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Mar 15, 2024
Choosing the Right Real Estate Agency to Sell Your Property: A Guide for Landlords
There comes a time in every investor’s journey where they consider reducing their property portfolio to either free up some capital or reduce debt. This question is probably best answered by your Accountant. And although marketing a property for sale, whilst continuing to receive an income from rent is very appealing, there are a few extra considerations to take into account when you have a renter in place and you are thinking of selling. As a landlord considering selling your property, one of the most crucial decisions you'll make is selecting the right real estate agency to represent you. With various agencies vying for your business, it's essential to weigh your options carefully to ensure a successful sale. One common question landlords often face is whether to stick with the company already managing their property or explore other options. In this video Joanne Danckwardt of One Agency JD Property Agents discusses the factors to consider when making this decision and provide guidance to help you choose the best agency for your needs. [youtube id="YSiDUdBZGLg"] If you're ready to discover the secrets to being ready to sell your home, download our free insider secrets to being ready to sell checklist. YES, DOWNLOAD MY CHECKLIST Evaluate Experience and Expertise When assessing potential good real estate agencies, consider their experience and expertise in selling properties similar to yours. Look for agencies with a proven track record of success in your local market and expertise in handling investment properties, with superb negotiation skills. Determine whether the agency has experience working with landlords and understands the unique challenges and opportunities associated with selling rental properties. Review their marketing strategies and resources to ensure they have the capabilities to effectively promote your property to potential buyers Seek Recommendations and Reviews Ask for recommendations from fellow landlords or trusted professionals in the real estate industry. Personal referrals can provide valuable insights into the performance and reputation of different agencies. Additionally, research online reviews and testimonials from past clients to gauge the satisfaction level and experiences of others who have worked with the agency. Schedule Consultations Take the time to meet with representatives from potential real estate agencies for consultations. Use these meetings to discuss your goals, ask questions, and assess the agency's approach to selling properties. Pay attention to how responsive and attentive they are during the consultation process. Choose an agency that demonstrates a genuine interest in understanding your needs and objectives. Evaluate Communication and Transparency Clear and transparent communication is vital throughout the selling process. Evaluate how effectively the agency communicates with you and their willingness to keep you informed every step of the way. Ask about their communication channels, frequency of updates, and how they handle feedback and inquiries from potential buyers. If you choose to sell the investment property whilst still tenanted, it is important to remember there are strict rules that must be adhered to. It is important to be aware of the legislative requirements when selling a tenanted property. In our experience, it works best when - The renter is provided with plenty of notice, it helps them to get organized. The process is clearly explained to the renter right from the start and it is adhered to throughout the campaign The property manager has a good relationship with the renter and is the one who initially gives them the confirmation that the property is going to be sold. They can then reassure them if they have any concerns. The selling agent takes the time to introduce themselves and sits down with the renter to create a plan to minimise the disruption to their lives as much as possible Potential buyers are made aware of the conditions of the current lease agreement eg the notice periods required if they wish to move into it themselves Both the selling agent and the property manager are “on the same page” and understand what all parties are trying to achieve. This will give both the owner of the property and the renter confidence in the process. If you're ready to discover the secrets to being ready to sell your home, download our free insider secrets to being ready to sell checklist. YES, DOWNLOAD MY CHECKLIST Choosing the right real estate agency to sell your property is a significant decision that can impact the success of your sale. While sticking with the company already managing your property may seem like the easiest option, it's essential to carefully evaluate all your choices. Consider factors such as experience, expertise, potential conflicts of interest, recommendations, and communication when making your decision. By selecting a reputable and reliable agency, you can confidently navigate the selling process and achieve your desired outcomes as a landlord. If you are thinking of selling your investment property, contact us today. We can provide insights tailored to your specific market, and run you through how the process would look for your investment, including any potential obstacles that need to be navigated. With the right approach and timing, you can capitalise on the advantages of selling your investment property in the current real estate market. If you feel you could benefit from our experience with buying and selling, we’d love to hear from you. Simply reach out. We hope that has helped you today. If you have any questions, or you know of anyone who may benefit from our real estate services, we’d love to chat. Our number is 0426 264 771. We look forward to talking to you soon.
Feb 15, 2024
Maximizing rental income: Is your Property Manager working for you?
