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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Vacancy Rates 2014 - Residential Rentals

The REIV is one of the regular commentators and analysts of residential rental data across Victoria. Based on data they collect from the real estate industry members the present the following data for January 2014.  To review data from previous years the data on vacancy rates is accessible through realestateview.com.au .

The REIV has reported the following snap shot for Victoria.

Rental market snapshot - January 2014

The current rental vacancy rate in Melbourne is 3.0 per cent, stable from the previous month
The current rental vacancy rate for Regional Victoria is 2.7 per cent, a decrease from 2.9 per cent in the previous month
The current house median rent in Melbourne is $400 per week, a 2.2 per cent increase from the previous month
The current house median rent in Regional Victoria is $300 per week, a 2.0 per cent increase from the previous month.

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Reserve Bank holds the Cash Rate 4 February 2014 - CommSec Economic Insight

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A share house can have its own problems - see room mate disaster in a share house

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The things tenants leave behind ... don't let this happen to you.

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Property Investment is one of the fastest growing industries in Australia

Investment opportunities flood the market week after week. As our population grows so does the demand for accommodation. The property investor sector is well placed to thrive into the future. Rental accommodation needs across Australia are far from being satisfied. 

Are you an investor who became a landlord by accident? Are you experiencing challenges with your investment property? Are you suffering a poorly managed tenancy? Are you dissatisfied with your property manager? Are you about to purchase your first investment property? 

What if you could learn from an expert some of the best methods for rental success with your property? 

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