tag:blogger.com,1999:blog-27604465824588452142015-09-16T12:36:43.805-07:00Management projectasrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.comBlogger43125tag:blogger.com,1999:blog-2760446582458845214.post-25632066352820780612011-12-18T00:48:00.000-08:002011-12-18T00:48:29.503-08:00Victoria Property Market Snapshot<b>July 2011</b><br /><br /><br />A guide to Victoria's best and worst suburbs according to market growth.<br /><br /><div class="separator" style="clear: both; text-align: center;"><a href="http://1.bp.blogspot.com/-fPcLEjvwT1k/TkEM2nnimiI/AAAAAAAAAL8/lIjFC5dqBkc/s1600/Best+Worst+Performing+Vic+Suburbs.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="400" src="http://1.bp.blogspot.com/-fPcLEjvwT1k/TkEM2nnimiI/AAAAAAAAAL8/lIjFC5dqBkc/s400/Best+Worst+Performing+Vic+Suburbs.jpg" width="280" /></a></div><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><b><br /></b><br /><b>Melbourne's fastest growing suburbs (house):</b><br /><a href="" name="more"></a><br /><div class="separator" style="clear: both; text-align: center;"><a href="http://1.bp.blogspot.com/-ac45Klq2iW8/TkENL5pEMCI/AAAAAAAAAMA/BmJSnTB7HCE/s1600/Melbourne+Home+Clearance+Rates.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="248" src="http://1.bp.blogspot.com/-ac45Klq2iW8/TkENL5pEMCI/AAAAAAAAAMA/BmJSnTB7HCE/s400/Melbourne+Home+Clearance+Rates.jpg" width="400" /></a></div><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><b><br /></b><br /><b>Melbourne's fastest growing suburbs (unit):</b><br /><br /><div class="separator" style="clear: both; text-align: center;"><a href="http://4.bp.blogspot.com/-n02KY3hzNr0/TkENXS44x-I/AAAAAAAAAME/FRDyQSUOQjE/s1600/Melbourne+Unit+Clearance+Rates.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="243" src="http://4.bp.blogspot.com/-n02KY3hzNr0/TkENXS44x-I/AAAAAAAAAME/FRDyQSUOQjE/s400/Melbourne+Unit+Clearance+Rates.jpg" width="400" /></a></div><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><b>Rental Market Snapshot - June 2011</b><br /><ul><li><span style="font-size: small;">The current rental vacancy rate in Melbourne is 2.2 per cent </span></li><li> <span style="font-size: small;">The current rental vacancy rate for Regional Victoria is 1.5 per cent</span></li></ul><br /><br />Sources:<br />www.domain.com.au<br />www.homepriceguide.com.au<br />www.reiv.com.auasrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com0Melbourne VIC, Australia-37.8131869 144.96297960000004-38.213623899999995 144.27785560000004 -37.4127499 145.64810360000004tag:blogger.com,1999:blog-2760446582458845214.post-88641303931514677622011-12-18T00:41:00.000-08:002011-12-18T00:41:49.639-08:00How to Rent Your Property Quickly and Attract Your Ideal Tenant<div style="font-family: inherit; text-align: justify;"></div><div class="MsoNormal" style="color: red; font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: center;"><span style="font-size: large;"><i>First impressions count when looking to secure the best tenant in the shortest amount of time for a Melbourne landlord.</i></span></div><div></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b><br /><span style="font-family: inherit;">Before you even start to list your rental property, identify the type of tenant you are looking to attract.</span></b></span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"><a href="http://1.bp.blogspot.com/-EoMh4QLBdbc/TnLJcAMLU4I/AAAAAAAAANM/DccJy4uPFdQ/s1600/Low+Vacancy+Melbourne.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="150" src="http://1.bp.blogspot.com/-EoMh4QLBdbc/TnLJcAMLU4I/AAAAAAAAANM/DccJy4uPFdQ/s200/Low+Vacancy+Melbourne.jpg" width="200" /></a></div><a href="http://2.bp.blogspot.com/-nW0p59zRVrc/TnKyVY3YDUI/AAAAAAAAANA/tkUfYbaJ-Cs/s1600/Low+Vacancy+Melbourne.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><br /></a><br /><ul style="text-align: justify;"><li><span style="font-size: small;">There are tenants on a limited income who will not mind if the property is not in first class condition.</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">There are tenants looking for a well maintained, tidy family home close to schools and shops.</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">There are tenants who prefer low maintenance homes on small sections with modern features throughout.</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">There are tenants looking for a trendy apartment close to cafes, bars and business sectors.</span></li></ul><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">Once you have identified your ideal tenant, you can then determine what budget to allocate in order to bring your property up to the standard required.</span><br /><a href="" name="more"></a></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b> <span style="color: blue;"> </span></b></span><br /><span style="font-size: small;"><b><span style="color: blue;">Property management presentation tips each landlord needs to be aware of:</span></b></span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>First impressions count </b>Mow the lawns, tidy gardens and clean the windows, paths, gutters and outside paintwork. These are all things seen from the street, and you don’t want prospective tenants to dismiss the property before getting to the front door.</span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>Repair</b> or replace leaking taps, sticking doors, broken light fittings, loose door handles, rotten floorboards and torn fly screens. Tenants love proactive landlords and if they have to choose between a few different properties they will generally choose the one that is ready to go.<br /> </span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>Decorating </b>If you are thinking about painting, only paint those areas that really need it unless you plan on doing the lot. New paint may only make those areas left unpainted look even shabbier. Use light, neutral colours as strong colours may not be to the tenants taste and can clash with tenant’s personalities or furniture. If paint is generally in good condition, touch up the scruffy bits.</span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>Noisy? </b>If your property is in a noisy area (main road, close to railway, schools etc) viewing times should occur when the noise is at its lowest. If you are showing your property at night then exterior security lights are a must and all tenants will be impressed when they step down the driveway and lights pop on automatically.</span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><br /><b>Freshen Up and Air Out </b>Get rid of odours that you may not notice but prospective tenants will, such as cigarette or pet smells. It may be worth having the carpets and curtains cleaned, neither of which is very expensive. Air fresheners can be left at the property to help eliminate odours. Prior to prospective tenants arriving windows should be opened.</span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>Lots of Light </b>Open the curtains and blinds to let the sun and the view inside. Nobody likes a dark house, and the view will make the rooms feel bigger. More sunlight will reduce moisture and make the property feel warmer and often larger.</span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>No-one Wants to View a Mess </b>Have the property clean, tidy and uncluttered at viewing times. If the property is still tenanted then sometimes it may be worth waiting until the last tenants have vacated prior to showing new tenants.</span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>Pools</b> If your property has a pool, ensure the pool and the surrounds are sparkling clean with the appearance of low maintenance. You want the prospective tenants to think it is an asset not a burden. If the filter or the pool needs professional repairs, it is better to do it now rather than put it off. The repairs are usually tax deductible.</span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>Safety First</b> Ensure that all electrical wiring and power points are safe. This includes any electrical appliances to be included with the property.</span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>Minimise Your Risk </b>Take out comprehensive insurance cover on the property (including public liability). You don’t want to be sued by a prospective tenant who accidentally injures themselves while inspecting the property. </span><br /><br /><span style="color: blue; font-size: small;">Too busy or living out of state? All tips mentioned in this article are areas that your </span><span style="color: blue; font-size: small;"><b><a href="http://www.truepmvic.com.au/index-tess1.php">property manager</a></b></span><span style="color: blue; font-size: small;"> can look after for you. If you would like more information on how True Property Management in Melbourne can provide this service to you, visit our </span><span style="color: blue; font-size: small;"><b><a href="http://www.truepmvic.com.au/index-tess1.php?ItemNo=1040">True Owners</a></b></span><span style="font-size: small;"><span style="color: blue;"> page.</span></span></div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com0Melbourne VIC, Australia-37.809575 144.96518600000002-38.210012 144.28006200000002 -37.409138000000006 145.65031000000002tag:blogger.com,1999:blog-2760446582458845214.post-54213418279976748882011-12-18T00:38:00.000-08:002011-12-18T00:38:22.603-08:00How to Avoid Real Estate Scams<div style="text-align: justify;"><span style="font-size: small;">After reading an article on the Australian Securities and Investments site regarding <a href="http://managements-project.blogspot.com/" target="_blank">Rob Dale's sentence for defrauding four investors out of 2 million dollars</a>, I spent time searching for tips on how to avoid real estate scams. The following article by <a href="http://managements-project.blogspot.com/" target="_blank">Kathryn Vercillo</a> presents great advice:</span></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="font-size: small;">Real estate investment scams are definitely a problem that many unfortunate people have run into. Real estate is worth a lot of money (even in these days when the real estate market isn’t exactly at its best). That always attracts fraudulent people and that’s why someone who is looking to invest in <a href="http://managements-project.blogspot.com/">real estate</a> may come across a problem with scams. There are definitely some things that you can do to protect yourself from scams when investing in real estate though. In fact, a lot of these things are basic and common sense things that you probably already know but can forget in the hasty excitement of buying a new home for investment. Let’s take a look at them so you can keep them in mind and avoid <a href="http://managements-project.blogspot.com/">getting scammed</a>.</span></div><a href="" name="more"></a><br /><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"><span style="font-size: small;">Seven tips to protect yourself from a real estate investment scam:</span></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"></div><div style="text-align: justify;"><span style="font-size: small;"><b>1. Make sure that everything about the transaction is put into writing.</b> The most important thing that you can do to protect yourself from becoming a victim of a real estate investment scam is to make sure that you get everything in writing. Assume that nothing is actually certain about the deal until it is in writing. Someone might make you a lot of promises about the property but they aren’t necessarily true unless they are in writing.</span></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"></div><div style="text-align: justify;"><span style="font-size: small;"><b>2. Ask questions and then ask more questions.</b> Make sure that you get as much information as you can about the deal that you’re getting involved in. A good real estate agent and a good seller with both be more than willing to answer all of your questions. Be willing to walk away from the deal if your questions are not answered to your full satisfaction. Any real estate deal you make should have a benefit for you and a benefit for the other party. If the deal seems to favor you, find out what the other party is getting out of the deal by asking the right questions.</span></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"></div><div style="text-align: justify;"><span style="font-size: small;"><b>3. Do get professional assistance and advice. </b>An experienced real estate attorney should be looking at any property contracts that you sign to make sure that they’re legitimate. If you’re not just buying a home for yourself but actually care about the process of investing in real estate then it might be worth it for you to join a <a href="http://managements-project.blogspot.com/">real estate club</a>. This would allow you to get help and advice about real estate deals from professional investors who are likely to have a good sense of whether or not you’re getting scammed. If you are merely buying a home, seek the insights of a professional inspector and assessor. Professionals are the way to go.</span></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"></div><div style="text-align: justify;"><span style="font-size: small;"><b>4. Double check that everyone you are working with in the deal really is a professional. </b>Double check that the people involved in the transaction are professionals. Check that they have the right qualifications for their job. Scam artists will often invent elaborate backgrounds in order to gain your trust. You need to do more than just make sure that they have a website. You need to look for online reviews, reports with the BBB and other reputable third party information about whether or not they are truly working professionals. </span></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"></div><div style="text-align: justify;"><span style="font-size: small;"><b>5. Know the value of the property.</b> Whether you are buying or selling a property, make sure that you know what the value of the property is. Look at the value of other comparable homes in the same area to get a general idea. Get a professional assessment for a more accurate quote. You want to work with people who are interested in a price range around what you know is the current value of the property. People who are too far out of that range (especially on the questionably low end) may be scammers.</span></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"></div><div style="text-align: justify;"><span style="font-size: small;"><b>6. Learn about the most common real estate investment scams</b>. Do your research to find out what the most common real estate investment scams are. Check with the IRS and scan the local news headlines. You can always do a Google News search on the topic to find out what people are doing scam-wise in the real estate industry. Knowing what the common problems are in the industry will allow you to really know what to look out for. This is true for learning the most common scams as well as for learning the most recent scams.</span></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"></div><div style="text-align: justify;"><span style="font-size: small;"><b>7. Monitor your credit report during the time that you are investing in real estate.</b> One of the most important things that you can do for yourself is to monitor your credit report. The fact of the matter is that you can make a huge effort to prevent problems with <a href="http://managements-project.blogspot.com/">real estate investment</a> scams but there is always the chance that a fraudulent person is going to get you in one way or another. The first sign of this is very likely to be identity theft or financial theft. In either case, you will be able to nip the problem in the bud if you notice it right away. That’s something that you can be more assured of if you are watching your credit report carefully.</span></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"></div><div style="text-align: justify;"><span style="font-size: small;">Real estate <a href="http://kathrynvercillo.hubpages.com/hub/When_It_Is_Right_To_Work_With_A_Financial_Advisor">investment scams</a> are awful. They take the wonderful process of buying a home and investing in real estate and turn it into a really scary endeavor. However, you don’t have to be a victim of this unfortunate problem. Whether you’re buying a home for yourself or truly want to get involved in real estate investing, you can implement these simple tips to protect yourself from serious problems with scammers.