Yes, I too am sick of tradesmen who not only charge like wounded bulls, but also often don't do the job properly the first time so need to be called back.. I have maybe 12 electrical jobs I'd like done (additional security lights, changing light shades, a couple of new power points, a bit of a variety of stuff, but totalling 12) at my home, but as none of them is particularly urgent, I've been putting them off for up to 12 years – because it costs so much for an electrician!! So some overcharging tradie out there has missed out for 12 years because they are too expensive. They are their own worst enemy. But they don't see that, as their ego gets in the way. I had the best lawyer in the world to represent me in my fairly recent family court property settlement. My partner spun the process out for as long as he could get away with, so it cost me $29,000, but my lawyer gained me an additional $197,000, so to me he was worth every cent. I think some lawyer bashers could perhaps weigh up what they've got to gain, before they set out to find a lawyer. Yes they seem expensive, but mine was worth every cent I paid. I became aware during the process that he'd studied accountancy to further his education, & beyond the settlement I discovered he was also in the process of studying child psychology, to have a better understanding of his clients. There were 2 lawyers at his practise, & between them they had to earn enough to pay 7 staff, including themselves, as well as pay quite high rent, so I'm probably one of the few who could see where his $350 per hour was going. His name is Martin Hynes, Bunbury, W.A. Yes, let's name the good service people …….and as for you "crashy", yes whining & moaning can bring prices down! I took my only rental property of 13 years off my agent in August, as I couldn't stand the inefficient service any longer I got from the property managers & most other people who attended my property, which included the blind man, electrician, plumber, maintenance men. I'd been asking for 13 years, for any tradies who attended my property, to call me from the job, as I wanted to ascertain whether I was going to pay, or whether the tenant was going to pay for the problem. I think 2 of about 12 (we had a couple of very damaging storms) called me from the job, which I didn't know had been completed til the payment was deducted from my rent. I found out too late each time, that the lack of calls was mostly the fault of the property manager's assistant (assistants should be made to pass some sort of an exam prior to employment!!!!) who didn't request a call be made from the tradies. So they all lost out, the property management company & the tradies. I've also found that people who seriously overcharge have their head stuck a long way in where daylight don't go, & they have no perception that they have a disgusting reputation. They also seem to be unaware of karma.
Onya Rachel, you did well A little bit of knowledge goes such a looooooong way with rental properties, doesn't it? Glad it worked out as well as it has for you, Cheers, Liz
StingrayBirke, sus out a person who's been investing in residential real estate for some time, & you'll hear the positives for yourself, straight from the horse's mouth. Property investing is like anything else in life. If you pay attention, study the subject from books, seminars, & the experiences of others (including on sites like this), you'll see a completely different angle. From my experience, the only people/media who knock property investing, are those who've never experienced it, or had no idea what they were doing when they did invest & so didn't do as well as they could've.
Bit cheeky I know, but in the past, whenever I've had to sign a new Authority To Manage form for a new agency, I cross out their 2 year date & write in it's place UFN, then initial it. When they query that, I just tell them I'll stick with their agency for as long as I'm happy with their service! And do they tell me to go jump? Course not, they want my business
Some of us have been conditioned through our parents and others, to have a "scarcity" mentality. It's up to the newer generation who're whingeing about "cant' afford this, can't afford that," to break out of the scarcity frame of mind. And it can easily be done, just look at the examples given by some of the posts immediately preceding mine Don't let fear get in your way. You don't have to be wealthy to invest, but you sure need to invest to be wealthy (as in own your own home).
I'm with you on that one bardon. Debt (if you handle it astutely), makes money. Sitting on your hands doesn't. I detested secondary school (boarding school) & so did very poorly with secondary education, but decided the day I left there that for me to get ahead, I'd just have to work long hours, end of story. And that's what I've done ever since, worked full-time, as well as a part-time job (while others are sitting in their comfort zones in front of their TV every night), & occasionally I've had 2 part-time jobs. I've built myself up to currently owning 2 houses, I have no debt, & am about to commence having 2 units built behind one of them. Being female, debt doesn't sit very well with me, so I pay off a mortgage much faster than is necessary (which makes the cost of the loan much less) and that then leaves me free to go get another debt My comfort zone's slowly getting used to it. We don't have to be wealthy to invest, but we sure need to invest to become wealthy!
