Forum Replies Created
- First I thought of “Dr X Incorporated”, then I thought maybe “Dazzling Developments”
Whoa…..steady up there tiger !!! That’s got intellectual property rights hanging off and up the ying yang….I could probably let you borrow it for a modest 60% of all revenues – not profits mind you. Now – that’s a decent reward shooting for.
Why not utilise the first initial of everyone involved to make your own name and then add on
“_ _ _ _ _ _ Property Investment Group Pty Ltd”
Of course this will only work if some have vowels in their name.Yeah – that could work….although it’s a fairly big group Xenia tells me….so having Barry / Oliver / Larry / Linda and Oprah joining Xenia might be a bit difficult, might have to get the Scrabble set out and come up with something short and punchy. [eh]
If you are happy with the research you have done, confident you can make this work for everyone involved and the numbers stack up, that’s all that matters!!!!But then on the other hand, let’s put the shoe on the other foot and have a look at the situation wearing a different hat and through a different set of glasses.
I’ve chatted with quite a few couples at parties etc, with them being unaware of our property background. One couple in particular I remember were carrying on like pork chops about all of these fantastic deals they’d been finding and how the REA was explaining to them what an opportunity it was to get in “on the ground floor of this landmark development”. They’d never bought an IP before and were still paying off their PPoR which they’d purchased 3 years previously and had made a “packet”.
When they explained the details, the unit was out in whoop whoop, had zero land content, the tenancy profile expected was very average….and the future capital gains expected were way over-stated. On top of all this the vendors had done a financial projection for them, where it cost them only $ 120 per week after taking into account expected tax refunds and depreciation benefits……
Now – call me a negative Nelly if you want…..but this was a clear case of a developer making a packet off uninformed newbies. I started to delve a bit deeper, but could see the stars were glittering in their eyes and nothing would sway their opinion. They were “happy” with the deal and the numbers really stacked up !!
This couple were so “happy” with their new found fantastic deal, that they went ahead and eventually bought it for 6K less than asking price. big flurry of fanfare and celebrations all round. More talking and chinwagging over BBQ’s….investors they were now.
We found out later, with much hulla balloo and dramatic fanfare, that new tenants moved in and proceeded to trash it, causing 11K worth of damage and 7 weeks of unpaid rent before the PM appointed eventually had them evicted with the bailiffs assistance. much drama and hand wringing. Suffice to say the 4 week bond wasn’t quite adequate. They still have it, but aren’t quite so gung ho about it…..and it hasn’t gone up in value at all. Conversations at parties and BBQ’s aren’t so enthusiatic and colourful anymore, yet everyone in the “circle” constantly asks how their property portfolio is going.
Anyway, just wanted to throw that little story in to balance up the discussion.
Perhaps….just perhaps….when people give you “negative” comments…..they may in fact be helping you avoid a massive pothole on the road to wealth.
My tactic – if encountering a negative viewpoint, is to simply ask what their suggested alternative is for the allocated funds. If they say “Oh I dunno, but I certainly wouldn’t do what you are suggesting”….then rightly dismiss their negativity.
Over the last two years, I’ve also found talking about investment properties to elderly folk to be one of the most ‘positive’ aspects of investing, and indeed have landed one absolute cracker of a deal via word of mouth…no advertising…..simply by having a chat.
It would be a shame to miss out on a doozy all because you were very tight lipped and didn’t share stories / experiences with family / friends, or indeed with complete and utter strangers like we are all doing right now on these forum boards.
G’day Ali,
Great post and lots of data to work with for a change. I’m sure you’ll get some cracking replies.
What factors should I consider?1. What is the land component as a %age of the asking price for both deals. I’d go for the largest if I had to choose.
2. What are your strengths ??
3. What are your partner’s strengths ??
4. Do you have buku cash reserves to hold the project if necessary….ie the separate deals don’t sell for as much or as quickly as you anticipate ??
5. What’s the timeframe on the block of flats ??
6. What is the buyer competition like for both props….or are you the only game in town for both Vendors ??
7. Can you tighten the revenue side of things up a bit….currently your margin of error goes from ‘a good profit and hence worthwhile’ right the way through to ‘out the backdoor big time’…..surely you can have a chat with someone more cluey than a REA. 150 -180 per unit x 4 units is a margin of 120K…..pretty sloppy in a 526K project (23% error margin).
