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Oct 10, 2023
A Comprehensive Guide for New Landlords: Securing a Tenant and Managing Your Investment Property
A Comprehensive Guide for New Landlords: Securing a Tenant and Managing Your Investment Property Welcome to the world of property investment! As a new landlord, you will need to learn about the numerous aspects of managing and maintaining a rental property. This comprehensive guide will help you navigate the process, ensuring both you and your tenant have a positive experience. 1. Vetting Prospective Tenants Finding the right tenant is crucial for a successful property rental experience. You want someone who will treat your property with respect and fulfil their financial obligations. Take these steps to vet prospective tenants: Request a rental application that includes personal information, employment history, rental history, and references. Run a credit check to obtain an understanding of the applicant's financial stability. Verify the applicant's employment status and income level. Check their rental history, including references from previous landlords and property managers. Conduct a background check to assess any criminal history. 2. Collecting a Bond A bond serves as security against property damage or unpaid rent. Here's how to handle bond collection: Familiarise yourself with local laws and regulations on bond amounts. Clearly outline the bond amount in the lease agreement. Collect the bond before the tenant moves in. Lodge the bond with Bond Administration within 14 days of receiving the payment. 3. Repairs and Maintenance As a landlord, it's your legal obligation to provide a safe and habitable property. Implement the following steps to manage repairs and maintenance: Perform regular maintenance activities, including landscaping, pest control, and minor repairs. Address emergency repairs promptly. Maintain an open line of communication with tenants, encouraging them to report any maintenance or repair issues. Schedule routine maintenance to prevent bigger problems down the road. 4. Conducting Regular Inspections Routine inspections help you monitor the condition of your property, ensuring tenants are adhering to the terms of the lease agreement. Keep the following in mind: Ensure you give the tenant 7 - 14 days written notice using a Form 19; notifying them of your intention to inspect the premises. Use an inspection checklist to ensure consistency. Document inspection findings, including photos of any damage (date stamped) Communicate any required action items with the tenant. 5. Knowing Your Rights and Responsibilities As a landlord, you should be well-versed in local rental laws and adhere to your responsibilities, while also understanding and enforcing your rights. Some key responsibilities include: Providing a safe, liveable, and clean property. Respecting the tenant's right to quiet enjoyment. Giving proper notice before entering the property. Addressing maintenance and repair issues promptly. 6. Tax Obligations Rental income is subject to taxation. Some helpful tips regarding taxes include: Declare your rental income on your yearly tax return. Deduct relevant expenses, such as repairs, maintenance, management fees, and mortgage interest. Consider seeking professional advice to maximize deductions and ensure compliance. 7. Engaging a Professional Property Manager A professional property manager can alleviate the burden of managing your investment property. They can handle tasks such as finding and vetting tenants, collecting rent, coordinating repairs, and managing legal aspects, giving you peace of mind and freeing up time. The team at Aqwasun Estate Agents are here to help! 8. Securing Landlord Insurance Landlord insurance acts as a safety net, covering property damage and lost rental income, among other things. Do thorough research and select a policy that best suits your needs. In conclusion, being a successful landlord requires an understanding of various aspects of property management. By following this guide, you are well on your way to a rewarding investment property experience. Consider engaging a professional property manager to provide additional support and expertise. *While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you need us we are here, contact 08 9537 1220 if you have any questions.
Oct 4, 2023
Managing your own rental property? The Benefits of Hiring a Property Manager for Landlords
Many landlords consider managing their own rental property for cost-saving reasons. However, managing a property can be complex and full of unforeseen challenges, particularly when dealing with tenants. This is where property managers come in – acting as liaisons between landlords and tenants to ensure smooth operations. Start to Finish: Assisting with Tenant Placement Property managers carry out essential tasks such as arranging property viewings, managing rental applications, and screening potential tenants. Their expertise in rental laws and legal legislations ensures that all these processes are compliant, while taking off significant stress and workload from landlords' shoulders. National Tenancy Database: Ensuring Quality Tenants One major advantage of hiring property managers is their access to the National Tenancy Database. This provides them with the capability to screen and verify prospective tenants' histories, helping to prevent possible future conflicts with tenants who have unfavorable past records. Everyday Management: Streamlining Property Operations Everyday tasks such as preparation and execution of lease documents, ensuring timely rent collection, and handling of bond lodgements fall within a property manager's responsibilities. They also handle property maintenance, regular inspections, and manage utility expenses, helping maintain the marketability and value of the property. Importantly, property managers have a deep understanding of rental market trends and can assist in setting an optimum rental rate based on market conditions. When Things Go Wrong: Expertise in Legal Matters When conflicts or issues arise, having a property manager can be invaluable. They have the necessary training and expertise to handle difficult situations, possibly saving landlords from long-term disputes or legal troubles. Whether it's dealing with zoning regulations, understanding current rental legislations, or representing landlords in court, property managers have the knowledge to navigate these potentially stressful situations. While property management may seem like an additional expense, the peace of mind, time saved, and potentially reduced legal risks make it an investment worth considering. From selecting quality tenants to handling day-to-day management tasks, property managers offer valuable support and expertise that can go a long way towards ensuring successful and stress-free property rental. The team at Aqwasun Estate Agents are here to support you with the management of your investment properties in Golden Bay, Singleton, Lakelands and surrounds!
