Do I Need A Property Manager?

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Whether you are a first-time property investor looking to find a great tenant for a property or two, or if you’re a seasoned property investment Brisbane veteran, the fact of the matter is that renting out those properties involves a great deal of time, money and commitment. Trying to juggle all of those demands yourself might seem reasonable on the outset, but can quickly become overwhelming. When the logistics of managing several properties becomes too burdensome, mistakes and problems start cropping up with regularity. Rather than risk such a scenario, you can hire a qualified and experienced property management Brisbane firm to assist you. If you don’t think you need a property manager, read a few of the compelling reasons below to learn why you definitely do.

Property Investing: A Major Commitment

Many people have the misconception that property investment simply means purchasing real estate and renting it out to a tenant. They skip over the many day-to-day realities of being a landlord, and are often surprised when that reality rears its head. Rather than being taken unaware by the major commitments involved in renting out a property – like handling maintenance issues along with management details like bookkeeping, form filing, portfolio management and other documentation – you can hire a property management firm to take care of those things for you.

Manage Your Properties, Wherever You Are

Even if the property you own is in the same city you reside in, the logistics of getting over there whenever necessary can be difficult. In cases where your investment properties are far-flung – in another city, or even in another part of the country – it can become downright unmanageable. An experienced Brisbane Real Estate firm can be there when you can’t be, allowing you to manage your properties seamlessly and professionally – even from a distance.

Go About Your Business Uninterrupted

For the vast majority of people, an investment property is just one of several balls they are juggling. You might have a regular full-time job, for instance, or might have several other properties to take care of. Either way, finding the time to keep on top of everything that goes along with renting out a property can be nearly impossible at times. Property managers offer the reliability of devoting their time to your properties, so that you can handle other important business.

Enhance Your Profitability

Finally, beyond the logistics of handling and managing your properties, a property manager can help you enhance your bottom line. With experienced property management firms, vacancies are minimised, rents are maximised and quality tenants are tracked down with ease. In the end, you’re much likelier to discover the joys and benefits of property investing when you hire a qualified property manager.

The First Steps To Buying An Investment Property

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So, you want to get into the investment property business. Fortunately, it’s always a good time to get started; however, there are many things to learn and concepts to understand. Before digging in for some serious research, though, you should familiarise yourself with the preliminary steps that any successful property investor should undertake. They are listed below for your convenience; look them over then put them to use as you kick off your property investing journey.

Laying The Proper Groundwork -There’s no logical way to just jump right into property investing. Instead, you must assemble a select number of things in order to get off on the right foot. For example:

Work With The Right People – One thing’s for sure: You can’t do it alone. Look for a qualified property management Brisbane or a Real Estate Brisbane company to begin. You’re also going to need to find suitable solicitors, finance brokers, accountants, property coaches, insurance brokers, quantity surveyors and many other individuals in order to increase your odds of making money with your endeavour. Surround yourself with winners and you can’t go wrong.

Determine Your Financial Situation – A realistic assessment of your current financial position must be made before you can seriously consider investing in any property.

Decide How You Will Invest – Some of the savviest property investors out there don’t always invest in their own name. Instead, they use spouses, children’s and other relative’s names in order to maximise their income potential. If you own a business or have a trust, one of them could be used to buy the property as well.

Figure Out Your Buying Strategy – You need to have a plan in place before you actually start buying investment properties. Work with a qualified property coach to devise a strategy that will allow you to lead the sort of lifestyle you want.

Set Your Buying Criteria – You can save yourself a lot of time from the get-go by drawing up a list of key characteristics for the properties you’d like to invest in. Plan them out – then stick with them – for maximum effect.

Find A Property – Based on the criteria that you came up with in the previous step, use various things like websites and a property research analyst to come up with a list of prospects. From there, run their information by property managers from your area in order to determine whether or not they would make good investment properties.

Use Property Analysis Software – Invest in decent property analysis software and use it to determine whether or not your prospective properties mesh well with your buying strategy.