In the ever-evolving landscape of real estate, the maximization of rental income stands as the cornerstone of success for property investors. As landlords, the question that often lingers is whether our property managers that have been engaged are skilled at navigating the complexities of the rental market to secure the best possible rent for investments. The competitive nature of the real estate market necessitates a proactive approach to rental management and rent increases. Beyond simply finding tenants, property managers play a pivotal role in orchestrating a delicate balance—assessing market dynamics, negotiation strategies, and tenant relations to ensure property investors reap the maximum benefits from their property portfolio. In this video, Joanne Danckwardt of One Agency JD Property Agents delves into the crucial considerations that investment property owners must weigh to assess the effectiveness of their property managers in optimizing rental returns. [siteloft_youtube video_id="UptiQO_GowM" autoplay="1" suggestions="1"] If you're ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence. YES, DOWNLOAD MY CHECKLIST Rental Market Analysis It is important to stay informed of the local rental market. A Property Manager conduct regular market analyses to understand current rental trends, vacancy rates, and comparable property rents in the area. Regular Rent Reviews A Property Manager should have a proven system and procedure they follow to ensure they actively engage in regular rent reviews for all their managed properties. This in turn, should lead to a discussion of the benefits of adjusting the rent to reflect current market changes and ensuring that the property investor receives the optimal rental income. For example, a rent review might be completed with every routine inspection, and a rent review should be completed at every lease renewal. Negotiation Skills One of the most critical aspects of securing the best rent for your property lies in the negotiation skills of your Property Manager. Negotiation is an art that goes beyond settling on a rental price; it involves a strategic and nuanced approach that can significantly impact your property's overall profitability. A property manager with excellent negotiation skills understands the dynamic nature of the rental market. They keep abreast of current trends, fluctuations, and demand patterns, allowing them to position your property competitively. By leveraging this knowledge, they can skilfully negotiate rental rates that align with the market's highs and lows, ensuring optimal returns. Effective negotiation is not just about finding a middle ground; it's about advocating for the best interests of the property owner. A skilled property manager will confidently represent your goals, whether it's securing higher rent, favourable lease terms, or other conditions that enhance the value of your investment. Negotiation isn't solely about financial transactions; it's also about fostering positive relationships between landlords and tenants. A property manager with strong negotiation skills can strike a balance that satisfies both parties, reducing the likelihood of disputes during the lease period. This positive dynamic can lead to longer tenancies and a stable income stream. Every rental situation is unique, and negotiations must be tailored accordingly. Whether it's addressing specific tenant needs, navigating complex lease terms, or managing unexpected challenges, a skilled negotiator can adapt to various scenarios. This adaptability ensures that your property manager can navigate complex situations with finesse, ultimately benefiting your bottom line. Effective Marketing Strategies When an investment property is vacant, having a robust marketing strategy to attract a good tenant for your rental property will ensure plenty of exposure to attract the right and competition. Using various channels such as online platforms, social media, and traditional advertising to showcase your property effectively will ensure the maximum rental price is achieved for your investment property in the shortest possible time when your property becomes vacant. If you're ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence. YES, DOWNLOAD MY CHECKLIST As property investors, the key lies in partnering with Property Managers who go beyond the conventional, actively engaging in regular rent reviews, maintaining properties to the highest standards, and ensuring that every negotiation reflects your best interests. By doing so, you not only secure optimal rental income but also foster positive, lasting relationships with tenants. So, as you assess your property manager's performance, consider the comprehensive picture we've painted. Is your property manager getting the best rent for you and your property? The answer lies not just in finding tenants but in fostering a strategic and dynamic approach to rental management that ensures sustained success in the ever-evolving real estate landscape. If you’re not a One Agency JD Property Agents client, but would like more information on our property management service – contact us on 4285 7400 or jdpropertypm@oneagency.com.au. We are always happy to answer questions and offer advice, or offer a free rental property appraisal. We hope these tips have been helpful. If you feel you could benefit from our experience with property management, we’d love to hear from you. Simply reach out. We hope that has helped you today. If you have any questions, we’d love to talk to you. Our number is 0426 264 771 or 0455 147 755. We look forward to talking to you soon.
Dec 14, 2023
How do you find a good tenant for your rental property?