Why is the Property Manager "waiting til they leave" for God's sake? As has been suggested, get yourself an inspection ASAP, with you present (in W.A., 7 day's notice is required to be given to the tenant by the Property Manager!). Tell the Property Manager to bring with them to the inspection, the ORIGINAL Property Condition Report, so you can compare what's written on there with what you'll be seeing at the inspection. Once damage has been sighted, the Property Manager should be forwarding to them urgently, a Breach Notice, for Breaching the Terms/Conditions of their Lease Agreement, which gives them 10 days (or is it 14 days) to correct their misdemeaners. The Property Manager then needs to re-inspect, & if the problems aren't rectified by that inspection day, she should then issue them with a Termination Notice, which gives them 7 days to vacate. Check with your R/Estate institute first, in case your guidelines are different from here in W.A.. to know exactly what your rights are, & in what order procedures need to take place, & over what period. Write down what they tell you, including the names of the forms the Property Manager needs to issue. That way, the Property Manager knows she's got to stay on her toes. By the way, Real Estate Agents & their Property Management section, are "scared" of the Real Estate Institute, so your contacting the Institute will make for fairly good power of persuasion with your Property Manager. Good luck! Cheers, Liz
Hi Rachel, Which state are you in? In W.A., we have our Real Estate Institute of W.A. (REIWA), who have a "public enquiries" number for people in your situation, who are using a Property Manager. I'd start by finding out in whose name is the lease, so you have that information before you call your local Real Estate governing body. And TODAY'S a good day to start. Don't delay. All the best, Cheers, Liz
I began stating as a Condition on my Property Manager's Lease Agreements 13 years ago, that I'd pay 90% of the tenant's excess water useage (to encourage them to maintain the lawns & gardens to my standard that I'd provided for them). Regardless of what I thought was my extreme generosity, my lawns & gardens were allowed to die (& the P/Mgrs didn't give a damn), so I reduced the 90% to 80%, then it became 70% & so forth til I eventually decided enough was enough. For the last coupla years the Condition states that "if the lawns & gardens are maintained to the same standard FOR THE DURATION OF THIS LEASE PERIOD, as shown in the photographs taken at the beginning of this lease, the landlord will refund an amount equal to 30% of the excess water charge AT THE END OF THIS LEASE PERIOD, to a maximum amount of $100.00." Now all tenants keep my lawns & gardens half watered, which means my effort to green everything up between tenants is lessened. One of my business books states that we can't tell our staff or tenants or kids how their behaviour affects US. They'll only take notice and act if you tell them what affects THEM. In effect, my tenants now EARN their 30%. The onus is totally on them to earn my 30% "bonus." As a consequence by the way, they also report any leaks or split hoses etc far more quickly now.
Hi Joely, I'd move into it, & rent out the one you live in now, if the one you currently occupy is of a good rental standard. That way I'm sure your existing mortgage becomes tax deductible, and you could do lots of the work you're planning to do in the second house, in your spare time, saving you lots. I feel you'd be doing yourself a big financial favour by swapping houses. May need to swallow a bit of pride, but hey, it's your future at stake here
I live in a city South of Perth.
House prices have been falling here for approximately 2 1/2 years.
There are loads of houses are on the market, to sell your house, you need to drop the price by tens of thousands..
Rents on existing properties haven’t risen in a year or two.
The main local paper has an abundance of houses for rent.
I blame the First Home Owner’s Grant of last year for the current over-supply of houses for sale, and the over-supply of tenants – all those prospective tenants have vanished, into their own brand new 4 x 2’s, paid for to a large extent with their First Home Owner’s Grant, leaving other houses on the market, with no-one to buy them.
The government supports the construction industry, as they make up a large proportion of wage-earners. But for landlords, BAD LUCK!
I’ve just started the ball rolling towards having 2 home units built behind an existing rental, so far just to the planning application stage.
I’m 63, and perhaps quite ignorantly, assumed I could get my mits onto my super now.
Monday I discovered that that is not to be, as I still work full time, my only option seeming to be that I may be able to draw a small pension from my super. Fat lot of good a “small pension” will be towards repaying my $400,000 loan!
Am wondering if there is any way around this? Any ideas out there please?
Cheers,
Liz
From my experience, there are some Property Management agencies, who don’t only charge you the 9.25% management fee (incl), but will also deduct 9.25% from your rental income for other monies that pass through their hands, e.g. painting, gutters, rates, insurance, water etc, whether you’ve organised the service or they have. Personally I pay those types of expenses from my own account, as it can add to a substantial amount over a year.
It varies from agency to agency.
They are usually open about it if you enquire.
Cheers,
Liz
Wow! 3491. That was worth all the grind & the going without over the last 20 years!
So that’s my benchmark. I wonder what I can achieve in the next 20 years, but I’ll start with this next 12 months first…….
Thankyou so much Steve McKnight, for sharing your experiences with us & giving us the benefits of your knowledge and wisdom, on which to build our own. You’re a champ!
Cheers,
Liz
Hey guys,
I think we can make our point without putting others down.
Start your sentences with, “from my experience, I’ve found…..” instead of losing control and criticising someone else’s experience, huh?