Since the Australian Prime Minister Scott Morrison announced the Covid-19 moratorium on evictions, property managers and investors have had one single thought on their minds, what is this going to mean for rent arrears? Rent Arrears is probably the single biggest stress and cause for angst for property managers, business owners, and landlords, largely due to the spiraling effect the non-payment of rent means for everyone involved. For Queensland, our worries have been alleviated somewhat, with the Government announcing new temporary legislation concerning the boundaries for the rental properties and the pandemic. The good news is that a tenant now has to prove their financial hardship as a direct result of Covid-19 as the first criteria, the next criteria are that they have to show a 25% reduction in income… Read More »
Investing Category
It’s the hottest topic in Property Management amidst the Coronavirus pandemic, how are we going to deal with Rent Arrears and financial hardship? It may seem overwhelming right now, but rest assured with some thought and planning there are solutions. The important thing is to not ignore the situation and start looking at your business or property management processes and see what needs to be addressed first. Spend some time and develop clear steps for dealing with the different scenarios that are likely to present themselves. Importantly make sure everyone from your team, landlords and tenants are all on the same page with the plan of attack and deal with each case that is presented on its own merits. The Government is still working on addressing issues with tenancies and… Read More »
One affliction many agencies and property managers suffer is a blurring of the line between what is legislation and what is company best practice. It is essential to clarify this area if you are preparing for a case at QCAT (Queensland Civil and Administrative Tribunal), because what you often think is the right thing, can invariably be simply best practice, or alternatively when you realise you haven’t followed best practice, but it might still be within the realms of what the legislation requires. Sounds confusing, doesn’t it! It actually is, the longer you work in property management or the more agencies you work for, the line between what is actually legislation and what is simply the companies policy or procedure becomes more difficult to determine. It’s not like we keep… Read More »
The longer you hold an investment property for the more likely you will at some stage need to undertake some renovations and major repairs. Properties eventually just get tired and run down no matter how well tenants look after them. Floors get damaged, kitchens and bathrooms get dated, gardens die off and fences rot. If your property is in another state or country liaising with your management company to undertake the renovations on your behalf can take a lot of the stress and hassle out of it for you. In fact, a good agency will bring any renovations required to your attention and offer to project manage on your behalf for a small extra fee. Every time a property becomes vacant is a good time to assess what work is… Read More »
Which is the best option for your business or your property if you’re a landlord? When you are thinking about setting up or purchasing a rent roll this is one of the biggest considerations you will have to undertake. There are many pros and cons to both options, but the decision must come down to your rent roll size, your goals, and your core values. This is also an important consideration if you are a landlord interviewing for your fist property management company or thinking of changing to a new one. If you only have a small portfolio and are content to just have a natural organic growth rate, then there is little point in even considering task-based, as you will be wasting valuable income on wages, however, if on… Read More »
Why Cheap isn’t alway’s Cheerful when Selling your Home or in Property Management Yes, the point of having a property whether you live in it or whether it is an investment is to make money, and whether your strategy is long term or short term, make no mistakes you need to have your figures worked out. When it comes to your biggest asset, is it really is time to be skimping on costs and penny-pinching? Like every other industry when it comes to real estate you really do get what you pay for. Let’s take the recent example of a so-called disrupter to the real estate sales industry, who have recently left the market with their tail between their legs. They came into the market offering low commissions and no… Read More »
Now let’s think about this, your property whether it’s your investment property or your beloved family home, is your biggest asset, so choosing a real estate agency to either sell or rent it shouldn’t be taken lightly. Once upon a time, it was a no brainer, there were a few big names in the industry and you pretty much chose the one with the most signs up in your area. Those days are long gone, with the progression of technology-independent and smaller brands are now able to compete on the same scale as the larger agencies. This is great for these boutique agencies, but it makes your job of selecting someone to deal with your biggest asset even more challenging and important than ever.Now there are more agencies than ever… Read More »
Looking at buying your first home? Or are you a keen investor looking for your next property? The main question both buyers and investors are finding themselves asking is, “Should I be buying a house or an apartment?”. There is honestly no correct answer to this question, it is completely dependent on you and your situation. However, here are some things to consider before purchasing a home or investment. PRICE In some areas apartments are more affordable than houses, however, if you are willing to sacrifice location, you may be able to find a small house for a similar price. The general rule of thumb is, those properties closer to the city centre are more pricey, and the further out you go the more bang you get… Read More »
It is actually hard to believe the year is literally flying by, we’ve blinked and suddenly the end of financial year is upon us. So that means it is time to chase that tax return. As an investor though, do you actually know what you can and can’t claim for. Well, we are here to share our knowledge and ensure you a claiming everything you can and achieving maximum return on your investment. First, What you should know about Capital Gains Tax (CGT) We’ve all heard this term, but it is important to understand what is capital gain? You achieve a Capital Gain when the proceeds from the sale of a property are more than the property’s cost base, and a Capital Loss is when the sale proceeds are less… Read More »
A vacant property is every landlord’s and agencies, for that matter, most vulnerable period. Whilst it is inevitable, at some stage when you own an investment property you will have to experience a period of time without tenants. This can be costly if not managed properly, each week without a tenant increases the financial pressure, especially if you have home loan obligations to meet. The goal though is to not only find a tenant but find a quality tenant that is going to pay their rent on time and look after the property as if it was their own. This must be achieved in the shortest time frame possible, to avoid unnecessary financial strain and stress. On the same note, if an agency isn’t doing their job to secure you… Read More »