Renting out a property can be a lucrative venture, but success often hinges on finding a reliable and responsible tenant. How do you know you're going to be able to find a good tenant for your rental property? Selecting the right tenant is crucial for both the landlord's peace of mind and the well-being of the property. As a property investor, it can be a bit of a concern, in knowing that you are going to get a tenant that is appropriate. In this video, Joanne Danckwardt of One Agency JD Property Agents explores key strategies to help you find the perfect tenant for your rental property. [siteloft_youtube video_id="7aHjIDoho38" autoplay="1" suggestions="1"] If you're ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence. YES, DOWNLOAD MY CHECKLIST Screening Process The foundation of a successful tenant search is a rigorous screening process. Consider the following steps: Rental Application – ensuring a prospective tenant submits a rental application is vital. A comprehensive application should include personal information, rental history, employment details, and references should be obtained. Tenancy Checks – review the applicant and their history on any National Tenancy Databases for any reported breaches. Reference Checks – conduct thorough checks and contact all supplied reference and referees supplied, including previous landlords and employers listed on the rental application. This will verify the potential tenant's rental history and employment status, and provides valuable insights into the applicant's reliability and behaviour. Clear Rental Criteria Set clear rental criteria objectives from the outset. This may include specific income requirements relating to a ratio of rent to income, and guidelines on the number of occupants. Effective Property Marketing A well-marketed property attracts a larger pool of applicants, hence more choice, helping to find a great tenant. Using online platforms, social media, and traditional methods to showcase the rental property with high-quality photos and a compelling description to make the property stand out. Realistic Rent By engaging a property manager you can be guided by their experience and market knowledge to set a competitive and realistic rental price. Overpricing may deter potential tenants, while under-pricing could lead to financial losses. Find a balance that reflects the property's value. Responsive Communication Prompt and effective communication is essential throughout the tenant search process. It is important to respond to inquiries quickly, provide clear information, and be available for property viewings. A positive and responsive approach creates a favourable impression on potential tenants and opens up the communication channels with prospective tenants to see how they manage the application process. Conduct Thorough Interviews In addition to a written application, conducting face-to-face or virtual meeting with potential tenants is important. This allows you to assess their communication skills, gauge their level of interest, and address any questions or concerns they may have. Trust Your Instincts While it's essential to rely on objective criteria, don't underestimate the power of intuition. If something feels off during the screening process, it's worth exploring further or considering other applicants. If you're ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence. YES, DOWNLOAD MY CHECKLIST Finding the ideal tenant for your rental property requires diligence, clear communication, and a systematic approach to screening. By implementing these strategies, landlords can minimize risks and foster positive, long-term relationships with responsible tenants. Remember, a well-vetted tenant not only ensures the well-being of your property but also contributes to a stress-free and profitable rental experience. If you’re not a One Agency JD Property Agents client, but would like us to manage your tenant selection process and property, or obtain more information on our property management service, contact us on 4285 7400 or jdpropertypm@oneagency.com.au. We are always happy to answer questions and offer advice, or offer a free rental property appraisal. We hope these tips have been helpful. If you feel you could benefit from our experience with property management, we’d love to hear from you. Simply reach out. We hope that has helped you today. If you have any questions, we’d love to talk to you. Our number is 0426 264 771. We look forward to talking to you soon.
