Buy home. Buy Property - rental property investment

Many people set out on the journey of wanting to buy property for rental property investment and for personal occupancy. If you want to buy property for rental property investment you can. If you are looking to buy a home to occupy you probably can do that too. Whilst the money is a big part of the process to buy property, it is not the only part. Even if you only have a little bit of money set aside you probably can buy property - you definitely do not to be filthy rich to become a savvy property investor or home owner.

So what is important about becoming a property investor who might one day own a portfolio of property investments? Here are a few important tips to start you thinking about your journey to becoming a property investor.

1. Establish a plan to buy property. There is no greater risk than that of buying property off the cuff without any planning, goals or research. Setting aside some time to create your own personalized property investor blueprint is worth its weight in returns in the long term.

2. Review your financials. You need to know exactly the condition your personal finances. Review your existing financial commitments. Document your income both gross and net (take home pay). It is important to understand the differences. Understand your current spending habits for your daily costs of living. Scrutinize your social expenses too. Review your current savings in the bank and any saving plans you might have in place now.

3. Seek advice from a financial planner. A good financial planner will help you to review all of your financials. The process of putting all your financials on the table for an outsider to review can be challenging but also very rewarding. You will be surprised how many new insights you can gain from a professional about your present situation. Some people advocate an accountant which is well and good however I believe that a financial planner will help you to create a big picture tapestry of your circumstances and set you up with a plan to help you buy property in the future.

4. Understand your superannuation. Have you ever considered establishing a self managed superannuation fund? Believe it or not, you might be sitting on a wealth of opportunity and resources by tapping into your superannuation funds to assist you with your plans to buy property. Just a note, if you buy property using your superannuation you will be unable to occupy such a purchase - the property can only be an investment property in most circumstances.

5. Research the areas that you are interested in or want to buy property. Don't limit yourself to buy property in areas you simply like but adopt a property investor mindset and research information from leading commentators and property professionals. Exclude slippery salespeople and "get rich overnight" investment companies from your research. Visit local councils and speak to town planners about future infrastructure to be constructed.

6. Follow the market. There is so much free information in the public realm nowadays - don't be afraid to use it. Inspect some homes for sale, attend public auctions, speak to some active salespeople , follow some leading property websites. Know the current value of home prices in the for sale homes pages of your local and state newspapers. You can develop a good understanding about an area in a reasonably short period of time. The internet does make research so much easier nowadays.

7. Research the cost of buying property as a property investor. Every state has variations in the cost of stamp duties and title registrations when you buy property. Every bank has a suite of fees, valuation fees, settlement fees and bank account fees associated on your loans when you buy property.

These suggestions can all be broken down into much smaller items and extensively expanded upon. The list is presented as an appetizer to the discussion you should be entering into in your pursuit of becoming a property investor. The real secret behind any property investor who sets out to buy property or establish a portfolio of investments properties is their commitment to the development of a plan that is researched, prepared, calculated and implemented.

Good luck with your mission to buy property - wishing you rental success.

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Real estate Melbourne - real estate listings, real estate sales and real estate rentals

Melbourne real estate is an apparent wrestle of commentary across all the major banks, economic commentators, the Reserve Bank and the treasurer’s office. Despite the signs of a softening market contradicted by high real estate auctions clearance rates of up to 80% across Melbourne in recent weeks, it is projected that the Melbourne real estate sales market will remain healthy over the long term as property investors continue to actively purchase property and owner occupiers continue to sell and buy respectively. I at times wonder what real numbers might be achieved if there were more real estate listings available on the market.

Inner and eastern suburbs continue to increase in value and a growing supply of new apartments are on offer as a new developments open onto the real estate listings market via a seemingly evergreen supply of construction approvals. Strong population growth is also causing massive development demand for housing and accompanying infrastructure. According to a recent report on 31st March 2015 by the Australian Bureau of Statistics, "Melbourne had the largest growth of all Greater Capital Cities (up by 95,700 people), followed by Sydney (84,200), Perth (48,400) and Brisbane (38,500)." It is no surprise that the outer suburbs and rural urban fringe areas such as in the northwest of the city where land is relatively cheap continues to reap the rewards of the developers eye. First home buyers are heading to these outer areas also to satisfy a desire to enter the property market and secure affordable homes away from the savvy investors market.

Whilst real estate sales may remain strong in the short term, recent reporting from CoreLogic RP Data Home Value Index results seem to indicate that Melbourne’s dwelling values may be on the decline. Research analyst Cameron Kusher says the city has moved past its cyclical peak, which was 11.9% in January 2014. It is worth noting that CoreLogic RP Data results show that Melbourne continues to have the lowest rental yields of all the capital cities, for both houses (3.3%) and units (4.2%) but this does not necessarily mean that landlords are sitting around with vacant properties. The team I manage at hockingstuart, having just come off the peak rental season (January - March), has leased some 350 real estate rentals across the CBD and inner Northern suburbs including, North Melbourne, Carlton, Brunswick, Collingwood, Northcote, Fitzroy and Melbourne. Subsequently our current stock list of properties being offered for lease is now the lowest I have known it in 5 years. Furthermore show me a leading bank that is offering 4% term deposit returns - it is just not achievable in the current market.

Consumer confidence in property remains upbeat and the pursuit of new lands by developers continues to provide opportunity for confident buyers. The Real Estate Institute of Victoria has also released data showing that demand from families wanting more space has led to strong price growth in four-bedroom homes over the past year. The median price of four-bedroom homes grew in inner, middle and outer Melbourne by 3.9%, 4.2% and 5.6% respectively. However, the biggest median price change in the outer suburbs was for smaller, two-bedroom homes. These were up 7% (to $390,000). This suggests that Melbourne’s rising property prices have increased demand for these more affordable smaller houses, which offer a good way to enter the market. Investors are likely to enjoy high occupancy with such investments as well as long term capital growth.

Melbourne real estate is not simply a wrestle of commentary it is a unique tension between sellers of real estate listings and buyers to the transaction of real estate sales woven into the fabric of a distinct tension between home buyers and real estate investors. Did somebody say "yield"? Lets defer that topic for another day.

Chris Snell is a licensed real estate agent and actively manages a substantial property investment rental management team within the hockingstuart group of offices Melbourne.

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Rent my house and make the tenants live like I do ...

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.

Tell the tenants we never used that room to watch television!

Tensions arise during an owner visit to the now rental property during the tenancy. Here the owners wearing their hat of a landlord conduct a routine inspection which is a walk through their property. At this stage the landlord has come to realise that the property is not being occupied in a way that is consistent with they way they might have expected. 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 letting go of the past. Over reaction at this stage may prove disastrous in the long term.

A few thoughts to help a challenged owner focus might include:

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 in exchange for exclusive occupancy.
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 relationship 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.

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Do rental management companies lack ethics and honesty?

Choosing the right rental management company is a complicated task nowadays given the large number of them offering rental management services. 

As rental property management companies begin to present themselves as being different to sales companies, it is good to remember that both must be managed by licensed real estate agents and adhere to relevant statutory requirements. In fact, every standalone office requires a licensed estate agent to actively operate and oversee the business. Is your property manager supervised by a licensed estate agent?

Rental management services are often overlooked by savvy landlords and investors in the pursuit of discounted rental management fees. Believe it or not ... some real estate agents and property managers are 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. It may also be a opportune 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 and timely rental management services you deserve.

Wishing you rental success. 

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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.

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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. 

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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.

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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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