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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.
Oct 28, 2022
Routine inspections - why and how often?
As an investor, you understand that your property is one of your greatest assets, so it is crucial to take care of it. Routine inspections play an important role in keeping your property in good condition, ensuring it remains safe, is clean and is being cared for. It's a great way to check for any repair requests in person and ensure the tenant is looking after property and adhering to the conditions of the lease agreement, and to ascertain any maintenance that may be required to retain the value. A routine inspection is a visual inspection that a Property Manager conducts at your property. We aim to help our property investors achieve the best rental returns and to make the property more attractive to prospective tenants. A property that is more attractive to potential tenants also attracts a better-quality tenant and a better chance of a long-term tenant. In this video, we outline not just why you need to have rental routine inspections conducted, but also how often. [siteloft_youtube video_id="94HDYjjlPGc" 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 Why have a routine inspection? Having a routine inspection not only protects the property, but encourages open communication between the landlord, the tenant and the Property Manager. These inspections allow the tenant to advise the Property Manager of any maintenance issues, which can be sighted by the Property Manager, allowing for the right trade person to be engaged. As a routine inspection is a visual inspection, and Property Managers are not licensed builders, they are not able to advise on any structural defects. Should any our property investors require a more thorough assessment of their property we can assist in organising a building inspector to attend and provide a report. When we conduct routine property inspections, we not only assess the condition the tenants are keeping the property, but the “overall” condition of the property, looking particularly at the following: Do the gardens need a mulch top up or larger trees trimmed? Could the property do with a repaint, new carpets, and or/window furnishings? Are there any cracks in the plaster in the walls or ceilings? Are all appliances in working order? How does the cabinetry look throughout the home? Does the driveway and pathways/stairs need a high-pressure clean? Do all boundary fences look stable and intact? Are there any rust marks or deterioration in the guttering and downpipes? Is there any visible water damage or water marks? Are there any chips or cracks in any of the windows? Is there any exposed wiring or lighting? How does the grout and silicon look in wet areas (especially shower bases)? Is there any mould growing? When was the last time the air conditioning and garage door motors were serviced? Is the property safe? Is the property compliant? It is important for a property investor to be kept updated on what property improvements could be actioned, what could keep the property looking its best, and ultimately give the best chance of a great rent return and potential increase in value. This does not mean that a lot of money needs to be spent, but a property will require money spent on it from time to time to ensure it is comparable and competitive in the market. How often should routine inspections be conducted? Every time One Agency JD Property Agents places a new tenant into a property, we conduct a routine inspection three months after the start of the lease agreement. This allows us to ensure that the tenant is keeping the property to the right standard and that they understand the lease requirements, along with how we expect them to maintain the property. If that inspection is satisfactory, we will arrange for another routine inspection in six months’ time, and then again, every six months throughout the tenancy, unless there is a problem, where we will return earlier. In New South Wales, according to Fair Trading NSW, a property can be inspected up to four times in a 12-month period and seven days written notice must be given to the tenant(s). Routine inspections and rent reviews Routine inspections are an ideal opportunity to assess the property for an up-to-date rental appraisal and, based on comparable properties, possibly a rental increase may be recommended along with a lease renewal option. For tenants, a routine inspection is an opportunity to raise any questions and discuss their future plans at the property. 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 are available to discuss any queries you may have about routine inspections. We invite all of our landlords to attend our scheduled inspections of their properties. Along with this, we provide a detailed report and photos on the outcome to ensure you are updated with the tenancy and upkeep of the property. We hope you have found this 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.
