by George Astudillo | Feb 8, 2020 | Management Systems, Planning, Presentation, Repairs and Maintenance, Tenant
You should be inspecting your property twice a year.
During these inspections, you are looking for repair and maintenance issues and ensuring the tenant is looking after the property.
An accumulation of dirt, together with a cluttered and untidy lifestyle, will accelerate wear and tear. This means appliances may break down more often and will need replacing sooner. This also applies to carpets and painting – resulting in higher costs.
With a new tenant, schedule the first appointment by the end of the third month. This will give the tenant a little time to settle in and you can see how they keep house.
Give the relevant notice, which in NSW is 14 days in writing, and arrange a mutually acceptable time. Your relationship with the tenant is important, so try hard to fit in with his routine; most tenants aren’t too fussed about allowing you access and in some cases they may not wish to attend.
Keep this inspection informal and quick. If you have chosen your tenant well, the property should look great, but if you see that the property is being poorly looked after, you are well within your rights to request the property be brought up to standard. It is a condition of the lease to keep the property reasonably clean, meaning that the tenant should not be causing damage or excessive wear and tear. You should also expect it to be tidy enough that all areas are accessible for regular cleaning. Give the tenant seven days to clean the property to a reasonable standard and arrange to return for another inspection.
If the property is still not appropriately clean, discuss the situation with the tenant. At this stage, take photos as a record, as you may need them later. Then, if all else fails, you can treat this situation as a breach of the agreement and give the tenant a termination notice.
If the property is clean and you’re happy with the presentation, diarise another inspection as permissible in your state. The second inspection should take place six months later or about three months before the tenancy agreement expires. This time the inspection should be more thorough – again looking at the presentation of the property and at any maintenance and repairs that may be needed.
If the lease is approaching or past the end of the fixed term, you should also use this time to consider any rental increases.
When sending out the “Notice of Inspection” attach a simple form that the tenant can fill in recording matters requiring attention or repair. Usually, the tenant is aware of most of the issues with the property and it is a great help to note them down.
Tenants will undoubtedly at some stage ask for alterations to be made to your property, for more information on how to deal with these requests see our previous blog “Has Your Tenant Asked to Make Changes to Your Property”.
This is also a good time to update the tenant’s contact details.
Once at the property, start inside and work your way through every room with the following checklist to guide you:
- Does the woodwork need repainting or varnishing?
- Is general painting required?
- Presence of mould, often found in bathrooms and laundries but can be particularly dangerous if found in bedrooms.
- Loose electrical fixtures such as power points, light switches, light fittings.
- Check for worn carpet areas and any stains
- Check locks with your set of keys
- Are kitchen cupboards still aligning and closing correctly?
- Check bench tops
- Check appliances – cook top, oven and exhaust fan etc
- Smoke alarms should be in working order, there should be one on each level of the home.
- Check outside – look at gutters and downpipes
- Check the gardens and pool
- Check overhanging branches- Check for any pruning or cut backs that are due and in the case of council approval make a note to lodge an application.
- Pool fences and gates in compliance, check the perimeter to ensure there are no unsteady railings or backyard items against the fence.
- Lawns should be cut regularly, and gardens maintained neatly in accordance with the lease
How involved are you in the management of your property? See our blog “Managing Your Investment Property.”
About Us
George Astudillo is the founder of Property Quarters, an agency that values communication and great relationships with its landlords.
George now has more than 30 years in real estate, including 15 years as the owner of a national real estate franchise. He’s also an accredited auctioneer and is the author of “The Landlord Mindset”, a book with his best tips to help landlords look after their investments. His book has been quoted in the SMH, The Huffington Post and The Age.
As the founder of Property Quarters, George takes great care in looking after his landlord’s investments. Having seen it all and worked with may landlords and tenants, he’s a strong mediator and negotiator and knows how to navigate through property legislation.
George is trusted by his landlords to advise on the financial management of their investments. He’s put in place proven processes to ensure each property he looks after is managed effectively to retain its value, quality tenants and rental income.
If you’re looking for a property manager who thinks like a landlord and whose business is built on tested processes, contact us by clicking HERE.