Stay tuned for additional steps to buying investment property.

Advanced Steps In Buying An Investment Property

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In a previous article, we outlined the initial steps that you should follow in order to successfully invest in property. Below, we will outline the final range of things that you should do in order to ensure that all of the most important things are taken care of. That way, you can minimise your chances of running into trouble – and maximise your chances for making a really good income.

Make An Offer – Once you’ve set your sights on a reasonable looking property, make your initial offer. Assuming that it is accepted, the property will be withdrawn from the market; this will give you the time that you’ll need to double-check various things, and to make sure that everything about the property is as you expected it to be.

Get A Market Rental Appraisal – After making your offer, the first thing that you should do – even before hiring a Real Estate Brisbane firm – is to have a market rental appraisal performed. This appraisal will let you get a firm idea about what you can expect to earn from renters.

Negotiate, Negotiate, Negotiate – Depending on current market conditions, you should be able to negotiate a decent percentage off of the initial offer that you made on the property. It is absolutely in your best interests to negotiate the price down as much as possible, since every dollar you save is cash in your pocket.

Have Inspections Performed – One step that you never want to skip is having pest and building inspections performed. Nothing can cut into the profit that you could generate quite like an undetected termite infestation or very bad plumbing.

Get Financing – Now that you’ve made sure the property is in good order and that you’ll make decent rental income from it, you’ll need to arrange financing. Use a reputable broker to get a financing arrangement that will work for you.

Don’t Forget Insurance – There are many different types of insurance that you’ll need to consider when you own an investment property, but landlord’s insurance is among the most important. Check out various landlord’s insurance policies and find the one that will protect you the most.

Settlement Time – Assuming that everything has gone as planned, settlement will eventually come to pass. Once it is complete – and the property is officially yours – you’ll need to hire a property management Brisbane firm to help you keep it up and to find you a renter. From beginning to end, a decent property manager will make your life as a property investor a whole lot easier.

Get A Depreciation Schedule – Finally, don’t forget to acquire a depreciation schedule so you don’t miss out on any tax breaks in the future.

How Does Property Investment Work

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There’s a reason why so many Australians invest in property, despite the sometimes poor real estate market: It earns them money. If you are interested in getting into property investing – but don’t know where to begin – it helps to have a basic understanding of how property investment works and about how people earn money from it.

Rental Growth And Property Investing

One of the most important aspects of property investing is rental growth. The concept of rental growth refers to the amount of money that an investor is making off of rent, after the usual loan payments that he is or has been making. In other words, the amount that is being collected in rent should ideally exceed the amount of paying for the property. The difference is profit, and those should increase from year to year.

Capital Growth And Property Investing

While collecting rent on a rental property is well and good, savvy property investors know that capital growth is where the real profits come in. Brisbane real estate generally moves in a positive direction, meaning that the property you invest in now should be worth more in a few years. As you collect your rents to pay off your investment, you’ll reach your goal more quickly. Property investors do very well when capital growth is healthy.

Maximising Your Property Investment Potential

Most property investors don’t have the time or the desire to delve too deeply into the mechanics of how to make great money. For one thing, property investment is not a get rich quick deal; it is a gradual process that does pay off handsomely over a long period of time. In the meantime, managing your investments and your properties efficiently is critical. The easiest way to ensure that you are achieving the best capital growth possible is by hiring an experienced and professional property management Brisbane company to help you out.

Turn To A Top-notch Property Management Company

When in experienced hands, your property investments should start realising incredible returns within a reasonable period of time. Maximising your property’s capital growth potential is important; a talent property management company can do that, and can ensure that your rental growth is healthy as well. When both of those things are humming right along, property investment truly does become a winning proposition. Why risk the hit or miss nature of property investing, when you can have experienced professionals on your side? Hiring a property management firm is one of the best moves you can make when investing in property.

