Posts

For what it’s worth?

14/1/2021

Happy 2021! January has been a busy one already and I really didn’t think I’d get to post here until next month but I thought it might be good to dispel a small myth about Property Management only businesses.

This only just came to mind while writing about this for issue no. 7 of my Client Quarterly newsletter (TMA Clients Only Sorry), reminding my clients to ask if they need up to date & free market appraisals of their properties.

So here goes, a quick blogs’ a good blog!

How does a landlord stay up to date with their property value with no Sales Agents on my team?

This hasn’t really come up as an issue or a concern of potential clients so this is more of an FYI for any of my readers or those curious to know.

Well, it’s simple really, I work with several Sales Agents in Surry Hills, Redfern, Darlinghurst that cover the areas that I work across who are always willing and at the ready to provide any of my clients with an up-to-date market opinion of their property. This usually involves a quick physical inspection of the property and for something broader a quick online appraisal can be carried out; it all depends on my client’s needs.

What my clients do like, sorry salespeople, is that unless they approve of being contacted directly then all of their information remains private & confidential.

So, there you have it, a very practical way of ensuring my clients have access to knowledge across their investment and at the same time have that provided to them with minimal effort on their part.


Antonio Mesiti is the Principal & Property Manager at The Management Agency, a local Property Management specialist offering a one on one and end to end service for his Property Investor clients. For more information visit; https://themanagementagency.com.au/about/

What I Don’t Do

18/11/2020

As a small business owner, I obviously understand that there is a need to focus on the positives, focus on the service offerings, and how the business can help each and every client.

We read, hear, and see all about what a business does all the time, however, we never tend to share or “advertise” what our limits are and what we simply will not do.

That said.

On principle, a lot of what I will not do revolves around not lessening what I do or cheapening the industry that I know and love. The day to day workload is underestimated and so much of it happens behind the scenes.

We all want to go out of our way for clients, but at the end of the day, we all have our limits.

I recently sat down for a chat with Allysha from “The Organised Boss” and we spoke about how liberating it is to simply not offer a service we don’t wish to or one where there’s little value for the client and/or ourselves. Simply not saying yes to everything can be really liberating.

So, here is what I don’t do, won’t do, and why that is. It may be on principle, logistics, or just simply down to profitability, which as a small business is obviously paramount.

Short Term Leasing or Management

I am in it for the long term. I work with property Investors and they all know it is a long-term game. What I focus on is building good relationships with my clients by focusing my time and energy on ensuring that my client’s investments are looked after and grow in value over time. I onboard clients that are on the same page as it is really not worthwhile to onboard clients who are needing rent for just 6 or 12 months and then it is, see you later Antonio!

Casual Lettings

This is where the owner simply needs a tenant placed in a property and then takes over the day to day management for themselves. I don’t offer this service, despite multiple requests, simply because leasing isn’t about putting in the first tenant that comes your way and then passing it over. There is a lot of legislation and regulations that need to be adhered to and since 23 March 2020, it only got more litigious.

Also, regardless if you then pass it on to the landlord to manage, if the landlord does not manage the property appropriately, the tenant still associates the agency that advertised the property in a negative manner and I will not put my business name and brand image at risk.

We are, The Management Agency, so needless to say we’re here to manage properties. 

Furnished Properties

In my experience, furnished properties lead to short term tenancies. I have always felt that it is in my client’s best interest that long-term tenancies are a better investment option. Having to regularly change tenants increases vacancy between tenancies, along with needing to advertise the property, and securing a new tenant, and so on, is not cost-effective for my clients.

As I have written of the advantages and disadvantages of furnished properties here previously, a constant changing over of tenants increases the wear on a property and also sees the owner incurring increased maintenance costs.

The Management Agency will always put its clients first and maximise their investment before profits.

Take on all and every Property

I don’t take on every property that I’m given the opportunity to manage as unfortunately, things don’t always align in that way. If it’s well out of my core area or the owner and I are not on the same page, then I won’t make assurances I can’t fulfill down the line. Further to that, I like to find out why owners are looking to change agents so that I can assure them that I don’t operate in the same way.

Taking on what were Airbnb’s and/or properties where there is animosity between current tenants and the landlord, I can’t always get involved if I don’t think the issues are resolvable. I always have to take into account the focus I need to give my current clients before securing any new business.

Negotiate on Fees

Oh, here’s a Biggy. Over the last year I’ve gotten a lot better at this and have unfortunately not won all the new business I go for because of it and that’s ok. I’ve done my years in agencies underselling or not believing in the service they offer.