Copyright © 2022, www.propertyquarters.com.au
Copyright © 2016, www.propertyquarters.com.au
by George Astudillo | Jan 6, 2020 | Financial, Management Systems, Tenant
The Sydney rental market can be very tight sometimes, with vacancy rates usually under 2% in most suburbs, especially at this time of year.
It’s not unusual to have over thirty groups of people visit an open for inspection and then compete with 10- 15 other applicants.
So how can you give yourself the best chance of winning against such odds?
1. Tenant Application
Make sure you fill it in accurately and completely. If a property manager has to chase anything up they may decide it’s easier to look at the next application.
2. Documentation
Make sure you have all the necessary documentation. You need to demonstrate to the property manager that you can afford the property, that you are reliable and that you will take care of the property.
You need to provide pay slips, bank statements and possibly tax returns if you are self employed that prove you can afford the rent without undue strain. Remember that an average rental of $500 per week is a commitment to pay over $26,000 over the next twelve months.
From your past and present landlords/agents obtain an up to date tenant ledger.
Written character references are also important. They show that people think of you as honest and reliable, and this will help you stand out as a worthy tenant.
Proof of identification is required in the form of passport, drivers licence, Medicare card etc. For the 100 point checklist see our previous blog “Proof of Identity”.
3. Are your referees ready?
If your application makes the shortlist, the property manager will call your past and present employer and landlord/agent, as well as any other referees you have nominated. It’s important to let your referees know they will be receiving a phone call and that you would appreciate any messages be responded to quickly. Any delays here will open the door to other applicants whose information can be verified quickly. Also, check with your employer or HR department to see if they need written permission from you to enable them to discuss your employment details with a property manager.
4. Are you ready?
Don’t wait until you see the perfect property before you start to complete an application form. Do it now, be ready, so when you do find your ideal property you can act quickly. Think of creating a tenant resume, much like an employment resume, that you can keep updating. There are several sites that offer on line applications such as 1Form and tApp.
To a property manager this type of tenant is a clear winner, because the easier you make it for a property manager the better the chances are of them selecting you as their tenant.
There are three crucial qualities landlords look for in a tenant, find out in our blog “3 Keys to Choosing the Right Tenant”
About Us
George Astudillo is the founder of Property Quarters, an agency that values communication and great relationships with its landlords.
George now has more than 30 years in real estate, including 15 years as the owner of a national real estate franchise. He’s also an accredited auctioneer and is the author of “The Landlord Mindset”, a book with his best tips to help landlords look after their investments. His book has been quoted in the SMH, The Huffington Post and The Age.
As the founder of Property Quarters, George takes great care in looking after his landlord’s investments. Having seen it all and worked with may landlords and tenants, he’s a strong mediator and negotiator and knows how to navigate through property legislation.
George is trusted by his landlords to advise on the financial management of their investments. He’s put in place proven processes to ensure each property he looks after is managed effectively to retain its value, quality tenants and rental income.
Copyright © 2022, www.propertyquarters.com.au
by George Astudillo | Oct 1, 2019 | Financial, Management Systems, Presentation, Repairs and Maintenance, Tenant
Once you’ve got one, you’ll want to be sure they stay.
(From the article and interview featured in The Huffington Post Australia)
One of the challenges of property investment is being able to find the elusive ‘perfect tenant.’ It’s that ideal tenant that will ensure the financial success of your property, as well as give you peace of mind that they will take great care of your investment.
A good tenant is made up of several factors but perhaps the number one attribute is a person who always pays their rent on time.
Real estate expert and author George Astudillo told The Huffington Post Australia late rental payments is a top frustration for many landlords.
“Late payment leads to frustration and embarrassment as it makes the landlord late in paying expenses, such as a mortgage,” Astudillo said.
“Cleanliness is a major factor; an ideal tenant will take care of the property. Being lazy with household chores will speed up wear and tear. Paint needs to be dust and grime free and carpet will wear out quickly if grit and soiling are allowed to accumulate.”
“A perfect tenant is a co-operative tenant, particularly in the event of a problem. Life is unpredictable, it’s tough enough dealing with challenges without a tenant making things more difficult.”
The trick is to choose wisely when you choose a tenant and don’t take any chances. You might be tempted to take a risk on a tenant who’s willing to pay more money. However, Astudillo said if they turn out to be less than they promise to be, the cost of new carpet, repainting and repairs will quickly absorb the increase and leave you in debt.
