is wonderful to see the spirit of St Valentine being played out in our communities but for the sake of rental success as a landlord and a tenant lets get the show off to a good start in order that this lovely young couple can live happily ever after. Wishing you a Happy Valentines Day x
Written by Chris Snell, Property Manager Melbourne Australia, Rental Success Blog

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Tenancy Applications and Reference Checks

More often than not many of the problems encountered during the course of a rough ride tenancy with a rental property might have been avoided with correct tenancy application processing. 

As a Landlord you are entitled to view the Tenancy Applications You are entitled to carry out your own due diligence in your consideration of tenancy approval. Ask you agent some qualifying questions about these key areas:

1. Employment - is it stable? Is the income reasonable in consideration of the weekly rent?
2. Previous Rental History - does the applicant have a history? Have bonds been refunded in the past?
3. Next of Kin or family members named on the tenancy application - are they real people? Do they know the applicant?
4. Professional or personal referees - how long have these people know your prospective tenant?
5. What about the other applicants - How are they all related if applying to share the home together?

Following up of some of these basic questions will produce some valuable answers - try it, you'll be pleasantly surprised. Following some satisfaction in these areas you are gong to approach your new tenant or tenants with a peaceful easy feeling.
Written by Chris Snell, Property Manager Melbourne Australia, Rental Success Blog

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Bushfire Risks Can Be Reduced With Good Garden Design

As the season continues to sizzle the country and the suburbs home owners can do much to manage and offset the risks of fire running havoc across their home and investments properties. The Country Fire Authority promotes some simple and effective steps that you can implement with your gardens.

Landscaping for bushfire is much the same as any type of gardening. It involves planning, designing, planting and managing the area around your house. Design and plant selection for bushfire can reduce the effects of direct flame contact and radiant heat on a house.  

Landscaping for Bushfire: Garden Design and Plant Selection provides information on garden design and plant selection which can be used for new or existing gardens in high bushfire risk areas.

• Use the online Plant Selection Key to help choose plants for a garden in a high bushfire risk area.

Garden design 

When modifying an existing garden or designing a new one, you need to consider the placement of garden beds, trees and other flammable objects.

You should aim to keep the area around your house and other structures (such as carports and sheds) free of plants that can easily catch fire and then ignite the buildings. You should also separate the flammable elements from each other and the house itself.

Garden design should incorporate the following four principles:

Create defendable space
Remove flammable objects from around the house
Break up fuel continuity (keep plants separate)
Carefully select, locate and maintain trees.

Choosing suitable plants

Although all plants will burn under the right conditions, some plants are less likely to catch fire than others. Choosing plants with low flammability and locating them correctly will help reduce bushfire risk within a garden.

Use the Plant Selection Key to help choose firewise plants for your garden.

Make a list of the plants you want to use in your garden and work through the questions in the Key to find out the flammability rating of each plant.

Remember: While a well planned garden is important, it is only one aspect of preparing for bushfire. A holistic approach to bushfire preparation is critical. Appropriate water supply, access, house construction and general property maintenance are all important. On Severe, Code Red and Extreme days, leaving early is always the safest option.

Sourced by Chris Snell, Property Manager Melbourne Australia 
See more at: http://www.cfa.vic.gov.au/plan-prepare/landscaping/#sthash.BcAEs28j.dpuf

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Going Green with Your Rental Property - Energy Efficient Investment Properties

Going Green with Your Rental Property - Energy Efficient Investment Properties

If you are planning any renovations to your investment or rental properties in the near future you should consider going as green as possible. Improving your investment property's Eco Performance has monetary and intangible benefits as well. You can ask your property management to help you along with using some of the helpful information in this quick guide.  

http://www.rentalsuccess.blogspot.com.au

Solar Panels

First and foremost there is no quicker way to reap the rewards of eco-friendly construction then with the installation of solar panels on your investment property's roof. There are dozens of programs available in all parts of the country which could help you improve the overall return-on-investment of your property. Additionally, the installation of solar panels sends an eco-friendly message to your tenants, your neighbors, and the investment property community. Don't hesitate to start working on a solution for this improvement. All Solar companies will come to your property and give free estimates and also provide a thorough array of options for your individual situation.

Roofing

There are so many new eco-friendly roofing materials available now that it boggles the mind. They include slate, metal, composite, and recycled plastic and/or rubber. These new eco-friendly materials offer superior fire and impact resistance and come in various colors and textures. There are a number of manufacturers are selling roofing shingles made from 100 percent recycled vinyl and cellulose fiber that resist fading and are fire retardant. Other products include shingles made from 98 percent post-consumer metals - some of which look just like a wood shingle or shake but don't warp, crack or mold.

Insulation

Eco-friendly manufacturing has now penetrated the insulation market. There are several eco and health-friendly options in each insulation category. One of the most recent products is a soy-based polyurethane spray-in foam that expands to fill-in cracks, crevices, and hard to get to places which will provide an airtight seal with extremely high thermal resistance. There are also new batt-type insulation products constructed from post-industrial cotton and denim fibers that contain virtually no chemicals. There are several products that are now odor and formaldehyde free. One manufacturer offers an alternative insulation that resists mold.