I can’t be another flat fee, fee-free, or rent guarantee agent. Property Management is a tough gig at times. There are plenty of agents doing it on the cheap with huge numbers of properties under management but…you get what you pay for!

Keep in mind, for an agency to offer you a flat or low fee, that equates to a Property Manager needing to manage more properties in order for the agency to make a profit. So, if a Property Manager is managing a high number of properties, how much attention can they offer your property? Are they able to respond and attend to your property needs in an efficient and prompt manner?

If as a landlord you’re displeased with the service you’re getting at a Low Management Fee agency, there is a correlation here.

Like one of my clients recently said, you can’t go into Mercedes and expect to buy a car on a KIA budget.

The Management Agency is focused on ensuring that we look after our client’s properties as if it were our own, being able to effectively attend to our client’s property investment needs and eliminating the stress that comes from owning an investment property, so that is why we don’t negotiate on fees.

Make promises I can’t keep

I will never make promises that I can’t keep. Simply put, If I can’t do it, I won’t say I can

For everything that I do, I ensure that it is done well.

We pride ourselves on offering the highest possible service and our online Google Reviews and testimonials from both Landlords and Tenants alike reflect this.

I cover a lot of what I do on Facebook and Instagram, and The Management Agency Website is filled with content spelling out our point of difference.

On that last point, a complete refresh & restructure of our website is currently in the works.


Antonio Mesiti is the Principal & Property Manager at The Management Agency, a local Property Management specialist offering a one on one and end to end service for his Property Investor clients. For more information visit; https://themanagementagency.com.au/about/

Repairs, Maintenance & Fair Wear & Tear

16 September 2020

Taking care & looking after a rental property is a shared responsibility between tenants, landlords, and the Property Manager if managed by a Real Estate Agency.

The landlord is responsible for ensuring that the property is fit to live in and that repairs and maintenance are completed so that the property is in a reasonable state of repair. The tenant is responsible for keeping the property reasonably clean and undamaged and leave it in the same condition it was in when they moved in (fair wear and tear excepted). If the property is managed through a Real Estate Agency, then the Property Manager will act on behalf of the Landlord and will ensure that the property is fit to live in and is the go-to person, for the tenant to report any repairs or maintenance issues that arise during the tenancy.

What happens when maintenance and repairs are needed?

A tenant should contact their Property Manager or Landlord (if not managed by an Agency) as soon as possible and report the maintenance and/or repairs that are needed.

The Property Manager will need to identify how the maintenance and/or repair came to light. Was it due to damage caused by the tenant or just wear and tear?

If it was damaged caused by the tenant, then the tenant will be responsible for the reasonable cost of repairing, restoration and/or replacement to rectify the damage, however, if it is wear and tear, then the landlord will bear the costs.

What is ‘fair wear & tear’?

Fair wear and tear, is a term for damage that either naturally or inevitably occurs as a result of normal use and/or ageing. Another way to look at it is, fair wear and tear is damage that occurs even when an item is used competently and with care and proper maintenance. This covers property fixtures and items that deteriorate over time due to daily use and/or ageing.

Some of these are:

  • Worn kitchen benchtops
  • Worn handles or hinges
  • Scuffed flooring on the carpet on high traffic foot areas

On the other hand, it is not, wear and tear when the damage to the property is due to an accident, negligence, or even malicious.

Some of these are:

  • Burns on kitchen benchtops
  • Holes in the walls
  • Stains or burn marks on the carpet

As an example, carpet has an expected lifespan of 10 years, and therefore wear and tear consistent with its lifespan is expected, so daily walking on the carpet will result in wear and tear.

However, excessive staining, like from a spilled glass of red wine would not be considered ‘fair wear and tear’.

Somethings aren’t always as clear cut, so your Property Manager will need to apply some common sense and ask the right questions in order to make an informed decision on whether or not the damage is ‘fair wear and tear’.

Saying that fair wear and tear is not always something that requires repair, but simply needs to be taken into account based on the age and economical life of a fixture or fitting. Fair wear and tear always has to be a consideration, for example, at a final inspection at the end of a tenancy.

‘Fair wear and tear’ forms part of a Lease Agreement

The NSW, Residential Tenancy Agreement (Lease Agreement) and the NSW, Tenant Information Statement both reference the term ‘fair wear and tear’. Fair wear and tear is the responsibility of the landlord, and tenants are not responsible for paying for ‘fair wear and tear’, however, tenants need to be aware that it is there obligation to leave the residential premises as nearly as possible in the same condition, fair wear and tear excepted, as at the commencement of the tenancy.