“If a property has been vacant for a while there can be a tendency to cut corners. Don’t let the temptation cloud your judgement,” Astudillo said.
“Sometimes a tenant just seems so nice, you want to give them the benefit of the doubt. Remember nice people don’t always make good tenants.”
Once a landlord selects the right tenant, it’s wise to take steps to make sure they stay put. If you’re not careful, your tenant will leave: turn over costs a lot of money, including marketing fees, agents’ fees and possible property damage. See our blog “3 Keys to Choosing the Right Tenant”
While there are multiple reasons why tenants move – and many will be out of your control – there are some simple things you will have control over
“Looking after your tenant and the property they live in makes good business sense. The tenant is your customer, and having a happy customer is always good for business,” Astudillo said.
George Astudillo’s Landlord Checklist
Repairs
Treating repairs too casually or without care is the most common reason for creating distrust and discontent in tenants. Unless the problem is an emergency, they are at the mercy of the owner. Reasonable requests for repairs should happen quickly.
Maintenance
Allowing the property to deteriorate will change the appeal to the tenant. If the property is no longer up to the quality the tenant is prepared to pay for, they will move. Keeping your property looking its best will also mean you can keep the rent within reach of the market.
Rent reviews
Rent increases that are excessive, either too many or too much, will also make a tenant feel taken advantage of. In these situations, the tenant will start looking for better value elsewhere.
Courtesy and Respect
Tenants need to feel respected. Your attitude towards repairs, maintenance and rent reviews, as well as the tenants’ right to privacy, are simple ways to show respect.
About Us
George Astudillo is the founder of Property Quarters, an agency that values communication and great relationships with its landlords.
George now has more than 30 years in real estate, including 15 years as the owner of a national real estate franchise. He’s also an accredited auctioneer and is the author of “The Landlord Mindset”, a book with his best tips to help landlords look after their investments. His book has been quoted in the SMH, The Huffington Post and The Age.
As the founder of Property Quarters, George takes great care in looking after his landlord’s investments. Having seen it all and worked with may landlords and tenants, he’s a strong mediator and negotiator and knows how to navigate through property legislation.
George is trusted by his landlords to advise on the financial management of their investments. He’s put in place proven processes to ensure each property he looks after is managed effectively to retain its value, quality tenants and rental income.
If you’re looking for a property manager who thinks like a landlord and whose business is built on tested processes, contact us by clicking HERE.
Copyright © 2022, www.propertyquarters.com.au
by George Astudillo | Sep 2, 2019 | Management Systems, Planning, Presentation, Repairs and Maintenance, Tenant
The key to successfully attracting great tenants is to present your property to look its best.
Not only will you position your property to attract the right tenant you will also give yourself the best chance of an outstanding rental.
Most rental properties look and feel like, well, …rental properties. Yet worthy tenants are looking for a home. So, here are 7 simple areas to consider that are not only easy to do, but cost next to nothing to implement.
1. Cleanliness
This is number one in the list. It’s amazing how many rental properties often look unliveable. Just by making sure your property is clean will put you in front of most of your competition.
TIP: Windows are often overlooked and can create a fabulous first impression. For more in depth look at presentation, see our blog “Cleanliness”
2. Smells and odours
There is nothing worse than entering a property that smells stale or mouldy. Often the cause of this may be the carpet and underlay. In the case of mould, make sure the causes are found and fixed.
TIP: A freshly steam cleaned carpet needs time to dry and air out, otherwise it will deter potential tenants rather than attract them.
3. Lighting
Brightness and light create a great first impression. However not all properties have access to good natural light. You can still create an inviting atmosphere with lighting and the right globes. In most cases just having them turned on and all working is enough.
TIP: Cool white light globes create a cleaner brighter atmosphere for kitchen, bathroom and laundry while warm yellow make for good ambience in living areas.
4. Lifestyle touches
We tend to choose a home for the lifestyle it offers. Adding some lifestyle touches like flowers, fluffy towels and outdoor settings will help tenants visualise themselves living there.
TIP: The use of a couple of champagne glasses with a bottle of champagne can create an inviting setting
5. Paint & touch ups
You don’t need to paint every time a tenant vacates unless it needs it. However, touching up walls and heavy traffic areas adds freshness and a little sparkle.