</span></div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com3Melbourne VIC, Australia-37.8131869 144.96297960000004-37.8407884 144.94416010000003 -37.785585399999995 144.98179910000005tag:blogger.com,1999:blog-2760446582458845214.post-35309831240512231612011-12-18T00:37:00.000-08:002011-12-18T00:37:00.985-08:00Beware The Risks of Co-Ownership When Investing In Property<div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"><b style="color: red;">The Age</b> recently published a article we thought worth sharing highlighting the traps involved when looking at co-ownership for your next property investment.</span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"><br /></span></div><div style="color: red; font-family: inherit; text-align: justify;"><span style="font-size: small;"><a href="http://managements-project.blogspot.com/"><b>Not Going It Alone Can Come At A Cost</b></a></span></div><div style="font-family: inherit; text-align: justify;"><a href="http://1.bp.blogspot.com/-ZD4B4TEqme0/TnQIP0ZdZrI/AAAAAAAAANQ/nXL_VHqIhVQ/s1600/logo_the_age.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="http://1.bp.blogspot.com/-ZD4B4TEqme0/TnQIP0ZdZrI/AAAAAAAAANQ/nXL_VHqIhVQ/s1600/logo_the_age.jpg" /></a><span style="font-size: small;">Co-ownership may be a great option for investors or owner/occupiers struggling to get into the housing market, but it is full of traps. </span></div><div style="font-family: inherit; text-align: justify;"></div><div style="font-family: inherit; text-align: justify;"><br /><span style="font-size: small;">Here are some points you should you be aware of before committing to this type of arrangement.</span></div><div style="font-family: inherit; text-align: justify;"></div><div style="font-family: inherit; text-align: justify;"><br /><span style="font-size: small;"><b>The duration of the co-ownership agreement</b></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">Is it a 10-year project? Or is it a rolling 12 month agreement, where every year you sit down and decide whether to hold the property or sell it? The duration of the agreement will become important in instances where someone owns a property with others, under an agreement to hold it for 10 years due to a desire to capitalise on the long-term growth in the area, and then suddenly the individual dies. The relatives may want their share of the property now and won't care about the deceased's agreement to hold the property for 10 years. A well written and well-defined co-ownership agreement will put the matter to rest.</span><b> </b><br /><a href="" name="more"></a><br /><b>Managing the property</b> </div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">An agreement should be made about who will manage the investment. If it's a residential property, it is possible that one of the co-owners who lives in the area can manage the investment, thus saving on property management costs. But will the one managing the property be as good at selecting quality tenants and maximising the rentals as a <a href="http://managements-project.blogspot.com/">professional real estate agent</a> would be? If the co-owners decide not to use a real estate agent, how will the owner who assumes management be compensated, if at all?<b> </b></span><br /><br /><span style="font-size: small;"><b>Philosophy on maintenance and repairs</b> </span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">If it’s a potential development site, the group should decide whether to spend a minimum amount on repairs until the property is eventually demolished and sold as a development, or whether to spend whatever amount is needed to make sure the property is in good condition therefore attracting better quality, higher paying tenants to maximise the yield. </span><br /><br /><span style="font-size: small;"><b>Working out equal say</b> </span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">Do all owners have an equal say regardless of the contributions in the investment? In other words, does the vote equal to the amount of dollars invested? Will voting constitute "majority rules" or a unanimous vote to sell the investment earlier than the 10-year time frame originally agreed upon? It is best if the group formulates a business plan that is detailed in the co-ownership agreement, so that disputes and disagreements can be avoided. It pays to look into these areas and get things right from the start. After all, the co-ownership agreement is there to protect you when things go wrong.</span><br /><br /><span style="font-size: small;">Start with the end in mind and you can’t go far wrong.<span style="color: blue;"><b> </b></span></span><br /><br /><span style="font-size: small;"><span style="color: blue;"><b>Your Turn:</b> Have you had experience in a co-owned investment property, would you recommend it to others and what advice would you pass to others?</span><b> </b></span></div><div style="font-family: inherit; text-align: justify;"></div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com2Melbourne VIC, Australia-37.809575 144.96518600000002-38.210012 144.28006200000002 -37.409138000000006 145.65031000000002tag:blogger.com,1999:blog-2760446582458845214.post-43318394508102976832011-12-18T00:36:00.000-08:002011-12-18T00:36:12.352-08:00Tips to Keep a Tenant Sweet<div class="separator" style="clear: both; text-align: center;"><a href="http://2.bp.blogspot.com/-btyXxuRBW3s/ToBFOOQw9dI/AAAAAAAAANg/xuuvT3-FDBQ/s1600/Melbourne+rental+property.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="213" src="http://2.bp.blogspot.com/-btyXxuRBW3s/ToBFOOQw9dI/AAAAAAAAANg/xuuvT3-FDBQ/s320/Melbourne+rental+property.jpg" width="320" /></a></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">This recent article posted by <a href="http://managements-project.blogspot.com/">www.news.com.au</a> reiterates how important it is in this current climate (note - important to keep your tenants happy in an economic climate!) to make sure your tenants are happy and looked after. Whether you self-manage your rental properties or use a <a href="http://managements-project.blogspot.com/">property manager</a> , now is a good time to ask for an update on your <a href="http://managements-project.blogspot.com/">property's tenants</a>. Are they well looked after, are there any maintenance issues the property manager may not be aware of, has there been any contact recently?</span></div><div style="font-family: inherit;"><span style="font-size: small;"><br /></span></div><div style="color: blue; font-family: inherit; text-align: justify;"><span style="font-size: small;"><b>PROPERTY investors are receiving higher rents but, in a rare twist, vacancy rates are rising in most capital cities. </b></span></div><div style="color: blue; font-family: inherit; text-align: justify;"><span style="font-size: small;"><b> </b></span> </div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">It's a case of landlords recovering higher costs rather than pocketing profits, say real estate experts, who believe investors should do what they can to keep good tenants.</span></div><a href="" name="more"></a><br /><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">As house price growth struggles nationally, a new report from the Real Estate Institute of Australia says median weekly rents rose in every city except Darwin in 2010-11.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">For a three-bedroom house, Adelaide's rental growth was the strongest, up 6.7 per cent to $320 per week.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">It was followed by Sydney (up 5.3 per cent to $400), Melbourne (up 4.6 per cent to $340), Hobart (up 3.1 per cent to $330), Perth (up 2.6 per cent to $390) and Brisbane (up 1.4 per cent to $350).</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">However, rental vacancies rose in all cities except Brisbane and Perth, indicating that tenants have more housing choices than a year ago.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit;"></div><div class="story-promo story-promo-middle" style="font-family: inherit; text-align: justify;"></div><div class="story-related story-sidebar block-style" style="font-family: inherit; text-align: justify;"></div><div style="font-family: inherit; text-align: justify;"></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">Vacancy rates are still below the 3 per cent level considered to reflect an oversupply of rental accommodation.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">REIA president Pamela Bennett says that it is unusual to see both rents and vacancies rising simultaneously. "Usually when vacancy rates get tight, rents go up," she says. "However, a lot of other things are contributing to the rent. Utilities like water and rates are contributing to the increase." And landlords may have only recently been able to include last year's interest rate rises in their rental agreements, Bennett says.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">She says rising vacancy rates may reflect first-home buyers staying out of the market amid uncertainty about interest rates, the economy and politics. "The Y Generation are very well informed and are thinking 'OK, I might stay another year at home'.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">"In the rental market, agents will tell you if you have a good tenant who's responsible and paying. Hang on to them. It's a two-way partnership."</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">University lecturer, author and property investor Peter Koulizos says some landlords are dropping their rents to attract tenants, while many are not moving rents at all.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">Koulizos says tenants are setting today's rents, unlike a few years ago when rising migration and international student arrivals gave landlords the upper hand.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">His tips to keep a good tenant include:</span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">* Follow up on maintenance issues quickly and put yourself in their shoes.</span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">* Do not increase the rent just because the lease is up for renewal.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">Renew the lease well before the previous lease ends. "Approach them 6-8 weeks before it ends, before they have a chance to think about shifting," Koulizos says.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">Sydney has Australia's tightest rental vacancy rate at 1.5 per cent, followed by Adelaide (1.8 per cent), Melbourne (2.2 per cent), Brisbane (2.5 per cent), Hobart (2.7 per cent) and Perth (3.5 per cent).</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="color: red; font-family: inherit; text-align: justify;"><b><span style="font-size: small;">If you have any concerns about the current property investment market or need advise on how a property manager can help minimise risk, <a href="http://managements-project.blogspot.com/">give us a call</a>. </span></b></div><div style="background-color: transparent; border: medium none; color: black; overflow: hidden; text-align: left; text-decoration: none;"><br /></div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com0Melbourne VIC, Australia-37.809575 144.96518600000002-38.210012 144.28006200000002 -37.409138000000006 145.65031000000002tag:blogger.com,1999:blog-2760446582458845214.post-57289785345954340172011-12-18T00:34:00.001-08:002011-12-18T00:34:50.051-08:00Tenancy Laws - What Are Your Rights as a Tenant?<div class="separator" style="clear: both; text-align: center;"><a href="http://4.bp.blogspot.com/-ZcbYZuHEFs8/Tqiv7V_UYDI/AAAAAAAAAOk/53iNn1Eg4qs/s1600/helping+tenants+in+Melbourne.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="212" src="http://4.bp.blogspot.com/-ZcbYZuHEFs8/Tqiv7V_UYDI/AAAAAAAAAOk/53iNn1Eg4qs/s320/helping+tenants+in+Melbourne.jpg" width="320" /></a></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">Tenancy laws are there to protect your rights as a tenant. Do not sign anything unless you understand what it means. Never sign a blank form, even if it looks official. All official notices you give your landlord or agent must include their name, your signature and other details in some circumstances.</span></div><a href="" name="more"></a><span style="font-size: small;"> </span><br /><div style="text-align: justify;"><span style="font-size: small;"> <span style="color: blue; font-size: large;">At the beginning of a tenancy</span></span></div><ul style="text-align: justify;"><li><span style="font-size: small;">read and sign your ‘Residential Tenancy Agreement’ form</span></li><li><span style="font-size: small;">keep a copy of anything you sign</span></li><li><span style="font-size: small;">seek advice if you have a tenancy issue or question</span></li><li><span style="font-size: small;">check that your new home is completely safe</span></li><li><span style="font-size: small;">complete a ‘Condition Report’ if you have paid a bond – you can add to or edit a ‘Condition Report’ completed by an agent </span><span style="font-size: small;">consider taking photos of the property before you move in</span></li><li><span style="font-size: small;">complete and sign the ‘Bond Lodgement’ form and keep the receipt</span></li><li><span style="font-size: small;">contact the utility companies of your choice to ensure these are connected by the time you move in.</span></li></ul><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"> <span style="color: blue; font-size: large;">During a tenancy</span></span></div><ul style="text-align: justify;"><li><span style="font-size: small;">communicate with your landlord or agent and keep them informed of any problems that may arise</span></li><li><span style="font-size: small;">make sure you pay your rent on time </span><span style="font-size: small;">keep all records such as rent receipts</span></li><li><span style="font-size: small;">keep your property reasonably clean; this will minimise any problems that may occur during a landlord or agent inspection</span></li><li><span style="font-size: small;">get written permission from your landlord if you wish to sub-let or assign the tenancy agreement to someone else</span></li><li><span style="font-size: small;">let your landlord or agent know of any repairs that need to be done</span></li><li><span style="font-size: small;">put all requests to your landlord or agent in writing. Forms are available from Consumer Affairs Victoria.</span></li></ul><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"> <span style="color: blue; font-size: large;">At the end of a tenancy</span></span></div><ul style="text-align: justify;"><li><span style="font-size: small;">give adequate notice when planning to leave; the notice period will depend on your reason for leaving </span></li><li><span style="font-size: small;">pay any outstanding rent</span></li><li><span style="font-size: small;">check your responsibilities for separately metered utilities</span></li><li><span style="font-size: small;">clean the property</span></li><li><span style="font-size: small;">consider taking photos after you move your furniture out to show the condition of the property</span></li><li><span style="font-size: small;">take all your belongings with you </span></li><li><span style="font-size: small;">keep the ‘Condition Report’ in case of a dispute</span></li><li><span style="font-size: small;">try to agree with your landlord on the return of the bond</span></li><li><span style="font-size: small;">if you have paid a bond, complete the ‘Bond Claim’ form and return it to the Residential Tenancies Bond Authority. The form must be signed by you and your landlord or agent</span></li><li><span style="font-size: small;">leave a forwarding address with your landlord or agent or Australia Post.</span></li></ul><div style="text-align: justify;"></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: blue;">At <a href="http://www.truepmvic.com.au/index-tess1.php?ItemNo=1037">True Property Management</a> you can rest assured we will do our utmost to find you the home you are looking for. By registering with our ‘</span><a href="http://www.truepmvic.com.au/index-tess1.php?ItemNo=1050" style="color: blue;">Rental Wishlist</a><span style="color: blue;">` your search will be over soon. You simply tell us what you are looking for and we will do the rest. As your nominated property management agency, we know the tenancy laws inside out. Both your rights and the rights of your landlord are protected at all times. </span><span style="font-size: small;"><br /></span></div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com0Melbourne VIC, Australia-37.8131869 144.96297960000004-37.8407884 144.94416010000003 -37.785585399999995 144.98179910000005tag:blogger.com,1999:blog-2760446582458845214.post-55598708122175662392011-12-18T00:34:00.000-08:002011-12-18T00:34:12.340-08:0010 Years Ago - by REIV.com.au<div class="separator" style="clear: both; text-align: center;"><a href="http://4.bp.blogspot.com/-DC24MCdM4O8/TpOCgbGbghI/AAAAAAAAANs/aYApyNdml3w/s1600/melbourne+property+10+years+ago.