There is though, excessive wear and tear, which takes into account, how long tenants have resided in the property or how long it’s been since things like repainting or flooring have taken place.

Excessive wear and tear, is wear from use that isn’t normal and that can come from a lack of overall care taken or just too many people residing in a property, above what has been agreed, as noted on your Lease Agreement.

Tenants need to be mindful that the cost of repairs, or the restoration of, the premises or goods leased with the premises if it is a result of damage caused by the tenant, other than ‘fair wear and tear’, may be deducted from the bond.

Landlords, what you need is a Property Manager that knows the difference and can step in accordingly, and tenants, you need a Property Manager that’s willing to take the time to Inspect the property and explain what’s what.


Antonio Mesiti is the Principal & Property Manager at The Management Agency, a local Property Management specialist offering a one on one and end to end service for his Property Investor clients. For more information visit; https://themanagementagency.com.au/about/

COVID-19 & The Sydney Rental Market

18 August 2020

Far out! The media reports are so depressing these last few months…

There have been endless articles and news stories covering the impact that COVID-19 is having and the Sydney rental market in general. Articles covering the drastic drops in rents, record vacancy rates, and how the tables have turned with tenants having the upper hand are a daily news feature.

If you know anything about The Management Agency then you know it’s me, Antonio, from start to finish and that means I’m the one taking enquiries and showing properties and therefore I see what’s happening on the front line.

We are undeniably experiencing higher than normal vacancy rates, rents decreasing and a general negative sentiment when it comes to the Rental market and particularly in the Inner-City Areas that The Management Agency works within.

However! What I see, is continued movement of available rental properties. Properties are still being leased and there are many reasons why tenants are moving around from Property to Property.

The Management Agency continues to monitor the local Rental Market & it’s activity and advises its landlords on the best courses of action in the current market.

So, what’s up?

Let’s get all that negativity out of the way;

Yes, it’s taking longer for Properties to get leased

There’s a huge supply but the level of demand is still typical of the winter months. Why? Because prospective tenants are shopping around, they have choice and most don’t need to move or necessarily want to move but they will to find a better deal. They all get leased, eventually!

Rents are certainly not increasing

They’re either at a standstill or decreasing to meet the current market. If the property (or Properties in some cases) are advertising lower rents to minimise vacancy then that’s pushing everyone else down. Meet the market or sit vacant and wait it out – neither are ideal options but these aren’t exactly ideal times.

Short Term Rentals are saturating the market

Whilst this has slowed down, most of these properties are offered as furnished rentals, creating an influx of furnished properties. The demand for furnished properties has never been typically high, even prior to COVID-19 and therefore some landlords have unfurnished their holiday rentals simply to get their properties leased. Some will stay in the long term Residential Rental Market post-COVID-19, but I believe many will return to short term rentals once the demand for it returns. The influx of these properties has added to the supply levels and therefore impacting overall Vacancy Rates and Rents.

On the plus Side;

There’s demand for specific properties

I’m finding that specific properties are moving a lot faster than others. These are the larger terraces or the smaller terraces and smaller apartments, due to generally being rarer finds so there’s a demand for these niche properties as they are meeting a specific need in the current climate.

For example, a 5-bedroom terrace can lease in a matter of days as it’s economically making sense for prospective tenants to combine households and pool their expenses into one home. Makes sense, right?

As for downsizers, with so many tenants working from home, a couple sharing in a larger property can make their own home by downsizing and achieving their goal of getting out of shared tenancies and at the same time finding good value and a quieter more comfortable home to work from.

As I meet prospective tenants, I’m hearing first hand of people’s circumstances, circumstances that simply make it an opportune time for them to be looking to make a move.

Price them right and they’re leased within a couple of weeks. Any property that’s well cared for, updated and most importantly, competitively priced has been snapped up either at or very close to the asking rent.

Prospective Tenants are on the Hunt

So many people that come through my Open House Inspections are simply looking to move to save money. They’re in no rush to move, they don’t need to move but will if they find the right property and the best possible value.

Considering that we all spend so much more time at home these days, and in the inner city most people are working from home, tenants simply want to be happier at home. Prospective tenants are looking for more space, workspace, and somewhere simply more pleasant to be than where they are now. The way I see it, many are currently in properties that aren’t meeting all of their needs and that’s what they’re on the hunt for.