Windows and Doors

When replacing windows and doors, look for low U-factor ratings - which is the measurement of a window's heat flow. An average U-factor rating is.25 to 1.25. An easy and cost effective way to help improve the air leaks around doors and windows is to use caulking around the entire perimeters of each opening, the trim, the window housing, and the framing (if exposed).

When replacing windows consider dual-paned glazing with Argon chambers; patio doors with double or triple pane glass to improve energy efficiency. To be really eco-friendly consider installing new windows and doors manufactured using a water-based treatment that decreases Volatile Organic Compounds (VOC's), which are a key cause to indoor air pollution.

Tenants Can Help You

Implement a plan with your property management team to talk with tenants about being eco-friendly partners with you. Have your property management team put together a list of eco-friendly energy saving hints and tips that will not only save your tenants cash each month, but will improve the overall energy efficiency of the property for the long-haul. It is a good practice to print the list and display it at various locations on each of your investment properties, including posting it on your company website. Some ideas for the list include but are not limited to:

1) Install thick drapes or shades at all large windows. This reduces heat loss in winter, improves heat gain controllability in summer, and also provides the tenants with privacy.

2) Only use washing machines and dishwashers when they are full.

3) Install auto-thermostats as a difference of 2-3 degrees could be hundreds of dollars spent on unnecessary energy costs with little or no comfort level increase.

4) Unplug cellphone chargers, appliances, etc., when not in use.

5) Install faucet filters to avoid using plastic bottles for water.

Conclusion

Each and every eco-friendly improvement or addition can collectively make a big difference in the bottom line of your rental property. Make sure to get your property management team involved in this process as they should be fully prepared to help you in this endeavor. If they are not you can easily use this guide along with some quick research and you will be well on your way to having a more eco-friendly rental property business.

http://www.siliconvalleypropertymanagementgroup.com

Article Source: http://EzineArticles.com/8293516

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5 Essential Rental Property Forms - where does one start?

5 Essential Rental Property Forms  

where does one start?

In this day and age, there is a form to cover every possibility in the rental property business. From pet leases to utility sharing agreements, everyone will agree "it's best to always get it in writing". Making sure that all of the rules are clear before a tenant moves in leads to fewer disagreements and a cooperative landlord/tenant relationship. These signed documents can also protect the landlord if a substandard tenant should slip under their radar and take up residence.

If you are just starting out with one rental property, there are 5 essential rental property forms that you should have on hand before you start to look for a tenant.

APPLICATION FORM - This is the first form that a prospective tenant will fill out for you during the first meeting if they are interested in renting from you. It covers the personal information of all the people that will be living there including their employment history, credit information and rental history. The best part of the application form is that it allows you to do a credit and criminal background check of a prospective tenant.

INSPECTION REPORT - This is filled out before the tenant moves anything into your dwelling and again when they are ready to move out before you return their security deposit. There is a checklist for each room and describes the condition of each item on the list. I always back this form up with dated photos of the property and have the tenant sign both.

TENANT LEASE AGREEMENT - This is the meat and potatoes of all rental property forms. It outlines the rent, security deposit, length of stay and also lays out all the rules and regulations of living in your property. You can start out with a generic form which can be changed and revised to suit your specific needs or you can use one from an experienced landlord. I like this option because it will already be much more specific based on the landlord's previous experiences and you can still modify it as required.

DEPOSIT AGAINST RENT - Once you have done all of your investigating and decided on a great tenant, it's time to get a deposit to hold the place until move in day. This form is simply a receipt for that amount and also sets out what is still required as far as security deposit and rent before they take possession.

LANDLORD CHECKLIST - Owning rental properties is a business and in order to run a successful business, you need to keep yourself organized. I created a landlord checklist that I use for each new tenant moving in to my properties. It reminds me of all the things I need to do including property fix ups, tenant checks and everything from moving in to moving out. I find this tool invaluable as I never miss a thing and it starts my relationship with my tenant out on the right foot.

These forms will get you started in your rental property business and should be considered your "core package" that you use for everyone. Depending on your needs or as your business continues to grow, you can introduce more forms to your repertoire. These might include utility agreements, garage leases, notices to enter the premises or eviction notices.

written by Shannon Pineau

http://www.myrentalpropertycoach.com

When you're a new landlord just starting out in the rental property business, there is an enormous amount to learn in order to be successful. I've spent years buying and managing rental properties and building my skills as a great landlord. I love to teach new landlords the ropes and I would be happy to help you build your wealth through investment real estate.

For an all-in-one, step by step guide to help you buy your first rental property, check out Shannon's eBook "How to Buy and Manage Your First Rental Property" on her website or through Amazon.

Article Source: http://EzineArticles.com/?expert=Shannon_M_Pineau

Article Source: http://EzineArticles.com/8249179

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