Aug 19, 2022
How to submit a successful rental application
Your rental application is one of the things the real estate agent, property manager and landlord will look at to determine if you’re the right tenant for the property. It is important that your application is correct and stands out from the crowd in order to get it approved. If you understand what property managers and landlords are looking for, and you are willing to take care during the application process, you will be surprised by what you can secure. Applying for a rental property can be overwhelming and intimidating. You want to be able to give yourself the best chance of being successful, and competition is strong. In this video, we provide a guide that helps you submit a successful tenancy application and ultimately secure a rental property. [siteloft_youtube video_id="SoUHmCWXYhw" 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 First Impressions Count Being on time to inspections and is common courtesy. As is being reasonable and pleasant at the inspection to the property manager. Make a good impression at the rental inspection by looking presentable – it shows you are keen to secure the property and you take the application process seriously. Being presentable gives an impression of responsibility, with is important in the eyes of any landlord. Provide a Complete Application with All Supporting Documents You will be provided with a list of documents that you are required to submit in conjunction with your application. In most instances, you’ll need the completed application form, photo ID, payslips or proof of employment or bank statements, references; pet references and a cover letter. Ensure you hall ALL documents ready for submission. There is no point in submitting an application without all the required supporting documents as it won’t be processed. If you are applying for a property with other people, ensure that they have done the same and supplied a fully completed application and supplied all supporting documents, otherwise you may miss out. The reason is because property manager and landlord will need to consider every single person who wishes to rent the place and determine if they’re suitable tenants. Having a completed set of documentation for all applicants/housemates will increase your chances of getting to the top of the pile and securing the property. Apply straight after the inspection and make sure you complete as much of the application as you can. If there are any sections you are unable to complete, explain why. Don’t submit a rushed or incomplete application if you really want that property. Be honest about all relevant details, including disclosing how many people will live at the property and your previous rental history. This will show that you are keen to get the property and it makes it much easier to mark you as a potential candidate. A well-thought-out tenancy application is more likely to get you the property as it shows you are transparent, organised, honest and reliable. Photo Identification Photo identification is an important part of the legal requirement to prove your identity. To apply for a property, you’ll need to provide 100 points of ID, so have these items ready to provide copies of when asked. Photo identification documents can include Driver’s licence, Passport, Official proof of age card. Employment and Income It’s important that you show that you will be able to pay the rent. This can be evidenced by your rental history along with your employment history, current payslips, and bank statements. Showing you have stable work history may be of benefit, and indicate that you are able to hold down a job, therefore deemed a low risk of not being able to pay the rent on time. Bear in mind that the property manager is likely to contact your employer to confirm your employment, so it is advisable to let them know they may receive a call. If your work history is not stable, you can prove you can pay the rent by showing you have good savings in your bank account, which will help make your application more robust. This will show that you have adequate funds to pay the rent, despite not having a regular income in the lead up to applying for the property. Rental History Your rental history is important. The stronger picture you can provide of your rental history, the more favourable your application will be. The key qualities a property manager will look for is that the rent was paid on time, the property was looked after, and the relationship with the previous agent was polite and positive, with matters such as repairs or routine inspections being dealt with co-operatively and easily. The property manager will want to know details such as the address of the previous rented property, the lease start and end dates, the amount of rent and details of the agency or property manager. It is also advisable to have a rental ledger and a rental reference from the outgoing property manager to attach to your application. You should know what your rental is history is like, so that you are not faced with any surprises, so find out your history in advance and clear up any negative issues or rental discrepancies before applying, to improve your chances. If you’ve had a past court order to vacate due to a breach of your lease, or have left a property owing more than the bond, you may be flagged on a tenancy database. When property managers see this, they will not recommend you, so avoid being listed at all costs. If you are new to renting then providing references from your current and previous employers as well as character references from people who are not relatives will also help. You may want to try a joint tenancy with a friend who has a previous positive rental history or ask a relative, who can act as a financial guarantor, to jointly take out the lease with you. References Any evidence from past landlords, an employer, or personal/character references that indicate you are trustworthy are suitable and provide additional weight to your application. With good recommendations from your references, you can prove to the real estate agent/property manager that you are reliable, will pay the rent on time and take good care of the property. When choosing referees, ask referees for permission before listing them. Let them know that are looking to list their details on your application and once you get their approval, ask them to send a reference letter and/or their contact details. Ask your previous landlord or real estate agent if they can provide you with a reference. The written reference should include details such as whether they recommend you as a tenant, was the rent paid in full and time, and was the property maintained and left in good condition. Personal/Character References are helpful as they show what type of person you are, and will assist the property manager and landlord with deciding if you are the right fit for the property. Someone with a respectful and good all-round character is more likely to look after a property and treat it as if it were their own. A personal or character reference might be provided by your manager or work colleague, or someone you know outside of your family. Ideally, you will have known that person for at least 12 months. A personal reference should include the relationship the referee has with the tenant and if applicable how they know you, how long they