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="200" src="http://4.bp.blogspot.com/-DC24MCdM4O8/TpOCgbGbghI/AAAAAAAAANs/aYApyNdml3w/s200/melbourne+property+10+years+ago.jpg" width="200" /></a></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">A review of some market indicators shows that a lot has changed in the past decade.</span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"> </span> </div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">In the June quarter this year the median Melbourne house price was $590,000, which is 103 per cent higher than the $291,000 recorded in the June quarter 2001.</span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"> </span> </div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">A decade ago the stamp duty payable was $13,120, which is 132 per cent less than the $30,470 which was payable on the median house if purchased in the June quarter this year. Unlike a decade ago, first home buyers can now benefit from a 20 per cent reduction on this bill for most homes.</span></div><a href="" name="more"></a><br /><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"> </span> </div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">However the First Home Owners Grant was valued at $7,000 in 2001 and is still valued at $7,000.</span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"> </span> </div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">According to the Australian Bureau of Statistics, the average home loan to a non-first home buyer was $291,200 in June this year, 99 per cent more than the $146,500 recorded in June 2001.</span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"> </span> </div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">The median price of a house in Toorak was $2,175,000 in the June quarter this year, 105 per cent higher than the $1,062,500 in the June quarter a decade ago.</span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"> </span> </div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">In more affordable Broadmeadows the median was $370,500 in this year’s June quarter, a substantial 219 per cent higher than the $116,000 in the June quarter 2001. This is indicative of a trend that has seen the more affordable suburbs increase in value more rapidly.</span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"> </span> </div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">And finally, in the City of Ballarat the median house price has increased by 122 per cent from $130,000 a decade ago to $288,500 in the most recent June quarter.</span></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="font-size: 10pt;">Source Data: <a href="http://managements-project.blogspot.com/">www.reiv.com.au </a></span></div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com0tag:blogger.com,1999:blog-2760446582458845214.post-8366532937337609622011-12-18T00:33:00.000-08:002011-12-18T00:33:38.637-08:00Tenancy Laws - What To Do If You Think Your Rent Increase Is Too High<div class="separator" style="clear: both; text-align: center;"><a href="http://4.bp.blogspot.com/-gV2dsjYsH8Y/TrHlXqgZbsI/AAAAAAAAAO0/1jiXzLMCTh4/s1600/Consumer+Affairs+Victoria+tenant+rights.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="http://4.bp.blogspot.com/-gV2dsjYsH8Y/TrHlXqgZbsI/AAAAAAAAAO0/1jiXzLMCTh4/s1600/Consumer+Affairs+Victoria+tenant+rights.jpg" /></a></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">To find out about tenancy laws if you think your rent increase is too high, or looking at increasing the rent of your tenants contact Consumer Affairs Victoria for assistance.</span><br /><br /><span style="font-size: small;"> </span><br /><span style="font-size: small;">You can request a rent assessment if you think a rent increase is too high or you are not receiving some or any of the services, facilities or other items that are part of the tenancy agreement.<br /> </span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">A request for a rental assessment must be made in writing within 30 days of receiving a ‘Notice of Rent Increase to Tenant/s of Rented Premises’.</span></div><a href="" name="more"></a><br /><div style="text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">You have 30 days from receiving the rent assessment report to apply to the Victorian Civil and Administrative Tribunal (VCAT) for a hearing. VCAT may set a maximum rent if the report is accepted.</span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"><br /></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">For more information on tenancy laws and your rights as a tenant or landlord, download the "<a href="http://managements-project.blogspot.com/">Renting a Home, a guide for tenants</a><a href="http://managements-project.blogspot.com/" target="_blank">Renting a Home, a guide for tenants</a>" document published by Consumer Affairs Victoria. </span></div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com0Melbourne VIC, Australia-37.8131869 144.96297960000004-37.8407884 144.94416010000003 -37.785585399999995 144.98179910000005tag:blogger.com,1999:blog-2760446582458845214.post-79254371627518365142011-12-18T00:32:00.001-08:002011-12-18T00:32:52.919-08:00Unsure Whether to Use a Property Manager or Self Manage Your Rental Property?<div style="font-family: inherit; text-align: justify;"></div><div class="separator" style="clear: both; text-align: center;"><a href="http://2.bp.blogspot.com/-u1Ektj63C00/TnvZAlcUVAI/AAAAAAAAANc/GujMmm32rTs/s1600/iAdvocate.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="http://2.bp.blogspot.com/-u1Ektj63C00/TnvZAlcUVAI/AAAAAAAAANc/GujMmm32rTs/s1600/iAdvocate.jpg" /></a></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">Before making the decision about whether to manage your rental property yourself or hire a <a href="http://managements-project.blogspot.com/">property manager</a>, carefully weigh up the pros and cons of each option.</span></div><div></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="color: blue; font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>The Solo Approach</b></span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">There is no question that a personal landlord approach requires significant involvement to be successful. As a landlord you need to approach every issue from a business perspective. This includes anticipating revenues and needs to <a href="http://managements-project.blogspot.com/">maintain the property</a>, including emergency and unplanned issues that will come up. Do your homework when it comes to setting rent and subsequent reviews to ensure you are getting the best price for your investment. You should also be aware of tenancy agreement legalities as they apply to your state.</span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">There is a cost benefit to managing your own rental properties as there are no property management fees, however you do need to weigh up your own cost (time, consultants etc) to ensure that you are actually making savings.</span></div><a href="" name="more"></a><br /><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="color: blue; font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>Typical Self-Management Property Duties</b></span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">Your personal duties will begin before you have tenants. You will need to ensure that your property is up to a rental standard. Then you will need to <a href="http://truepropertymanagement.blogspot.com/2011/08/finding-right-tenant-for-your-rental.html">screen potential tenants</a> to make sure you get good clients that are responsible, won't damage your property, and pay on time. It sounds simple, but many a landlord will cry a story about getting stuck with a cheapskate and the long legal process trying to evict him or her.</span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">On the cost side you will have regular and unplanned maintenance issues required through your rental agreement to make sure the property meets a certain level of standard. </span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="color: blue; font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>The Property Manager Approach</b></span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">Alternatively, you could turn all of the landlord work over to a property management company. Their role is to take care of all the daily management work so that you can enjoy the income without the work involved from renting out. </span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="color: blue; font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>Services That Should be Expected from Property Managers</b></span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">Your chosen property manager should know the local market so they can regularly fill your property with tenants. After all, no one gets paid without tenants.</span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">Since you are placing the protection and responsibility of your property in them, a property management company should have a well-proven tenant screening system. </span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">The property management staff should be proactive on maintenance of the property, protecting its value and ensuring fixes occur quickly to prevent larger or serious damage.</span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">In using a property manager for your investment property, you also gain the benefit of their experience in setting the correct rental for your property, when and how to review rents, legal aspects involved with tenancy regulations and their contacts in the rental property market. </span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="color: blue; font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="color: blue; text-align: justify;"></div><div class="MsoNormal" style="color: blue; font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>Each Situation is Case by Case</b></span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">Both self-management and property management companies have their pros and cons, and the right answer between the two depends on a property owner's personal motivation, level of time commitment, willingness to deal with the legal aspects, and management savvy. Being a landlord is not for everyone, and many wish to have income without the messiness of managing the process. Thus there is an option for both.</span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">To discuss how a property manager can benefit you in more detail, <a href="mailto:anne@truepmvic.com.au">email</a> or give us a call on (03) 9001 1559.</span><span style="font-size: small;"> </span></div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com0Melbourne VIC, Australia-37.809575 144.96518600000002-38.210012 144.28006200000002 -37.409138000000006 145.65031000000002tag:blogger.com,1999:blog-2760446582458845214.post-22379364959920458022011-12-18T00:32:00.000-08:002011-12-18T00:32:17.951-08:009 Reasons to Hire a Property Manager for your Investment Property<div style="font-family: inherit; text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">You invested in your first property. Should you manage the property yourself or hire a good property manager to handle your investment? It depends on what your skills and goals are.</span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">Are your goals to be an <a href="http://managements-project.blogspot.com/">property investor</a> or simply the on-site owner? As the on-site owner you will be responsible for collecting the rent and repairing broken appliances. Your time will be devoted to the renters needs. The investor spends valuable time answering the needs of the tenants. On the other hand, if you hire a <a href="http://managements-project.blogspot.com/">property manager</a>, the investor could spend time finding and investing in more property.</span></div><a href="" name="more"></a><br /><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="color: blue; font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: large;"><b>The 9 things a good manager will bring to a property are;</b></span></div><div style="text-align: justify;"></div><ul><li><span style="font-size: small;">Management skills of work performance, tenants and contractors</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Good negotiation ability with contractors</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Experience with investment properties</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Organization of daily needs such as trash removal, grounds keeping and repairs</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Good communication skills with tenants, contractors, the investor and legal agencies</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Accounting skills are necessary for collecting rents, receipts and expenses</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Data entry skills of daily work and complaints, supplies and equipment needed</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Research skills for finding tenants and contractors</span></li><li><span style="font-size: small;">Marketing experience in order to minimise vacancy periods</span></li></ul><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">The day to day details necessary to operate a successful property is better left to a manager with the skills needed. An experienced property manager will tend to the daily needs of the <a href="http://managements-project.blogspot.com/">tenants</a>, maintain records and respond to the needs of the building upkeep.</span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">The manager interacts with the tenants in a friendly but professional way. They will listen and respond to complaints, deal with the rent and order the necessary repairs. The manager takes over the daily management, allowing the investor to profit without becoming involved personally with the residents.</span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">A good property manager will need to manage construction and development of new facilities, maintain the repairs and maintenance of the property. They should have good organizational skills. They will need to insure the work needed, be it new wiring and electrical, the construction of new facilities or the repair of a leaky faucet, is done in quickly at a reasonable cost.</span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">They need to know how to use the latest computer software for managing rents, repair costs and billing. Often the accounting of the rent receipts and billing expenses will be kept on record through some type of software.</span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">One good skill needed by a property manager is good customer relations and communication. They will act as the liaison between tenants and construction crews, contractors and insurance agencies. The manager will also enforce renter and owner laws, the most common being evictions. They are responsible for collecting the rent and keeping good records of payments and repair work needed.</span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">Good negotiation skills are needed as well. He or she will negotiate the best prices for cleaning services and for any work performed to keep the property well maintained. They will find the best lawn care facilities services at a good price. They will negotiate the lowest bids for the best plumbing and electrical contractors. An experienced manager will have resources available to them at a moment’s notice. They will know which carpet cleaner and painters are available to have your empty units ready within days to rent.</span></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">The property manager is there to take care of everything. They automatically schedule tasks and collect the rent. The details of managing the property successfully are better left to an experienced manager so the investor is free to look other investment opportunities.