- You should like your agent. They're going to be calling you with problems, you're better off liking them to begin with, because if someone you don't like very much is calling you with issues, it's going to make those issues that much harder to handle...
- Read through the managing agency agreement. Make sure you agree with everything you're signing for now, because you can't change it down the track.
- Are you happy with the commission rate? This is one area where it doesn't hurt to compare, the difference between 7% and 8% may only be a couple of dollars every week, but it does add up.
- Are there any other fees? Just because you're only paying 5% commission doesn't mean you're getting a great deal. Are they also charging for advertising? Repairs? Tribunal hearings? Find out exactly what you'll be paying for in advance.
- Having said those last two points, I need to also point out that you get what you pay for. The is quite possibly a reason why one agent charges you 8.5%, while the one down the road is willing to go down to 6.5% - are they going to be offering you the same standard of service as the more expensive agent?
- How many inspections will your agent do a year? In NSW by law they can only do a maximum of 4 a year, but most agents will only do 2 - personally I only do 2, unless I'm worried about how the property is being kept. I don't want to alienate good tenants by constantly looking over their shoulders. With good long term tenants I'm happy to only do 1 inspection a year.
- How does the office work? Well you just be dealing with one property manager? Two or three? or will you be dealing with a whole team - with a different person calling you for each matter. How many property managers do you want to be dealing with? How do they deal with tenant rental arrears?
- How long has the property manager you're going to be dealing with been with the company? If the office has a high turn over of staff you'll be likely to see several property managers come and go. This isn't good for your property, as a property manager that lasts longer knows more about the property, what repairs its been through, how long ago the hot water system was installed etc. In fact, while you're house hunting for the perfect investment property, it wouldn't hurt to also check the jobs section of the paper - is there one agent who seems to always be asking for property managers? Chances are they have a high turn over of staff.
- What sort of training do the staff do? Are they up to date on all current legislation? Are they kept motivated?
- What application process do they go through? Are they a member of any defaulting tenant databases such as TICA, Landlord's Advisory Service or National Tenancy Database? Chances are you won't find an agent that is a member of all three, but they should definitely be a member of at least one of these services.
- How does the office handle the bad stuff? No point burying your head in the sand - bad tenants exist, and regardless of how strenuous the tenancy applications are processed some bad tenants do slip through the cracks. What happens then? Do they have experience with the Consumer, Tenancy and Trade Tribunal? How do they handle complaints?
- Do they bad mouth other agents to you or other clients? This is really unprofessional. There is no excuse for this, and basically it's just childish. Yes I'll admit it, amongst our office we often have a good b*tch about what other agents around town have gotten up to, but we would never even consider sharing this information with current or prospective landlord and tenants. It's just not on.
- Talk to other people you know with investment properties, chances are they'll tell you all about their current agent, and why you should or shouldn't go with them. Also, many cities now have Facebook pages which are dedicated to good or bad reviews of different companies around town, if you have access to those pages feel free to ask the general public for their thoughts on the matter. However when doing this keep in mind that you should take every review with a grain of salt.
Showing posts with label investment property. Show all posts
Showing posts with label investment property. Show all posts
Monday, August 27, 2012
Choosing an agent
I get alot of prospective landlords who choose their agent based on how much they say the property is worth. This is such a bad idea, lets go through some better ways.
Friday, April 13, 2012
A message to all of my landlords -
The main point of this post is to have a bitch about some of my landlords. If you're a landlord and feel I'm way out of line here please tell me, other wise please take what I say to heart and keep it in mind!
1. If you haven't heard from me in a while, that's a good thing! It means everything is ticking along the way it should. I know we may have a friendly relationship, but that doesn't mean we're friends. I'm not going to call you for a chat, if I'm calling it means there's something wrong - your tenant is vacating, or is in arrears, there's a repair needed, etc. I'd love to have time to call and see if there's anything else you'd like me to do, but unfortunately that time does not exist.
2. Don't rent out a property that you have some form of attachment to - it's not going to stay how you remember it, and the tenants have the right to live their lives how they see fit, not how you think they should be living.
3. If you have a problem with how your property is being managed tell your property manager about it, don't go straight to their boss and complain, and don't make snide comments about it on social media like facebook. It will get back to your property manager and sour the relationship, without fixing the problem.
4. I also don't have time to call you and tell you what was wrong with the leaking tap/hot water system/tv antenna or whatever the last repair was that got done. You will get a copy of the invoice, read that. If you don't understand it call the tradesman who did the work, they will be more likely to explain it to you then what I will.
5. Remember yours is not the only property your property manager looks after. They are not sitting waiting for your call, and don't check in with your tenant every day.
Sorry for the whingy post, number 3 is what set me off tonight...