have known you, your personal qualities, and their contact information. Personal/Character references do not have to be long, but they do need to be positive, relevant and come from credible sources. Pet friendly rentals are competitive so it is worthwhile obtaining pet reference from your previous property manager. Cover Letter First impressions matter and including a cover letter to your application could be the added detail that puts you ahead of the competition. It should be formal but let some of your personality shine through. Write about who you are, what do you do for a living, the reason for your move, and when you are available to move in. Give a brief overview of your rental history and make mention of any special circumstances such as pets. List everyone who will be living at the property, detailing who you are and why you are the best candidates. Include photos of any pets that will be residing at the property and detail if they will be living inside or outside the rental. Follow Up Once you submit your application, it will generally take between 24 – 48 hours to process. They will check your previous rent history, verify employment and affordability of the rent, speak with your references/referees, check the application again national tenancy database, and converse with the landlord about the application. If you are approved for the property, the property manager will contact you immediately to share the good news, and then arrange for a deposit to be paid and the lease signed. After you have submitted your application, if you not heard anything after 48 hours, politely follow up with the property manager for an update, letting them know are interested in the property and you are happy to provide any additional information or references they might need or answer any additional questions. 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 In summary, having the above areas covered when submitting a tenancy application will encourage the best outcome! The property manager is predominantly concerned if the applicant can afford to pay the rent, and that they are reliable and will look after the property. Rental applications shouldn’t be too intimidating if you understand the process. At One Agency JD property Agents, we care about providing tenants with a home and efficient application process. We value our tenants and we’re here to help. Our current properties for lease are always being updated, so we encourage you keep an eye on our listings. 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 15, 2022
Rent increases – how much and how often
How much and how often should you increase the rent of your investment property is question every landlord will ask themselves. There are legislation requirements around rent increases about when to increase the rent, along with an understanding of market forces and common sense about how much to increase the rent. As a property investor, you want to be able to balance this, while avoiding long periods of vacancy, or losing ideal tenants. There is no standard answer to this age-old question about rent increases, but in this video, Joanne Danckwardt of One Agency JD Property Agents, discusses some insights you should be aware of to assist with your decision about raising the rent. [siteloft_youtube video_id="/PLyU9-CjYxI" 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 How often can you increase the rent? Legislation will dictate when and how often the rent can be increased. In NSW, the laws relating to rent increases will vary depending on the type of tenancy. Periodic Lease Agreement If the lease agreement is not within a fixed term lease timeframe, the rent can only be increased once in a 12 months period. The landlord must give the tenant at least 60 days written notice of the increase. The notice can be sent before the fixed term ends; however, the start date must be after the end of the fixed term. Fixed Term Lease Agreement If the lease agreement is still within its fixed term, and is less than two years, the rent can only be increased if the agreement sets out the increased amount or how the increase will be calculated. The landlord will not need to give the tenant written notice of the increase, as it has been built into the agreement. For lease agreements with a fixed term of two years or more, the rent can only be increased once in a 12-month period, with the landlord required to give the tenant 60 days written notice of the increase. Tenants can negotiate with the landlord to lower or withdraw the increase, or they can appeal to the NSW Civil and Administration Tribunal (NCAT) within 30 days if they feel the proposed increase is excessive or unfair. How much should you increase the rent by? If you have determined that you are within your legal rights to increase the rent, the next question/s is should you and if so, by how much? Consideration should be given to factors such as: Review the current market – is the environment right for an increase? How much are similar properties being advertised for? What is the median rent in the suburb for a property like yours? What is the vacancy rate? If the market conditions are right, a rent increase could be the right move. Your tenants may be unlikely to move out, and if they do, you may have the option of a number of new applications ready to sign a new lease agreement. If market conditions are not favourable for an increase, then you may wish to re-think increasing the rent and having the property unnecessarily vacant. There are no set rules when it comes to how much you can increase the rent by, you should be guided by the current market conditions, the asking rent for comparable properties in the area, and the consumer price index. If your tenant does decide to dispute the increase, these are the factors that the Tribunal Member will look at when determining if the increase is reasonable or not. You should also consider the quality of your tenant when planning a rent rise. If you have a long-term, five-star tenant, who treats the property like their own, it may pay to be a little conservative with rental increases, or at least be open to negotiation. That doesn’t mean not ever increasing the rent, and allowing the property to be under rented. Small, regular increases are unlikely to push your tenants away, and they will allow you to protect the viability of your asset, whilst still keeping it affordable. By attending to maintenance requests, treating your tenants with respect, and having an ideal property manager who has a rapport with them and offers comprehensive property management services, small increases will not affect tenant sentiment, and ensure that your investment property continues to move your financial position forward. By carrying out accurate and regular rent reviews, and keeping rents at or just slightly below market rates, you will continue to manage the expectations of your tenants, while ensuring that you are always maximising your cash flow, and therefore the returns on your investment, all while taking into consideration key aspects for renting out your property. If you would like to know if it’s time to increase your tenant’s rent, feel free to contact our office on 4285 7400 or email on jdpropertypm@oneagency.com.au. 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 feel you, or someone you know 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.