Current Tenants are doing the right thing

Current tenants who are happy with where they live are staying put and those that haven’t been COVID-19 Impacted are fulfilling their obligations. The tenants who are impacted and are demonstrating this to us, are entering into negotiations with some good and fair outcomes being achieved. These outcomes are ensuring that we can keep tenants in their homes as well as give our landlords some income certainty. At the same time, these agreements ensure we all come out of COVID-19 unscathed, once it is finally, well and truly under control.

Properties are still selling

More than 12 months into trying to sell my property, it sold well into COVID-19. Who wouldn’t want an escape to the Southern Highlands right about now.

We’re seeing the inner-city market still moving with some notable sales results being achieved. By all accounts, a lot more stock is needed as many vendors are holding off until sentiment improves and potential vendors are more confident in achieving a positive outcome.

Rents will increase… eventually

Rents always do increase at some point! Obviously, we don’t know when it could be sooner rather than later. I’m sure we’ll all be watching this space and I’m sure the media will be reporting as much when the time comes. My clients can be assured that I always closely monitor the rental market and will be kept in the know.

Your Property Manager, Me, is on the front line.

Well, this only applies if I’m already your Property Manager. Having a poor negotiator or a Property Manager not doing their due diligence in these times is costly. That aside, I’m the one showing properties, leasing properties, and listening to feedback. I know what’s happening and this way my owners know what’s happening as well. Direct from the frontline. That’s positive!

So What’s next?

If only I had a crystal ball. I can’t say I know for sure but there are some signs of Rental Stock gradually reducing as rentals come into line with the market and then come off the market altogether.

What we really need is for our Students to get back to school, all of us to get back work and get holidaying groups back into holiday accommodation – as soon as it’s safe to do of course.

At any point in time, the market has its ups and downs and we always align to its cycle regardless, we just need some movement back into the workforce and back into the inner-city suburbs.

Until then, we have to keep on keeping on and move with the market. Support our current tenants to the best of our abilities, and try to keep our heads up.

For now, I’m done with the word “unprecedented” and sticking to “perseverance” because that’s what’s needed.


Antonio Mesiti is the Principal & Property Manager at The Management Agency, a local Property Management specialist offering a one on one and end to end service for his Property Investor clients. For more information visit; https://themanagementagency.com.au/about/

Rental Properties. What you can & can’t claim

It’s not uncommon for landlords to be confused about what they can and can’t claim for their rental properties. What often seems to make perfect sense in the real world does not always make sense for the Australian Tax Office (ATO).  

The Team at Simeoni Accountants have highlighted some key common problem areas in their blog below;

In general, deductions can only be claimed if they were incurred in the period that you rented the property or during the period the property was genuinely available for rent. This means a tenant needs to be in the property or you are actively looking for a tenant. If, for example, you keep the property vacant while you are renovating it, then you might not be able to claim the expenses during the renovation period if it was not rented or available for rent during this time (there are some exceptions to this general rule). There needs to be a relationship between the money you make and the deductions you claim.

Here are a few common problem areas:

Interest on bank loans

Only the interest on repayments for investment property loans, and bank charges, are deductible – not the actual loan itself. Also, if a loan facility is used for multiple purposes then only some of the interest expenses might be deductible. For example, if some of the loan is used to acquire or renovate a rental property but further funds are drawn down to pay for a holiday then this is a mixed purpose loan and an apportionment needs to be undertaken.

Repairs or maintenance?

Deductions claimed for repairs and maintenance is an area that the ATO is looking very closely at so it’s important to understand the rules. An area of major confusion is the difference between repairs and maintenance, and capital works. While repairs and maintenance can often be claimed immediately, the deduction for capital works is generally spread over a number of years.

 

Repairs must relate directly to the wear and tear resulting from the property being rented out. This generally involves restoring a worn out or broken part – for example, replacing damaged palings of a fence or fixing a broken toilet. The following expenses will not qualify as deductible repairs, but are capital:

  • Replacement of an entire asset (for example, a complete fence, a new hot water system, oven, etc.)
  • Improvements and extensions where you are going beyond the work that is required to restore the property back to its former state

Also remember that any repairs and maintenance undertaken to fix problems that existed at the time the property was purchased are not deductible, even if you didn’t find out about the problem until later.