</span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">Interested in finding out more about turning to <a href="http://managements-project.blogspot.com/">True Property Management</a> for your Melbourne investment property? Simply email us at anne@truepmvic.com.au or give us a call on </span><b><span class="skype_pnh_print_container">(03) 9001 1559.</span><span class="skype_pnh_container" dir="ltr" tabindex="-1"><span class="skype_pnh_mark"></span></span></b></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com0Melbourne VIC, Australia-37.809575 144.96518600000002-38.210012 144.28006200000002 -37.409138000000006 145.65031000000002tag:blogger.com,1999:blog-2760446582458845214.post-63452501983461308382011-12-18T00:31:00.000-08:002011-12-18T00:31:24.747-08:00Victorian Homeowners' $300m Blow<a href="http://managements-project.blogspot.com/"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5662059122865818482" src="http://4.bp.blogspot.com/-f2MWtVWTMBU/TpOsxfutS3I/AAAAAAAAACI/Ig8QJHKervM/s200/Victorian%2Bhomeowners%2BHerald%2BSun.jpg" style="float: left; height: 112px; margin: 0pt 10px 10px 0pt; width: 200px;" /></a><span style="font-family: inherit; font-size: small;"><span lang="EN-AU">An interesting article but the results are not at all surprising.</span></span><br /><span style="font-family: inherit; font-size: small;"><span lang="EN-AU"><br /></span></span><br /><div class="MsoNormal" style="font-family: inherit; text-align: justify;"><span style="font-size: small;"><span lang="EN-AU">Numerous blocks of apartments have been built in the CBD, Docklands and Southbank precincts over recent years with a large number of the apartments being purchased by foreign off-the-plan speculative purchasers. During the past three years, many of these investors have been forced into selling due to the economic climate and a desire to rationalise assets. As Catherine Cashmore states quite correctly, high-rise developments will generally lose value before they gain value primarily due to the initial purchase prices paid being over-market at the time.</span></span><br /><span style="font-size: small;"><span lang="EN-AU"><br /></span></span></div><div class="MsoNormal" style="font-family: inherit; text-align: justify;"><span style="font-size: small;"><span lang="EN-AU"></span></span></div><a href="" name="more"></a><br /><div style="text-align: justify;"><span style="font-size: small;"><span lang="EN-AU">In the single family home market, there has been tremendous growth in the Western and Northern corridors during the same period of time. Suburbs such as Tarneit and Mernda have virtually been developed during this period with a large number of investors purchasing in these areas due to the demand from prospective tenants bringing about strong rental returns. As with many new and developing suburbs, there have been a significant number of properties sold and not achieve the initial purchase price. This is not the due to the state of the real estate market per se but to purchasers being forced to sell due to family and financial pressures.</span></span></div><div style="text-align: justify;"><span style="font-size: small;"><span lang="EN-AU">It would probably be sound practice for Residex to carry out the same project on the three years preceding 2008 as the trends they have high-lighted in their report are not abnormal in both the new apartment complex and single family homes markets.</span></span></div><div class="MsoNormal" style="font-family: inherit; text-align: justify;"><span style="font-size: small;"><span lang="EN-AU"><br /></span></span></div><div class="MsoNormal" style="color: blue; font-family: inherit; text-align: justify;"><span style="font-size: small;"><span style="font-size: large;"><b>VICTORIAN homeowners have lost more than $290 million over the past three years selling properties for less than what they paid for them. </b></span></span><br /><span style="font-size: small;"><span style="font-size: large;"><b><br /></b></span></span></div><div class="MsoNormal" style="color: blue; font-family: inherit; text-align: justify;"><span style="font-size: small;"><span style="font-size: large;"><b></b></span></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"><b></b>Alarming figures that point to a hidden crisis in the property market reveal 5427 vendors lost an average of $54,000 on investments gone wrong in the three years to July.</span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"> </span> </div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">The Melbourne CBD, Southbank and Docklands are the state's leading loss-making suburbs.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"> </span> </div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">One out of every 20 properties sold in those locations had lost their owner money, according to the data from a property research firm.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"> </span> </div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">But the losses are not limited to the flats-dominated inner-city market, with the figures also showing vendors losing millions in popular family areas.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">These suburbs include Point Cook, Roxburgh Park, Frankston, Reservoir, Carrum Downs, Glen Waverley, Hawthorn and Elwood.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">Residex, a property information firm that collates data on real estate markets throughout Australia, compiled its analysis after sifting through the results of 268,000 sales recorded with the Valuer General.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"> </span> </div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">It is the first time the firm has crunched the numbers on Victoria, meaning it could not make historical comparisons.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">The losses are even more startling given that the city's median house price rose by around 30 per cent over the same period.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"> </span> </div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">A breakdown of the top 10 loss-making suburbs is heavy with inner-city locations as well as some of Melbourne's most expensive postcodes.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">At the top of the list is the CBD, where 427 properties were sold for less than what the vendor paid.</span><br /><span style="font-size: small;"><br />Southbank recorded 213 loss-making sales, Docklands 92, St Kilda 92, Carlton 91, Hawthorn 85, South Yarra 70, Brighton 61, Elwood 61 and Point Cook 57.</span><br /><span style="font-size: small;"><br />The figures come as Melbourne limps into its traditional spring selling period, with little more than half of all properties selling at auction.</span><br /><span style="font-size: small;"><br />The market has been battered by seven interest rate rises since April 2009, which have added about $85 a week to a $350,000 mortgage.</span><br /><span style="font-size: small;"><br />Yesterday, almost 600 properties were auctioned, but only achieved a clearance rate of 54 per cent.</span><br /><span style="font-size: small;"><br />Residex chief executive John Edwards said the number of vendors burned in property sales would eclipse 6000 if stamp duty and transaction costs were taken into account.</span><br /><span style="font-size: small;"><br />Mr Edwards, who has monitored the nation's property market for 25 years, said the pain for Melbourne home owners was far from over.</span><br /><span style="font-size: small;"><br />By the time the market bottoms at the end of next year, Residex expects the city's median house price to have shed 15 per cent. Families living in a $500,000 home can expect to see $75,000 wiped from its value.</span><br /><span style="font-size: small;"><br />"The adjustment process in Melbourne is just beginning," Mr Edwards said.</span><br /><span style="font-size: small;"><br />"I won't be surprised to see Melbourne suffer more than any other capital city in Australia. It has got the highest volume of surplus stock in the country and as the manufacturing industry further turns down the city will suffer from more unemployment than any other capital."</span><br /><span style="font-size: small;"><br />JPP Buyer Advocates' Catherine Cashmore said many of those who had lost money in property purchases would have been short-term investors, both local and foreign, buying off-the-plan, inner-city apartments.</span><br /><span style="font-size: small;"><br />"There is a surplus of high-rise developments and they tend to lose value before they gain value," she said. "Nine times out of 10, off-the-plan developments are overpriced. They are priced on speculative value.</span><br /><span style="font-size: small;"><br />"When you go to sell you are also in a situation where no one wants to buy your lived-in apartment because there are always brand new ones coming on to the market in those postcodes."<br />About 55 per cent of houses in Melbourne are now worth double what their owners paid, RP Data found. Interest-rate watchers are predicting a Melbourne Cup day interest-rate cut of 0.25 per cent by the Reserve Bank.</span><br /><span style="font-size: small;"><br />AMP Capital chief economist Shane Oliver said while homeowners will welcome the cut, it will take several more to inject any life into the state's property market.</span><br /><span style="font-size: small;"><br />"We will need a few more cuts before housing picks up," Oliver said.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">Article originally posted in the <a href="http://managements-project.blogspot.com/">Herald Sun</a>. </span></div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com0Melbourne VIC, Australia-37.809575 144.96518600000002-38.210012 144.28006200000002 -37.409138000000006 145.65031000000002tag:blogger.com,1999:blog-2760446582458845214.post-77712764225692275332011-12-18T00:30:00.000-08:002011-12-18T00:30:30.620-08:005 Tips to Help Property Managers Complete Your Daily Tasks<div style="font-family: inherit;"></div><div class="separator" style="clear: both; text-align: center;"><a href="http://2.bp.blogspot.com/-tStJLXyeKBg/ToI-YmR59oI/AAAAAAAAANk/gCO6iX6oJwc/s1600/property+management+time+management.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="http://2.bp.blogspot.com/-tStJLXyeKBg/ToI-YmR59oI/AAAAAAAAANk/gCO6iX6oJwc/s200/property+management+time+management.jpg" width="141" /></a></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">One of the biggest challenges for <a href="http://managements-project.blogspot.com/">property managers</a> is staying on top of all the tasks they have to do in a given day. What with unit inspections, open homes, incoming and outgoing payments, resolving maintenance requests, signing leases, and responding to various queries, it’s all too easy to look at the clock at the end of the day and wonder where all the time went. Here are a few tips to help you maximise productivity in your day:</span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div class="MsoNormal" style="color: blue; font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>Organisation</b></span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">Sometimes it can feel like there’s no time to actually <i>get </i>organised. But the truth of the matter is, no matter how time-pressed you are, investing in organisational time is almost always worth it in the long run. Time saved trying to locate paperwork, contact information, financial records on your computer, or any other number of other items adds up quickly. Creating a system of organization (the more automated the better) will allow you to perform all your duties in a more streamlined fashion … which ultimately results in a whole lot of time saved. </span><br /><a href="" name="more"></a></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b style="color: blue;">Prioritize</b><br />There are days when you have to choose between getting one or two time-consuming tasks done versus completing a number of smaller tasks. Whatever the case, it’s most important that you use your time wisely. Take stock of your task list and check items off, not according to the amount of time they’ll take, but by which issues must be resolved most immediately.</span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div class="MsoNormal" style="color: blue; font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>Focus</b></span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">There’s no doubt about it, we live in a world where multitasking is essential. While it’s true that modern technology allows us to do this, it’s also much easier to be distracted than it once was. These days it’s hard to get anything done without being interrupted by a ringing cell phone, an incoming email, or the distraction of a web link. Don’t let technology get the best of you. A simple 10-minute task can be dragged out to an hour or more if you keep stopping in the middle to take care of those little distractions. Make the most of your time by staying on the task at hand. Flip your cell phone on silent, shut your email down for the time it takes to complete your task, and shut down your web browser. You’ll be surprised at how quickly you can get things accomplished.</span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div class="MsoNormal" style="color: blue; font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>Accountability</b></span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">The most successful property managers have built a reputation on <a href="http://managements-project.blogspot.com/">accountability</a>, both to their property owners and their tenants. And accountability means being efficient. Don’t allow problems that can be resolved quickly to linger on your to-do list. The task will become more daunting, the issue at hand may expand, and your customer service will diminish. Make a point of taking care of those maintenance requests, queries, and miscellaneous requests within a 24-hour period. Your to-do list will remain more manageable and, best of all; you’ll keep your clients happy.</span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div class="MsoNormal" style="color: blue; font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>Review</b></span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">Always know where you stand. It only takes five minutes at the end of each day to review your day’s progress and get a handle on what needs to be taken care of tomorrow. Having a clear idea of what’s done and what needs to be handled allows you to manage your time accordingly. If you find there’s too much for one person to take care of, it also allows you the opportunity to delegate tasks to other staff or vendors to ensure that even if you’re simply out of time, nothing falls through the cracks.</span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">In the world of property management, chances are there will often be more work to do than can be accomplished in one day. And that’s okay. But these tips will help you make the most of the time you <i>do</i> have and guarantee that those must-do items are always taken care of efficiently.</span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b style="color: red;">Your turn: </b><span style="color: red;">what is a time management tip that has worked for you to improve your productivity? (technology, iPad apps, procedures,...)</span> </span></div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com0Melbourne VIC, Australia-37.809575 144.96518600000002-38.210012 144.28006200000002 -37.409138000000006 145.65031000000002tag:blogger.com,1999:blog-2760446582458845214.post-61317526830474457422011-12-18T00:29:00.001-08:002011-12-18T00:29:44.232-08:009 Tips to Secure Your Rental Property This Holiday Season [protecting your rental property income]<div class="separator" style="clear: both; text-align: center;"><a href="http://3.bp.blogspot.com/-gm0KRAS9M7M/TsBOyO6rwII/AAAAAAAAAPQ/GlhjmJZZR9E/s1600/Tips+to+secure+your+rental+property+over+the+holiday+period.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="http://3.bp.blogspot.com/-gm0KRAS9M7M/TsBOyO6rwII/AAAAAAAAAPQ/GlhjmJZZR9E/s200/Tips+to+secure+your+rental+property+over+the+holiday+period.jpg" width="165" /></a></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">Christmas is a busy time of year for the less desirable professions of our society. Yes, it is time to discuss theft, burglary and vandalism - and minimising risk to your <a href="http://managements-project.blogspot.com/" target="_blank">rental property income</a>.