Friday, March 25, 2011
Landlord Protection Insurance
The recent increase in natural disasters the World over has come as a wake-up call to many.
Landlords should be aware of their rights and responsibilities in the event of a natural disaster.
In NSW if damage is severe, and the property is unlivable, a tenancy can be ended. However, the agreement needs to be legally ended by one party and agreed to by the other.
Damage to the property must have been caused by the natural disaster and not due to the actions of the tenant or landlord/agent.
In cases where part of the premises has been damaged or destroyed, a rent reduction may be negotiated. Any reduction in rent must be negotiated by the tenant and the landlord/agent.
As well as the devastating effects on the lives of the people living in these affected areas, the question has to be asked – Are you covered for damage in the event of a natural disaster?
CHECK WITH YOUR INSURANCE COMPANY THAT YOU ARE COVERED!!
The most important thing to be aware of when checking if you are covered for disasters is the definitions of the elements of disaster damage. Some policies will specifically not cover flood, but will cover storm damage, including rainwater damage – it all comes down to what the definition of a ‘flood’ is in your policy.
It is better to be safe than sorry – check with your insurer today!
Landlords should be aware of their rights and responsibilities in the event of a natural disaster.
In NSW if damage is severe, and the property is unlivable, a tenancy can be ended. However, the agreement needs to be legally ended by one party and agreed to by the other.
Damage to the property must have been caused by the natural disaster and not due to the actions of the tenant or landlord/agent.
In cases where part of the premises has been damaged or destroyed, a rent reduction may be negotiated. Any reduction in rent must be negotiated by the tenant and the landlord/agent.
As well as the devastating effects on the lives of the people living in these affected areas, the question has to be asked – Are you covered for damage in the event of a natural disaster?
CHECK WITH YOUR INSURANCE COMPANY THAT YOU ARE COVERED!!
The most important thing to be aware of when checking if you are covered for disasters is the definitions of the elements of disaster damage. Some policies will specifically not cover flood, but will cover storm damage, including rainwater damage – it all comes down to what the definition of a ‘flood’ is in your policy.
It is better to be safe than sorry – check with your insurer today!
Monday, November 29, 2010
How To Be A Good Landlord
1.Don’t be unreasonable – yes it is technically your house, but that doesn’t mean you can turn up at all times of the day or night, that you can store your belongings there or treat the tenant’s like they belong to you. Make sure you always give required notice before turning up to the property, and even then think to yourself – “Would I be ok with a stranger coming to my house on that day?” I had a landlord once – after giving the required notice – spend pretty much the whole Easter long weekend doing work in the garden of her rental property. Legally she was doing nothing wrong, but I felt so bad for the tenant’s who couldn’t enjoy the holiday fully, knowing that the owner was there from dawn to dusk.
2.Unless it’s your trade, don’t carry out your own repairs – If you’re an electrician, great! Do the electrical work. If you’re a painter, awesome! Do the painting. If you’re an accountant, don’t expect to be able to do the plumbing work just because you’ve replaced washers at home! Everyone wants to save a few dollars, that’s understandable, but doing work that you’re not qualified or licensed to do can end up costing thousands in repairs. It’s not worth it in the long run, and can be messy legally.
3.Don’t discriminate. This is illegal! - I can’t believe the amount of times when I’m going through a great application form with a landlord only to have them ask “are they, you know...?” Yes I know exactly what you mean and it’s disgusting! I get endless joy playing dumb, and answering the above question with “Working? Yes they have a full time job, which they’ve been at for 3 years,” or “Young? Not really, they’re in their mid thirties,” Skin colour, race or religion does not make a difference if they’ve got a good application.
4.Don’t quibble about the small stuff. - There’s a power point not working, let me get an electrician to look at it and it will cost maybe $60-$70. Do I really need to call you and tell you how it’s not working? Why it’s not working? How long it hasn’t worked for? Who’s responsible? You’re paying me to look after your property, let me look after your property!
5.Understand fair wear and tear. Look into depreciation. It’s only a certain amount of years before the brand new carpet you had laid will be fully depreciated and legally worth nothing. The same goes when it comes to paint, window coverings, floor coverings, everything! So if you put new tiles in the kitchen and then proceed to have a couple of tenants come and go, you need to expect that the tiles are not going to be brand new forever. People drop things, it doesn’t mean that if there’s a crack in the tiles that they need to get the whole thing done again.
6.Don’t delay the inevitable. If there’s a problem with something at the house that needs repair – like a leaking roof – just get it fixed, regardless of whether this is because of broken tiles or something else, don’t ask for a full report as to what is causing the problem if the end result is still going to be the same.