TIP: Use a quality paint that will last and make sure you keep any leftovers for touch ups.
6. Kitchen
This is one area that must be spotlessly clean – ovens, stovetops, rangehoods, dishwashers and sinks are the main spots. This is an ideal area for lifestyle props.
TIP: Consider a fresh look just by replacing cupboard handles.
7. Bathroom
Like the kitchen, this area must also be spotless. Painting and re-grouting can make it look like new.
TIP: This area needs to be fresh smelling or at least odourless.
Remember your property is rarely in isolation, usually it’s in competition for the good tenants available. Beat the competition with a property that stands out and benefit with a strong rental and the peace of mind of a worthy tenant.
About Us
George Astudillo is the founder of Property Quarters, an agency that values communication and great relationships with its landlords.
George now has more than 30 years in real estate, including 15 years as the owner of a national real estate franchise. He’s also an accredited auctioneer and is the author of “The Landlord Mindset”, a book with his best tips to help landlords look after their investments. His book has been quoted in the SMH, The Huffington Post and The Age.
As the founder of Property Quarters, George takes great care in looking after his landlord’s investments. Having seen it all and worked with may landlords and tenants, he’s a strong mediator and negotiator and knows how to navigate through property legislation.
George is trusted by his landlords to advise on the financial management of their investments. He’s put in place proven processes to ensure each property he looks after is managed effectively to retain its value, quality tenants and rental income.
If you’re looking for a property manager who thinks like a landlord and whose business is built on tested processes, contact us by clicking HERE.
Copyright © 2022, www.propertyquarters.com.au
by George Astudillo | Aug 7, 2019 | Financial, Landlord mindset, Management Systems, Planning
There are alternatives but you need to be aware of the pitfalls.
(From the article and interview featured in The Huffington Post Australia)
With so many people literally locked out of the hot Sydney property market, it’s only natural to look for alternative ways to get a piece of the action. Perhaps you could co-invest with a sibling or close friend?
You could look at ‘rent-vesting’, buying a car space or consider property trusts.
One solution by Fintech company BRICKX is a way to invest in a property for less than $100. It works by dividing individual properties into 10,000 ‘Bricks’, which are effectively units, in a Trust.
BRICKX publicly launched in September 2016 and operates as a retail managed investment scheme for people who could otherwise not afford to get into the property market. It works by offering fractions of a property, known as Bricks, rather than purchasing entire houses or apartments.
BRICKX recently put a Bondi Beach apartment on the market, giving investors the opportunity to access the lucrative Bondi property market for just $96.
Real estate expert and author George Astudillo told The Huffington Post Australia there are other ways to get into the property market, but you need to be aware of the pitfalls too.
“If we look at investing with friends or siblings, it’s usually one of those ‘It was a great idea at the time’ moments. Very few property partnerships work well, and there are several reasons why,” Astudillo said.
Co-investing with a sibling or friend
Risk tolerance: How people relate to risks varies from person to person. An investor with low tolerance to risk will need to be cautious and utilise a strategy based on security, while an investor with a higher tolerance to risk will be more aggressive with their choice of strategies. Finding someone that is compatible with your investment comfort zone is quite difficult and this difference in attitude will lead to friction. Be aware of your comfort zone, take a look at our blog “What is Your Risk Tolerance?”
Workload: Many partnerships become undone when one party does all the hard work. When it comes to investing in property there will always be decisions to be made. If one partner is always relied upon to make decisions, this can lead to resentments.
Affordability: All partners need to be able to afford not only the purchase of the property but also its ongoing maintenance and repairs. When renovating, can all parties afford the level of quality that will attract the appropriate tenant and rental?
“You also need to consider exit timing. Selling an investment property is all or nothing. If one partner needs to sell, there needs to be a plan for the other partners to buy that share or decide whether the property need to be sold,” Astudillo said.
Property Trusts
Property trusts are an easy way to buy into the property market indirectly. These are either known as Australian Real Estate Investment Trusts (A-REIT) which are listed on the Australian Securities Exchange or Unlisted Property Trusts.
“Before investing you need to know how each trust is managed as this is more like buying shares than property. You can also consider buying shares in a listed real estate company,” Astudillo said.
