by George Astudillo | Mar 2, 2020 | Financial, Landlord mindset, Legislation, Management Systems, Planning
Landlord insurance is your investment property safety net and should be considered a ‘must have’.
It will protect you, your family and your property from potential financial difficulties, thereby lowering your investment risk.
Nobody knows what’s around the corner. Situations change and good tenants can also change under specific circumstances. You don’t want the events in your tenants’ lives to consequently have an adverse impact on yours.
Looking for the appropriate insurance cover can be confusing and time-consuming. Take your time deciding as above all you don’t want to find out you are not covered when you need it most.
The following is a guide to the different types of cover and what they entail.
Building insurance covers:
- Replacement cost of the building;
- Demolition and removal of debris;
- Locks and keys; and
- New structures to comply with all statutory requirements.
If you own an apartment, building insurance is paid through your quarterly fees. Wallpaper and paint may not be included though and should therefor be included in your contents cover. Other items that can be added separately are things such as air-conditioning, lighting and flooring.
Contents insurance covers:
- Carpet and other flooring
- Light fittings
- Window finishes
- Manchester and linen (if supplied)
- Any furniture itemised in the tenancy agreement
- Kitchenware cabinets and appliances
- Bathroom vanity, cabinetry and shower screens
- Tap ware
- Tiling, paint and wallpaper
- Household goods such as gardening equipment
- Washing machines and dryers
- Potted plants
- Portable pools, spas and equipment
In an apartment, make sure you know which items are not covered by the strata building insurance as you may want to include them in your own insurance. In the event of fire elsewhere in the building, your unit may be affected by smoke and water damage consequently needing new paint and carpet, or at the very least cleaning as a result.
Events
There is a wide variety of events that can be covered, including:
- Accidental loss or damage
- Malicious damage
- Theft
- Fire or explosion
- Lightning
- Earthquake
- Riot or civil commotion
- Water damage – leaks, rain, floods and tsunamis
- Oil heater leakage
- Accidental glass breakage
- Storm or rainwater
- Electric motor burn out
- Impact from aircraft, trains, automobiles, space debris, satellites, falling trees or branches, TV antennae, satellite dishes or radio masts
Keep your property safe from unnecessary damage by reading our previous blog: Winter is Coming- A Rental Property Checklist.
Check policy exclusions carefully. For example, some policies do not cover:
- Accidental damage caused by the tenants
- Theft by the tenant
- Damage by the tenant’s pets
- Tsunamis or other actions by the sea or rivers
Loss of rent
This covers you for loss of rent in the event that the property is not habitable and cannot be leased due to any of the events listed above.
It also covers any rent default by the tenant. However, there are usually conditions attached to a rent default claim, so check the conditions carefully.
When choosing a good tenant there are a few things to consider in order to maximise your financial return. See our blog: 3 Keys to Choosing the Right Tenant.
Public liability
This relates to your legal liability as the owner. It is in regards to an event at your investment property which results in death or injury to other people or damage to other people’s property in or at your investment property.
Consider a minimum public liability cover of no less than twenty million dollars.
No matter what your appetite for risk is, having the right Landlord Insurance goes a long way to creating peace of mind.
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 | 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 | Dec 16, 2019 | Financial, Inspiration, Planning, Repairs and Maintenance
With 2020 fast approaching now is the time to be thinking of the goals you’d like to achieve for the management of your investment property, to ensure that your investment will continue to provide a sustainable, consistent and trouble free income for years to come.
An investment property requires advanced planning and follow through. Creating a list of New Year’s resolutions before the start of the new year can ensure that you have confidence, a systemised approach and the right mindset to grow your asset.
Here is a checklist for you to get started when preparing for a successful 2020.
1. Insurance
Landlord insurance is your investment property safety net. You should be asking yourself ‘Do I have the appropriate cover?’ and ‘Am I making the most out of what I pay for?’. There are also different types of cover depending on whether you have an agent or manage the property yourself. Take the time to review what you have. For more on Landlord Insurance see our previous blog ‘Landlord Insurance- Manage Your Risk’.
2. Smoke Alarms
As a landlord you are legally required to have met the obligations for the installation and maintenance of smoke alarms in your property. Many smoke alarm companies will offer unlimited servicing programs to provide peace of mind knowing your tenants and property are protected. Make sure all your bases are covered. New reforms to the tenancies act coming next year will mean you, as the landlord, will be fully responsible to make sure smoke alarms are operational.