The sharing economy

The deductions you can claim for ‘sharing’ a room or an entire house are similar to rental properties. You can claim tax deductions for expenses such as the interest on your home loan, professional cleaning, fees charged by the facilitator, council rates, insurance, etc. But, these deductions need to be in proportion to how much and how long you rent your home out. For example, if you rent your home for two months of the financial year, then you can only claim up to 1/6th of expenses such as interest on your home loan as a deduction. This would need to be further reduced if you only rented out a specific portion of the home.

Friends, family and holiday homes

If you have a rental property in a known holiday location, the ATO is likely to be looking closely at what you are claiming. If you rent out your holiday home, you can only claim expenses for the property based on the time the property was rented out or genuinely available for rent and only if the property was not actually being used for private purposes at that time.

If you, friends or relatives use the property for free or at a reduced rent, it is unlikely to be genuinely available for rent and as a result, this may reduce the deductions available. It’s a tricky balance particularly when you are only allowing friends or relatives to use the property in the down time when renting it out is unlikely.

A property is more likely to be considered unavailable if it is not advertised widely, is located somewhere unappealing or difficult to access, and the rental conditions – price, no children clause, references for short terms stays, etc., – make it unappealing and uncompetitive.

Blog via; Simeoni – Small Business Accountants.

Contact the team at Simeoni or your trusted accountant if you need any further advice.

Antonio

A beginner’s guide to depreciation

Property depreciation is a complex topic for Property investors and a topic that’s best covered by going straight to the Specialists, being BMT  Tax Depreciation. So here’s their beginner’s guide to Depreciation. What it is, how it works and how investors can use it to take full advantage of the deductions that they’re entitled to. Of course, shared with their express permission.

Depreciation is the natural wear and tear that occurs to a building and the assets within it over time.

Property investors are entitled to several taxation benefits however many fail to take full advantage of the depreciation deductions available to them.

While most investors are aware of claims for expenses such as interest on their loans, council rates, property management fees and repairs and maintenance costs, depreciation is a hidden factor often not considered.

To help you better understand property depreciation, here are the answers to some of the most frequently asked questions.

What is property depreciation?

As a building gets older, its structure and the assets contained within it wear out – they depreciate. The Australian Taxation Office (ATO) allows owners of income-producing properties to claim this depreciation as a tax deduction.

What can you claim?
Depreciation deductions are split into two distinct categories:

  • Division 43 capital works allowance
  • Division 40 plant and equipment depreciation

The capital works allowance relates to claims for the wear and tear that occurs to the structure of the property and any fixed items. Capital works includes items like the roof, walls, doors, kitchen cupboards, bathroom tubs and toilet bowls.

Generally, any residential building where construction commenced after the 15th of September 1987 will entitle its owner to capital works deductions. These deductions can be claimed at a rate of 2.5 per cent per year for up to forty years.

Owners of buildings constructed prior to 1987 should still find out what deductions are available, as often these buildings have undergone some form of renovation which can result in capital works deductions.

Plant and equipment depreciation can be claimed for the easily removable fixtures and fittings found within the property. There are more than 6,000 different depreciable assets recognised by the ATO, including items like carpet, blinds, air conditioners, hot water systems, smoke alarms and ceiling fans. Each plant and equipment asset is assigned an individual effective life and depreciation rate.

Under current legislation, owners of second-hand residential properties who exchanged contracts after 7:30pm on 9th May 2017 cannot claim deductions for previously used plant or equipment assets. Investors who purchase brand-new residential and substantially renovated properties, commercial real estate or add new plant and equipment assets to a second-hand residential property can still claim substantial depreciation deductions.

How will claiming depreciation help an investor?

As the owner of a residential investment property, claiming depreciation deductions can make a big difference to your cash flow.

During FY 2018/19, BMT Tax Depreciation found residential clients an average first year claim of almost $9,000.

A BMT Tax Depreciation Schedule covers all deductions available over the lifetime of a property to ensure you maximise your cash flow and is 100 per cent tax deductible.

What is involved in completing a tax depreciation schedule?

BMT Tax Depreciation start by collecting the basic information needed to prepare the schedule. This includes simple details like the name you would like to appear on your depreciation schedule, the property address, purchase information and your property manager and accountant details.

Then, a property inspection is conducted. To make this as easy as possible, BMT can contact your property manager or tenant directly to arrange access to the property. A property inspector will count, measure and photograph all depreciable assets such as the flooring, light fittings, tapware and other items. All the depreciable assets found within your property will be recorded during the inspection and reported back to your local office.

From there, the depreciation and specialist tax team will review the information gathered and prepare your tax depreciation schedule. BMT can even forward your schedule to your accountant directly, saving you time.