Oct 3, 2023
First Time Renting?
Moving out of your family home and into your own place can be an exciting experience. When you are ready to make a move to go out and stay on your own, AQWASUN Estate Agents are here to help! Dealing with first time renting troubles As a first time renter, you may not have the rental history to support your credibility as a tenant. AQWASUN Estate Agents will help you deal with the no-win situation you may be caught up in. Our clientele includes landlords who are willing to let out their properties to first time renters, provided they have the appropriate documents. In addition to rental history, there are a number of things you should consider when renting a property to avoid making mistakes that could later prove to be costly for you. Where do you want to live? The first thing to consider is the area where you want to live. To determine this, you need to consider how close the property should be to where you study or work, proximity to transport or arterial roads, the cost of renting in the area, the living conditions and the general environment of the region. What are you looking for in the property? The idea of moving into your own space can be so exhilarating that you may end up liking every place you see. Closing in on just one property can get really difficult, especially when you don’t know what you want in the home. Make a list of your priorities for choosing the property – the amenities you want, the area, the space available, the furniture or furnishings offers, cleaning or maintenance services, heating, cooling, etc. This will make selecting a property much easier. How much can you afford? For first time renters it normally all boils down to budget. No matter how much you love a property or how perfect it seems, you will not be able to rent it if it falls out of your price range. Resist the temptation to give into the looks of the place and exceed your budget, for that could lead to a financial crunch later. Check the property before you finalise Don’t go by photos. Always take time to see the property personally and inspect it before finalising. Find out whether or not you are comfortable in the property before you go ahead and sign the lease. Read the lease Make sure you read the lease agreement in full and also understand what it means. Do not proceed with the lease if you have any doubts about it or do not understand even a part of it. Contact our team on 08 9537 1220 for any assistance!
Sep 27, 2023
The Significance of a Property Condition Report: Safeguarding Your Investment
Did you know that every property investment comes with its own set of risks and challenges? One of the most effective ways to mitigate these risks and protect your investment is through a Property Condition Report (PCR). In this blog post, we'll explore the importance of a PCR and how it can serve as a valuable tool in safeguarding your property investment in Golden Bay, Singleton & Lakelands. Understanding the Property Condition Report A Property Condition Report, or PCR, is a comprehensive document that details the current condition of a property. It serves as a crucial record for property owners and tenants. The PCR includes all aspects of the property and details specific internal and external components of a property, documentation of existing damage, defects or maintenance issues as well as the cleanliness of the property. Protecting Your Investment A PCR is vital for all parties in a property transaction and is a legally required document and the fine for not preparing one is $1,000. Property owners can identify and address maintenance issues, ensuring their property remains in good condition An accurate and detailed PCR helps reduce risks, avoid misunderstanding or disputes, and ensure a fair transaction process for all parties involved. When your tenant vacates, if there is any damage or cleanliness issues identified; and you are wanting to deduct costs from the tenants bond, then an ingoing PCR is vital to showcase the origional condition. PCR Best Practices To create a comprehensive and reliable PCR, consider these practical tips for property owners and managers: Document damages with clear descriptions and specifics to facilitate communication and resolution Use photographs or videos to provide visual evidence of damages or defects (ensure these are date stamped) A Property Condition Report is an essential tool for safeguarding your property investment. By improving your understanding of PCRs and implementing best practices, you can reduce risks, maintain property value, and enjoy peace of mind. Don't leave your investment unprotected – prioritize obtaining a PCR for your property or seek professional assistance today.
Sep 26, 2023
You have been given notice to vacate your rental property - now what?