Feb 15, 2022
Depreciation benefits for your investment property
Depreciation benefits can be often overlooked when owning an investment property. The tax benefits of investing in a rental property can be complicated and delicate, but provide an important benefit for landlords, helping to minimise tax at the end of the financial year. As a property investor, it is important to know about the claiming depreciation on rental properties, and the tax benefits you may be able receive on your investment property, or when looking to buy an investment property. In this video, we discuss how investment property depreciation can work for investors and outline the basics of depreciation for investment properties and what benefits you may be able to receive. [siteloft_youtube video_id="8itYP7_PA3o" 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 is depreciation for property? Depreciation on an investment property is a tax break allowing investors to offset the property’s decrease in value from their taxable income. These deductions can be on both the drop in value of the building’s structure, along with items the decline in value of plant and equipment assets (eg: dishwasher, oven, carpets, blinds, etc). It allows investors to pay less tax, and is also a “non-cash deduction”, meaning it does not have to paid for. The deductions are built into the purchase. How is depreciation calculated? For any type of investment property, a specialist quantity surveyor can prepare a tax depreciation schedule. The schedule includes all deductions from capital works, plant and equipment depreciation that an investment property will receive over its lifetime. An accountant will use the schedule of depreciation for the purposes of calculating tax deductions each financial year. These deductions reduce taxable income, meaning less tax is payable. All buildings will depreciate from their date of completion, with investors able to claim depreciation deductions whenever the property produces income. They are depreciated according to their effective life, with that life for property being 40 years, meaning tax depreciation extends that full 40 years. Buildings constructed after September 1987 will only have fittings and renovations made after September 1987 qualify for a tax depreciation schedule. Property Investors should have a tax depreciation schedule prepared as soon as possible after settlement of the purchase. There are two methods when claiming depreciating assets and your accountant can advise of which is the best method for you: Prime Cost Method – gives you an equal tax deduction each year over the item’s effective life. Diminishing Value Method – gives you higher claims in the first 5 years of the item’s effective life, and smaller claims later one. Important considerations before claiming depreciation on a property For any capital works assets, it is important to keep expense records, including the following over the 40-year eligibility period: Details of the type of construction work completed Date the work commenced Date the work was completed Cost All other records of rental property depreciation expense (e.g., receipts for plant and equipment assets or maintaining your investment) should be kept from the beginning to end of their usable life, as well as another five years after you lodge your tax return. In conclusion, real estate investors should consider depreciation benefits in their as it is a legitimate deduction that can be used to lower your taxable income. The value of the property will not reduce, just your potential tax liability. In order to get a better understanding of depreciation benefits, you should consult your accountant, tax adviser, or qualified quantity surveyor for tax time tips. 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 feel you, or someone you know 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.
Dec 16, 2021
Wear and tear or damage?