Oct 15, 2023
10 reasons to engage a property manager
Owning an investment property is big financial commitment. While many property investors have financial knowledge, dealing with day-to-day property issues can be challenging, and time-consuming. As a property investor, it can be difficult to balance the time between managing rental properties and other commitments. This is just one reason why property investors should engage a property manager to look after their investment property. Property investors will want the property to be looked after properly, and will realise the multiple benefits of hiring a property manager, allowing them to receive a reliable income stream, minimising stress, and the fees are a tax deduction. In this video, Joanne Danckwardt provides reasons why you should use a property manager to manage your investment property. [siteloft_youtube video_id="JcKOZ8bEvDU" autoplay="1" suggestions="1"] If you're ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence. YES, DOWNLOAD MY CHECKLIST Top 10 reasons why you should use the services of Property Manager to manage your investment property: Advertising and Marketing Your rental property can benefit from the expertise of a property manager with advertising and marketing. They ensure your vacant rental property is successfully marketed to the right target audience. Tenant selection and screening Tenant selection and screening represent some of a property manager's primary responsibilities. They have the experience as well as knowledge necessary to properly screen prospective tenants and manage rental applications, conduct background checks, verify employment and income, and contact references. A Property Manager will have a clear rental application process in place, ensuring that you only rent to reliable, trustworthy, and stable financially tenants. A property manager will draft the lease agreement, which will outline terms such as rent amount, due dates, duration, renewal options, tenant responsibilities, and ensure all lease documents and lease renewals are correct and conform. They will also conduct and prepare a detailed condition report when the tenant moves in, which will include photographs. Rent collection and arrears management Collecting rent and managing arrears will be handled by a property manager. They will establish a reliable rent collection system, and communicate clearly the rent payment methods and due dates to the renter. They will send timely rent reminders and late payment notices where appropriate. In the event that a renter doesn't pay rent, they will also take care of any necessary legal proceedings. Repairs and Maintenance All repairs and maintenance for your rental properties can be managed by a property manager. This encompasses everything, from regular and scheduled maintenance to urgent repairs. Property Managers will respond promptly to requests, have access to reliable and professional contractors, and document all repairs and expenses. This will ensure your property remains compliant, and your property in a good condition. Property Inspections Your rental property will have regular routine inspections conducted by a property manager to ensure that sure everything is in working order, that the tenant is taking care of the property, and that any necessary repairs or maintenance have been carried out. Vacating Process A Property Manager will conduct a thorough outgoing inspection once the property has been vacated, and compare the property’s condition to what it was like when the tenant moved in. They will document any changes or damages beyond normal wear and tear, and determine if the tenant is required to return to the property to rectify issues, and return the bond. Legislation Property Managers have knowledge and expertise regarding the legislation and rules governing rental properties in NSW. Property Managers stay up to date with local laws and regulations, ensuring the property meets all safety and health standards, such as smoke alarms. They will also provide all the necessary disclosure and documentation, understand eviction procedures, follow legal guidelines, and maintain appropriate insurance coverage. They specialise in making sure that your rental properties adhere to all legal requirements and can manage any potential legal difficulties may arise. Financial Reporting A property manager will keep and provide thorough and accurate financial transaction and reports that detail the performance of your rental property. This includes details on the amount of rent received, costs incurred, and any invoices for repairs and maintenance that have been actioned, tracking income and expenses for tax purposes. These reports are valuable and time saving, especially for your accountant at tax time. Expertise and Experience Property managers have the knowledge and practical experience required to manage rental properties successfully. A Property Manager will stay informed about current market trends and rental rates to ensure you receive market rent and rent increases are regularly implemented. They will attend relevant educational programs and workshops to remain up to date on laws and regulations to ensure your property is compliant, and repairs and maintenance are managed in a timely and cost-effective way, and can offer advice on the property, such as deprecation. Tenant Communications and Relationship A property manager will act as the primary point of contact for a tenant, managing all inquiries, requests, or complaints regarding the rental property, and maintain an open line of communication. They will address a tenant concerns and enquiries promptly, provide clear channels for reporting maintenance issues, respect privacy, and handle tenant disputes professionally. A property manager will liaise between yourself as the owner, and the tenant to come to mutual agreements regarding the property, or matters such as wear and tear or damage on vacating and who is responsible. If you're ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence. YES, DOWNLOAD MY CHECKLIST Engaging the services of a property manager means you, as the property owner, can save time and reduce your stress. This keeps your rental property is taken care of, which lets you focus on other matters that are important to you. For property investors who want to be sure that their rental properties are managed successfully, using a property manager can be a smart investment. Property managers have the expertise and experience to handle all elements of managing rental properties, saving property investors time, minimising stress and costs, and maximising rental income. If you’re not a One Agency JD Property Agents client, but would like more information on our property management service – contact us on 4285 7400 or jdpropertypm@oneagency.com.au. We are always happy to answer questions and offer advice, or offer a free rental property appraisal. We hope these tips have been helpful. If you feel you could benefit from our experience with property management, we’d love to hear from you. Simply reach out. We hope that has helped you today. If you have any questions, we’d love to talk to you. Our number is 0426 264 771 or 0455 147 755. We look forward to talking to you soon.
