property-management-by-realway

Attracting good tenants for your investment property

Thu, 01 Feb 2024 08:24:34 GMT

Owning an investment property is a great way to build equity for your future whether that be planning for the short term or into retirement. One of the challenges to ensuring that your investment runs smoothly is finding a great tenant.

A tenant that maintains a clean rental history and looks after the property can reduce any stress around your rental and will ensure that the tenancy ticks along smoothly.

Retaining a good tenant ensures that you can minimise a loss in rental returns as the longer a property sits vacant, the more you lose in potential revenue.

Meticulous tenancy screening

It is part of the Property Managers role to ensure that they carry out thorough reference checking for all applicants on your property and will then communicate their suitability with you. They will also conduct regular routine inspections and provide feedback to you and the tenants where there are concerns that need to be addressed.

A key aspect to finding good tenants is maintaining a property that is appealing and priced right to attract the best possible applicants who will take care of the property and pay rent on time.

Perfect property presentation

Property presentation is important and before renting your property, our property management team can walk through the home with you and provide recommendations on potential improvements that appeal to great tenants.

You may need to consider a refresh of interiors like paint, carpet, and blinds or an update to appliances like dishwashers, air conditioners, dryers, and kitchen appliances. Many of these items are considered to have a life span of 10 years and updating these can give the property a new life and attract the best tenants.

Depending on the age of the kitchens and bathrooms, it may be recommended to update these rooms. These more extensive works can take time and are a considerable investment. Knowing what is needed can help you plan for future renovations.

Professional cleaning and maintenance

Before showing the property to prospective tenants, ensure that it is clean and that the lawns and gardens are well maintained. This helps to create a benchmark at the start of the tenancy and ensures that the tenant is moving into a well-maintained home.

If you prefer that the lawns and gardens are maintained to a particular standard, it is recommended that this is included with the tenancy as not everyone has a green thumb. As with any investment you need to consider expenses for day-to-day bills as well as repairs and maintenance costs.

Contact our property management team who can provide recommendations and help you to find the best tenants for your investment.

How to impress your future landlord

Fri, 03 Nov 2023 07:51:40 GMT

Being a responsible tenant not only enhances your reputation as a long-term renter, but also increases your chances of being highly valued by landlords or rental providers. A role model tenant (one that impresses) pays their rent on time, respects their neighbours, takes care of the property, and minimizes maintenance costs.

What makes you the best among the rest?

To secure a desirable and long-lasting tenancy agreement, it is important to impress landlords or rental providers by exhibiting certain qualities. Rental providers aim to protect their property and increase their investment potential, so the best tenants are reliable, financially secure, and respectful of their rental property rights and obligations.

Reputable tenants with good references and rental history also demonstrate character and trustworthiness. Being a responsible tenant involves adhering to both written and unspoken rules regarding the property and surroundings, such as reducing noise levels during socially responsible times.

Respectful tenants show innate respect for their landlord, fellow housemates, and neighbours, which creates a positive word-of-mouth reputation. This can increase your chances of being chosen for your next potential rental, house purchase, or even job opportunities.

Your icing on the cake

Top off the above qualities with truthfulness and anticipation. Anticipation involves open communication via appropriate channels with the landlord, especially for domestic situations such as leaky taps or faulty WC, loose cupboard doors, or damage to walls or tiles. By reporting these issues promptly, you can help prevent further damage and endear yourself to your rental provider.

Honesty is also a crucial quality of a desirable tenant. Tenants should promptly report any accidents or incidents committed by household members, including pets. For pet agreements, which vary from state to state and property to property, full disclosure and ensuring that the pet adheres to tenancy rules and agreements can endear you to your rental provider.

If you have any specific queries about the requirements for a property or your rules and rights as a renter or rental provider, get in touch with our team.

Leasing your investment property

Fri, 28 Jul 2023 08:10:35 GMT

Key questions to ask....

If you have purchased or are looking to purchase an investment property for rental income, there are important steps and considerations to keep in mind. In this article, we will outline some key questions to ask yourself before renting out your property. Considering the factors and making sure you are fully informed when leasing your investment property will help you feel at ease with the process.