<br /><br />If your existing investment property is going to be untenanted over holidays or your tenants are leaving for their summer vacation there are precautions you can take. If your property is still in the ‘construction’ stage, what has up to now been a busy building site with tradesmen in and out all day will soon resemble a ghost town as the workers take their annual hiatus. </span></div><a href="" name="more"></a><br /><div style="text-align: justify;"><span style="font-size: small;"><br /><b style="color: blue;">Windows and Doors</b><br />A solid, front security door will deter invaders from your home, and is a good selling point when tenanting. Fit all windows with security screens or locks and ensure the property has been secured when being left for a period of time.<br /><br /><b style="color: blue;">Lights</b><br />Purchase four of the super-bright halogen box style exterior lights and have them mounted on all four corners of the house. These are usually set up so that they come on when it gets dark. The neighbours may be curious about what you are doing, but explain that this is to protect them as well.<br /><br />These lights can be taken down when the house is occupied again but leave them up if you have any problems. If you find that they do not compromise the appearance of your rental property you may just want to leave them up anyway.<br /><br /><b style="color: blue;">Cameras</b><br />Buy fake security cameras and mount them near doors and where they can be seen. Get some signs that say “Security Cameras on Premises” and place them in the yard or on windows and doors if they are the stickers. <br /><br /><b style="color: blue;">Signs</b><br />Put signs on all doors and low windows that state:<br /><br />“<i>All workers are instructed not to leave any tools or materials on premises.</i>” You can easily do these on your home computer and laminate them to make them look more professional. Although some vandals break into homes that are being worked on or constructed to steal tools, they will see your property as not being worth it since contractors are being instructed to take all tools and hardware home, even though there is actually no work going on anyways.<br /><br /><b style="color: blue;">Make Sure That Your Insurance Is Really Covering You</b><br />Have the right insurance. Check with your insurance company to see if you need to change your policy when your rental property is vacant. Many times carrying a builder’s risk policy will properly cover you from vandalism and material losses.<br /><br /><b style="color: blue;">Put in a security system</b><br />Put in a basic security system, or if this is too much money, get some security company signs and put them in your yard. Do a few ‘siren tests’ to show people that the system is up. Typically in some areas, break-ins are done by people who live nearby. Let that alarm ring to let them know that you are wired.<br /><br /><b style="color: blue;">Fake Dogs</b><br />An investor I know uses electronic devices that sound like dogs barking!<br /><b style="color: blue;"><br />Car In The Driveway</b><br />If you have an old clunker or an extra car available, leave it at the house in the driveway. If you can make the house look lived in, that will do more for you than any other idea. <br /><br /><b><span style="color: blue;">Interior Lights and Blinds</span></b><br />Ask a neighbour to pop in to turn your lights on in the evening and draw your blinds. There are even timers available, you set which times you want the lights turned on and off.<br /><br />Above all, if you can’t do so yourself ask someone to have a walk-round or drive-by every few days or leave a phone number with a trusted neighbour. If your property does get broken into, you need to know straight away in order to call your insurer and take steps to secure the home. </span><span style="font-size: small;"></span><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"></span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><div style="text-align: justify;"><span style="font-size: small;"><span style="color: blue;">Share your tips to ensure your rental property income is protected over the festive season?</span></span></div><span style="font-size: small;"> <br /></span></div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com0Melbourne VIC, Australia-37.8131869 144.96297960000004-37.8407884 144.94416010000003 -37.785585399999995 144.98179910000005tag:blogger.com,1999:blog-2760446582458845214.post-9153742808039528102011-12-18T00:29:00.000-08:002011-12-18T00:29:09.839-08:00Property Management Realty in Melbourne – Looking Forward<div style="font-family: inherit; text-align: justify;"></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"><a href="http://managements-project.blogspot.com/">Property management realty in Melbourne</a> is changing with our city. As our population increases our city is changing, with more high density apartments being built to meet the demand, investors often opting to purchase ‘<a href="http://managements-project.blogspot.com/">off the plan</a>’. </span></div><div style="font-family: inherit; text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="http://1.bp.blogspot.com/-I3eoh5WD0Z8/TqCgLw3ubII/AAAAAAAAAOY/jikk1c0VViI/s1600/Property+Management+in+Melbourne.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="211" src="http://1.bp.blogspot.com/-I3eoh5WD0Z8/TqCgLw3ubII/AAAAAAAAAOY/jikk1c0VViI/s320/Property+Management+in+Melbourne.jpg" width="320" /></a></div><span style="font-size: small;"> </span> </div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">By 2030, metropolitan Melbourne’s population is expected to increase by 620,000 households and by 925,000 people. Managing this increase will present substantial challenges for where and how we live. We face across-the-board changes that will alter our perception of what we want in housing, and the way the housing market develops. These include:</span></div><a href="" name="more"></a><br /><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"> </span></div><div></div><ul style="font-family: inherit; margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;"><span style="font-size: small;">the greying of our population – almost 30 per cent of the total population will be over the age of 60 by 2030. </span></li><li class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;"><span style="font-size: small;">a change in household structures – one-person and two-person households will become more numerous and account for an estimated 90 per cent of all additional households between now and 2030.</span></li><li class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;"><span style="font-size: small;">a change in the types of houses we live in – for reasons of cost, changing lifestyles, and greater diversity in housing stock.</span></li><li class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;"><span style="font-size: small;">increased reliance on rental accommodation – more people will rent from necessity or from choice. </span></li><li class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;"><span style="font-size: small;">greater polarisation – with housing prices and affordability tied to income levels and access to facilities and services.</span></li></ul><span style="font-size: small;"> <span style="font-size: x-small;">(Source data: <a href="http://managements-project.blogspot.com/">Melbourne 2030</a>)</span></span><br /><span style="font-size: small;"><br /></span><br /><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;">With the increased reliance on rental accommodation, <a href="http://managements-project.blogspot.com/">property management realty in Melbourne</a> is a critical service to best maximise the growth of your property investments. </span></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br /><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="color: blue; font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>What exactly does a Property Management Agency do?</b></span></div><div style="text-align: justify;"></div><ul><li><span style="font-size: small;">Coordination of maintenance and repairs</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">24 x 7 emergency on-call service for tenants and owners</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Regular inspections</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Collection of rental payments</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Deposit of rental income</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Provide Monthly statements of income and expenses</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Consultation on all tenancy matters</span></li></ul><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div class="MsoNormal" style="font-family: inherit; line-height: normal; margin: 0cm 0cm 0.0001pt 18pt; text-align: justify;"><br /></div><div style="text-align: justify;"></div><div class="MsoNormal" style="color: blue; font-family: inherit; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: small;"><b>What does a Property Management Agency do to market a property, find suitable tenants, AND ensure the tenants follow the rules and respect your property?</b></span></div><div style="text-align: justify;"></div><ul><li><span style="font-size: small;">Photography of your rental</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Marketing and promotion</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Handling tenant inquires</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Scheduling private and open house showings</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Process rental applications</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Tenant screening</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Reference checks</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Signing of legal lease documents</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">First walk through with the Tenant</span><span style="font-size: small;"> </span></li><li><span style="font-size: small;">Conduct condition inspection report</span></li></ul><br /><div style="color: red;"><span style="font-size: small;">Your Turn: With pressure on Melbourne's housing supply in the year's ahead, what changes would you like to see within the property management industry?</span></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com0Melbourne VIC, Australia-37.8131869 144.96297960000004-37.8407884 144.94416010000003 -37.785585399999995 144.98179910000005tag:blogger.com,1999:blog-2760446582458845214.post-83525176671659183812011-12-18T00:28:00.000-08:002011-12-18T00:28:08.491-08:00Property Management is...<div style="font-family: inherit; text-align: justify;"><div style="color: blue; font-family: inherit; text-align: justify;"><span style="font-size: small;">There have been many articles posted on the benefits of property management, the comparisons with self managed properties and how to find a property manager to suit your requirements. The following definition captures what you have the right to expect for your monthly property management fees, anything less is not acceptable.</span><br /><a href="" name="more"></a></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"><br /></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">As a founder member of the <a href="http://managements-project.blogspot.com/" target="_blank">Leading Property Managers of Australia</a>, Anne Warren stands behind LPMA's Code of Practice with the True <a href="http://managements-project.blogspot.com/" target="_blank">Property Management Guarantee</a>. Taking the risk out of property management.</span></div><br /><span style="font-size: small;">Definition [Wikipedia]:</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;"><b>Property management</b> is the operation, control of usually on behalf of an owner, and oversight of commercial, industrial or residential <a href="http://managements-project.blogspot.com/" title="Real estate">real estate</a> as used in its most broad terms. Management indicates a need to be cared for, monitored and accountability given for its usable life and condition. This is much akin to the role of <a href="http://managements-project.blogspot.com/" title="Management">management</a> in any <a href="http://managements-project.blogspot.com/" title="Business">business</a>.</span></div><br /><div style="font-family: inherit; text-align: justify;"><br /></div><div style="text-align: justify;"><span style="font-size: small;"><span style="font-family: inherit;"> </span></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">Property management is also the management of personal property, equipment, tooling and physical capital assets that are acquired and used to build, repair and maintain end item deliverables. Property management involves the processes, systems and manpower required to manage the <a class="mw-redirect" href="http://managements-project.blogspot.com/" title="Property Cycle">life cycle</a> of all acquired property as defined above including acquisition, control, accountability, responsibility, maintenance, utilization, and disposition.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">One important role of a "Property Management" is that of liaison between the <a class="new" href="http://managements-project.blogspot.com/" title="Owner of record (page does not exist)">Owner of record</a> and the actual tenant/lessee <a href="http://managements-project.blogspot.com/" title="Leasehold estate">tenant</a>. Providing a buffer for those owners who are desiring to distance themselves from their tenant constituency. Duties of property management generally will include a minimum of these basic primary tasks;</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="text-align: justify;"><span style="font-size: small;"><span style="font-family: inherit;"> </span></span></div><ol><li><span style="font-size: small;">The full and proper screening or testing of an applicant's credit, criminal history, rental history and ability to pay.</span></li><li><span style="font-size: small;">Lease contracting or accepting <a href="http://managements-project.blogspot.com/" title="Renting">rent</a> using legal documents approved for the area in which the property is located.</span></li><li><span style="font-size: small;">Mitigation and remediation regarding any maintenance issues, generally within a budget, with prior or conveyed consent via a Limited Power of Attorney legally agreed to by the property owner.</span></li></ol><div style="text-align: justify;"></div><div style="text-align: justify;"><span style="font-size: small;"><span style="font-family: inherit;">There are many facets to this profession, including managing the accounts and finances of the real estate properties, and participating in or initiating litigation with tenants, contractors and insurance agencies. </span></span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">Every state of Australia has different licensing requirements. To be able to trade as a property management company, the company has to be licensed with a principal or licensee in charge. Each staff member of the company has to have a certificate of registration.</span></div><div style="font-family: inherit; text-align: justify;"><br /></div><div style="text-align: justify;"><span style="font-size: small;"><span style="font-family: inherit;"> </span></span></div><div style="font-family: inherit; text-align: justify;"><span style="font-size: small;">Victorian Property Management includes new legislative requirements under the Owners Corporation Act 2006 (commenced 2008 and replaces the old Body Corporate provisions under the Real Estate Act). Owners Corporation Managers are required to be Registered with Consumer Affairs Victoria and hold insurance. Real Estate Agents are required to be licensed. Melbourne has seen significant growth in large multi unit apartment developments and Owners Corporation Management is evolving as a result. Owners Corporations can be residential, commercial or a mix.</span></div><div style="font-family: inherit; text-align: justify;"></div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com1Melbourne VIC, Australia-37.8131869 144.96297960000004-37.8407884 144.94416010000003 -37.785585399999995 144.98179910000005tag:blogger.com,1999:blog-2760446582458845214.post-27229085975976660272011-12-18T00:26:00.000-08:002011-12-18T00:26:09.167-08:00Bonuses and Incentives in the Real Estate Industry – Striking Accord<small></small> <b><i>By Jo-Anne Oliveri, ireviloution intelligence, Brisbane, Australia</i></b><br />Are you in a position to create your own bonus and incentive plan that strategically builds your business, not just your property manager’s pocket? Successful bonus and incentive plans are all about understanding your team at an individual level, your agency’s business plan, and your market area.