Apr 14, 2023
Real estate agents revamping ethics index and standards
The Governance Institute of Australia produces a comprehensive study and nationwide survey to reveal the most and least ethical occupations, organisations and sectors. It also checks the nation’s temperature on current ethical dilemmas and difficult questions. The 2022 Ethics Index report has seen the ethic index score drop overall, with real estate agent’s bad reputations ranking low again. Regrettably, a lot of people dislike real estate agents. They have either had bad experiences, know someone who has, or have seen negative media reports. While real estate agents tend to have a bad rap and constantly attract negative headlines, quite often the hardworking, honest, and caring agents who strive to do the right thing by not only their clients, but communities as well, are overlooked. Many real estate agents are working to rewrite the ethics index and overturn the negativity that the industry seems to attract. Watch the video, with Joanne Danckwardt of One Agency JD Property Agents, to remind yourself about some of the amazing work that a great percentage of real estate agents do, going above and beyond. [siteloft_youtube video_id="utKAHWpDbAo" autoplay="1" suggestions="1"] If you're ready to discover the secrets to being ready to sell your home, download our free insider secrets to being ready to sell checklist. YES, DOWNLOAD MY CHECKLIST With specialized knowledge and access to information and a connection to various services, good real estate agents have the potential to impact their communities in a very positive way. Being a respectful real estate agent means they have their finger on the pulse of the neighbourhoods where they sell. Some exception community service stories by real estate agents include: Saving a tenant’s life In Lismore, PRD Northern Rivers Principal Rob Horder, had his own battles to fight as flood waters gushed through his office, let along saving a tenant’s life. Taking a phone call from a community nurse, he learnt one of his tenants was unable to make his dialysis appointment due to floods. Rob put his own agenda aside, went around to pick the tenant up. He was put into a helicopter and taken to hospital for the lifesaving appointment all within half an hour of the tenant losing his life. What an awesome agent! Pink tractor fundraising In 2015, Mudgee real estate agent and auctioneer, Hugh Bateman, embarked on a pink tractor trek to raise funds for the McGrath Foundation Breast Cancer Care. Starting on October 9th for a little over three weeks, Hugh navigated his way around NSW, visiting other agencies and holding auctions and fundraising events. His goal was to raise $250,000 for the McGrath Foundation to assist with funding specialist Breast Care Nurses, but Hugh managed to surpass that goal, raising $382,000. A fantastic result for a worthy cause. Act of kindness With rental affordability being at the forefront of current economic times, Gold Coast Property Manager, Jamie Wernert, wondered how she could personally help one of her elderly tenants. When the landlord indicated they could no longer sustain the below market rent and Denis would have to move, Ms Wernert wanted to do something to help Denis, who lived on a tight pension. Establishing a GoFundMe page, she was able to raise over $47,000 for her pensioner tenant to find a new home along with reach out to other property managers to help find Denis a new home. The funds helped Denis to find a new rental and pay for his moving costs. A beautiful property manger who really does care for her tenants! The list of these amazing deeds of real estate agents goes on and on… But in their day-to-day workings for selling real estate and managing investment properties, real estate agents do a long list of regular everyday activities to ensure they provide exception service and get the best results. Some of the acts include: Tidy, clean and freshen before an open home or newly leased property – both inside and out, including cleaning of the pool. Accept calls at every hour of the day and night, 7 days a week, to get deals done. Work 14-hour + days to ensure their sellers find that perfect one-in-a-million buyer. Play with children and keep them entertained while parents look around a house. Manage the emotional stress when helping sellers and buyers in their home selling and buying journey. Support local sporting teams, schools, communities, and businesses. If you're ready to discover the secrets to being ready to sell your home, download our free insider secrets to being ready to sell checklist. YES, DOWNLOAD MY CHECKLIST We hope this article provides some balance for the next time you hear bad press about real estate and real estate agents. There are many good agents out there that help to counteract the negative reputation that the industry holds. If you feel you could benefit from our experience with buying and selling, or our property management services, we’d love to hear from you. Simply reach out. We hope that has helped you today. If you have any questions, or you know of anyone who may benefit from our real estate services, we’d love to chat. Our number is 0426 264 771. We look forward to talking to you soon.