1. Are there any issues that need fixing or updating?

Before renting your property to someone new, it is important to address any issues with the dwelling. What you’re willing to live with might become dealbreakers for new renters. Common problem areas in established properties include fixtures, fittings, and appliances that may not be durable or of good quality. Investing in new or reconditioned appliances could save you money in the long run. Additionally, cleanliness is important, especially in high-use areas like bathrooms and kitchens. Mouldy grout, broken tiles, leaking taps, chipped paint, and outdated fittings should all be addressed before renting out your property. It may also be necessary to replace or clean carpets, repair wall damage, and amend or replace floors, curtains, and blinds.

2. How do I get started?

When it comes to leasing your investment property, it is strongly recommended that you enlist the services of an experienced and qualified property manager. Property managers have the experience in tenancy laws in your state and will know how to get the best possible outcome for your investment property. A trusted property manager is worth their commission so it’s important you do your research and work with the one you feel will work to have your best interest at heart.

3. What are the fees that I need to consider?

There are several management fees to consider when renting out your property, including the cost of enlisting a property manager, letting or leasing fees, management fees, marketing fees, and other administrative costs. You and your property manager will need to sign an exclusive leasing and management authority, which gives the agent exclusive rights to find a renter and manage your property.

4. Have I discussed the timeline for the rent payments with my agent?

Once a new renter has been found, your property manager will forward rent payments to you within a reasonable timeframe. This timeline may depend on whether the renter pays on time and how often payments are distributed from their trust account. It is important for your property manager to explain their accounting timelines in writing as part of their service to you.

5. What are the repairs needed after a renter has moved out?

In the event that repairs are needed after a tenant has moved out, you can authorise your property manager to arrange for urgent repairs up to a specified amount. This authority should be included in your contract. If repairs are authorised, the statement should include the maximum amount that the property manager is allowed to spend on repairs.

By keeping these considerations in mind, you can ensure a successful and profitable rental property investment. Let’s explore how we can assist you with managing your rental property and get in touch with our team today.

The Benefits of Hiring a Property Manager

Tue, 20 Jun 2023 08:03:22 GMT

Hiring a property manager can be a smart decision for anyone who owns one or more rental properties. Whether you’re a first-time investor with one property or a long-term investor with a portfolio of rental units, a property manager can help you save time, money, and hassle. Here are some of the key reasons why you should consider hiring a property manager.

Property Managers handle day-to-day operations

First and foremost, property managers can handle the day-to-day operations of your rental properties. This includes everything from screening tenants and collecting rent to scheduling maintenance and repairs. With a property manager on board, you won’t have to worry about dealing with tenant complaints, late rent payments, or emergency repairs.

Making sure you comply with your local laws and regulations

Another benefit of hiring a property manager is that they can help you stay on top of local laws and regulations. A good property manager will be familiar with the rules and regulations that govern rental properties in your area, including things like eviction procedures, tenant rights, and fair housing laws. By working with a property manager, you can ensure that you’re operating your rental properties in compliance with all applicable laws and regulations.

Property Managers maximise your rental income

In addition to handling the day-to-day operations of your rental properties, property managers can also help you maximise your rental income. They can conduct market research to determine the most competitive rental rates for your properties, and they can help you identify areas where you can cut costs or increase your revenue. With a property manager on board, you can rest assured that you’re getting the most out of your rental properties.

The benefit of reducing your vacancy rates

Another key advantage of hiring a property manager is that they can help you reduce your vacancy rates. Property managers can market your properties to potential tenants, conduct tenant screenings, and handle all of the paperwork and logistics involved in leasing your investment property. With a property manager working to fill your vacancies, you’ll be able to keep your properties occupied and generating income.

Maintaining your rental properties

Property managers can also help you maintain your rental properties and keep them in good condition. They can schedule regular maintenance and repairs, handle emergency repairs, and ensure that your properties are in compliance with all health and safety codes. With a property manager taking care of your properties, you can rest assured that they’ll be well-maintained and attractive to potential tenants.

Providing valuable insights and advice on the rental market

Another benefit of hiring a property manager is that they can provide valuable insights and advice on the rental market. They can help you identify trends and changes in the market, as well as help you make informed decisions about your rental properties. With a property manager on board, you’ll have access to their expertise and insights, which can be invaluable in making smart, data-driven decisions about your investments.

Helping you achieve work-life balance

Finally, hiring a property manager can help you achieve a better work-life balance. Instead of spending your time dealing with tenant issues and property management tasks, you can focus on other areas of your life or your business. With a property manager taking care of the day-to-day operations of your rental properties, you’ll have more time and energy to devote to other priorities.