Would you pursue either deal??No way, but then you probably wouldn’t be interested in what I like….so it doesn’t really matter IMO.
Is the risk worth the return???Depends what your appetite for risk is. The first alternative looks pretty plain vanilla to me – surely not too much risk there ?? Do you think the returns are stellar – or pretty plain vanilla to match the risks ??
Has anyone successfully strata titled a block of units in NSW? Any hints?I’m a complete novice in this area, so I’m talking completely out of my hat…..not a jot of experience in developing residential places.
“Is anyone doing it tough”….you ask…
Too bloody right !!!
I’ve just had to give the chauffeur a right earful. He zoomed around the promenade near the waterfront mansion too bloody quickly, and caused me to spill the caviar and glass of Dom all over my Armani suit.
I’ll be docking the laundry bill from his pension fund. To speak nothing of the tickets to the opening night’s opera getting all wet….
This working class…..I tell you…..they just don’t know when they’ve got it good.
Now – where was I….before the lowly serfs interrupted my train of thought….
P.S. I’ll get my hand off it now…. [biggrin]
I’d concentrate on the three biggest elements – revenue, control and time.
1. Revenue
How robust is that $ 4.165 MM revenue ?? What’s your margin of error on this figure…..± 10%….± 15% or is it more like -30% and +5%……
What’s behind the revenue figures, and are you intending to sell to suckers, or hard nosed property savvy buyers who aren’t going to buy anything off you unless they can see they are screwing you right down……what do you do if you can’t sell it for your price and they are happy to walk from the deal ?? Can you rent whatever it is you’ll have to offer out to offset the holding costs ??
2. Time
When is this revenue expected to come pouring in the door….in one big flood next year, or dribbled in over the next 4 or 5 years ?? How long can you hang on before it will crush you ??
3. Control
How much influence will you have on decision making with 10% ?? Do you get frustrated easily ?? Are you a control freak or are you happy to just go along for the ride, even if it’s all going down the chute ??
OK…for me, that’s the downsides looked at…..the upside is of course that you might make a packet and form binding business relationships with these developers for the next 20 years and motza here we come…..
How do the numbers stack up taking 10% of this vs buying a little 280K house controlled solely by yourself…..
Good luck with your endeavours.
I believe in WA you can set up different structures like 99/1, 98/2 title ownerships and that will give you a new threshold everytime however other states will just aggregate it.Hi asdf,
I think I was responsible for erronously introducing this train of thought way back in the conversation about a year ago. We thought we were onto a winner with that one.
However, that was the specific subject of conversation with the high powered solicitor last month. I am happy to share with you all for free that indeed this is not the case, and the WA SRO….like all it’s other brethen, simply aggregate them regardless of %age structures. This simply means you receive a very large LT bill and there is little you can do about it…..other than palm it off if the law allows it (RIP’s is a no go in this area) or your lease allows it.
Other than palming the liability off to some other poor sod, it’s pretty much payable regardless. Either way, the SRO gets it’s pound of flesh…..just try and make sure it’s not from you.
Pretty depressing huh !! [glum2]
Or is there another way?Hiya whatson,
There’s always another way……
Let’s say both you and your wife own the IP as joint tenants.
Why not sell the wife’s half share in the IP to someone you are close to – say yourself.
You take out a big mortgage on the IP (load it up to the hilt), pay stamp duty on the half share transaction and then the wife takes the proceeds she just got from selling her half to you and pays out some or all of the PPoR mortgage with it.
Need to do your calcs of course, but the saving in NTDD over the years usually swamps the stamp duty and other costs payable when “reshuffling”.
Worked for us.
**** Not advice…..just my usual dribble and ramblings.
Really excellent stuff Xenia. Well done to both you and your husband.
Getting off your collective bums and getting out there in the real world, mixing it with real people and creating both cashflow and capital growth…..a shining example to all of those sitting behind their computers in their comfy chairs saying “I can’t find anything like that”.
That full time investing sounds like it agrees with you. You’ve inspired me to dip my toe in that water as well.
Mindset is everything isn’t it……lead a horse to water and all of that….
Make sure you take time out to celebrate your success before tackling that next project…..how satisfying is that compared with working for a wage ?? Onya… [specool]
Hiya Elkam,
Looks like you are struggling with an issue that is very very large and looming as the props. get larger in value.
The SRO is a large and difficult beast to grapple with….escaping their clutches is nigh on impossible.