Things To Consider When Choosing A Property Manager

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When it comes to successful property investing, the property manager that you hire is one of the most important and influential factors. If you’ve been thinking about hiring a property manager but aren’t sure where to start, you should look over the following tips about finding the right one. As you search through the many Real Estate Brisbane companies, keep these points in mind to increase your odds of finding the perfect person.

General Things To Look For

The focus of the property management Brisbane agency that you choose should revolve around property management alone. Selecting a firm that dabbles in many other things, including property sales, can result in inferior service. Choosing an agency whose sole focus is property management will enable you to find an agent who truly knows what they are doing. Ask each candidate how much experience their agents have, and find out whether there are performance-based incentives for their agents.

How Good Are They At Finding Tenants?

One of the most important things that a property management agency will do for you is find tenants for your properties. Therefore, it is smart to find out how many units the agency you’re looking at rents out each month. Those with higher numbers are usually going to be safer bets. Be sure to ask what sorts of methods they use to market a vacant property, and whether or not an agent will escort prospective tenants through your properties on your behalf. Such perks will help you narrow down your search considerably.

What Is Their Overall Property Management Process Like?

Try to get a feel for the day to day operations that a prospective property management company undertakes. For instance, how do they handle repairs and maintenance issues? Will you be assigned a single contact or will you have to deal with multiple agents? Also, ask for some sort of demonstration on how the property management company keeps up with laws, legislation and other important industry-related matters; that way, you can ensure that all of your dealings will be legal and won’t result in any issues down the road.

How Is Their Customer Service?

Finally, it is important to choose a property management company that offers top-notch customer service. If you’ll be assigned a single property manager, find out whether or not backups will be available in case that agent is ill or otherwise cannot come in. Ask for references from satisfied customers to get a feel for how others have fared with a property manager. Lastly, don’t forget to ask whether or not some sort of service guarantee is in place. Such a deal can protect you from major problems, and can be very reassuring in a general way.

The prorentals.com.au Leasing Team

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At prorentals.com.au, property management is the primary focus. To emphasize that point, the company has a special division that is strictly dedicated to leasing out vacant properties. In this way, they can maximise the efficiency of their service, ensuring that your properties are leased out quickly. When it comes to property management Brisbane, prorentals.com.au really has you covered from start to finish. You can learn more about their leasing team below.

A Premium Location for the Leasing Team

In order to make the most of the Brisbane real estate market, the prorentals.com.au leasing division is located in a high foot traffic area. This means that pedestrians often stop in to inquire about available properties. When you sign up with prorentals.com.au, then, you get to enjoy the benefits of having your properties listed in a high profile area. The leasing team works diligently to find tenants for your properties as quickly as possible – they don’t get paid, otherwise!

First Class Internet Marketing Sets Leasing Division Apart

These days, you can’t hope to succeed in the property investing field without a very visible online presence. The leasing division at prorentals.com.au makes the most out of the Internet, giving your properties the most exposure possible. If someone is looking to rent a place in Brisbane, they’re probably going to find it through the prorentals.com.au website. The leasing team knows exactly how to present their properties in order to increase the odds of getting them rented out quickly.

The Three P’s of the prorentals.com.au Leasing Team

Any good leasing team needs a firm strategy and philosophy in place, and the prorentals.com.au leasing division definitely does. Their “three p’s” – presentation, promotion and price – help dictate their approach to finding tenants for their clients’ properties. The basic concept behind each of the three p’s is as follows:

Presentation – A presentable and attractive property is much more likely to attract interest than one that looks shabby or not well maintained. The leasing division at prorentals.com.au puts a high priority on making your property really shine. First impressions definitely matter, and people should have a great one when it comes to your property.

Promotion – Marketing and sales go hand in hand, which is why the prorentals.com.au team emphasizes promotion so much. They dedicate themselves to spreading the word about their clients’ properties, increasing the odds of finding tenants by a significant degree.

Price – When a property is overpriced, people pass it by; when it’s under-priced, investors lose money. The leasing team at prorentals.com.au is adept at pricing their clients’ properties in the most competitive and lucrative way possible. Your property’s price will be spot-on, and it will be rented out much more quickly as a result.