There are many good reasons to consider hiring a property manager if you own rental properties. From handling the day-to-day operations of your properties to providing valuable insights and advice, property managers can help you save time, money, and hassle while maximising your rental income. So if you’re looking to streamline your rental property management and achieve a better work-life balance, get in touch and discover how our team can help you achieve your property investment goals.

Investing in property? Three things to consider..

Tue, 30 May 2023 08:17:26 GMT

Investing in property can be a wise choice due to its potential for strong capital growth and reliable passive income. However, it is essential to understand that property investment is a strategic decision that requires a clear understanding of your goals and objectives.

Clearly define your reasons for investing

Unlike buying a home, investing in property is not an emotional decision, so it’s essential to know your “why” before investing. Before investing, you should be clear about the duration of the investment, whether you’re looking for a short-term rental return or a long-term investment for retirement. These factors may impact your choice of property and location. Hence, it is important to research the suburbs and properties that match your investment goals.

Get clear on your budget

To invest in property, you need to have a clear understanding of your financial situation. Lenders evaluate your financial history and expenses, including rates, levies, capital works, and maintenance, to determine how much you can borrow. They also consider the potential income from the property and current and forecast capital growth in the area. This information helps them determine whether the rent will cover expenses or if you’ll need to cover the mortgage repayments and other expenses with a portion of your income.

Consider the location

Once you have your finance sorted, it’s time to look at the type of property and location. The type of property you choose to invest in will have a significant impact on your obligations for maintenance and upkeep. For instance, an apartment investment will require you to consider strata levies, which can significantly increase your costs each quarter. Additionally, you’ll need to consider the location of the property as this will impact the capital growth and rental yields.

All properties require maintenance and upkeep, and investing in property is no exception. Depending on the age of the property, you may need to allocate funds to cover regular maintenance, repairs, and future refurbishments such as paint, carpet, blinds, kitchens, and bathrooms. To ensure the smooth running of your investment property, consider engaging an experienced property manager who can provide expert advice to maximise your investment and take care of the day-to-day operations. After all, investing in property can definitely be a reliable and profitable asset with the potential for strong capital growth and passive income.

If you own an investment property, the day-to-day management can be quite challenging. However, an experienced Property Manager can alleviate the stress by providing expert advice and support to optimise your investment. Our property management team can help you find tailored solutions to make the process of owning an investment property seamless. Don’t hesitate to reach out to our team to learn more about how we can assist you.

New Rental Laws

Thu, 30 Jun 2022 17:03:00 GMT

New Rental Laws Effective 1 October 2022

Housing Legislation Amendment Act 2021

The Residential Tenancies and Rooming Accommodation Act 2008 is amended by the Housing Legislation Amendment Act 2021 (HLA Act), advancing Stage 1 of Queensland’s rental law reform.

The amendments aim to prompt the right balance between rental and property owner interests, by improving safety, security, and certainty for all parties.
Amendments aim to provide:
certainty about their tenancy arrangements by encouraging greater transparency and accountability about intentions and decision making
confidence their rental property is safe, secure, and functional by strengthening repairs and maintenance obligations and prescribing Minimum Housing Standards
certainty about how renters experiencing domestic and family violence can manage their tenancy arrangements to improve their safety without bearing the costs of the violence used against them
frameworks to support negotiations about renting with pets and encourage more pet-friendly rental accommodation in Queensland.

The Next Steps

The implementation of the new measures will take place in stages.

This will give renters, property owners, and property managers time to understand the new rights and obligations and prepare for them to come into effect.

A longer transition period for the prescribed Minimum Housing Standards will assist rental property owners in planning and budgeting for any work needed to comply with the new legislation.

What is Changing?

Effective 1 October 2022 amendments under the ending tenancies fairly reforms include:

removal of ‘without grounds’ as a reason to end a tenancy
new grounds for property owners to end tenancies, including the end of a fixed-term agreement, need to undertake significant repair or renovation, change of use or sale, or preparation for the sale of the rental property requires vacant possession
new grounds for renters to end tenancies, including the property is not in good repair or does not comply with the Minimum Housing Standards.

Renters can continue to terminate an agreement ‘without grounds,’ but both renters and property owners must provide adequate notice for the ground (reason) they are using to terminate the agreement.