Property investors who would like a quote on the deductions available in an income-producing property can Request a Quote online or contact one of the expert staff at BMT on 1300 728 726.

Article provided to The Management Agency by BMT Tax Depreciation.
Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief Executive Officer of BMT Tax Depreciation.
Please contact 1300 728 726 or visit 
www.bmtqs.com.au for an Australia-wide service.

I hope you’ve found this post helpful and that it’s cleared up some of the questions you may have had about Depreciation.


Antonio Mesiti is the Principal & Property Manager at The Management Agency, A local and Property Management specialist offering a one on one and end to end service for his Property Investor clients. For more information visit; https://themanagementagency.com.au/about/

Landlords, Tenants, Property Managers & COVID-19

What else could my Blog be about right now.

I was going to post about depreciation & had a few other topics I wanted to put out but as you all know; life is on pause right about now.

These weeks have been tough.

Property Managers everywhere are struggling to get through the mass of information and ideas on how to manage this crisis.

I realise, first and foremost that this is a Health Crisis and I’m yet to come across anyone that doesn’t agree with the Stage 3 lockdowns and overall need to #stayhome.

But what about the tenants that are staying at home but are worried that they can’t pay for their home. Yes, they’re struggling and I hear their stress and sympathise with them. Let’s also not forget that landlords have also lost work and like everyone, the bills keep coming in.

We need to find some happy mediums, even if these aren’t necessarily happy outcomes, but outcomes that everyone can live with.

So, I’m giving some tips to all on how we can ALL get through this. It may be obvious and it may be common sense but here goes;

Tenants

  • Look into what assistance is available; there are ample links and fact sheets available. Get them from trusted sources i.e. Government websites
  • Rest easy, there is a moratorium on evictions but, it’s been made clear, that doesn’t mean rent won’t accrue a debt if you don’t pay and also don’t approach your Property Manager or Landlord. If you can’t pay the full rent, pay what you can to keep any balances of rent owing low. Reach out for help!
  • Property Managers are trying to help where we can to negotiate good outcomes, we’re still waiting on further advice and information from the Government though. It is coming!
  • Speak to your Landlord or Property Manager, let us know your situation so that we can get back to you as soon as we know more

Landlords

  • If you don’t have landlord’s insurance by now, it may be too late with most providers having already cut off new policies
  • Speak to your agent and let them know your financial position, so that we have the complete picture
  • Our recommendations, as Property Managers, are just that. You will have the final say in any negotiations but you need to be open to them and compromise where possible
  • If your Property is for Lease or Vacant, it is time to align to the current rental market ASAP. Tenants are still out there looking. People are downsizing, economising and looking for the perfect Isolation pad.

 

And finally, to my fellow Property Managers. We’re having a tough time, seriously. Long hours, countless calls / emails and counselling sessions.

All the while we are taking a slight battering by the media and I’ve also been hearing of many pay cuts, cuts to working hours and layoffs in our industry.

 

Property Managers

  • Listen & be compassionate to all
  • Follow trusted sources and keep up to date & informed. Things are changing rapidly, almost hourly
  • Don’t be hasty and make rushed decisions; National Cabinet updates are coming
  • Follow your regular procedures until we know more
  • If you haven’t heard, don’t give anyone Financial Advice
  • Take serious precautions when you do have to go to properties, i.e. Physical distancing, masks, sanitizer & gloves
  • Adjust, adapt & Innovate as the way we do Property Management will be changed forever
  • Now is the time to go out of your way to help our landlords, tenants and tradespeople – Go the extra mile. How we perform during difficult times can cement and build long term relationships

Shoutout

A Huge Thank you needs to go out to the REINSW, REIA, Tom Panos, Jemmeson Fischer, Leanne Pilkington and the team at Novak Properties for the regular informative updates and webinars you are running constantly. You’ll all be remembered for your efforts during this time.

I greatly appreciate you all taking the time to generously share knowledge, your insights and practical advice simply to just help others and ensure we are all doing the right thing.

Keep your head up everyone, we’ll get through this.

Antonio

A Quick word on Professional Photography

6/2/2020

You might have read a recent post I did about preparing your Property for Rent. After that’s said and done you need to consider marketing.

There was a time where agents snapped away on their camera, or iPhone, and those photos were loaded online to advertise a Rental Property.

Sometimes we’d even make a half-hearted effort to lighten them up using whatever software we had already pre-loaded on our Desktops.

