Are you thinking about turning your home into an investment property? It's a savvy move to boost your income, but there are some important things to do before you start renting out...
First off, let's talk about de-personalising the place. Your future tenants want to feel like it's their home so remove personal items. Stash away family photos, erase those childhood height marks on the walls, and make sure any mail gets forwarded. This helps your tenants envision themselves living there without reminders of the previous owners.
Next, don't skip out on maintenance. Fix those small issues before they become big headaches. Whether it's a cracked wall or peeling paint, addressing these problems early on maintains your property's value and keeps your tenants happy.
Consider sprucing up the place with some smart improvements. Think about what your target tenants want. Families might appreciate a bathtub, while easy-to-clean surfaces can be a hit with everyone. Timing matters too – make these upgrades after you've moved out to maximise any tax benefits.
Before your new tenants move in, give the place a thorough cleaning. A spotless property sets the right tone and shows you take care of your investment. You might want to hire a professional cleaner recommended by your property manager for that extra shine.
Make sure you're properly insured. Switching from homeowner's insurance to landlord insurance is crucial. It protects you from rental-specific risks like tenant damage or loss of rent. Shop around for the best policy that suits your needs and covers all the bases.
Lastly, don't overlook the opportunity to claim depreciation deductions and potentially increase cash flow. Depreciation refers to the natural wear and tear of a property and its assets over time, which can be claimed as a tax deduction. Consult a specialist quantity surveyor for a depreciation estimate and uncover potential tax savings - the estimate itself should be free
By completing these six steps, you'll ensure your property is well-prepared for rental, protect your investment, and maximise your returns. For expert guidance on depreciation and other property investment strategies, we recommend you contact BMT Tax Depreciation.
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Apr 18, 2024
6 Questions to Ask Before Appointing a Property Manager
Appointing the right property manager is critical to the success of your property investment journey. Here are the 6 questions that will determine whether a property manager is the right fit for you. How many years of experience do you have in property management? Inquire about their years of experience, types of properties managed, and their track record of success. Ask for examples of challenging situations they've handled and how they resolved them. The property manager’s answer to this question will determine their competency and will help the investor understand the property manager's experience, indicating familiarity with tenant relations, maintenance coordination, financial management, and legal compliance. Gauging industry knowledge ensures familiarity with market trends, regulations, and best practices, vital for adapting to changing conditions. It will also allow for the investor to determine whether the property manager is in alignment with the property owner's specific needs and preferences. With years of experience in property management, our team brings a wealth of knowledge and a proven track record of success. From navigating challenging situations to staying on top of market trends and regulations, we have the expertise to ensure your investment thrives in any environment. How many properties do you currently manage? Understanding the workload of a property manager is crucial to determining whether they can dedicate sufficient time and attention to your property, gauging whether your property will receive personalised attention and high-quality service. Assessing the manager's workload aids in evaluating their responsiveness to issues and emergencies, determining if they will promptly address maintenance requests, tenant inquiries, and other concerns. By inquiring about the manager's workload, property owners can assess workload, responsiveness, communication, and the overall quality of management services provided, enabling them to make an informed decision when selecting a property manager. Your property deserves individualized care and attention. Unlike other firms, we prioritize quality over quantity, ensuring that each property under our management receives the personalised service it deserves. You can trust that your investment will always be our top priority. How do you market vacancies and attract quality tenants? Asking a property manager how they market vacancies and attract quality tenants is essential for several reasons: Maximising occupancy rates is a primary goal for property owners, underscoring the importance of effective marketing strategies to minimise vacancy periods. Property owners seek assurance that their property manager employs a proactive approach to marketing vacancies and promptly attracting tenants. Prioritising quality tenants is paramount for property owners, emphasising the need for reliable individuals who pay rent punctually, maintain the property, and adhere to lease terms. By delving into the property manager's tenant screening and marketing techniques, property owners ensure methods are in place to attract tenants with stable incomes and favourable rental histories. Additionally, understanding the property manager's approach to vacancy marketing offers insight into their grasp of the local rental market. Property managers should possess knowledge of market trends, rental rates, and tenant preferences, tailoring marketing efforts accordingly. Inquiring about the advertising channels utilised, such as online listings, social media, signage, and local publications, helps assess their effectiveness in reaching the target audience. Ultimately property managers should implement strategies to maintain tenant satisfaction, address concerns promptly, and renew leases to minimize turnover. Assessing vacancy marketing strategies allows property owners to evaluate the property manager's competitiveness in the local rental market allowing property owners to make informed decisions when selecting a property manager to oversee their rental property. Maximizing occupancy rates and attracting quality tenants is our specialty. Our proactive marketing strategies and rigorous tenant screening processes ensure that your property remains profitable and hassle-free. With us, you can rest assured that your investment is in good hands. How do you handle maintenance and repairs? Property maintenance is pivotal for preserving the condition and value of a property, making effective maintenance protocols essential for property owners. They seek assurance that their property manager has systems in place to maintain the property's appeal to tenants. Prompt maintenance not only enhances tenant satisfaction but also fosters retention by ensuring their comfort and safety. Regular