Mar 17, 2023
Benefits of renewing a lease agreement
As a property investor, lease renewals seem to come around quickly, regardless if a six- or twelve-month lease was signed. At the end of a lease, tenants and landlords can choose to sign on for another fixed-term period or continue on a periodic lease agreement (month-to-month). In this video, Joanne Danckwardt helps to explain the difference between the two and what the benefits are of renewing a lease agreement. [siteloft_youtube video_id="ysUQUsWncqg" autoplay="1" suggestions="1"] If you're ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence. YES, DOWNLOAD MY CHECKLIST What’s the difference between fixed term and periodic lease agreements? When a landlord and tenant are both agree with a new lease arrangement, a new lease will be signed by all parties for another fixed-term period, usually for 6 or 12 months. Should the tenant wish to vacate a fixed term agreement, penalties will be incurred. If no new fixed-term lease is signed and the tenant is not vacating the property, the lease will automatically move to a periodic lease agreement, also known as month-to-month. The rules, rights and obligations outlined in the original lease agreement still apply. Should the tenant wish to vacate and is in a periodic agreement, 21 days’ notice in writing must be given. What are the benefits of renewing your tenant’s lease? Renewing a tenancy agreement comes with a range of advantages for both the landlord and tenant, and outweigh the minimal costs incurred in renewing the lease. These include: Keeping a good tenant If the property has a reliable tenant and the routine inspections show the tenant is caring for the property and paying the rent on time, it’s well worth signing a new lease renewal. A tenant left on a periodic tenancy agreement may feel that their living situation is unstable and start looking for a new rental property that offers more stability. Minimising costs Each time a tenant vacates a property, the property investor incurs costs associated with finding a new tenant, including advertising the property, letting fees, and potential lost rent whilst the property is vacant. Reduced vacancy A lease renewal can reduce a landlord’s vacancy. One week’s vacancy is equal to a 2% loss per annum. Certainty Establishing a new lease agreement with an existing tenant means the property will continue to be tenants and the rental income will not be impacted, in fact, a rental increase may be written into the new lease agreement. A new agreement generally provides for stability. Control While it is possible to find tenants at any time of year, there are periods that are more challenging and could leave the property vacant for longer. A fixed-term agreement gives the landlord some control, as the end of the agreement will always fall at the same time. Tenant stability A tenant will benefit from a lease renewal with increased stability, allowing them to personalise the home, and encouraging a high-quality tenant to continue to care and respect for the property. Reduced damage Having less tenants move in and out of the property reduces potential damage caused to the property that can occur during the moving process. Know your options Before you deciding to offer the tenant a rental lease renewal, it is essential the legal requirements are understood. While a rental lease renewal has many positives, depending on the landlord circumstances, moving into a week-by-week agreement may be more beneficial. For example, if the property investor is considering selling the property, the flexibility of a month-to-month tenancy arrangement may be a better option, and is worth discussing with your real estate agent. It is worth noting that the landlord and the tenant can always renew the lease at a later date, if both parties agree to it. This means that if, when the initial agreement expires, both parties are unable to commit to a longer-term agreement, the lease can expire, and a lease renewal agreement established when circumstances allow it. If you are a property investor and are wondering whether to offer your tenant(s) a lease renewal, we recommend speaking to your property manager. A good property manager will be able to advise on the current leasing environment and market, and the tenant’s plans, and take into consideration your future investment goals, including short- and long-term plans. They should also be able to provide a recommendation for any adjustment to the rent. How to renew a lease agreement For both tenants and landlords, the first step in renewing a lease is to contact the property manager and advise of the intent to renew. Once the new lease agreement has been created, all parties should read it carefully prior to signing, to ensure all obligations and rights are understood, in case of any changes since the previous agreement. Handling a lease renewal is just one of the many services a reliable property manager offers to make life easier for a rental property owner. If you're ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence. YES, DOWNLOAD MY CHECKLIST If you’re not a One Agency JD Property Agents client, but would like a second opinion on whether to renew your lease agreement – or more information on our property management service – contact us on 4285 7400 or jdpropertypm@oneagency.com.au. We are always happy to answer questions and offer advice, or offer a free rental property appraisal. We hope these tips have been helpful. If you feel you could benefit from our experience with property management, we’d love to hear from you. Simply reach out. We hope that has helped you today. If you have any questions, we’d love to talk to you. Our number is 0426 264 771 or 0455 147 755. We look forward to talking to you soon.