Rentvesting
When you can’t afford to buy a property you would be comfortable to live in, you buy a property as an investment.
“This way, you can then rent a property that is comfortable and rent out your investment, becoming both a landlord and a tenant,” Astudillo said.
“Rentvesting is probably the best of both worlds. It allows you to get into the property market without the inconveniences of living in a property that makes you unhappy.”
About Us
George Astudillo is the founder of Property Quarters, an agency that values communication and great relationships with its landlords.
George now has more than 30 years in real estate, including 15 years as the owner of a national real estate franchise. He’s also an accredited auctioneer and is the author of “The Landlord Mindset”, a book with his best tips to help landlords look after their investments. His book has been quoted in the SMH, The Huffington Post and The Age.
As the founder of Property Quarters, George takes great care in looking after his landlord’s investments. Having seen it all and worked with may landlords and tenants, he’s a strong mediator and negotiator and knows how to navigate through property legislation.
George is trusted by his landlords to advise on the financial management of their investments. He’s put in place proven processes to ensure each property he looks after is managed effectively to retain its value, quality tenants and rental income.
If you’re looking for a property manager who thinks like a landlord and whose business is built on tested processes, contact us by clicking HERE.
Copyright © 2022, www.propertyquarters.com.au
by George Astudillo | Jul 1, 2019 | Financial, Landlord mindset, Management Systems, Tenant
The right tenant is the corner stone of a successful investment property. This is where the rubber meets the road. The tenant can either make or break both your financial position and your spirit. Many property owners have already experienced the pain and frustration of a nightmare tenant which can potentially be 12 months of well.. hell.
The following are the three crucial qualities we need to identify and look for in a tenant to become the perfect match for your property,
1. Reliability – will they pay the rent on time?
Successful applicants will need to prove financial stability and a regular income. Without this your steady income stream is at serious risk. Once this has been established, avoid the burden of costs associated with rental arrears by ensuring your tenant has a long history of disciplined payments. After all you may be relying on this income to pay bills of your own, such as a mortgage.
2.Responsibility – will they look after the property?
A responsible tenant that will treat your property like their own are worth their weight in gold. Respect and diligence goes a long way, this means taking great care in the cleanliness and presentation of your property as well as reporting any maintenance concerns with effective communication. Remember: A clean tenant that takes care of their home and surroundings will be attracted to apply for a property that is in tiptop shape to begin with.
For more information on presenting your property to attract the right tenants see our previous blog “7 Easy Ways to present Your Property to Attract Great Tenants”
3.Co-operation – will they be co-operative in the event of an emergency?
An easy-going effective relationship between landlord/agent and tenant is essential. Emergencies will happen from time to time and prompt access to the property to carry out repairs or clean ups can save further damage and/or costs. A good tenant needs to be willing to communicate and be co-operative to find and implement a solution if necessary.
Having the right tenant will not only give you a good financial return but will also give you the peace of mind you are looking for. Take your time in choosing a quality tenant and don’t be afraid to go with your instincts on occasion, it is better for your property to remain empty for another week then to be occupied with a bad tenant that will be difficult to remove.
When you find ‘the one’ look after them and they will in turn look after your investment.
See our previous blog for the featured Landlord Checklist, a guide to a maintaining a happy tenant in “How to Keep a Great Tenant”.
About Us
George Astudillo is the founder of Property Quarters, an agency that values communication and great relationships with its landlords.
George now has more than 30 years in real estate, including 15 years as the owner of a national real estate franchise. He’s also an accredited auctioneer and is the author of “The Landlord Mindset”, a book with his best tips to help landlords look after their investments. His book has been quoted in the SMH, The Huffington Post and The Age.
As the founder of Property Quarters, George takes great care in looking after his landlord’s investments. Having seen it all and worked with may landlords and tenants, he’s a strong mediator and negotiator and knows how to navigate through property legislation.
George is trusted by his landlords to advise on the financial management of their investments. He’s put in place proven processes to ensure each property he looks after is managed effectively to retain its value, quality tenants and rental income.
If you’re looking for a property manager who thinks like a landlord and whose business is built on tested processes, contact us by clicking HERE.
Copyright © 2022, www.propertyquarters.com.au