Those times are dead and gone though, see for yourself. Scroll to the bottom of Domain.com.au or Realestate.com.au and you’ll likely see the listings that have sat online for weeks and weeks, the ones with the dodgy photos.

Sorry fellow Agents, I realise your landlords really don’t want to pay for Professional Photos.

Would you, as a landlord want your property to be among those?

“Professional Photography should be the bare minimum because Virtual Tours are becoming more and more common.”

Vacant or furnished, get professional photos. It might be that you can reuse the same set of photos time and time again if the property remains largely unchanged.

My professional photographer, for example, will take 5 amazing shots for $150.00, such a small investment for the difference it makes to your advertising, reach and ultimately, number of enquiries and then Prospective Tenants through the door which is the aim. Getting as many prospective tenants as you can through your property increases the likelihood of getting applicants. Keep in mind that the cost of photography is a tax-deductible expense.

Whenever I am with a potential client, I won’t push or do the hard sell to list with me because that’s not my style. I will, however, push when it comes to professional photography because of the benefits.

There are also benefits of listing your property with me, but that’s another conversation.

So potential landlords, say yes and be proud to say “that’s my investment property” when it goes online remembering that you’ve got to spend money to make money.

“Remember that with the right photos, correct pricing and ad placement on the major portals your property may not stay For Lease for long, that’s the point. The photos were not a wasted expense or effort especially when they can be reused”.

If you’ve read this blog, mention it when you list your new property with me and I’ll even go ½ on the cost.

Antonio – The Management Agency

 

NOTE:

If professional photography is going to capture any tenants’ furnishings or belongings, permission from the tenants must be sought first.

Preferably confirmed in writing, This is a new requirement included in the changes to the NSW Residential Tenancies Act which come into place in March 2020.

Preparing your Property for the Rental Market

10/12/2019

Over the years I have met with many potential clients in the process of turning their primary home into an investment property.

These homeowners don’t always necessarily know what they need to do to get the property ready for the Rental Market and in many cases, they’re planning to go well beyond what is actually needed.

While there are some improvements worth focusing on, a lot of work and expense can be avoided when remembering that not every addition or improvement will translate to a good return on investment. Especially where it won’t appeal to prospective tenants who we’re trying to attract.

“My MAIN takeaway advice from this post is to get a Property Manager through your property, any property manager. Have them do a walk through and point you in the right direction as you prepare to list your property. Get thier reccomendations as to what you need to do and what you don’t”

What you need from them are some practical ideas, suggestions, and recommendations and for them to really guide you as to where to concentrate your efforts if any is needed at all.

Bounce your ideas, and what you’re thinking of doing off of them, they’ll know whether it’s worth doing or not.

So Many of these new investors come with horror stories that they’ve heard from family, friends or colleagues about the difficulties of being a landlord so this is a good time to get to know potential property managers at the same time.

Let’s be real, not every tenancy runs smoothly but start off by doing these three things then you’ve covered your bases and you’re setting off knowing you’ve done as much as you can do in preventing any possible issues.

  1. Learn a little about being a Landlord here

  2. Get Landlords Insurance i.e. there’s a blog on that too here

  3. Prepare the property for rental i.e. You’re reading it now, well done you.

 

So, you’ve packed and ready to go and you’ve got your Property Manager lined up, sure they’ve given you their recommendations ahead of this stage, but here are mine.

  • Paint, Carpet & Blinds

Nothing gives a property a refresh like these.

Even just a coat of paint helps to appeal to tenants when they come through the property. Nothing takes away the appeal of a property like marks, peeling paint, cracks and worse of all any signs of mould.

Consider a fresh coat of paint as a bare minimum and the rest as needed.

The advantage of providing new paint, carpet or blinds is that it’s easy to document the condition that property was given to a tenant. Like starting off with a clean slate.

  • My word on Improvements

What does your property need? Well, that list can be endless so don’t think about it. Saying that though, tenants want:

– Storage so linen and built ‘ins do the trick

– Dishwashers, they love these just remember you’ll have to maintain it

– Ample kitchen bench space and storage

– Fresh paint

Most of all… Cleaning. Up next, because this stands out even just during your open house inspections.

The list can be endless here but do your best with the resources and time you have on hand. I will say though if you’re not good an DIY stay away because something done poorly is obvious, and then detracts all appeal to the property.

 

  • Cleaning

You can and should expect to get your property back similar to how it was handed to tenants less some wear and tear. Be sure that it’s clean and ready for your future tenants.  If needed hire a professional as that also proves the property was cleaned prior to the beginning of a tenancy, so hold on to any invoices.