So, you have been told you have to move out of your home, what do you do now? Here is our comprehensive, step-by-step guide on what to do when given notice to vacate a rental property in Western Australia. The process of ending a tenancy can be a daunting and overwhelming experience, which is why it's crucial to know your rights and responsibilities as a tenant when faced with a vacate notice. In this post, we will cover different notice periods in Western Australia, pre-applying for rental properties, and the important aspects of moving out. Notice periods in Western Australia In Western Australia, there are specific notice periods that apply to different lease types: Periodical Lease: For a periodical lease, the notice period is 60 days. Fixed-term Lease: When vacating a fixed-term lease, the notice period is 30 days. Periodical Lease with Unconditional Sale of Property: >If the property you're living in has been sold unconditionally and you have a periodical lease, you should be given a 30-day notice period to vacate. Notice periods are intended to provide you with enough time to search and prepare for your new home, so it's essential to understand the notice period that applies to your situation. Pre-Applying for Properties Before you find yourself with limited time, creating a 2-Apply Profile can make applying for rental properties smoother and more efficient as most Agencies use this system. . The benefits of using a 2 apply profile include: Speedy applications, with your information already filled in for each new property Pre-approval for the bond and rent, improving your chances of securing a new home quickly Also, ensure that you have enough funds to cover the required bond (equivalent of 4 weeks rent), pet bond (up to $260), and the first two weeks of rent. Your profile: Ensuring your profile is as accurate as possible and has as much information as possible is essential. All occupants over the age of 18 will need to create a profile and be on the lease agreement (in most circumstances). Each applicant will need to upload the following into their profile: Identification: 100 points of identification including photographic identification (drivers licence, passport, Medicare card, a bill confirming your current address etc) Income: You will need to provide proof of your income such as; your most recent 3 payslips; bank statements, Centrelink statements, child support statements etc Living History: You will need to provide the details of where you are currently residing; and your previous living arrangement. Personal References: You will be asked to provide 2 personal references Emergency Contact: You will be asked to provide 2 emergency contacts To help your application stand out from the crowd I would recommend: including a cover letter; explaining your situation and a bit about your family If you are currently renting upload a copy of your tenancy ledger, and most recent routine inspection If you are currently a home owner, uploading a copy of your council rates notice (confirming you are the owner) Moving out of your home We recommend coordinating the timelines with your old and new leases so that you can have access to both properties for a weekend or even a week. This will allow you to move your belongings at a comfortable pace and ensure that you fulfill the cleaning requirements for the vacated property. Specific lease agreements may set conditions for carpet cleaning and flea treatment, especially if you've had pets. Make sure that you understand your lease requirements and comply accordingly. Lastly, consider hiring a professional cleaner for a vacate clean with a guarantee call back if the property manager or owner is not satisfied with the initial cleaning job. This will help you ensure that the vacated property is left in the best possible condition for the next tenant. To sum up, understanding the notice period specific to your lease type, pre-applying for rental properties, and being mindful of cleaning requirements are crucial aspects of vacating a rental property in Western Australia. By following this guide, you'll be better prepared when given notice to vacate a rental property, making the transition as seamless and stress-free as possible. We encourage you to take action and stay informed about your tenant rights and responsibilities when vacating a rental property. If you have any questions or concerns, don't hesitate to reach out to your property manager or a local real estate agent for further assistance. Good luck with your move!
Sep 25, 2023
The Reality of Rental Affordability in Western Australia: A Closer Look
Rental affordability in Western Australia has always been a critical topic, but never more so than in the current economic climate. The narrative spun by statistical data often presents a different story from the one tenants and property managers encounter in real life. It's time we took a deeper dive into this apparent disparity. The real estate institute of Western Australia, reiwa.com, paints an intriguing picture. They suggest that the proportion of family income required for median rent payments stands at 22%. While this seems to suggest a healthy rental environment, our real-life observations in the field often tell us a different story. From our boots-on-the-ground perspective, the actual proportion of income spent on rent often leans heavier towards 40-45%. The gap between reported statistics and reality becomes increasingly evident when we consider individual circumstances. For example, sole tenants or single-income households often bear a significantly heavier rental burden. The traditionally accepted belief has always been that income spent on rent should ideally hover below 30%. However, given the current economic landscape and increasing rental prices in Western Australia, this might be a mindset primed for reconsideration. It is crucial we begin to understand and discuss why these figures might no longer align with financial realities for many renters. While the proportion of income to rent contributes to rental affordability, it's not the whole story. Rental payment history showcases a tenant's ability to budget and prioritize necessary expenses, which could serve as a more reliable indicator of future rental payments. In sum, the gap between reported statistics and the reality of rental affordability in Western Australia is significant. It's time for a mindset shift when evaluating what qualifies as 'affordable'. Most importantly, we need to stress the importance of evaluating individual circumstances, especially a strong rental history, over generalised affordability ratios. The rental market is complex, and our understanding and assessment of affordability should reflect that. We need to factor in the economic realities faced by tenants and property owners alike to pave the way for a more realistic, fair, and effective rental market. Read REIWA's full article by clicking here.