We were in your position about 3 years ago, actually paying about $ 36 K p.a. in Land Tax every year. It was getting beyond a joke, so we changed tactics. Our Land Tax bill has increased to $ 64 K p.a. but we only need to chip in $ 13K p.a. of this, so it still is unpleasant, but not that bad.
I started a thread on this very subject about 6 months….if I was clever I could link it in…..but unfortunately i’m not. [dunce]
We now graciously allow the tenant to pay the Land Tax bill, where appropriate, and so now our burden has been eliminated in places. They will only pay LT on a “single ownership” basis, so make sure you get your structure right.
If the tenant won’t pay the Land Tax bill, we don’t buy the asset – simple…..it is very central to our decision making process.
I had a meeting with a high powered solicitor who specialises in Land Tax in my home state last month to thrash out some stuff as I thought the legislation was a bit wishy washy. [dead2]
What we were trying to wrangle was a no go…..the people that draft the legislation don’t leave much in the way of crumbs…..hence, our tactic of lumping the burden back to the tenant. [thumbsupanim]
Have a search for that thread if you want…..there is very slim pickings to be had trying to avoid Land Tax.
Good luck with your investing endeavours.
Well the Vendor is supposed to give their decision on our Offer tomorrow. Apparently we have some stiff competition from an Eastern States institutional fund, but they are playing big boys ‘hardball’ and their numbers are lower than ours and trying to crunch the Vendor using their considerable leverage.
Hopefully the Vendors see reason and take our slightly higher (but still low) offer.
I’m sweating over here in the Middle East, completely removed from the action, other than email. The wife is handling the lot on behalf of the JVP.
If successful, I’ll be doing cartwheels down the office hallway over here.
If we get it, then drinks are on me…..I know Grossy likes a Scotch and Simon knocks a beer or two back….what does everyone fancy ?? [lmao]
Maybe Dazz did know but he’ll never admit it and I got a great laugh from it…OK, fair enough, I’m sprung…..I knew what you meant….good to throw a bit of comic relief into the fray….
From our side, we found total support from both sets of parents whilst we were investing in residential stuff, with conversations and plenty of to-ing and fro-ing…..generally a good thing all round. We shared stories and strategies and successes….life was good.
When we started doing our filthy industrial stuff…..well that all stopped dead in it’s tracks. Not understanding what the hell we were getting into, the negativity started immediately and uninformed comments and suggestions came thick and fast.
People are funny aren’t they…..if something is outside their frame of reference or sphere of influence…..then it must be bad and is inherently dangerous. It’s only when we are prepared to step out into a brand new area and gather knowledge and experience that the fears melt away and it becomes “comfortable again”…..your frame of reference grows and start to look for new horizons.
It’s when someone puts a peg in the sand and says “this is as far as I’m going and are comfortable with”….that the tensions arise.
Some of the stuff you do Xenia scares the beejesus out of us and we’d probably be negative and wary of it, yet you are quite at home and comfortable with the whole process…..and…..on the other hand we probably tackle stuff that alot of people would find most unpleasant and we’ve had enormous negativity about it…..until they see the figures.
We find the person that needs the most education and talking to is our Banker…..after all it’s his money…..if they are negative about it you’ve got alot of homework to do.
Cheers everyone.
Hi Fishman,
You have taken the time to detail quite a bit about your particular circumstances. Any good FA would want a truckload more details before they ventured any comment whatsoever…..but fortunately out in cyberspace we are not bound by those ridiculous legal restrictions….so I am free to comment at will, knowing that you can’t come back and sue me later on.
*** Disclaimer Note : Your question is an all encompassing financial and lifestyle change and strangers like me have no real place to comment. The massive changes required to turn your ship around will impact your immediate family members ALOT…..they are the ones that will need to be convinced if you are to have the slightest chance of succeeding.
You are receiving the “comments” for free and they will probably be worth as much…..I spent considerable time thinking about my response before writing anything. I hope you take it in the spirit to which it was proferred.
Your ‘situation’ is one that we purposefully avoided, despite the lifestyle gurus slagging us off, and went through 3 years of hard grind so we wouldn’t end up where you are now. However, this is of no consequence to you at all, you are only interested in getting out of the hole…..and of course, as one of the forum people’s signature says “First – stop digging.”
