Unfortunately as Landlords we don’t get to choose the market conditions in which our property becomes vacant. Even long-term tenants move on at some stage. Maybe you have been unfortunate with a string of short-term tenancies. Vacant rental properties affect your overall annual income. For every week that your property is vacant your annual return is affected.

Everyone wants to get the best return they can for their investment. The loss incurred by hanging on for an extra five or ten dollar increase per week may reduce your annual income by more than 2%. For example, you may have a prospective tenant who offers you $360.00 per week, but the vacating tenant was paying $375.00 per week. Declining that applicant and having your property vacant for an extra 3 weeks means you are losing out on not just $15.00 over 3 weeks, but $1080.00 annually. That’s a significant loss!

It is therefore important that you know your current market and let it guide you in your decision. How much are other properties in the area achieving now? How long are they staying on the market before being let? Pricing your property slightly lower than those available, may mean a shorter vacancy period in a tough market.

You may have been fortunate in the past and received higher than average returns. Your property is only worth as much as someone is willing to pay. The market is not your only variable but the circumstances of the applicant themselves. A business couple transferring from a larger city for example may be willing to pay more than average rent, as it is much lower than what they are used to paying. However, a middle-class family moving from within the area may not have the financial capacity to pay more.

Have your property appraised by an experienced property manager who works and knows the market. But most importantly, don’t price yourself out of the market!

If you are looking at selling an investment property it is important to consider the renter in the situation and understand that they can often feel their security and enjoyment of the premises has been affected.

Renters can cause quite a bit of a problem and hinder viewing inspections should we not be able to get their cooperation. Though legislation requires that Renters allow viewing inspections to potential purchasers, the delays and legal process will cause everyone a lot of inconvenience.

Therefore it is important if you are thinking of selling to discuss this first with your managing agent who can then work with your renter to grant you the access you require in a diplomatic manner.

Sometimes however it might be necessary to offer the renter some monetary compensation. Let’s face it, if the sale is going to reap some big monetary rewards it makes good sense to ensure the process is smooth and possibly invest a little to ensure that it does. This can also result in better presented properties as well as cooperation with access.

Selling does require good planning and thinking ahead so be sure to contact us first before listing your property for sale.

You may have owned an investment property for some time, but have you made sure that you have maximised the potential of your investment? This means not only achieving a market rent and consistent income flow by securing an excellent renter but also other factors that you may not have considered.

The sooner you efficiently manage your investment property, the sooner you’ll be in a position to buy your next investment property.

Did you know that any property built after 18 July 1985 is eligible for depreciation benefits on its historic construction costs? No matter whether your investment is new or old, it will have depreciable assets that can be claimed such as air-conditioners, whitegoods, floor and window treatments, renovations and furniture, just to mention a few items.

80% of Australian property investors do not claim these legitimate taxation benefits which is a bit like not claiming the weekly rent from your investment property. This can equate to thousands of dollars in unclaimed benefits each year.

Claiming depreciation tax benefits can assist your cash flow to; pay off your principal place of residence; increase equity in your investment property; increase your cash flow or to buy another investment property.

You may not be aware that the Australian Tax Office allows you to amend your previous four taxation returns to claim depreciation benefits so if you have been missing out, it’s not too late to do something about it.

The fee for a Depreciation Schedule is fully tax deductible. Simply call our office and we can make the arrangements for the tax depreciation inspection and report to be undertaken.

Building your property investment portfolio can be made easier by claiming legitimate tax deductions that you may be presently missing out on.

People often say they do not discriminate, but the reality is that often they do without realising it. Discrimination is an issue within the property management industry that must be considered. As a Property Manager or Renter Providers, we must be aware that we cannot discriminate. It is human nature that you may have preferences of who you would like to reside in your property. There may have been previous experiences that have shaped your judgement on what renter you may choose.

When selecting renters it’s important to focus on what is important:

1. Can the prospective renter prove that they can afford the property?

2. Is the number of people suitable to reside in the property?

3. Can they maintain the property and grounds?

4. Can you verify the information that they have given you in their application?

5. Do you have references that check out positively?

By law you must not discriminate against, colour or race, the unemployed, children, sexuality or religion. Care must be taken when declining a renter’s application and often it is better not to provide any further information. It is important to remember that it is not the status of a person that will determine if they will be a suitable renter, but rather the strength of their application & reference checks.