Sep 22, 2023
Unveiling the Benefits of Pre-Applying for a Rental Property
House hunting, particularly for rentals, can often be competitive, stressful and time-consuming. But what if there was something you could do to get a step ahead of the competition? An action that could save you from the frantic rush to apply once you've found a property you love? The answer lies in pre-applying for a rent. As the term suggests, pre-application involves submitting your application to potential landlords or property managers even before you have found the right rental property. This proactive approach offers numerous benefits, and in this blog post, we dive deeper into the main advantages and how they can significantly improve your rental experience. 1. Faster Approval Process When you pre-apply, you have the added benefit of time on your side. You can gather all the necessary documents at your own pace, without the pressure of needing to submit your application urgently. This also gives property managers the opportunity to review your application and respond sooner. 2. Stand Out from the Crowd In competitive rental markets, properties disappear in a flash. In such scenarios, potential landlords appreciate pre-applications because it highlights serious renters who are not just browsing around but are ready to commit. This significant leap of faith can consequently give you a competitive edge over other applicants. 3. Streamlines Your Property Search When you pre-apply, you decide on your budget, preferred location, type of property, and conditions beforehand. This pre-qualification process enables you to streamline your search, making it more efficient by focusing only on properties that match your criteria. 4. Peace of Mind Searching for a place to live often comes with its share of stress. However, with a pre-application, tenants enjoy ongoing peace of mind. With most of the paperwork out of the way, you can concentrate on other important aspects of the move, like finding moving services or planning the interiors of your new home. 5. Better Chances of Securing Your Desired Property Pre-applying may increase your chances of getting your dream rental property. Since the property owner or agent already has your information, they can quickly approve your application if you express interest in a particular property, reducing the likelihood of another applicant beating you to it. In conclusion, pre-applying for a rental property does require an upfront investment of time and effort, but the benefits it offers are incredibly rewarding. While you're getting your paperwork organised, you're also standing out as a well-prepared and serious applicant. The key here is clarity – when you are clear about your needs and expectations, you can find your perfect home even amidst fierce competition. So, why not get a jump start and pre-apply? The benefits are certainly worth it. Remember, every extra day spent preparing at the beginning of your rental journey could potentially save you from the disappointment of missing out on your dream home. Stay tuned to Aqwasun's blog for more tips and tricks to streamline your rental journey. Happy house hunting! Alicia McCulloch Asset Management
Apr 17, 2023
What happens when a tenant damages your property when they move out?
The day is here — your tenants are moving out, new tenants are secured, and your property manager is getting ready to do the exit inspection and release the tenant’s bond payment. Everything’s going smoothly until your tenant damages the property as they’re moving out. Unfortunately, accidents like this happen. Bulky furniture must make its way down narrow hallways, and front doors become a tight squeeze. If your property manager has maintained open communication with the tenants, making repairs is relatively straightforward. Keep reading to learn what to do if your tenant damages your property when they move out. Make sure damage is documented in writing The exit condition report should note any property damage (outside fair wear and tear) in writing. This provides documentation to make it clear that the tenant caused the damage. Further, your property manager should also call the tenants to discuss the damage if the tenant didn’t get on the front foot and report it. After the call, sending an email summarising what was discussed, and the next steps is essential. The objective here is not only having thorough documentation, but if the matter can’t be settled directly with the tenant and ends up at at the Magistrates Court, it provides evidence to support your claim. Organise repair quotes and choose a tradesperson Your property manager should liaise with the tenant to discuss the damage and how it will be repaired. At this point, the tenant may opt to organise their own quotes and repair works. Payment for this option will often come out of the tenant’s own pocket. Alternatively, your property manager can make all the arrangements, and the payment can be deducted from the tenant’s bond, provided this complies with the Residential Tenancies Act. Inspect the repairs Once the repairs are complete, your property manager should inspect the work to ensure it’s completed thoroughly and won’t cause any other subsequent problems at the property. Again, documentation is key. Your property manager should take photos of the repairs, make notes in the exit condition report that the repairs were completed, and notify the tenant in writing that the damage is repaired and the matter is settled. Of course, as the landlord, you have a right to inspect the property and make sure the repairs are up to your standards. Accidents are a normal part of life, but it doesn’t make the prospect of damage to your property any less frustrating. Your property manager should always keep communication open with your tenants, especially at the end of the lease. If any damage occurs, the most important things to do are document what happened in writing, organise repair quotes, choose a tradesperson, and inspect the completed work to ensure it’s of a high standard. In most cases, tenants take good care of a property, and any damage caused upon moving out can be resolved with clear communication and payment from the tenant.