<img alt="Bonus" class="alignright size-medium wp-image-3292" height="257" src="http://allthingspropertymanagement.com/wp-content/uploads/2011/11/iStock_000009352248Small-300x257.jpg" title="Bonuses and Incentives in the Real Estate Industry: Striking Accord" width="300" /> So, this week, let’s take a look at how understanding these critical factors converts to a bonus and incentive plan where all parties – the team member, property owner and you, the business owner- win now and win in the long-term.<br />What happens if, for instance, the average weekly rent in your market area is $300 and the property manager has a target of five new managements per month? The property manager could in fact reach the target of five new managements, but the five properties average only $200 per week. The problem – the property manager’s focus is on numbers and not quality.<br />What happens if the agency then increases its weekly rent on leased properties to $1000? On management fees of eight percent, this would equate to $80 per week extra income for the agency. If the incentive is a bonus equivalent to one week’s rent for each new management (which seems to be the norm bonus in most businesses), the business owner will pay $1000 as a bonus to the property manager or business development manager.<br />Rewarding the property manager for every management, regardless of the target, only encourages the property manager to secure whatever business they can secure, at whatever cost to the agency. Therefore, quality and the owner’s need for discount are overlooked. The result – the property manager, while having a target of five new managements, still receives a bonus equivalent to one week’s rent on every new management regardless of whether they achieve their target or not. What’s more, they also receive the bonus regardless of whether they sign up the new management with standard full fees and charges. Therefore, the business owner’s focus is solely on new business numbers and not income achieved from the new business. In other words, it’s quantity over quality, a formula not strong enough to sustain growth and profitability, as it fails to provide the property manager an incentive to build the business. So, words of advice – if the agency does prefer to incentivize the team in this way, the property manager should only be rewarded on properties achieved beyond what the target for the month is.<br />Quantity over quality also does not provide incentive for retention of managements or income on managements. It’s all about the numbers and hence a fundamental reason why we have so many problems and therefore a negative perception within the industry and from our clients.<br />The solution – shift the focus to income rather than numbers and the quality of managements will improve. For example, if the average weekly rent for the area is $300 and the achievable target is five new managements per month, then the month’s target is to increase the weekly rental income by $1500 (5 x $300 per week). The property manager’s focus is now shifted from management numbers to income, so the focus instinctively switches to weekly rental returns on potential new managements.<br />Quality over quantity means the property manager is incentivized to achieve the best possible rental for the property owner and work to achieve the target amount in the simplest way possible. To illustrate this point, if the property manager signs up and leases two new managements at $750 per week each, then the target total has been achieved and any new management signed and leased after the target total can now be paid as a bonus incentive to the property manager. However, the bonus is not paid as a rental fee, rather a percentage of the increased weekly rental they have attained. The focus is on quality of rental and income generated, not management numbers.<br />Another vital component to successful bonus and incentive plans is to understand the individual. Some people are not motivated by money. So, incentivizing them with the potential to earn a certain income per year if they achieve their target is not really helping the business or individual. For example, say an individual sees money as the “root of all evil.” No matter how hard this individual may try, somehow they subconsciously (or consciously) sabotage their own efforts to achieve targets due to this deep-seated belief. A simple way to overcome this is to understand the individual and gain a clear indication of what motivates him or her so a personal incentive scheme can be designed.<br />The individual can have a list of goals as long as their arm, but if they have a negative image of money, they are unlikely to achieve their goals. However, what a lot of individuals don’t realize is that in order to achieve these goals they need money! So, take time to understand each individual’s goals for the year, both professional and personal. If, for instance, they are saving for a weekend away at the coast every three months, work out how much it costs for that weekend away. Then work out how much the income needs to be increased in their portfolio if, for instance, they are a property manager with a portfolio. This particular individual could then be incentivized to achieve an increase of the nominated amount of income to be rewarded with their desired weekend away once that income level is achieved. It’s a win-win-win for the individual, the business, and the clients, as this style of incentive-by-design motivates the individual to build while ensuring retention at the same time.<br />Successful bonus and incentive plans are all about understanding the individual, the agency’s business plan, and the market area. They must be designed around these three factors to ensure continual growth, retention, strong profit margins, market dominance and long-term team and client loyalty.<br />The keys to building your business are what I refer to as the “Four R’s”. Repeat. Referral. Recommendation. And the one that is usually forgotten – Retention. I look forward to blogging more about the Four R’s in future blogs, but for now my focus is on assisting you with creating successful, stimulating and results-driven bonus and incentive plans.<br />It’s time to put on the thinking caps and get creative in designing your bonus and incentive plans. Don’t forget to add some fun incentives in there too. After all, a happy team is a productive team! Does your bonus and incentive plan strike a happy accord?asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com1tag:blogger.com,1999:blog-2760446582458845214.post-83181549501502424052011-12-18T00:25:00.000-08:002011-12-18T00:25:41.066-08:00How Can a Property Management Agency Add Value to Your Investment Property?<h2 style="font-family: inherit; text-align: justify;"></h2><div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2; text-align: justify;"><span style="font-size: small;"><span style="font-family: inherit;">There are two common approaches in <a href="http://managements-project.blogspot.com/">renting your investment property</a>, the Do It Yourself (DIY) approach or to hire a <a href="http://managements-project.blogspot.com/">professional property management agency</a>. The DIY approach proves to be an appealing option for property investors, increasing your immediate cash flow when not paying the services of a property management agency. However the true value of a seasoned professional property manager is worth their weight in gold, as they can add significant value to your investment. Here's how:</span></span></div><h2 style="font-family: inherit; text-align: justify;"><span style="font-size: small;"><a href="" name="more"></a></span></h2><br /><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody><tr><td style="text-align: center;"><a href="http://1.bp.blogspot.com/-RYBI8kU5XHI/Tp4HXJUaKjI/AAAAAAAAAOQ/gpxpEh0Vb5o/s1600/Linkedin+added+value.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="109" src="http://1.bp.blogspot.com/-RYBI8kU5XHI/Tp4HXJUaKjI/AAAAAAAAAOQ/gpxpEh0Vb5o/s320/Linkedin+added+value.jpg" width="320" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">How we add value to your investment property</td></tr></tbody></table><ul style="font-family: inherit; text-align: justify;"><li><span style="font-size: small;">A property management agency can accelerate the leasing of your property to the right tenant through focused marketing and tenant screening procedures. </span></li><li><span style="font-size: small;">A property management agency will</span><span style="font-size: small;"> maximise your rental return by obtaining a top market rent and minimising your expenditure through a policy of active management. </span></li><li><span style="font-size: small;">A good property management agency (hint - <a href="http://managements-project.blogspot.com/">True Property Management</a>) will</span><span style="font-size: small;"> guarantee that they will communicate with you proactively on all matters relating to your property. </span></li><li><span style="font-size: small;">A dedicated property management agency (as opposed to those who also sell real estate) can give total focus on property management meaning they can offer consistently great service. </span></li><li><span style="font-size: small;">A property management agency should</span><span style="font-size: small;"> provide you with accurate, timely and easy to understand financial accounting and reporting. </span></li><li><span style="font-size: small;">A property management agency will</span><span style="font-size: small;"> use world class management systems to manage all the activities involved in managing your property. </span></li><li>A property management agency with access to some of the best marketing experts in the country will ensure your property will be expertly marketed to reach the widest possible audience, quickly attracting a good quality tenant at the best possible rental. </li><li>A property management agency will manage zero tolerance towards rental arrears. </li></ul><div style="text-align: justify;">To maximise your rental investment you need to achieve low vacancy rates, zero rental arrears, timely inspections and effective tenant screening. A good property manager will achieve this for you, a very good property manager will <a href="http://managements-project.blogspot.com/">guarantee</a> this.</div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com2Melbourne VIC, Australia-37.809575 144.96518600000002-38.210012 144.28006200000002 -37.409138000000006 145.65031000000002tag:blogger.com,1999:blog-2760446582458845214.post-45776967362205093952011-12-18T00:23:00.000-08:002011-12-18T00:23:18.517-08:00Setting Your Rental Property Rate<h2></h2><small> </small> <i><b>A guest post by Andrew Payne, Louisville Property Management, Louisville, KY</b></i><br />Whether you’re listing a property for the first time or the tenth, it’s important to confirm that your pricing is market competitive. Setting a proper rental rate ensures that you’ll attract plenty of customers to the listing, while also being able to maintain a high standard of tenant screening.<img alt="Setting Your Rental Property Rate" class="alignright size-medium wp-image-3295" height="199" src="http://allthingspropertymanagement.com/wp-content/uploads/2011/11/iStock_000015116659Small-300x199.jpg" title="Setting Your Rental Property Rate" width="300" /><br /><br />In my property management company, we seek to set the rental rate in such a way that maximizes both interest and profitability. Here are some of the methods that we employ.<br /><b>1. HUD Website – Fair Market Rents</b><br />The annual report released by the U.S. Department of Housing and Urban Development contains Fair Rent data that is available for City/State and property size. While the methodologies and calculations are VERY thorough, this rate is simply a good average and starting point for a property the same size as yours. Variables that will raise or lower your rental rate include the property location (both immediate and surrounding), amenities like common areas, pools, and decks, and any utilities covered in the rent payment. Including all (common) utilities in the rent payment is a tactic often used to entice renters as well.<br /><b>2. Rental Property Comparables</b><br />Similar to the way most homes are appraised, looking at comparable properties is a fantastic way to determine the rent that your home/apartment/condo can produce. The most important thing to look for are properties that most closely resemble your own. Having a similar number of bedrooms, bathrooms, and amenities will ensure that you’re not comparing “apples to oranges”.<br />Start in your own neighborhood. Location being the biggest variable, you’ll get the best idea of rental rates in your area by checking out the homes or units nearby. They’ll either list their rental price on a sign, or you’ll have to contact the property manager for additional details.<br />Looking online is also an important step. Sites like Craigslist or Apartments.com are great at filtering the listings so that you only see those most closely resembling your own. Again, knowing what’s included, where it’s located, and even whether they allow pets is what you should be most interested in.<br /><b>3. Use an Analysis Tool</b><br />One of my favorite automated tools is located on the Zillow.com website. Not only do they provide a property value estimate – they now give you a Rent Zestimate that takes into account square footage and available market data. While this info should also be used sparingly, it should help solidify that number that you’re now considering.<br />When a manager is confident about the rental range that their property can support, they often begin at the upper spectrum of this scale. If the propeasrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com1tag:blogger.com,1999:blog-2760446582458845214.post-20098256444161367922011-12-18T00:22:00.001-08:002011-12-18T00:22:48.788-08:00Focus on Profitability over Volume Lends to Successful Property Management<small></small> <b><i>By Ben Holubecki, STML Realty Group, Glen Ellyn, IL</i></b><br /><b><i></i></b>One of the most important and difficult things to do as a professional property manager is to honestly assess your strengths and weaknesses and build your business around the part of the business that you do best. For those outside of the industry, a property manager is a property manager, and few people can or care to make any distinction between an HOA, multi-family, or single family manager.<img alt="Calculator" class="alignright size-medium wp-image-3302" height="222" src="http://allthingspropertymanagement.com/wp-content/uploads/2011/11/iStock_000000206062Small-300x222.jpg" title="Profitability over Volume" width="300" /><br /><br />There are also few who make any distinction between competent professionals and slum lords.<br />It is not surprising that the general public can’t grasp these differences. What is surprising is that many of us as property managers and landlords can’t even make this distinction within our own companies and portfolios. I’m not pointing fingers here, as my company was as guilty as any other only a couple of years ago. Our management portfolio consisted of hundreds of single family units, multi-family buildings ranging from the worst of areas to the best, multiple commercial properties, as well as some associations. We had spent years building up our volume of managed properties without any regard for the type, quality, or location of the properties that we were taking on. We were happy that our unit count was growing steadily, but no matter how many units we added, it seemed that we were not making any additional profits month over month. It was frustrating, to say the least, so we made an effort to find out what the issue was.<br />After taking a long, objective look at every single property we had under management, it turned out that 40% of the units we managed actually lost us money. This was due to the additional overhead necessary to deal with those properties on an ongoing basis. As our management agreements expired for these properties, we made a conscious decision to terminate or not renew service for them. We also have narrowed the profile for the properties that we are interested in managing, and we continue to become a more profitable company overall. We have no interest in volume for the sake of volume. As I continue to communicate and network with other successful managers throughout the region, it is becoming clear that many of the successful companies have figured this out as well.