Category Archive: Property Management

  1. Rental Property Wear and Tear vs Damage

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    Where Do You Draw The Line?

    When renting out a property, the discussion around general  rental property wear and tear and damage may crop up. From this discussion may come the financial delegation of who is responsible for paying for what.

    So let’s set the record straight.

    Rental Property Wear and Tear

    General wear and tear is expected on any property as the property ages. Wear and tear accounts for general deterioration to a property that is expected throughout its lifetime. Things such as:

    • Paint scuffs
    • Carpet stains (minor)
    • Scratches or dings in wooden floors
    • Dirty grout
    • Rust or discolouration
    • Fading of wood (from sunlight and lack of upkeep)
    • Broken handles or curtain cords
    • Deterioration of fly screens or door screens over time

    Rental Property Damage

    Damage on the other hand are any unexpected or major incidents that occur within the property. They are generally unforeseen events that you would not expect from general living. Damage can include:

    • Broken or smashed windows
    • Major carpet stains and smells due to smoking or pets
    • Broken toilets or sinks
    • Broken door handles or locks
    • Torn screens due to pets

    Who Pays for Damage?

    As a general rule of thumb, general wear and tear is at the expense of the landlord. The tenant is within their rights to request these items be fixed. However, any costs associated with damage to the property at the hands of their tenant, falls into their responsibility to fix. If as a landlord, you feel that the tenant has not agreed to the terms of their lease due to damage to the property, you can take a deduction from their bond to fix the damage to the property.

    How to Avoid Further Damage to Your Property

    It is now that you can see the importance of conducting regular inspections to assess the condition of your property. If any major damage has occurred it will be noted on your inspection report. If continual damage occurs, you will have just concerns to assess their ongoing tenancy or reason to cease the tenancy.

    Having a good relationship with your property manager will ensure you are kept up-to-date with the condition of your property, and in the long run, the absence of any unwanted damage bills.

     

  2. DIY Property Management – The Pros and Cons

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    We love DIY. It’s intrinsically Australian. We are a nation that loves Bunnings as if it were our own. Thousands upon thousands of Australians spend their well-earned weekends and pay checks on DIY projects in and around the house.

    Yet, when it comes to managing your investment property, sometimes DIY is not all it is cracked up to be.

    The Savings in DIY Property Management

    One of the major appealing factors of DIY Property Management is the savings. And yes, this is true. You will save pennies in property management fees. But, you must be careful that these pennies are just not redirected somewhere else due to poor, on uneducated management. For those seasoned investors who have undertaken property management of their own properties for some time, DIY property management can work just fine. If you have the experience, the know-how and are up-to-date with your State’s legislation, then go for it.

    For those who are entering the property investment market, handing the property management reins over to the experts is money well spent.

    Property Management Fees and Duties

    Most Property Management Agencies charge anywhere between 5% – 9% (+GST) as their fees. When engaging a Property Manager, they should disclose their range of fees (and if there are any extras – such as for renovation works etc) as well as their list of duties and policies (including inspections and rent arrears policies).

    When Going DIY

    If managing the tenancy agreement yourself, you will need to ensure you are right across your responsibilities and rights as a landlord as well as those of your tenants. The Residential Tenancy Authority has a host of information you should swiftly become familiar with.  At a minimum, you will need to manage:

    • Marketing and advertising of property
    • Creation of tenancy agreement
    • Vetting of tenants
    • Selection of tenants
    • Inspections
    • Repairs and Maintenance
    • Renewal/expiration of leases

    A Final Word of Advice

    If looking to DIY Property Manage your investment, remember to look at it as a job, not a hobby. It requires time, energy, patience and diplomacy. Ensure you have the time to tick all these off, otherwise, be heading to your local agency to enquire about managed services. Whether you are looking to invest the money into a qualified Property Manager or go down the DIY route, always be sure to take out adequate landlord’s insurance.

    And cross your fingers for the perfect tenant!

    Contact Us today if you’d like to discuss our Property Management services and how we can help you to avoid any DIY fails. aspect