7.Return calls. To you a dripping tap might only be a small issue, and you’ll call back when you get the chance to authorise the repair. The sooner you get this underway the better, tenants can seek compensation for the lost water, or for other matters for hardship endured. Someone is waiting to hear from you, don’t keep them waiting.
8.Read reports that are sent to you. If you own a house, chances are that means you’re an adult, you should not have to be spoon fed the whole process. If you have an agent managing the property on your behalf, and they’ve gone to the trouble of doing a routine inspection, and they’ve sent you a report, read it. There could be important information in it that you need to know. The agent has done their part and sent you the report, it’s now up to you to read it, and decide what you want done.
9.Don’t be greedy – Yes your house may be worth another $10 per week, but if you’ve got great tenants living there, do you really need to serve them a rent increase notice? Wouldn’t you prefer to know that they’re going to stay there for longer, and continue looking after your property? Or what if they were to move out over this $10? Even if the house is empty for just 1 week, that $10 is going to take a long time to make back.
10.Don’t promise the World, and only provide a village. - If you tell your tenant you’re going to do something for them, follow through with it, otherwise they’ll be expecting it until you come through with it. Don’t promise new carpet, and then hold off on it until they move out. Don’t promise a new fence, and then only do repairs to the existing one. Don’t promise a new oven, and only supply a second hand one. While none of these offers are considered unreasonable you’ve set your tenants up for disappointment. You’re better off offering less, and then if more is an option look into it then, as a surprise bonus!
2.Unless it’s your trade, don’t carry out your own repairs – If you’re an electrician, great! Do the electrical work. If you’re a painter, awesome! Do the painting. If you’re an accountant, don’t expect to be able to do the plumbing work just because you’ve replaced washers at home! Everyone wants to save a few dollars, that’s understandable, but doing work that you’re not qualified or licensed to do can end up costing thousands in repairs. It’s not worth it in the long run, and can be messy legally.
3.Don’t discriminate. This is illegal! - I can’t believe the amount of times when I’m going through a great application form with a landlord only to have them ask “are they, you know...?” Yes I know exactly what you mean and it’s disgusting! I get endless joy playing dumb, and answering the above question with “Working? Yes they have a full time job, which they’ve been at for 3 years,” or “Young? Not really, they’re in their mid thirties,” Skin colour, race or religion does not make a difference if they’ve got a good application.
4.Don’t quibble about the small stuff. - There’s a power point not working, let me get an electrician to look at it and it will cost maybe $60-$70. Do I really need to call you and tell you how it’s not working? Why it’s not working? How long it hasn’t worked for? Who’s responsible? You’re paying me to look after your property, let me look after your property!
5.Understand fair wear and tear. Look into depreciation. It’s only a certain amount of years before the brand new carpet you had laid will be fully depreciated and legally worth nothing. The same goes when it comes to paint, window coverings, floor coverings, everything! So if you put new tiles in the kitchen and then proceed to have a couple of tenants come and go, you need to expect that the tiles are not going to be brand new forever. People drop things, it doesn’t mean that if there’s a crack in the tiles that they need to get the whole thing done again.
6.Don’t delay the inevitable. If there’s a problem with something at the house that needs repair – like a leaking roof – just get it fixed, regardless of whether this is because of broken tiles or something else, don’t ask for a full report as to what is causing the problem if the end result is still going to be the same.
7.Return calls. To you a dripping tap might only be a small issue, and you’ll call back when you get the chance to authorise the repair. The sooner you get this underway the better, tenants can seek compensation for the lost water, or for other matters for hardship endured. Someone is waiting to hear from you, don’t keep them waiting.
8.Read reports that are sent to you. If you own a house, chances are that means you’re an adult, you should not have to be spoon fed the whole process. If you have an agent managing the property on your behalf, and they’ve gone to the trouble of doing a routine inspection, and they’ve sent you a report, read it. There could be important information in it that you need to know. The agent has done their part and sent you the report, it’s now up to you to read it, and decide what you want done.
9.Don’t be greedy – Yes your house may be worth another $10 per week, but if you’ve got great tenants living there, do you really need to serve them a rent increase notice? Wouldn’t you prefer to know that they’re going to stay there for longer, and continue looking after your property? Or what if they were to move out over this $10? Even if the house is empty for just 1 week, that $10 is going to take a long time to make back.
10.Don’t promise the World, and only provide a village. - If you tell your tenant you’re going to do something for them, follow through with it, otherwise they’ll be expecting it until you come through with it. Don’t promise new carpet, and then hold off on it until they move out. Don’t promise a new fence, and then only do repairs to the existing one. Don’t promise a new oven, and only supply a second hand one. While none of these offers are considered unreasonable you’ve set your tenants up for disappointment. You’re better off offering less, and then if more is an option look into it then, as a surprise bonus!
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