<br />A few of the factors that successful property managers consider before taking on any new property are as follows:<br /><b>Property location</b><br /><b></b>This seems simple enough, but it is very tempting to stray outside of your normal service area when you know that a new deal can easily close. However, once the property is on your plate, you need to lease, manage, and maintain that property, which could require some excessive window time in the car. It can also mean that your current vendor network may not be willing to travel to service that location. If this turns out to be a difficult property, it can easily become a losing proposition as the miles and time needed to track down outside vendors stack up.<br /><b>Property owner</b><br />This is many times the most overlooked and underestimated factor when taking on a new property. Every time that a new account is taken on, we need to consider how interactions with the property owner will go. While there is no way to predict the future, you can get a pretty good idea of a property owner’s personality and attachment to their property within a couple of conversations. If the property owner’s needs and expectations don’t fit with what you offer, then it is best to let him or her know that and pass on the business. A high-maintenance and overbearing property owner can drain the profit out of a management deal faster than any other factor.<br /><b>Property condition</b><br />This is a personal/business decision, as there is no right or wrong answer as to what properties are “best” to manage, but it does seem that many successful companies are only really good at managing a specific range of property conditions. The company that is great at managing dilapidated 6-flats in depressed areas is generally not the same company that should be managing a pristine million dollar single family property. The methods for marketing, maintenance, and tenant relations are completely different. The vendors that will service the properties are likely different. The owners that own the properties are probably very different as well. We see successful firms focusing on their niche within the business and becoming experts within that segment of the market. If you are not well equipped to handle a poorly maintained property, it can be an incredible drain on your time and should be accounted for when deciding whether or not to take on a property. On the other hand, if you are experienced and equipped to handle a true mess of a property, there is opportunity to take on that business, as there is no shortage of subpar property to try to turn around.<br /><b>Property type</b><br />I touched on this previously, but there are very few companies who can pull off successfully managing every type of property. That’s why an increasing number of firms are focusing solely on their strongest and most profitable sector. Many companies that now only serve HOAs once managed investment property and vice versa. Most management companies will still take on a huge range of property types, from a tiny low rent apartment to a high end home or apartment or building, but the industry seems to be becoming much more specialized, as successful companies are focusing on very specific markets and property types. As our client base is becoming more demanding regarding service, it is increasingly important to become experts within our respective markets and market segments.<br />No matter where our strengths lie, the most important question that we need to ask ourselves when we consider taking on a new account is, “Will we be better off twelve months from now by taking this property into our portfolio today?” If the answer is not clearly a yes, then it may be time to reassess our position and the profitability of that deal before committing to managing the property. Taking on volume for the sake of a higher unit count is not only costly, but can take a long time to remedy once you decide that you’ve moved in the wrong direction.asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com1tag:blogger.com,1999:blog-2760446582458845214.post-73779678832336573282011-12-18T00:22:00.000-08:002011-12-18T00:22:25.926-08:00How To Pick Professional Property Management<div class="separator" style="clear: both; text-align: center;"></div><div style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em; text-align: justify;"> <img height="240" id="il_fi" src="http://static2.dmcdn.net/static/video/533/881/28188335:jpeg_preview_medium.jpg?20110726174858" style="padding-bottom: 8px; padding-right: 8px; padding-top: 8px;" width="320" /></div><br /><br /><div style="text-align: justify;"> For newcomers planning to take up the duties of a landlord, it is best to seek the services of a provider offering professional property management that can streamline the management of their properties in addition to relieving them from a host of overwhelming tasks related to maintaining and running rental properties. These companies basically serve as an intermediary between landlords and tenants.</div><div style="text-align: justify;"></div><div style="text-align: justify;">Management of property is a critical aspect of realty investment that can make all the difference between a well run property with positive cash flow and a poorly managed property with negative cash flow. So at one phase or another, every landlord has to make a decision to employ professional services or manage properties on his own.</div><div style="text-align: justify;"></div><div style="text-align: justify;">A property manager must be able to follow and implement a well documented system of managing properties which includes showing people around vacant properties, managing applications, interviewing prospective tenants, deciding on the right tenants, supervising the move in process, responding to the issues raised by tenants and managing evictions.</div><div style="text-align: justify;"></div><div style="text-align: justify;"><b>Choosing The Right Management Company</b></div><div style="text-align: justify;"></div><div style="text-align: justify;">Before choosing a company to take up management of properties, there are some important facts to watch out for. Here are some factors one must consider to ensure the best management services</div><div style="text-align: justify;"></div><div style="text-align: justify;"><i>Company history</i></div><div style="text-align: justify;"></div><div style="text-align: justify;">The number of years that a company has been in business often indicates how reliable a provider offering professional property management is. Generally, a company that has been around for a while and is known for their consistently outstanding services would be a good one to partner.</div><div style="text-align: justify;"></div><div style="text-align: justify;"><i>Customer service</i></div><div style="text-align: justify;"></div><div style="text-align: justify;">While communicating with a company involved in management of properties, closely observe the quality of their customer service. This is important since the landlord as well as the tenants will be dealing with the company on a regular basis. So, it is best to partner a company that sounds courteous, attentive, responsive and helpful. While evaluating customer service standards, pay close attention to the promptness of the agency offering professional property management in replying to inquiries and the friendliness of their customer support staff.</div><div style="text-align: justify;"></div><div style="text-align: justify;"><i>First impression</i></div><div style="text-align: justify;"></div><div style="text-align: justify;">During the first communication with the company, enquire about their experience and expertise in handling the particular type of properties under consideration. This is an important aspect that would indicate how well the company will be able to carry out the targets set by a landlord.</div><div style="text-align: justify;"></div><div style="text-align: justify;"><i>Responsibilities involved</i></div><div style="text-align: justify;"></div><div style="text-align: justify;">Different companies take up different levels of responsibilities in managing properties. Before finalizing a company, find out if they will offer full maintenance services, accounting information, tax calculations, property insurance claims handling and other services.</div><div style="text-align: justify;"></div><div style="text-align: justify;"><i>Cost of </i><i>Professional property management</i></div><div style="text-align: justify;"></div><div style="text-align: justify;">When a management company is to be hired to act as an intermediary between the landlord and tenants, the services offered by the company must be well worth the fees charged by them. While some companies offer an all inclusive package, others charge separately for each service. Regardless of the fee structure, all these fees must be included in the owner manager contract.</div><div style="text-align: justify;"></div><div style="text-align: justify;"><i>References</i></div><div style="text-align: justify;"></div><div style="text-align: justify;">Seek the opinion of other landlords who have partnered a particular company for managing their properties. In addition, while communicating with the company, request for a list of credible references to contact.</div><div style="text-align: justify;"></div><div style="text-align: justify;">Finding a good company for professional property management that suits individual expectations may seem an impossible task. However, with a little bit of research and by asking the right questions, anyone can find the perfect company for one needs and enjoy the expertise that only professionals can provide.</div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com1tag:blogger.com,1999:blog-2760446582458845214.post-54086564147979144012011-12-02T21:27:00.000-08:002011-12-18T00:39:09.878-08:00Five Things to Consider Before Buying Your First Investment Property<small></small> <strong><em>By Munveer Garcha, Policy Expert, London, UK</em></strong><br /><div> If you’re considering purchasing a buy-to-rent investment and becoming a first-time landlord, there are a few things you should consider. Here are our top five pointers to think about before taking the plunge.<a href="http://allthingspropertymanagement.com/wp-content/uploads/2011/10/iStock_000005755551Small1.jpg"><img alt="Investment Property" class="alignright size-medium wp-image-3270" height="225" src="http://allthingspropertymanagement.com/wp-content/uploads/2011/10/iStock_000005755551Small1-300x225.jpg" title="iStock_000005755551Small" width="300" /></a><br /><br /><br />1. <strong>Location, location, location.</strong><br />It’s vital that you carefully consider the location of your rental property before investing. The location will influence the desirability of your property, and that in turn will impact the amount of rent you can charge. Consider your target market – is the area mainly home to young families? If so, consider the proximity of the rental property to good local schools. If it’s a student area, try to find a rental investment that’s well connected to the main campus buildings. Also, are there good train and bus stops nearby as well as local amenities like shops and banks?<br />Location can also affect the amount you pay for landlord insurance. If you live in a high crime area for example, you’ll probably be charged more for your insurance policy.<br />2. <strong>Know your stuff.</strong><br />Make sure you understand the processes and legal obligations involved in renting out your property. You will need to draw up a tenancy agreement, which is a legally binding contract between you and your tenant. You’ll also need to read about your tax obligations and understand how security deposits are handled.<br />3. <strong>Insurance</strong><br />Landlord insurance is considered a must-have purchase for most buy-to-rent owners. If your property is being rented to paying tenants, then it’s highly likely that a standard house insurance policy will not be sufficient.<br />4. <strong>Maintenance and upkeep</strong><br />You’ll need to carry out regular maintenance checks at the property to see that it meets all health and safety regulations. If you fail to sufficiently maintain the rental, you could be at risk of a negligence claim. Also, if the property isn’t in good condition it may fail to provide you with an adequate rental income. Think about how you’ll maintain the property – will you require assistance from a qualified tradesman or do you have the skills to carry out work yourself?<br />5. <strong>Finding tenants</strong><br />You’ll need to promote your property effectively to ensure it doesn’t sit empty. For a fee, you could employ a property management company to handle the entire tenant finding process for you. If you’re doing it yourself, make sure you carefully vet potential tenants and take the necessary references and deposits. Most people look to the web to find rentals, so make sure to feature your property on all the major property websites.<br /></div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com0tag:blogger.com,1999:blog-2760446582458845214.post-58778592066257087512011-12-02T21:22:00.000-08:002011-12-18T00:39:09.879-08:00It’s Hard to Say No to New Property Management Accounts<small></small> <div style="text-align: justify;"><strong><em>By Salvatore Friscia, San Diego Premier Property Management, San Diego, CA</em></strong></div><div style="text-align: justify;"> </div><div style="text-align: justify;">Property management is all the buzz these days, as it is becoming the saving grace of the real estate industry. Across the country, real estate agents and realtors who are unable to maintain consistent listings and sales have turned to property management as a steady income stream until the market “picks up” again. This increase in competition for property management accounts by quasi real estate agents/managers has lead many who want to build their property management portfolio to take on any and all assets.<img alt="Dilapidated apartment building" class="alignright size-medium wp-image-3310" height="216" src="http://allthingspropertymanagement.com/wp-content/uploads/2011/11/iStock_000003846412Small-300x216.jpg" title="It's Hard to Say No to New Property Management Accounts" width="300" /></div><br /><div style="text-align: justify;">Many new to the industry agree to manage dilapidated properties from slumlords at management rates sometimes as low as three or four percent, and welcome the unrealistic rental rate demands from new investors trying to cash flow on properties that never will. However, by far the most common mistake made by these new entries into the business is taking on accounts that are located just too far away from their own area of operation or expertise.</div><div style="text-align: justify;"> </div><div style="text-align: justify;">We have all seen the marketing signs before – “Countywide,” “Citywide,” or “We service all areas.” Now, please understand that many well-structured property management companies large and small can accurately market this way, as they have the means, systems, and staff available to handle distant accounts across larger serviceable areas, and do so in a professional manner. That’s not always the case for single parties handling a few accounts here and there. Saying “no” to a potential account, or offering to refer that client to a reciprocating property management company for a referral fee, seems to be a hard thing to do in a struggling real estate market.</div><div style="text-align: justify;"> </div><div style="text-align: justify;">In my experience, the successful property managers know their limits, and would rather deliver exceptional service than risk blemishing their reputation on a property they should have referred. Nothing will destroy the will of a new property manager faster than having to drive clear across town numerous times a week to show a property that maybe difficult to rent. The more trips the manager makes across town to the property, the more evident the profitability of the account comes into question, and things like drive time to-and-from, gas expenses, and vehicle wear-and-tear start to take a toll. In the end, the owner is usually unsatisfied with the results and the property manager is just glad to see the property go. Unfortunately, real estate property management is based on relationships, and saying “no” maybe the best way to go when dealing with a property outside your area of operation or expertise. Besides, there’s nothing wrong with getting a referral check and keeping your clients.