Rental Bonds: An Overview

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Rental bonds are commonly used by landlords to protect themselves from losing money due to a missed rent payment, damages to their property and other circumstances. Tenants are usually required to pay rental bonds at the beginning of their lease period. If you’ve thinking about getting into Brisbane real estate, you need to educate yourself about what rental bonds are, how they work – and how to use them properly.

Taking a Rental Bond

When a tenant first signs up to lease one of your properties, you will want to secure a rental bond from them to avoid any unexpected expenses and other potential issues. An experienced property management Brisbane firm will know all of the ins and outs of obtaining rental bonds; however it helps to have a basic understanding of the process. Firstly, you are not permitted to hold the funds yourself; you must hand them over to the Residential Tenancies Authority, or RTA, within 10 days of collection.

Along with the rental bond, you must send a completed bond lodgement to the RTA. This must be completely filled out and signed by your tenant. Once it is processed, the RTA will send out receipts to you and your tenant, to confirm the agreement and to confirm the amount of the rental bond. This is required by law, and is done to protect your interests and the interests of the tenant. Assuming that the terms of the lease are successfully fulfilled – that no extra rent is owed, and that no damages are found – the bond will be returned to the tenant at the end of the lease period.

What Is the Maximum Rental Bond You Can Charge?

One of the most common questions asked when it comes to rental bonds is, “How much can I charge?” In Queensland, if you are charging rent equating to $700 per week or less, then the maximum rental bond that you can charge is equivalent to four weeks’ worth. If you charge more than $700 per week, there is no maximum. Keep these numbers in mind when preparing the terms of your lease, so that you don’t inadvertently run afoul of the law.

Additional Points

It should be noted that in some cases, tenants can transfer their bonds from one property to another. At the end of one lease, the RTA holds on to a tenant’s funds instead of returning them. These funds can then be used as rental bond for their new rental property. Many times, people find it more convenient to handle their rental bond in this way. As a landlord, it is important that you be aware of the possibility of transfers of bond, so that you are not taken by surprise.

Entry Condition Reports: An Overview

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As a responsible property investor, it is important to protect your best interests – and the interests of your tenants. One of the most important ways to ensure that major disputes or disagreements don’t arise during or after a tenancy is by filling out and saving a copy of an entry conditions report. In fact, this report is required. You can learn more about the report by checking with your property management Brisbane firm, or by reading on below.

What Is an Entry Condition Report?

An entry condition report is used to document the condition of a property when a tenant moves in, in order to compare it to how it is when a tenant moves out. In other words, it is used so that a reasonable comparison can be made concerning the condition of a property. Both parties must sign the report, ensuring that nothing untrue is included in it.

Ideally, an entry condition report should be completed before a tenant moves in.
This report should be provided to all tenants along with their tenancy agreement, alternatively on the first day that the property is available.

The report must indicate all clean, undamaged and working items that are on the premises; your tenant will then review your comments. If he agrees with what is reported, he simply signs off on them; if he disagrees with any of them, he must include comments that state so.

Protect Yourself and Your Tenant

The tenant will have three days to return the entry condition report after it has been provided to them by your nominated property management firm. During those three days, he can look over all of the items that you’ve highlighted in order to make sure that he agrees with your assessments of them. The property manager and your tenant also have the option of creating photographs or videos of the premises; depending on the circumstances, this may be a smart move to make. High end Brisbane real estate often require this additional kind of documentation.

Once the form is completed and has been signed off on by both parties, it must be stored in a safe place – generally this is done by the property management firm. The last thing you want to do is misplace the document, since doing so will open you up to misunderstandings and other problems at the end of the tenancy. For instance, your tenant could claim that damages were already there when he moved in, when they were not. With an entry condition report, you’ll be able to confirm or disprove your tenant’s claims with ease, since his signature will be on it. The bottom line is, never skip the entry condition report – and always hold on to it.

What is a Tenancy Agreement?