Property owners can seek a tenancy termination order from the Queensland Civil and Administrative Tribunal (QCAT) if a tenant violates the lease in a significant or serious way.

Renters can apply to QCAT for an order setting aside a notice to leave if they believe it was issued in retaliation for exercising their rights.

Renting with Pets

Effective 1 October 2022 Changes making it easier for renters to have a pet include:

a renter can seek the property owner’s permission to keep a pet, and property owners can only refuse a request on identified reasonable grounds, such as keeping the pet would breach laws or by-laws
the property owner must respond to a request for a pet in writing within 14 days, or consent is implied
the property owner’s consent may be subject to reasonable conditions such as the pet has to be kept outside.
A rent increase or a pet bond are not reasonable conditions.

Minimum Housing Standards

Repair and maintenance obligations will be strengthened commencing 1 October 2022 to support the staggered implementation of Minimum Housing Standards beginning 1 September 2023.

Tenants (residential tenancies) will have seven days to complete and return the entry condition report, and tenants and property managers will be able to authorise emergency repairs up to four weeks rent.

Minimum Housing Standards will apply to new leases entered into from 1 September 2023 and to all tenancies beginning on 1 September 2024.

Renters can be confident that their rental property is safe, secure, and functional due to Minimum Housing Standards that require:

the premises to be weatherproof and structurally sound
fixtures and fittings to be in good repair and not likely to cause injury to a person
locks on windows and doors
the premises to be free of vermin,
damp and mould privacy coverings
adequate plumbing and drainage
functioning kitchen and laundry facilities (where supplied).

For more information please visit https://www.legislation.qld.gov.au/view/html/asmade/act-2021-019

EOFY for Property Investors

Tue, 28 Jun 2022 17:01:27 GMT

End of Financial Year – An important time for property investors!

1. Speak to your accountant

A good accountant is an absolutely crucial tool to any property investor. They will have a full understanding of your financial circumstances and will be able provide advice of the best way to structure your investment. They will also be able to provide guidance on possible tax implications and also benefits of having an investment property. If your investment is negatively geared, a good accountant should also help make sure your cash flow is maximised, so that you receive tax benefits through the year rather than in one hit.

2. Keep good records

Investment properties can come with great tax benefits, including the ability to claim interest, travel, repairs and depreciation. However, to claim these, you also need to keep good records. Now is the time to make sure those receipts and documents are in order. As part of this, you should also make sure you have a good depreciation schedule prepared by a quantity surveyor. This sets out every item in your home that’s eligible for depreciation and gets lodged with your annual tax return.

3. Consider making any repairs

One of the most important tax benefits for landlords is that repairs are completely tax-deductible when they happen. You don’t have to depreciate them over time. This means you can effectively reduce your income and pay less tax in the financial year in which you carry them out. However, in the eyes of the ATO there’s a difference between repairs and improvements. The second category – which includes extensions and renovations – needs to be claimed over time rather than in one hit. So be careful about which category your work falls into and speak to your tax advisor if you’re in any doubt.

4. Get your timing right

Whether you do something before or after 30 June can matter a lot when it comes to your tax. Not only are most expenses deductible during the financial year they’re incurred, any income you receive from renting or selling an investment property also gets counted in the financial year you receive it. That means if you sell a property before 30 June for a profit, any capital gains tax (CGT) you must pay will be based on this year’s income. After 30 June, it counts towards next year’s.

5. Consider next year’s interest bill

If you want to reduce your taxable income this financial year, one way you may be able to do it is to prepay next year’s interest on any loan you have over your investment property. However, to do this you’ll need to meet a few criteria. These include having a fixed rate home loan and having that loan entirely separate from your personal finances.

If you’re looking to reduce your tax bill, you may also be able to pre-pay some of next year’s expenses before 30 June. This may include rates and levies and some insurance premiums. Again, speak to your accountant if you’re interested in knowing how to do this.

6. Speak to us

We can help you make the most of the end of financial year. We can also advise you on what you should be doing on a practical level to improve your property’s value and potentially minimise tax. For instance, having someone carry out regular outdoor maintenance won’t just leave your place looking better, it’s also usually tax-deductible.

We also provide each of our clients with monthly and annual income and expense statements, showing exactly what they’ve made and spent. These are essential when it comes to understanding where you stand come 30 June.