maintenance and timely repairs contribute to preserving the property's value over time, safeguarding the owner's investment. Property owners should inquire about the manager's network of vendors, response times, and workmanship quality. Compliance with local regulations and laws is imperative to mitigate legal liabilities. Property managers must ensure maintenance activities adhere to building codes, health and safety regulations, and landlord-tenant laws. Transparent communication regarding maintenance issues, progress and expenses is expected by property owners, as well as prompt communication with tenants and owners. Property managers should develop maintenance budgets, obtain competitive bids, and monitor expenses diligently. Overall, inquiring about maintenance and repair handling ensures property managers possess the necessary knowledge, resources, and systems to maintain properties effectively, safeguard investments, and deliver quality service to tenants. This evaluation aids property owners in selecting a suitable property manager. Property maintenance is more than just routine tasks; it's about preserving your investment's value and ensuring tenant satisfaction. Our comprehensive maintenance protocols and transparent communication guarantee that your property remains in optimal condition, safeguarding your long-term returns. How do you handle tenant disputes and evictions? Property owners seek assurance that their property manager comprehends legal requirements, procedures, and timelines for resolving disputes and initiating eviction proceedings. Given the legal and financial risks associated with disputes and evictions, effective risk management strategies are imperative. Property managers should implement policies and procedures to mitigate risks, minimize liabilities, and safeguard the owner's interests. Furthermore, fostering positive tenant relations is essential for tenant satisfaction and retention. Property managers should possess strategies for addressing tenant concerns, resolving conflicts amicably, and nurturing positive relationships to reduce turnover. Proper documentation is essential in dispute resolution and eviction proceedings, emphasising the importance of maintaining accurate records of lease agreements, communications, and actions taken. A property managers' proactive approach to mitigating risks can be assessed through inquiry into their screening criteria, lease agreements, and enforcement policies. Overall, inquiring about the property manager's approach to disputes and evictions aids property owners in assessing their knowledge, experience, and preparedness to manage such situations effectively. This evaluation ensures property owners can entrust their property manager to handle disputes and evictions with diligence, professionalism, and legal compliance. We understand that disputes and evictions can be daunting challenges for property owners. That's why we have robust risk management strategies in place to handle any situation with professionalism and efficiency. With us by your side, you can navigate legal complexities with confidence. Finally, what are your fees and charges? When evaluating a property manager, it's crucial to clarify their fee structure, including management fees, leasing fees, maintenance fees, and any additional charges, while also asking about payment schedules, renewal options, and any potential hidden costs. Clarifying the scope of services offered, including tenant screening, rent collection, maintenance coordination, property inspections, financial reporting, and eviction procedures, ensures alignment with your needs and expectations. Lastly, inquiring about financial management and reporting practices, such as accounting practices, rent collection procedures, and handling of security deposits and late payments, offers transparency and insight into their financial stewardship capabilities. These questions can help you assess the property manager's qualifications, expertise, and compatibility with your investment goals. Take the time to thoroughly evaluate their responses and consider conducting interviews with multiple candidates before making a decision. Our commitment to transparency extends to our fee structure. We believe in fair and honest pricing, with no hidden costs or surprises. You'll always know exactly what you're paying for and can trust that you're getting the best value for your investment. At Peter Lees Real Estate, we're dedicated to your success. Choose us as your property management partner and experience the difference firsthand. Contact us today to learn more about how we can help you achieve your investment goals or answer any questions you may have. With us, your property is in the best possible hands. Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) Chief Executive Officer of BMT Tax Depreciation.
Oct 19, 2023
Buy, Sell or Wait?
If you are like most people you're probably wondering, what is the right thing to do in the current property market! Identifying the best time to buy or sell real estate is difficult because the property market is influenced by numerous factors and can be unpredictable at the best of times. However, here is some general knowledge and information that may help you make an informed decision. Don't fall for media fearmongering. Property investment is a long-term game, focus on the bigger picture. Despite negative media doverage the Australian property market remains one of the best places in the world to invest in. Property markets acrtoss Australia appear to have bottomed out and are now on an upswing.' Learn to differentiate between noise and media reporting, by understanding that they are a business, and for business reasons, they may not always provide the full story. It's natural to fear the unknown and the media knows this. That's why they are always reporting on the latest crisis or the latest disaster, the next big threat or impending doom. There's been countless sensational headlines warning the imminent collapse of the property market for as long as I can remember. This kind of sensationalist reporting is their bread-and-butter way of reaching a wider audience which generates more revenue for their business. Welcome to journalism. Here's the bigger picture. Australia has a housing shortage, and it will get worse as our population is projected to grow substantially over the next few years. The increase in population will create strong demand for property. This is why the property markets are up, driven by the dynamics of supply and demand. Interest rates are near their peak. But high interest rates and growth in property values have historically moved together at the start of the upturn in the property cycle. We are at the cusp of a new upswing. Real estate is one of the best hedges against inflation. Although property prices may go up or down over the short term, the market has always trended upwards over the long term. Finally, your personal circumstances and financial goals should always play a significant role in determining when to buy or sell. ~ by Paul KLounnas, Hudson Bond