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.

• 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.

Do you have any suggestions about finding a good agent? How about things that you wish you had thought of before signing up? Share them here!

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...

A usual day in Property Management

9:00am - Get into work and start computer up. Check to see what has appeared in your in tray since you were last here. Sort out the crap and put the important stuff somewhere where you can deal with it later. Do all this while taking phone calls that come in and seeing people who have come to the office to see you.

9:10am - Delete all the spam from your inbox, and start making your way through the real emails. Responding where required and making notes of things you need to get to later. Do all this while taking phone calls that come in and seeing people who have come to the office to see you.

9:30am - Return phone calls that you missed while you were out of the office. Make notes of any jobs that this creates. Do all this while taking phone calls that come in and seeing people who have come to the office to see you.

10:00am - check to see who's behind on their rent and text, email, send letters our call them to find out when it should be coming in. If there's any one who is substantially behind, call the landlord to update them on what's happening. Do all this while taking phone calls that come in and seeing people who have come to the office to see you.

10:30am - Go through applications that have come in and either call, email our fax for reference requests. Give all applications that are either incomplete or have been filled out incorrectly back to the receptionist so she can call the applicants back and tell them that we do need answers for all of the questions on the forms, not just some of them. If there are any suitable applicants try and contact the landlord to get them approved. Send text messages or call any of the dodgy applications to let them know they've been declined. Put aside any applications that are waiting on return phone calls. Do all this while taking phone calls that come in and seeing people who have come to the office to see you.

11:30am - Call landlords about repairs that need to be done on their properties, argue with them that while TV is not considered an essential service, the tenant rented a property with television reception, and therefore they need to get the antenna fixed so it works again. Also explain to them that you use your tradespeople because you've found that they are reliable and reasonably priced, and no you don't feel comfortable getting their nephew to do it for half the price. Agree with them that owning a rental property is supposed to be an investment, but point out that most investments also cost money, and they should have expected repairs when they bought it. Tell them you really don't have time to go over to the property to check to make sure the leaking tap they've reported hasn't been intentionally damaged, but your plumber would let you know that anyway. Enforce that just because their neighbour once stopped their hose from leaking, doesn't make him a licensed plumber, and he's really no better then the nephew. Agree to call them back to let them know how much the repair cost and what the problem was.

Action all repairs that you can by calling emailing or faxing the trades people. Do all this while taking phone calls that come in and seeing people who have come to the office to see you.

12:00pm - Check through all final inspections that were carried out the previous day and call the tenant to inform them what needs to be done, such as cleaning, carpet cleaning, lawns and gardens, damage, outstanding water accounts, missing keys and outstanding rent. Explain that you're sorry they believe the place looks better now then when they moved in, but according to the condition report that they had for 7 days back when they first moved in, there were no stains on the carpets, the walls weren't all grubby, the kitchen was clean, the lawns and gardens were done, and there were no holes in the walls. Email them copies of photos you took from the beginning of the tenancy proving this to be the case. Agree to meet them at the property to show them what cleaning was missed. Schedule it for later in the week. Calk the landlord to keep them updated. Do all this while taking phone calls that come in and seeing people who have come to the office to see you.

12:30pm - Print off your calender, and collect the required keys for all afternoon appointments. Do all this while taking phone calls that come in and seeing people who have come to the office to see you.

12:45pm - Leave the office for your afternoon appointments, first one is at 1:00pm.

1:00pm - Your appointments usually start around this time, and you try and spend only 10-15 minutes at each property, using the last 15-20 minutes of the half hour to get to the next property, which is usually over the other side of town. Answer all the same questions at each property; Q - "What do I do now?" A - "If you're interested in applying for the property pop into the office to pick up an application form, answer all questions and include copies of ID and proof of income, then we'll process it for you." Q - "does the property allow pets?" A - "if you have a good application, the landlord will be less likely to say no to a dog or cat." Q - "how long does the application process take?" A - "that depends, if your references are easy to get in touch with then it can take maybe 3 business days, but if we have trouble getting in touch with any one, it takes a lot longer." Q - "Is the owner planning on putting the property up for sale?" A - "They haven't said anything to me about it, but peoples conditions can change at any time, so I'm not sure what could happen down the track." Q - "What happens if I move in and the house sells?" A - "You would still have the property for the length of your lease, regardless of whether the property sells, after your lease is up they would either give you 30 days notice to vacate, or if the new owners are investors then you wood stay on at the property." Etc.

Do all this while taking and returning phone calls that you've missed.

5:30pm - Go home. Remember to leave your work behind you at this time so you can get some rest and prepare to do it all again tomorrow.

**note** On top of your daily calendar, you also need to include a 2 hour meeting once a week, 3 hours of routine inspections twice a week, and any ingoing or outgoing inspections that are required, which take approximately 1 hour each.

Carpet Cleaning Misconceptions

Under the new NSW Residential Tenancies Act terms requiring a tenant to have the carpet professionally cleaned or to pay for the cost of having the carpet cleaned are prohibited  unless of course the tenant has been allowed to keep a pet at the property.

These requirements came into effect on 31 January 2011, as part of the new tenancy laws. Before that, many tenancy agreements stated that the tenant had to pay for professional carpet cleaning, even though this was not supported by the law. The new laws have made the situation a lot clearer.

However, this does not mean that the tenant cannot be made to pay for cleaning of stained or dirtied carpet.

Tenants are required to keep the premises reasonably clean and to leave the premises in the same condition as they were at the start of the tenancy, other than fair wear and tear. Where a tenant moves out leaving the carpet dirty, for example by spilling red wine, or high traffic areas, the landlord can ask the tenant to pay for cleaning or can make a claim on the tenant’s bond. However, where a tenant regularly vacuums and looks after the carpet and leaves it clean, there is no automatic right to ask the tenant to pay for professional cleaning.

Also, while trying not to go all religious on you, the Catholic's Golden Rule - Do unto others, as you would have done to yourself - I feel applies in this instance. Personally I like to know that the carpets have been professionally steam cleaned before I move into a property - you know, hygene and all that?? - So I will always make sure the carpets are professionally steam cleaned when I leave a property.

It's just a nice thing to do...