Jan 13, 2023
The do's and don'ts of property management fees
Worthy property management services are about maximising your investment, while minimising your risk, meaning an excellent property manager is invaluable. But have you ever wondered why there can be a such a difference in what property managers will charge to manage your investment property? What are typical property management fees? Should you go with the cheapest option or look for the premium price? And what exactly do you get for your money – what do your property management fees cover? In this video, we provide some do’s and don’ts of property management fees on what to look for when shopping around for the management of your investment and how it is important to know how much your fees will be, what you will be getting, and where your money will be going. [siteloft_youtube video_id="v3U-5jydvsw" autoplay="1" suggestions="1"] If you're ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence. YES, DOWNLOAD MY CHECKLIST What does a good property manager do? Not all agencies who offer property management services offer the same level of service. Having a professional property manager will help to maximise your investment, as well as reduce your stress. The duties and responsibilities a good property manager generally include: Assessing an accurate rental value of your investment property Advertising to potential renters and screening prospective tenants Accurate lease preparation, including condition reports and bond collection Inspecting the property regularly and providing updates regarding its condition Collect rent and ensure it is always paid on time Organise tradespeople to complete repairs and maintenance required at the property Organise and manage the payment of any invoices incurred with the property Liaise with the tenants and strata companies if necessary to deal with any issues that may arise Manage difficult tenants, including managing the eviction process if necessary Providing updates on legislation changes that may have an impact Conduct the outgoing inspection upon a tenant vacating, and release of bond How much does a property manager cost? As a general rule, you can expect to pay a management fee of anywhere from 6% to 8% of your weekly rent, plus GST. Services offered for this fee will vary. When comparing property management fees and services, ensure you understand exactly what is included in each fee quoted. Some companies will offer an all-inclusive fee, meaning they bundle the above costs into a monthly charge. There is always the risk of this flat fee being increased to keep pace with inflation, and there can no incentive for the agent to ensure regular rent increases occur to keep pace with the market. How do you calculate property management fees? The best way to work out how to calculate your property management fee is to use a practical example. Assuming you own a property that is rented for $750 per week, you could expect to pay the following: 7.7% management fee (includes GST) of $750 rent per week is $57.75 management fee per week x 52 weeks = $3,003 per annum in management fees. Are there additional costs? Typically, real estate companies will charge extra for costs that come up from time to time. Extra fees may be charged for the following services: Leasing fee – usually 1- or 2-weeks rent, and includes processing tenancy applications, negotiating lease terms, and finalising the lease agreement. Advertising/marketing fees – charged when advertising the property for lease. Inspection fees – some property managers will charge additional fees to conduct routine inspections. Tribunal fees – an additional fee may be charged for preparation to attend a tribunal hearing, and attend on your behalf. Annual statement fee – an administration fee charged for preparing an end of financial year statement. Lease renewal fee – a fee charged to cover the costs of preparing lease renewals and advice on rent increases. Monthly administration fee – a fee that covers miscellaneous costs such as preparing reports, and document storage. Insurance claim fee – charged to oversee an insurance claim. Maintenance project fee – may arise if the property requires substantial work. Every property management agency will have their own terms on what is and isn’t included in their standard management fee. We recommend you review the Managing Agency Agreement carefully, and obtain the full details of their commission and additional fees to know what you are paying for regularly, and what you may be required to pay for in the future, and ensure it is right for you. Is cheaper better? Paying a low property management fee sounds appealing. Generally, the lower the commission fee, the fewer services that likely to be included. Always read the fine print on what is being offered and factor in any additional costs that may be incurred when leasing, such as if regular routine inspections will be completed or tribunal attendance be actioned and at what charge (among other things). You may end up paying more than you budgeted for and you may receive a lower quality service than you deserve for one of your biggest investments. It should be noted that any management fees paid can be claimed at tax time as a tax deduction – speak with your accountant for more information. If you're ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence. YES, DOWNLOAD MY CHECKLIST Selecting a property manager is an investment in your future. When choosing a property management agency, choose one that offers you a comprehensive and personalised service. Prepare a list of questions to ask your property manager to ensure you receive all relevant information regarding the services on offer. Contact us for a free rental appraisal or visit our rental services page for more information about how we can help with your investment portfolio. We hope these tips have been helpful. If you feel you could benefit from our experience with property management, we’d love to hear from you. Simply reach out. We hope that has helped you today. If you have any questions, we’d love to talk to you. Our number is 0426 264 771 or 0455 147 755. We look forward to talking to you soon.
Nov 11, 2022
Should you change your current property manager?
