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 | 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
by George Astudillo | Jun 3, 2019 | Landlord mindset, Management Systems, Presentation, Tenant
More than 60 per cent of Aussies are pet owners so it’s a major concern for renters.
According to the RSPCA, Australia has the highest pet ownership in the world, with 63% of Australian households owning a pet totalling over 25 million pets. Predictably, dogs are the most common pet at 39% followed by cats at 29%.
With companionship being the chief reason for having pets, it’s no wonder we treat our pets as children.
So what happens if you own a pet and you’re renting?
If you’re planning to rent an apartment, the first challenge is the Strata by-laws which may prohibit the ownership of any pet.
After that it’s all up to the landlord.
So why do so many landlords refuse pets, and keeping in mind the law of averages, many of these landlords probably have pets of their own?
Well, it’s because pets often mean fleas, stains, odours, noise and damage. In NSW a landlord is not permitted to ask for a bond any more than the equivalent of 4 weeks rent. If a landlord allows a tenant to have a pet on the property, all they are allowed to ask is that the property be fumigated when the tenant vacates.
For a landlord there is very little upside to the risk of having a pet on the property. Or is there?
Over the next couple of years, the supply of apartments in Australia is set to increase substantially with a large proportion of these properties ending up as rentals. This will mean stronger competition for tenants. To weather the storm, landlords will need to make their properties stand out from the crowd to avoid vacancy and lower rental yield.
With so many potential tenants with pets is it possible for a landlord to consider allowing pets as their point of difference? And if so, how do you make a property pet friendly?
These are the main areas that need to be thought through,
- Floor surfaces – Carpets can absorb odours and become stained, timber floors can scratch easily and stone can be too porous without an effective sealer. Consider vinyl as its warm underfoot and easily cleaned.
- Paint needs to be durable and easy to clean. Choose a quality name brand as they tend to last longer between repaints.
- Ventilation is essential. If pets are left inside for long periods of time odours can build up.
- Curtains can be tricky particularly with cats, blinds can make better sense
- Outdoor areas need to be secure and easy to maintain.
- Regular inspections are essential. At least twice a year inspect the property for wear and tear and for damage. It’s not only good practise for every property but super important with pets.
- Which pet – The style of pet is also crucial. A large dog in a small unit is asking for trouble. Although there are many families in this situation handling it well, as an investor it raises the risk quite substantially. Cats are generally good house pets, they sleep most of the day and are usually very clean, although some breeds can be trouble – too much energy.
- Rental Bond – Western Australia is the only state where a landlord can ask for a pet bond up to $260.00.
- Landlord Insurance is another area that needs to be checked as most policies do not cover for damage caused by pets.
- Lease terms – You can include a special condition in the tenancy agreement that the property be steam cleaned and fumigated when the tenant leaves if you have allowed the tenant to keep a pet.
- Anti-discrimination – You are not allowed to exclude a tenant whose pet is trained to assist with a disability, such as a guide dog.
- References – Be very thorough with references. Make sure you are comfortable that the character of the tenant is in keeping with keeping having a pet in your property. Better be safe than sorry.
Copyright © 2016, www.propertyquarters.com.au
by George Astudillo | May 2, 2019 | Legislation, Management Systems, Tenant
‘The Lucky Country’ for renters depends on which state/territory you live in.
Australia, the lucky country. Yet, as a landlord or tenant, the luck can depend on where you live.
Each state and territory in Australia has its own tenancy legislation. That’s eight sets of rules for tenants and landlords to live by. There may be some similarities but each one is distinct. So if you own property in different states or you’re a tenant that needs to move interstate for work, you need to be well versed in the tenancy legislation of each state.
So what gives?
On January 1 1901, Federation day, The Commonwealth of Australia was formed. That day a new constitution created a Federal Government with powers and rules and thus a new nation was born, the Australia we know and love.
Even though we have a federal government, each state retains the power to have its own constitution and its own legislature, so in terms of residential tenancies that means eight sets of legislation.
So what are some of the differences?
Stamp Duty
It’s understandable that each state has different financial requirements and expenses. So how it collects taxes, such as stamp duty and land tax will vary, and it does. Using the March 2016 figures from Australian Bureau of Statistics, the mean value of dwellings in Australia is $613,900. Buying a residential investment property at this price, the stamp duty ranges from $19,155.00 if you bought a property in the ACT to $31,904.00 in VIC (This is based on buying an established property as an investment. ACT=$19,155.00, NSW=$23,115.50, NT=$30,388.05, QLD=$20,650.50, SA=$27,930.00, TAS=$23,088.25, VIC=$31,904.00, WA=$23,175.25).