3. Mortgage review
Keep your investment tailored to your budget and working in your best interests by regularly reviewing your home loan. If you haven’t reviewed your current interest rate in the last few years, you may be paying too much interest. It’s easy to let the finer details of your mortgage fall by the wayside but by keeping an eye on the market you may just come across a great deal. Sign up to a comparison website or ask a mortgage broker for advice.
4. Rent review
The new reforms to legislation will mean rent increases may only be implemented once in a twelve month period. Schedule your rent review date a few months in advance to coincide with a routine inspection. At “Property Quarters” we conduct regular rent reviews and keep an eye on market changes to ensure your property is keeping pace. See our blog ‘Rent Reviews- 5 points to Consider’.
5. Property Maintenance
One of the most nagging of New Year’s Resolutions, but just as equally important, is appraising your property for repairs and updating. Unexpected repairs can happen at any time, don’t be caught out unprepared. Create a plan and put aside funds. Most repairs and maintenance are tax deductible, check out our Section on Depreciation for a quick overview of investment depreciation.
6. It’s not who you know it’s what you know!
Knowledge is power so make it a priority to become as shrewd as possible in property investment. Your carefully planned nest egg is critical to your future. It can make a real difference between struggling to make ends meet and the joy of a secure retirement- so make your investment work to its absolute potential! You can do this by brushing up on your knowledge. Our website ‘www.propertyquarters.com.au’ is packed with free information to get your landlord mindset on the right track.
7. Review of your managing agent
“Choosing a Property Manager is possibly the most important part of owning an investment property. You are relying on a professional to guide you towards financial independence; make sure you are in the right hands.”–George Astudillo.
Your managing agent should be in regular contact with you, efficient with planning, have extensive market and industry knowledge and above all they need to look after your best interests at all times. If you have any doubts about how your property is being looked after it might be time to make a change.
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.
by George Astudillo | Nov 8, 2019 | Marketing, Planning, Presentation, Technology
If a picture paints a thousand words, what do you want your photos to say about your property?
Bad real estate photography is everywhere, in fact there are blogs and Facebook pages that are dedicated to the subject. Although these are funny, we don’t want potential tenants laughing at our property.
So, what do we need to ‘focus on’ to get it right?
1. Less is more
Just because there are rooms in the house doesn’t mean you need to take a photo of all of them. Some are just too difficult to capture. A photo of a corner only says the room is too small. If the result is less than flattering, leave it out.
2. Keep it real
Nothing upsets potential tenants more than unrealistic photos. If you intend to use a view shot, make sure it is easily seen from the property. If you need binoculars or need to lean out of the bathroom window to see the same view, you will lose credibility as a landlord. And the same goes for using props to hide faults, either fix the problem or don’t take a photo of it.
3. Quality equipment
Many of the poor photos on the internet come from cheap cameras or even iphones. To take good quality photos you need good quality equipment. The bare minimum would be a good digital camera, wide angle lens for interiors, a decent add-on flash unit and a stable tripod.
4. Stay straight
When using a wide angle lens, it easy to end up with distorted images. Make sure you are holding the camera straight and that it is level. Tripods which include a spirit level are very handy.
5. Attention to detail
Look around and take an inventory of what the camera will see and record. Check what may need to be removed from the scene. In kitchens particularly, you may need to declutter by removing tea towels, dish washing detergents, cleaning brushes etc. Also check that blinds are all level and open for the best light. Bathrooms should be entirely clear.
6. Timing
Natural light is very sought after in a property. Choose a time of day that works for the property. This is particularly important for the exterior photos as you want the sun behind the camera and shining on the property. Photos taken just before dusk can be difficult to time but can also be very rewarding for the right property.
7. Photoshop
Only process the images to crop and tidy, and remember point two above, keep it real. There are big penalties for misleading consumers, be aware of the restrictions such as removing objects from pictures such as power lines and unsightly electricity boxes. For more information on rules and regulations see The Department of Fair Tradings Advertising Guidelines.
Real estate marketing focuses on images. Potential tenants want to see the main features of the property and want to be impressed. Quality photography together with a well written description can create a vision of a lifestyle that will appeal to 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.
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