Hopefully, by now, you have all sat down and had a frank and full discussion with all of the relevant family members attending. Any measures taken is going to affect them greatly. If any of them are not included, there will be enormous “pushback”, as they will have grown accustomed to the lifestyle standard by now. This goes triple for your partner. You are obviously feeling the pinch now, hence the question, so something has to give……your only real question is what ?? The most common answer to that question is usually – nothing – we are not prepared to give up anything…..what will my family and especially my close friends think ??
If I was dirt poor, I’d suggest selling your 2 IP’s and carry on living to the same standard you enjoy now…..entrenching those high NTDD (non-tax deductable debt) habits. All family finance issues would be sacrificed at the “lifestyle and image” alter.
If I was your average smo, I’d probably suggest selling the house and downgrading, or rent in the area…..but essentially entrench the lifestyle habits that you currently enjoy. Keep the 2 IP’s ‘cos they might go up in value one day. Most of the family finance issues would be sacrificed at the “lifestyle and image” alter.
If I was wealthy, I’d grit my teeth and brace myself for some very painful, personal and family economic vs lifestyle choices. I’d also get my pen and paper and calculator out and start doing alot of sums, fully prepared to sacrifice whatever it takes….short term….(read 5 years)…to get back on a decent track.
At 35K p.a., you’ve probably got a 0.5 MM mortgage, and therefore the house is worth about 1.25 MM. As Terryw suggested, this is growing in a CGT free environment…..which is a good thing. If you keep it, which would be my suggestion, the family can stay in one spot and your family life isn’t uprooted completely…..this is obviously good for stability purposes. Once this is committed to, you are really only then tinkering around the edges. This tinkering will still cause many fights and arguments with the resistance from all and sundry who want to carry on the way they are. There are many shades of the reaction you will receive, from a concerted knuckling down and tightening of the belts (the best), right the way through to the ugliest scenario of all…..the big D.
So, if you are going to stay in your place…..nothing has actually been sacrificed as yet…..and at 240K p.a. gross combined salary, many people in Oz would probably be shaking their collective heads thinking….”You’ve got to be kidding me, they can’t make ends meet on that ?? We can just barely survive on one wage of 30K p.a. with 5 kids and a mortgage…..no luxuries at all but we get by….”
Best thing for you to do is draw up a budget and then put everything – and I mean everything – on the table to sacrifice…..and then strip off everything that is a “No Go” area……naturally everyone will take the lot and you’ll be back to square one.
If it was me personally, I’d whip the kids out of private school in about 10 seconds flat, and let them enjoy our semi-fee-free education system. Many people would disagree with me….but then they may have more money than you do.
The flash cars would go, the electronic gadgetry would go, the dinners and functions would go, and most important of all….I’d go straight up face to face and address the female friends and family members who inevitably will be on your case to continue living the life you are currently doing.
I don’t envy you my friend…..some tough decisions are on your immediate horizon, having been put off for many years…..but take comfort from the fact that there are probably many many thousands of families in the exact same predicament, with no-one willing to budge on their lifestyle expenditure and quite happy to go down with the financially sinking ship, desparetly clinging to the mast as it sinks under the waterline before being prepared to sacrifice what it takes.
In the family – collectively – are you all willing to do whatever it takes ??
P.S. Jan Somers had an almost exact carbon copy of your situation in her 101 stories book…..Jan, after giving one of her seminars was approached and tried to give advice to a woman who almost described your situation to a tee…..the end result was that the woman was not prepared to sacrifice anything – not a single jot, despite having a 200K p.a. salary and found herself without enough money to put food on the table. Jan walked away staggered that the family was unwilling to curtail their extravagant lifestyle in any way so they could eat properly.
a poor person that has won a $10 lottery ticket, will always be poorExcellent point Dr X….that $ 10 would hardly buy a packet of cigarettes and a beer to celebrate. [biggrin]
Our strategy is simple,” 4 green houses, one red hotel”. The key to winning in the game of Monoply is to have as many of these red hotels as possible, which increases your chances of receiving income (rent) everytime someone lands on your square.Very true…..and a perfect tactic for the game of Monopoly, however real life is not quite like that.
1. You don’t usually have “competitors” become your instant tenants.
2. The objective in real life isn’t to bankrupt your short term tenants.
3. In real life the growth is by controlling the “title deed”, not putting a hotel on it.
4. Regent street title deed costs $ 300, yet to put a hotel on it costs $ 1000. In real life, that ratio for the good properties are often reversed…..that is….the dirt in Australia is expensive. This stumps most activities stone dead.