What is the difference between ‘wear and tear’ and ‘damage’ when renting your property? It’s a question asked by many landlords and tenants, and can be quite confusing to understand. There can be disagreements about who is responsible to pay for damages to a rented premises, should it occur, and tends to occur at the end of a tenancy agreement. Watch this video, as Joanne Danckwardt of One Agency JD Property Agents breaks it down a little if you are struggling with the fine line between fair wear and tear vs damage in your rental property. [siteloft_youtube video_id="zysK5jHfSrE" 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 is “fair wear and tear”? According to NSW Fair Trading, wear and tear means the normal deterioration of a property from ordinary, everyday use. It is defined as reasonable wear that occurs in a property due to the ordinary day-to-day use by a tenant. Exposure to the elements, time, as well as day to day living in a property can cause fair wear and tear – it is not caused intentionally. Common occurrences of wear and tear that a landlord is responsible for include: Carpet being worn in high traffic areas Faded curtains Rusting of gutters due to rain Timber window frames fading due to sun exposure Cracks in walls due to movement Water stain in carpet from leak What is damage? Damage caused by tenants isn’t the result of ageing or normal use. It is something that is done to break, harm, or destruct parts of the property through misfortune, negligence, carelessness or abuse. It can also potentially be deemed damage if a Tenant does not report a maintenance matter, and the initial problem goes on to cause further extensive damage to the home. Damage can be classified as accidental, or malicious. Accidental damage occurs due to sudden, unexpected or unforeseen events, such as children scribbling on walls with a permanent market, curtains torn by a pet, or a smashed window due to children hitting a ball through it. Malicious or intentional damage is when the damage is caused on purpose with intent to destruct. It can be motivated by spite, malice, or vindictiveness with the aim of damaging a property, such as punching a hole in a wall, or graffitiing the property, or even the result of carrying out an act with no malice, but without permission, such as painting a wall a different colour as this would alter the current state of the property or paint damage resulting from removing decorations stuck with Blu-Tac or sticky tape. Who is responsible? Fair wear and tear and the cost of repairing is the landlord’s responsibility. This is no different from wear and tear that occurs in all homes, including the home the landlord lives in. It is only when the tenant has been irresponsible, and accidentally or intentionally caused damage to a premises, that they are liable to pay for repairs. If the wear and tear is unreasonable, for example excessive wear due to the property being used for business or illicit purposes without the landlord’s consent or knowledge, then the tenant is responsible for reinstatement. Any damage caused by a tenant, their child, pet or guests, is their responsibility. They have an obligation to repair or replace any damage caused. The Residential Tenancies Act states that it is a tenant’s responsibility to: To keep the premises reasonably clean Notify the landlord or landlords agent as soon as possible of any known damage Ensure their guests do not intentionally or carelessly cause damage. The tenant should always report any damage; whether they are at fault or not, preferably in writing. wear and tear. If the damage is caused by a third-party not directly connected with the tenant, or the tenant did not invite them onto the premises, or the event was outside of the tenant’s control (eg: traffic accidents, or break-ins), the repairs are the landlord’s responsibility and, depending on the policy, may be covered by insurance. Avoiding Disputes Knowing the difference between wear and tear and damage can eliminate a lot of grief. It is important to ensure that the condition of the premises is well documented at the start of the tenancy, via during routine inspections throughout the tenancy and also upon vacating. Thorough rental condition reports, which may include detailed photos and even videos, can be useful for avoiding or settling disputes over fair wear and tear. It is in the best interests of both landlords and tenants to make sure the reports are complete and signed. Routine inspections throughout the tenancy should note the following: The lease terms are being honoured The property and grounds are being maintained in a clean and tidy condition The property is not being damaged in any way There are no more than the number of people specified on the tenancy agreement living at the property No pets are housed at the property, unless otherwise agreed to In Conclusion Fair wear and tear can be determined if it is something that can happen gradually over time, with the normal daily use of a residential home. Damage is something that has been misused, used for a purpose other than it’s intended for; or purposefully damaged. 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 We hope these tips have been helpful. If you feel you could benefit from our services or 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.