How do you know it might be time to change your current property manager? Property management is so much more than just collecting the rent – it is an important role that can cost you if not done correctly. If you aren't happy with your current property management service change now. Hoping that things will get better will only increase stress levels and cost you money. It is not hard to change property managers, and you don’t have to wait until the end of your tenancy lease agreement. Joanne Danckwardt of One Agency JD Property Agents talks more about what you should be looking for in your property manager, and why you might need to consider a switch of property managers. [siteloft_youtube video_id="mj_LWBWm9FM" autoplay="1" suggestions="1"] If you're ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence. YES, DOWNLOAD MY CHECKLIST Signs it is worth changing your property manager Poor communication Are you responded to promptly without having to constantly follow up with emails and phone calls? If your current property manager doesn’t return calls and is slow to update you, consider a switch. Prolonged vacancy If your property is vacant, it is costing you money. Obtaining a good tenant for your property should be the highest priority for your property manager. Lack of procedures and expertise Does your property manager have systems, procedures and the experience to attract and screen potential new tenants? Completing reference checks and a review of their rental history and collecting a bond? When your tenants vacate, are you confident that your property manager is doing everything they can to have the property re-tenanted in quickly? Are detailed ingoing and outgoing conditions reports occurring? If your property manager does not have these abilities, or support, you should consider moving to a more experienced property management team. Infrequent or no routine inspections Routine inspections are a visual inspection that a Property Manager conducts at your property. They play an important role in keeping you updated of the condition of the property, ensuring it remains safe, is clean and is being cared for. If they are not happening, or not regularly enough, this is a concern. A detailed report should be given to you to help you ascertain any maintenance that may be required to retain the value of the property. Poor management of maintenance Managing repairs and maintenance is important to keep your investment in good condition to allow it to maintain good tenants, attract new tenants and maintain your investment property. If your property manager does not attend to maintenance requests, or if the property is not maintained to be safe and compliant, the tenants may break the lease without penalty, costing you money. Urgent maintenance should be attended to immediately to ensure it does not cost more in the long run with other damages. Look to move property management companies if you feel your property manager does not have the experience to successfully manage your maintenance requirements, or access to appropriate tradespeople who provide a high standard of workmanship, warranty and insurance. Rent arrears Consistent rent is key to you receiving regular payments, which is important for cash flow, and loan repayments. Your rental payments should come into your account reliably and consistently every month. Your property manager should be ensuring that your tenants pay their rent on time. Is your current property managed taking care of this for and enforcing lease agreements if rental payments are not received. If not, we recommend finding another property manager. Legislation knowledge Is your property manager up to date with the constantly changing NSW tenancy residential legislation and compliance requirements, such as smoke alarms? Do they attend training and education programs to keep informed of legal changes, and also advise you as to how this may affect you and your property? If not, it may be time to change teams. Regular Rent Reviews Your property manager should be conducting regular rent reviews to ensure that the rent is at market price, and adjustments made accordingly. This will ensure you continue to receive an appropriate return on your investment. The One Agency JD Property Agents Changing Property Management Process Changing property managers is easy! We do all the work for you, and you can change your property manager mid lease. You are not obligated to stay with your property manager if you are not happy. Our process is as follows: You inform us that you would like us to take over the management of your property portfolio We prepare a Managing Agency Agreement and written notice to terminate your agreement for you to sign. We forward the notice to your current agent and arrange to pick up your property file and keys from their office on the arranged date. We notify your tenants in writing. Then, their new One Agency JD Property Agents Property Manager welcomes them. One Agency JD Property Agents becomes your new management agency (as of the agreed date) and life carries on as normal. We arrange a property inspection to update the existing condition report (if required) and keep you informed each step of the way. If you're ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence. YES, DOWNLOAD MY CHECKLIST At One Agency JD Property Agents, we can help you. With our skills and experience, education and training, and dedication to rental service, we have your property investment needs covered, and would love to talk with you about your individual objectives. Dealing with a problematic property manager can be stressful. Here at One Agency JD Property Agents, our property investors are of our utmost concern. Request a rental property appraisal today to discuss how we can assist you with the management of your investment property. We hope these tips have been helpful. If you feel you could benefit from our experience with property management, we’d love to hear from you. Simply reach out. We hope that has helped you today. If you have any questions, we’d love to talk to you. Our number is 0426 264 771 or 0455 147 755. We look forward to talking to you soon.