</div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com0tag:blogger.com,1999:blog-2760446582458845214.post-84148955258335619132011-12-02T21:17:00.000-08:002011-12-18T00:39:09.879-08:00Can Your Property Rights Be Violated by Cable Placement?<h2></h2><small> </small> <em><strong>A guest post by Michael Gonzalez, Melrose-Sovereign, Orlando, FL</strong></em><br /><br /><br /><a href="http://allthingspropertymanagement.com/wp-content/uploads/2011/11/iStock_000002524577Small-180x300.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="Cable Placement" border="0" class="alignright size-medium wp-image-3290" height="400" src="http://allthingspropertymanagement.com/wp-content/uploads/2011/11/iStock_000002524577Small-180x300.jpg" title="Can Your Property Rights Be Violated by Cable Placement?" width="240" /></a>When you live in a condo association, you are guaranteed certain property rights. With good property management, your rights are guaranteed in your governing documents, and one of the most important of these is the definition of “Common Elements.” These elements constitute all of the community that is not included within the units (hallways, lobbies, elevators, etc…). “Common Elements” also include easements through units for conduits, ducts, plumbing and wiring. These rights are common in most condo associations, and they are often not fully understood by their residents. We have recently come across a situation that represents this.<br />A cable company violated a resident’s property rights by drilling and running a television cable through the closet on their balcony. The cable company said that they were given permission by the condo association board, however, the closet on the resident’s porch is not technically “common space.” The closet is considered part of the unit as defined by the association’s governing documents. The resident’s cable was violating the property rights of the unit below them and their property rights were being violated by the unit above them. When the resident questioned the cable installer about it, he simply said that the association board gave him permission to do this. This is a violation of the owner’s rights because the wiring that was being installed was obstructing the resident’s use of the closet, so they demanded that the cable be relocated. The previous television cable was run through the walls, which is a much more aesthetically pleasing solution and does not violate the resident’s property rights, as the walls are a part of the “Common Elements.” The owner was eventually able to get the cable relocated and the association board apologized.<br />This story shows the benefits of understanding your rights and how to exercise them. It is very important to have a full understanding of the governing documents of your association such as the CC&R’s and bylaws. These documents are the laws of your association and understanding them will allow you to recognize any inconsistencies should they arise. It can also be valuable to ask questions of your association’s contractors to see exactly what they are doing. They could be violating your rights and you may not even realize it. When living in community environments, like condos, the value of your condo relies heavily on the others in your building. If their property rights are violated, it can have a negative effect on you and your living situation. This is why it is important to make sure you have a well-informed community and that you exercise your rights. To learn more about HOA management and community associations, visit www.melrose-sovereign.com.asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com0tag:blogger.com,1999:blog-2760446582458845214.post-62707129980280310742011-12-02T21:14:00.000-08:002011-12-18T00:39:09.879-08:00Five Things New Landlords Don’t Know<h2></h2><strong><em>A guest post by Dusty Henry, All Property Management, Seattle, WA</em></strong><br />Renting out your property might sound like a great idea, and it is. Inviting tenants to live in your home, especially if you are not using it, can be a great way to make some extra money and let someone else pay<br /><div style="text-align: justify;">your mortgage</div><div style="text-align: justify;">.<a href="http://allthingspropertymanagement.com/wp-content/uploads/2011/11/iStock_000006195195Small-300x239.jpg" imageanchor="1"><img alt="For Rent Sign" border="0" class="alignright size-medium wp-image-3287" height="254" src="http://allthingspropertymanagement.com/wp-content/uploads/2011/11/iStock_000006195195Small-300x239.jpg" title="Five Things New Landlords Don't Know" width="320" /></a></div><div style="text-align: justify;"> </div><div style="text-align: justify;">The idea of enlisting and paying a property manager may at first seem contradictory to your idea of making money. If you only have one property and minimal outside commitments, then you might not have a problem managing your own property. However, there are some things most new landlords don’t consider before taking the leap.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><strong>1. </strong><strong>A fair amount of legal knowledge is required.</strong></div><div style="text-align: justify;"> </div><div style="text-align: justify;">Unless you come from a real estate background, there is going to be a huge learning curve with respect to housing laws and regulations. There is much more to renting out a property than finding a tenant and collecting rent. From complying with Fair Housing Laws during the tenant selection process, to writing a lease agreement that adequately protects your rights, to handling potential evictions, there are many aspects of landlording where knowing the law comes into play. Not to mention, these laws and regulations are always evolving, so you will need to stay on top of any changes that take place.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><strong>2. </strong><strong>You are on call for maintenance emergencies 24/7.</strong></div><div style="text-align: justify;"> </div><div style="text-align: justify;">Part of the landlord title means being able to put on a tool belt and take care of household issues and damages to your property. It is hard to predict exactly when your tenants might need a handyman to fix a leaky faucet or anything that compromises the livability of the home. If the task is much larger than you can handle, you will be responsible for hiring an outside contractor to take care of it.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><strong>3. </strong><strong>Screening tenants is not as straightforward as it appears.</strong></div><div style="text-align: justify;"> </div><div style="text-align: justify;">Choosing someone to live on your property is one of the most critical decisions you will make as a landlord. A tenant who does not take care of your property, or is slow to pay rent, can become an unnecessary burden and liability. Aside from an applicant’s ability to pay rent, there are a number of things to consider before allowing a person to sign a lease. It is essential to perform background and credit checks on all applicants. While this may sound simple enough, interpreting the results that come back may not be as straightforward as you think. You will also have to deal with the fact that you may spend a large amount of time screening applicants who are not qualified, not to mention the real probability of not finding any leads at all. You will need to be effective and creative with promoting vacancies.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><strong>4. </strong><strong>Managing an ongoing relationship with your tenants requires more than knowing how to cash rent checks.</strong></div><div style="text-align: justify;"> </div><div style="text-align: justify;">Even after putting in the time to find a good tenant, issues may still surface. You have to be prepared to be direct with your tenant about fixing the problem, while also doing what it takes to maintain a good rapport with them. This can be considerably more awkward than it sounds. If you are not firm enough, the tenant might not take the initiative to fix the problem. If you are too firm, you might have trouble keeping any tenants at all. It’s a delicate balance that takes a long time to master.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><strong>5. </strong><strong>You’ll need to plan on spending a minimum of 10-15 hours per month managing your property.</strong></div><div style="text-align: justify;"> </div><div style="text-align: justify;">Chances are you probably have a full-time job and various other obligations. Adding landlord duties can become a burden on your to-do list and create much unneeded stress. Between your personal life and the aforementioned commitments of renting your property (these are just a few landlord duties, the list goes on…), this can often be too much for one person to handle.</div><div style="text-align: justify;"> </div><div style="text-align: justify;">Professional property managers have a team that specializes in taking on all of these issues with tired and true methods that are effective and efficient. If managing your property is your main project and focus, it is possible that you can handle it on your own. For most people, though, rental properties are a side investment, and spending 10-15 hours a month keeping a rental property running detracts considerably from the return on that investment. For a small percentage of your monthly rent, you can delegate all the hassles that come with owning a rental property to an expert, and turn a tedious part-time job into a passive stream of income.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><strong>About the Author</strong><br />Dusty Henry is an Editor at All Property Management, a company that matches rental property owners with property management companies in their areas. Search their extensive database at <a href="http://www.allpropertymanagement.com/" title="www.allpropertymanagement.com">http://thingpropertymanagements.blogspot.com/</a>, then get free quotes from property management companies near you.</div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com0tag:blogger.com,1999:blog-2760446582458845214.post-15383046758672980532011-12-02T21:10:00.000-08:002011-12-18T00:39:09.879-08:00Government Policy Continues to Fuel the Residential Property Management Industry<div class="separator" style="clear: both; text-align: justify;"></div><div style="margin-left: 1em; margin-right: 1em;"><strong><em>By Ben Holubecki, STML Realty Group, Glen Ellyn, IL</em></strong> </div><div style="margin-left: 1em; margin-right: 1em;">Over the past four to five years, I have been posed all of the questions asked of many business owners in the real estate industry. How has the downturn in the economy hurt your profits? Has the housing collapse crippled your business? What about the high unemployment rate? My answer to these questions has been consistent throughout all of these turbulent times. Business is great, and consistently so.<img alt="Housing Market Slows" class="alignright size-medium wp-image-3283" height="294" src="http://allthingspropertymanagement.com/wp-content/uploads/2011/11/iStock_000006578685Small-300x221.jpg" title="Government Policy Continues to Fuel the Residential Property Management Industry" width="400" /> </div><br /><br /><h2></h2><div style="text-align: justify;"> </div><div style="text-align: justify;"> I usually walk away from those conversations feeling fortunate to be a part of a strong niche within a deeply depressed industry, and I think many good property managers feel the same way. However, I don’t know that we give a lot of thought to how profound external factors affect our industry. The recent announcement by President Obama regarding expansion of the HARP (Home Affordable Refinance Program) got me thinking about the ramifications for the property management industry as well as how the housing collapse has shaped our industry overall.</div><div style="text-align: justify;"> </div><div style="text-align: justify;">One factor that seems to be absolutely clear is that the U.S. government’s incompetence and inability to stabilize the housing market continues to drive the residential property management industry forward. I was first exposed to the property management industry during the apex of the housing boom. It was a time when everyone had equity, mortgage approvals and refinances were easy to come by, and anyone with a few dollars in the bank was trying to rehab and flip property in their spare time. The portfolios of many property management companies were comprised primarily of real estate investors of one type or another who actually expected to turn a profit as a result of operating their investment properties. Sadly, many of these investors continued to buy property all the way into the height of the market, overextending and overexposing themselves, and blindly wagering their economic futures and retirement funds on a market preparing for collapse. As a result, we have seen many of these investors, including many of our own former clients, get crushed by adjusting mortgages, credit tightening, and the evaporation of millions of dollars in equity.</div><div style="text-align: justify;"> </div><div style="text-align: justify;">Those investors, who at one time filled our portfolio with property to manage, seemed to disappear as quickly as they previously appeared. Only the more savvy and stable investors have made it through the storm thus far and those less fortunate investors have been replaced by a flood of single property owners forced to rent a property due to the terrible sales market conditions. This flood of potential clients will continue to benefit our industry, so long as our government fails to find a permanent solution to solve our housing crisis. There are few factors that drive homeowners to make the decision to lease and have a property managed, and one of those primary factors may be swinging in our favor.</div><div style="text-align: justify;"> </div><div style="text-align: justify;">The newly announced upcoming changes to the government’s home affordability initiative (if they actually go into effect as planned) will allow many deeply underwater homeowners the ability to refinance into a reasonable interest rate and monthly payment. There is also a possibility that those who bought a house as their primary residence but now hold the property as an investment will be able to refinance through HARP at an additional cost. What does that mean for us as property managers? It means that there may be an additional pool of thousands of homeowners who will now have manageable monthly overhead related to their property, but since the new program does nothing to solve the overall problem of negative equity, these owners still have no chance to sell their properties. For those owners who would have otherwise never considered renting out a property due to the fact that they would be operating in the negative every month, they may be able to break even with reduced monthly mortgage payments, or dare I say, even make a few bucks by putting their property on the rental market.</div><div style="text-align: justify;"> </div><div style="text-align: justify;">This scenario makes a couple of assumptions. It assumes that the government can actually roll out the changed terms. It also assumes that the banks can figure it out and implement the program. There is no guarantee that all of these stars can align and this program will work as planned. Since the government and banks are involved, I’d almost be certain that it will fall apart at some point. Even so, if the program only helps a fraction of the 900,000 homeowners projected, an eventual influx of thousands of sustainable rental properties will hit the property management market over the next few years. These properties will carry less overhead, be less likely to default, and be sustainable as rental properties on a longer term basis. This means more available clients and profit for leasing agents and property managers throughout the country and built-in growth for our markets. It’s not often that a bad policy hastily implemented to grab a few presidential votes will help to build your business, but it looks like that is exactly what is going to happen here. I continue to feel fortunate to be in the right place at the right time.</div>asrulhttp://www.blogger.com/profile/06790572139541890264noreply@blogger.com3