You should ensure the property is left free of any rubbish or unwanted items.

If you’re anxious, take your own photos of the condition of the property when it’s ready to hand to the agent.

 

  • Repairs, Smoke Alarms & Keys

If you’ve been putting up with an oven light that doesn’t work or a leaking tap, now’s the time to sort these out.

Make sure all your repairs are done before putting a tenant in or you can promptly expect a call requesting this repair once tenants are in.

Make sure all of your light globes are working.

This is also the time to be Replacing smoke alarms or their batteries as well as making duplicates of keys so you can have sets ready for the agent and future tenants.

 

  • Photography

 

You might consider putting this step first if you’re happy with the presentation which you’re living there, alternatively, you can get your property photographed vacant or with Virtual furniture set up.

Either way, professional photography is a must these days.

Your advertising will appeal to so many more tenants. Professional photography is relatively inexpensive these days and a set of photos can be reused again and again until any major changes are made to the property. Definitely a must to get noticed.

If you have a floor plan from when you bought the property, this is always handy too.

 

Get a quote for a set of photos from your Agent, I find 5-7 shots do the trick.

 

  • Pricing your Rental Property

 

You should be provided with a refined guide of how much rent you should expect when listing your property, a Rental Appraisal.

Ultimately you want a range that’s been refined down within $20 – $50pw.

If you’re getting a few opinions, as you should, then be concerned if an agent is appraising your property a lot higher than any others.

Some do overprice their estimates in order to secure the business but this can lead to a longer time on the market and therefore a vacancy period where you’ll likely need to drop the rent as you go.

 

If you really want to “test” the market at a higher rent, do it for a week or two at most and then reduce! Your agent should be able to gage the interest and get feedback on price from prospective tenants, they’re usually spot on after having seen many properties!

 

If you have to test the market that’s fine but your properties advertising listings will go stale in the meantime and your ad placement will fall further down on the major sites.

 

A couple of tips;

  • Keep your power on and connected until new tenants are found.
  • Make sure you or your agent isn’t letting mail pile up while the property is vacant

That’s keeping it simple in order to get your property ready to go live on the rental market, your agent should be able to guide and assist with all of these steps and make sure they’re getting ticked off along the way inline within your deadlines

If you’re in need of opinion as to what your property might need, feel free to reach out for a Free Appraisal where I can Inspect and assess if you really need to make those improvements you’re thinking about and what they might mean for your bottom line.

Lastly, if you want to know what a Property Manager does well I’ve got a blog on that too here, might help convince you that you need one.

All the best and reach out if you need me 🙂
Antonio @ TMA

Changes to Residential Tenancy Laws – Read here for Updates

25/03/2020

Amidst the current Corona Virus climate, we’re adapting to the changes to the Residential Tenancies Act.

Whilst some of the new regulations surrounding Agents licensing won’t be enforced for a grace period of 6 Months, most agencies have already implemented new procedures surrounding their tenancies being compliant.

What are we hearing so far:

  • Owners not particularly liking tenants having their contact details, privacy concerns and the reasons why they have enlisted a Property Manager
  • Less emphasis on wanting fixed term leases, a lose lose for all maybe

The positive:

  • Tenants can sign electronic leases without needing a witness, a streamlined process for all

We’ll all adapt and innovate, as we must in these times.

Stay safe, Antonio


The latest release of up to date information issued by the Office of Fair Trading can be found here.

More information to follow here below as it comes to hand.

Antonio @ The Management Agency


9/3/2020

Further information is coming to light with regards to the changes coming into place on 23/3/2020 with many Property Managers hopeful we’ll have the complete outlook within the coming weeks, especially when it comes to the time frames in which all of the changes need to be in place, where some of these are immediate and others won’t be.

Here are some points I’ve been reading about;

  • New Leases from 23/3/2020 will need to list one of the Landlords points of contacts, whether it be an email address or phone number, this is set to be a requirement and a non-negotiable.
  • All Landlords will need to read and sign a “Landlord Information Statement” this will ensure that all landlords are aware of all of their responsibilities when a Lease is entered into, we are yet to get our hands on a copy of the prescribed form.
  • Similar to Smoke Alarms, properties will need to be tested and certified for Water Efficiency at the beginning of tenancies where Water Usage is being charged and recouped from tenants.

More to come as we approach the commencement date of these reforms,

Antonio @ The Management Agency

Read more