5. Unlike in Monopoly, you cannot buy 3 run down houses like Old Kent Road with one pay packet.
6. Taxes in real life come thick and fast….not at the turn up of a card, where one person cops it and the rest get off scot-free.
7. The cost to visit a railway station isn’t quite the same.
8. Industrial properties like the water works and the electric company cost about 1000 or 2000 times as much as a house, not half as much. Also, renting these costs about 1000 as much as staying in a swanky upmarket hotel.Yes my friends……if you apply the same principles of winning at Monopoly to real life you shall surely have absolutely no money at all.
Cheers Mapleleaf…..
We have a group of about 20 or so Russian nurses over here that we sometimes get to dance with……they get bored as we do. Most of my colleagues who are all grandfathers, have a little trouble doing the twist and tango nowadays, but it’s better than anything else on offer.
Seeing women’s smiling faces and hair is a pleasure, compared with looking at a black bag over their heads…
How was your time in Riyadh….how did you pull out….that USD tax free cash can be a big trap…..
The property is not a vacant block but rather a PPOR in the suburb of Queens Park which was purchased in September 2005 for $265000. The question now posed to me and to the forum is…
If the owner receives approval to build say 3 residential unitsHi Pud,
In principle you seem to be on the right train of thought with this line of thinking. If your friend has no intention of going down the development path with his land, then to extract the maximum equity, one would just need to provide the Valuer with ;
1. A map of the area showing the exact area of the Lot
2. The exact frontage available to the Lot
3. A copy of the zoning for the areaIn all honesty they should be doing those tasks anyway.
You’d probably be surprised to find quite a few of the forum members actually own identical properties to that which you describe…..a single house on a Lot in Queens Park. Having spoken to a few, they are all of the same opinion as your friend….just keep on sitting on the land and do not develop. Growth is in the dirt right ?? You’ll get this by doing nothing…so why not…..or….Spend a whole bunch on units and attract some “also ran” tenants, and hope the nett rent after all costs cover the loan on the construct.
I’m with your friend’s line of thinking.
The Canning City Council, the local authority, has various zonings in the residential zone, the two most common being R17.5/30 and R17.5/40.
Regardless of the land zoning and the area of the Lot, unless the frontage of the Lot is wider than 25m, they will never allow you to place more than 2 dwellings on the Lot. There are many houses in and around Wharf St on half and full acre Lots. However they were all squeezed together like tin soldiers, with 20 to 22m frontages, going back about 100 or 120m…..no good to man or beast, unless you can pick up two Lots, side by side.
Most of the Owners either fenced it off and forgot about the back half, or simply ran flocks of sheep of all things…..pretty weird to see in 2006 and only 10 or 11km from the Perth CBD.
Looking at the stats, he’s getting pretty good growth – so good luck to him.
Cheers.
Dunno Don….with you being an ex-cop, I’d have to bow to your greater skill and knowledge in that area. I just enjoy riding the bikes that Mr Davidson invented way back when.
I currently work with 5 US expats, ranging from 57 up to 64 yrs of age. 3 engineers, 1 accountant, and 1 doctor…..all ride Harleys….all are good family men and none are involved in any criminal activity. Perhaps you have seen the wrong end of the stick in your previous profession.
Anyway….this is all wayyyy off topic…..let’s flip back to kessud’s fascinating plumbing problems….
I think, Dazzling, you need to take a chill pill.You’re absolutely correct Wylie – fully agreed. My different frame of reference is unfairly being applied back to residential tenants….it simply doesn’t work does it ?? Hey, you reckon this one is big enough, will it do the trick…. [chill]
I admire your posts and success, but personally, give me residential tenants all the days of the week. I want a simple life, and while I really enjoy reading about your trials and tribulations and huge successes, I do not want to experience any of it personally.Cheers Wylie. No worries….horses for different courses hey !! Everyone has their own cup of tea.
I read about your clean ups and dealing with bikie riff raff, and thank goodness for the residential tenant. You can leave them all to me, the more the better.Yep, done the clean ups but never dealt with bikies ?? I reckon they’d be OK to deal with, but never had to as yet…..being an ex-Harley rider myself, alot of their principles I agree with.