First Time Property Investors

Tue, 31 May 2022 17:00:13 GMT

Information for First Time Property Investors

We understand that as an investor, you have a lot on your mind after deciding to buy an investment property. There are many things you will wonder about, from selecting the right property manager to deciding whether a 6 or 12-month lease is best. We have created the following to assist you in answering any questions you may have and to assist you in making the best decisions for yourself and your investment.

Selecting Tenants

When it comes to selecting a tenant, we know how important it is to choose the right person(s) you know and trust will take care of your property as if it were their own. You should always have the final say when it comes to choosing a tenant, as an agency we complete all reference checks, and provide a professional opinion on who we would recommend while also allowing you to view all applications and supporting documents.

Can I say no to pets?

Although there has been much speculation around the rights of both the tenant(s) and investor(s) when it comes to whether pets are allowed in a property, we are here to clear things up. Under current Queensland legislation, landlords do still reserve the right to say no to pets, however, as of 1 October 2022 landlords can only deny pets if the refusal is deemed reasonable, and all tenants are allowed to negotiate renting with pets. To learn more about the upcoming law reforms, click here.

As an agency, we generally recommend listing a home as pets negotiable, depending on the property. Please keep in mind that if you say no to pets, you may be cutting yourself off from approximately 80% of the market in Toowoomba. If you approve a pet, we do require tenants to sign a pet agreement assuming full responsibility for the pet, so if it paws screen doors, digs holes, upsets the neighbours, and so on, it could be considered a breach of their agreement.

Do I need to have a bond clean done prior to renting my home?

It is strongly advised that a professional bond clean, flea treatment, and carpet cleaning be performed prior to tenancy. We recommend this because if we hand over the property in pristine condition, we can keep that standard for future tenancies and require that the home be returned to that standard at the end of each tenancy.

Should I opt for a 6 or a 12-month lease?

Typically, we do suggest a 6-month lease initially, however, there are many circumstances where a 6-month lease is preferable and equally as many instances where a 12-month lease is preferable. A six-month lease will give your property manager time to get in and complete their first inspection, make sure you are happy, the tenant is happy, and everything is moving along smoothly, then offer a 12-month lease from there. Alternatively, if you did receive a very strong application that had great rental history, had been in their job for quite some time, etc. it would be worth considering locking them down for 12 months. On the application, we do ask tenants what their preference is, which is then presented to the landlord to either approve or decline from there.

Can I charge tenants for water consumption?

Providing the home meets these standards, you can charge the tenant for water.

What happens if the tenant damages the home?

Landlord insurance is something we would strongly recommend to every investor to provide a piece of mind. To read more about why we advocate for landlord insurance, click here. If a tenant maliciously damages a home, should the damage exceed one week’s rent, our agency will contact you and discuss your options. A Form 11 Notice to Remedy Breach will be issued providing 7 clear days’ notice for the issue to be rectified. In the event the tenant fails to rectify the damages, the agency may then move to issue a 14-day Form 12 Notice to Leave for failure to rectify a Form 11 Notice to Remedy Breach.

What happens if the tenant stops paying rent?

As soon as we are aware of the overdue rent, we make every effort to contact and notify the tenant by contacting them, via email, phone, and post. Once the rent reaches 8 days in arrears, we will then issue a Form 11 Notice to Remedy Breach for Rent Arrears.

Can I use my preferred tradespeople?

Landlords can certainly use their preferred tradespeople, and when it comes down to it, it is the landlord’s choice. There can, however, be benefits in using the tradespeople your agency recommends. The advantages of using the recommended tradies are the following:

The agency knows and trusts these contractors
The agency knows and trusts the quality of the tradespersons work
The agency has a copy of their public liability insurance

When will I receive my rental payments?

Here at RealWay, we offer two options, either Mid and End of Month or just End of Month. There are no extra charges associated with choosing one or the other, it simply is dependent on your personal preferences when considering how your finances are structured. Mid & End of Month disbursements are paid the first working day after the 15th & again on the first business day of the month. The end-of-month disbursement is paid only on the first business day of the month.

Becoming a property investor is an exciting time that can be very profitable, but it can also come with many challenges. To ensure you have all the correct and up-to-date information, we recommend speaking with your preferred property manager.

If you are thinking of purchasing an investment property, our team here at RealWay offers an exclusive investor support service. To learn more, click here or contact Grace on 0437 637 232.