Jun 15, 2021
Maintaining your investment property
As a landlord, you may have purchased your investment property, and have a tenant and tenancy agreement in place, but what about continuing the ongoing maintenance and upkeep measures to ensure the investment performs at its maximum potential? It’s important to maintain the value of your asset to ensure it continues to grow for you. Maintaining your investment property should be an essential part of your investment strategy, and there is some maintenance that is required by legislation, such as landlords responsibilities for smoke alarms. Watch this video as Joanne Danckwardt discusses the importance of looking after your investment property, and how you can manage it. [siteloft_youtube video_id="PgG8nHjuX6s" 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 The economic realities of maintaining residential investment properties require genuine commitment and should be properly managed, budgeted, and accounted for from the beginning. Plan ahead Being able to forecast various updates and costs is a beneficial skill when it comes to property investment planning. Consider where, when and how your cashflow will be coming in and realistically examine expenses related to holding housing investments, at various points in time. This will provide a realistic comprehension as to what type of investment you can afford and the best type of housing asset suited to your circumstances, helping you to ascertain what to look for when buying an investment property. When planning for maintenance costs, consider the occasional upgrade. This will not only maintain the value of the property, but allow for the property to continue to attract tax depreciation benefits - talk with your accountant about more tax time tips. What to plan for Investing in a residential apartment building, such as units or townhouses, will usually see a body corporate in place, who will oversee the maintenance of the building and any communal spaces, such as car parks, laundries, and gardens. When you own an apartment in these buildings, you will be required to pay an annual (or quarterly) body corporate fee, and may be required to provide additional funds for capital works as necessary, for example roof repairs following storm damage. Body corporate fees, sometimes known as strata levies, can vary, and should be fairly reflective of the type of maintenance buffer investors should prepare for, relative to the size and type of dwelling owned. Emergencies If left unaccounted for, emergency repairs can quickly eat into any cashflow buffer or savings. Consider what constitutes an ‘essential item’ in a rental property, according to legislation. Then calculate how much it would cost to replace these items, should the need arise. For example, heating and cooling systems, cooking appliances, plumbing or electrical infrastructure and hot water services. Have at least this amount of money accessible in a separate account. You should be aware of what insurance a landlord requires, and what you will and won't be covered for in an emergency. Emergency repairs are a part of rental compliance required to be adhered to as a landlord. General repairs and maintenance More regular repairs and maintenance items should also be factored into the budget and calculations for your property portfolio cashflow forecasting. Remember that your investment property is working for you every day, generating an income. As such, you want to make sure it remains productive and viable. Consider how you can keep your investment presentable and inviting. First impressions count in real estate. You could you potentially attract and retain better tenants, and also have a better chance to maximise returns. This money you put in can come back to you with dividends. Landlords should also ensure they know the difference between fair wear and tear and damage for the rental property, and be prepared to work with the tenant to resolve any maintenance concerns. 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 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 18, 2021
What is a condition report?
Before renting your property out, it is essential that you know and understand your rights and landlord responsibilities to adhere to legislation requirements, and ensure you protect your asset. As a landlord, do you know what a condition report is and why it is so important for your tenancy agreement? Watch this video as Joanne Danckwardt explains what the purpose of a condition report is and why it is a critical part of the property management process and NSW Tenancy Residential Legislation. [siteloft_youtube video_id="/kx-16D20Kv4" 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 is a condition report? A condition report records the condition of the rental property, room by room, including fixtures and fittings. It is prepared at the beginning of each tenancy, prior to the tenant moving in. Two copies are prepared, with one copy given to the tenant before or at the time the agreement is signed. An inspection is conducted of the property, with all damage described, noted, and photographed (no matter how minor – often minor damage is what causes issues in the future). Thorough time and detail should be spend on creating the condition report. Tenants are required to complete their section of the condition report, by agreeing or disagreeing, and adding their own comments, and return to the agent/landlord within seven days of moving in. It is in the tenants’ best interest to be thorough and detailed on the report. If they do not agree with what has been documented by the agent/landlord, the tenant must make their own comments in the section provided. Should a tenant not return the report to the agent/landlord, the report is deemed to be accurate as at the agent/landlord completion. Tenants should keep their own copy of their detailed condition report. The condition report is kept for the duration of the tenancy, and is used as a reference point when the tenants move out. This will help to ascertain if the property is in the same condition as it was at the beginning of tenancy, fair wear and tear excepted. The report will highlight any damage that occurred to the property while it was tenanted. The agent/landlord will refer to the condition report and check off each item listed in it to make certain that the property is in the same condition as when the tenant first took possession. How important is a condition report? The condition report is a key piece of evidence at the end of the tenancy should there be a dispute about damage, cleaning, or missing items. It is critical that the condition report is detailed, and that time is spent on it to ensure that it accurately reflects the state of the property. It can be used in a tribunal hearing if required. We recommend taking photos of the property in conjunction with preparing the condition report as the visual verification will strengthen the report. Condition reports and renewed tenancy agreements If the tenant renews their lease agreement, the new agreement will record the date the condition report was originally carried out. A new condition report is not required. 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 feel you could benefit from our experience with property management, we’d love to hear from you. Simply reach out. I hope that has helped you today. If you have any questions I’d love to talk to you. My number is 0426 264 771. I look forward to talking to you soon.