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Whether you are a landlord or a tenant, you’re going to have to know about – and understand – what a tenancy agreement is. After all, a tenancy agreement is the cornerstone of any landlord-tenant relationship, since it outlines all of the terms and conditions of the arrangement. Tenancy agreements are required by law in Australia, even in the case of one family member renting a room to another. This rule is in place in order to protect the best interests of both parties. Learn more about tenancy agreements below.

Tenancy Agreements: The Basics

There are two basic types of tenancy agreements: fixed-term agreements and periodic agreements. With a fixed-term agreement, a specific period of time is outlined within the body of the agreement. Typical time frames include six month, nine months and one year. At the end of the term, the agreement can be renewed, or the landlord and tenant can go their separate ways. With a periodic tenancy agreement, no particular period of time is specified. Many people refer to this sort of agreement as a “month-to-month lease,” since the tenant can move out at virtually any time – and the landlord can terminate the agreement in a more flexible way, too. Fixed-term agreements are, by far, the most common types of tenancy agreements.

Things That Must be Included

A tenancy agreement has to be in written form, and it is usually written up by the lessor or landlord. A copy of the tenancy agreement must be given to the tenant before he moves in. If you need help devising a tenancy agreement, an experienced property management Brisbane firm can give you a hand. As a tenant, it is important to carefully read over the tenancy agreement before signing it. If there’s anything in it that is unclear, make sure to have the landlord explain it to you. You could also have a lawyer or a Brisbane real estate agent take a look at it, if you want.

Several things must be included within the body of a tenancy agreement, in order for it to be considered valid. A few of these things include:

  • The name and address of the tenant the lessor must be provided within the agreement. This is simply to establish where each individual can be contacted.
  • Specific explanations of what the landlord and tenant can or cannot do should also be outlined within the body of the tenancy agreement.
  • The specific dates that the tenancy period begins and ends; otherwise, it must be noted as periodic.
  • Any special terms that have been negotiated between the landlord and the tenant must be included.
  • The amount of rent that will be due each month, along with the date it will be due, must be outlined.

All About Locks and Keys

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Locks and keys are important parts of any home. In rental situations, landlords and tenants must obey certain rules and laws concerning the use of keys and locks. Whether you are a landlord or a tenant, you should familiarise yourself with your obligations and responsibilities when it comes to using keys and locks. Otherwise, you could find yourself in hot legal water. Learn a few of the basics about using keys and locks below.

The Basics About Keys

Under law, a landlord must supply keys for every lock on the premises to at least one tenant. This means that the keys to locks for everything from the front door to random doors throughout the house must be provided. If the house includes lockboxes of any kind, keys must be supplied for them, too. If more than one tenant is on the lease, though, the landlord is under no obligation to supply two sets of every single key.

If there is more than one tenant, the landlord has to supply each person with keys for the front door. This makes sense; after all, without a front door key, people won’t be able to access their home. The same goes for locks that block access to the road leading up to a home. Each tenant must receive keys to such locks. You can always double-check this information with a qualified property management Brisbane firm if you have any doubts or confusion about what your obligations are when it comes to supplying or receiving keys.

The Basics About Locks

Locks can present a few tricky situations when it comes to rental properties. From time to time, disputes arise over changed locks. You can avoid this situation by knowing the laws and rules about locks in landlord-tenant situations. The landlord is obligated to make sure that the premises are safe and secure through the use of locks. This is a basic fact about renting Brisbane real estate, and it is part of your job as a landlord. If the tenant feels that the premises are not secure, he can ask for additional locks – within reason.

If the locks need to be changed, both parties have to agree about it. At the same time, one party or the other cannot unreasonably withhold their consent. In other words, one person cannot just arbitrarily say that they don’t want the locks to be changed – they have to have a compelling reason for disagreeing. If the locks are changed, the tenant must receive a new key unless a Tribunal says otherwise – or if the tenant agrees not to receive one. In emergency situations, the landlord can change the lock; the same is true if a Tribunal orders it to be done.