Cooling off period
Two states in Australia do not have a cooling off period requirement when you buy a property, the others allow the buyer between 2 and 5 days to cool off with a maximum penalty of 0.25% of the sale price, except the Northern Territory where there is no penalty at all.
Utilities
In four states there is no requirement to have telephone, television or internet cabling installed (however if any of these services are already installed, it is the landlord’s responsibility to make sure they remain in working condition). In the ACT the landlord must provide a telephone line and in SA the landlord needs to provide the installation of all three services. In Tasmania and the Northern Territory there is no mention of any requirements.
Tenant Holding Deposits
Some states have elaborate conditions on the amount, length of time and penalty when a tenant pays a holding deposit for a rental property. Whilst in the ACT a holding fee cannot be accepted, in Victoria, the holding deposit must be returned regardless of the outcome and in the NT there are no requirements and at all.
Maximum Rent in Advance
The rules in each state vary from two weeks to one calendar month. In Victoria it also depends on the amount of rent being paid and whether it’s weekly or not.
Tenant’s notice to vacate – (not fixed term)
14 days (NT, QLD, TAS), 21 days (ACT, NSW, SA, WA) and 28 days (VIC).
Landlord ending a periodic lease – (not fixed term)
If a landlord wants possession of their property back, other than for a breach of the lease, the amount of notice required to issue to the tenant ranges from TAS – 28 days, NT – 42 days, ACT & WA – 8 weeks, Vic – 60 days, QLD – 2 months, NSW & SA – 90 days.
Arrears
In Tasmania and Western Australia, a landlord can issue a ‘notice to vacate’ giving the tenant 14 days to vacate the property when a tenant is 24 hours late in paying the rent. And if the tenant in Western Australia is continuously late the ‘notice to vacate’ can be reduced to 7 days. In other states and territories, a tenant needs to be either 7 or 14 days in arrears before a ‘notice to vacate’ can be issued. If a tenant fails to pay the rent up to date by the time the notice expires, the landlord can apply to the tribunal/court to evict the tenant.
So if you’re a tenant in genuine trouble you could be facing eviction in as little as 8 days. On the other side of the fence as a landlord you could be out of pocket a minimum of 4 weeks rent if your tenant has decided to stop paying rent (and usually much longer given the time needed for notices to be served). It all depends on which state the property is in.
Access to a tenanted property
In an emergency, if you own a property in Victoria, you must give the tenant 24 hours’ prior notice before you can enter the property without the tenant’s consent. All other states, in an emergency, allow the landlord to enter the premises without consent and with no prior notice.
Access for other reasons, such as routine inspections, the required prior notice that needs to be issued to a tenant ranges between 24 hours and 14 days.
These are just some of the difference. So it seems that as a landlord the rules of conduct toward your tenant can vary greatly depending on which state your investment property sits. And your rights, as a tenant, also depend on what side of the border you live in.
In an age where the efforts to create equality have made such a powerful difference to the way we live, it seems at odds with that history that a tenant in Albury has different rights to a tenant in Wodonga.
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 | Nov 1, 2018 | Financial, Landlord mindset, Management Systems, Tenant
Who you select as the tenant for your investment property will have a major impact on both your financial return and your peace of mind.
There are three things that you need to look for in a tenant:
- Reliability
This is mainly about paying the rent. You need to be sure that the tenant can afford to pay the rent without undue strain. As a general rule of thumb, rent should be around a third of the (combined) gross income of the applicant(s).
- Responsibility
How will your tenants treat the property? It’s important to make sure that they will take the appropriate steps to keep the property clean, minimise any wear and tear and are ready to advise of any property issues that may come up. A careless tenant, on the other hand, will create extra problems which means more costs to you.
- Responsiveness
In the event of a problem the last thing you need is an uncooperative tenant. Willingness to collaborate and assist will not only make life easier for all, but will also reduce costs and time.
The first two points can be easily addressed with an effective tenant application. You will want to follow up on the application to confirm financial details with employers and past tenancy performance with landlords and agents. As a final measure, you can also run a check through a tenancy database such as TICA or National Tenancy Database to make sure they are not listed as a problem tenant.
However, recognising a co-operative nature may require more of a gut feel evaluation. Use the time during inspections and negotiations to assess the personality and character of the potential tenant. Their attitude during these moments can be very revealing.
Many of the problems faced by property investors can be avoided by selecting the right tenant. It’s the tenant that underpins the success of owning an investment property, both commercially and emotionally. So it’s important not to take risks or compromise when it’s time to choose a 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