Anyway, if you want my ressy tenants, you are quite welcome to the lot of them….would love to be rid of them all…..now that would be bliss !!! Sorry, they are in fact very very good, and worth heaps and heaps…..are you willing to stump up the cash required to inherit them ?? They are like little chicks…..going cheap cheap…. [biggrin]
Worked every day, never saw the wife or the kids….haven’t heard from them in 6 or 7 days….I think they are somewhere enjoying life.
Haven’t even seen an Easter Egg, they aren’t too popular over here in this Muslim country.
There, that should cheer everyone else up. [blush2]
Rant mode on….[angry2]
Ahhh, yet another little quirky residential story, one of many that we as investors used to put up with before they all mounted up and broke our camel’s back.
The money side of things is irrevelant – isn’t it kessud….you are only concerned about the due process of it all, and how best to serve your loyal tenants ??
No….the problem stems from the fact that it’s extremely easy for the PM (I prefer to call them phone call takers) to simply take a phone call…say “I’ll be right onto it”…and then pick up the phone and call the plumber out as many times as they like at your expense….no skin off their nose – right ?? Their obligation is over….phew, that took all of 2 minutes sitting behind a computer….professionally managed that is.
Call the plumber out 8 times, 12 times, who cares….not them – only the poor sucker footing the bill. Hence why you are writing about it now. I don’t see too many PM’s writing in to complain about calling out plumbers….they don’t pay for it – so no biggy. They always turn around and say it’s tax deductable…., I’m sure you take great comfort from this.
Of course, to get to the root of the cause, this enters one of those inevitably murky and nasty areas where we refuse to go now – what exactly is blocking up the drain ?? Ahhh, now we need to wade into the private lives of complete strangers – economically linked to your wealth creation process….a heady mix indeed. Who’s comfortable with questioning the private habits of strangers to reduce your costs…..hmmmm – see what I mean ??
Have the tenants got 4 teenage daughters, all with long hair, and all who shower and wash their hair every day…..combined with soap accumulations and natural body fats….a constant barrage of a clogging concoction that will test the best of plumbing. But that’s reasonable, they are allowed to, your plumbing system will just need to cope with that mate – if it can’t – boy – look out, it’s gonna get expense.
“How dare you question the private habits of my family”….screams the tenant before slamming the phone down and starts a vitriolic flurry of letters to the PM complaining about the rude Landlord asking personal questions. And the tenants are absolutely right of course, how dare you pal….just pay up and fix it when we call you….and be snappy about it.
Hope the capital gain you are getting is worth the cost and time and stress impost…..that’s how most people justify it to themselves…..I know we did for the first 8 years. What else can you do ??
With the tenants and properties we deal with now, we have the luxury of saying to them – “You clogged it up – you fix it”….and sure enough they do – no whinging – at their time and expense.
Unfortunately, you do not have this luxury with the asset you own, and the law is squarely against you…..they cause the problem – you must pay to fix it – every time – regardless of how many times it takes. How many times will it take before you confront them with their personal habits and get to the source of the problem – what is your limit ??
As I said before, just a small straw, and nothing to get into a tizz over….but imagine if you will…multiply this by many properties, and then let the plumber join his electrician mate, and the roof guy and get a plasterer involved, and the local handy man, and the pest control guy, and suddenly you’re employing an army of callout kings constantly. Believe me, the matrix of time and expense and headaches and whinging gets large, compounded by the constant nose wiping you need to perform on bleating tenants who refuse to lift a finger. See where I’m going ??
So far in the last year on this forum we’ve had extremely similar issues posted, discussing what hapless ressy Landlords have brought up, with the accompanying frustrated questions about how to wriggle out of the cost or stem the outflow of cash and time, covering ;
Flyscreens
Blocked drains
Ants
White ants
Overhanging trees
Strange smells
HWS’s bursting
Pilot light on HWS went out
Fence fell over and my cat may get out [blink]
Leaking rooves
TV Aerials
Security doors
Locks
Leaking taps
Tiles lifting
Whizz bang electrical connections not working
Cracked shower screens
Changing light bulbs….no….seriously
The list is by no means exhaustive….Any of the above, anything goes wrong, tenant snaps fingers…PM and Landlord come running via the army of tradespersons….open up the cashbook….job sorted, until the next time the tenant snaps fingers.
No responsibility on their part….”Hey pal – I pay good rent and I want it sorted now”. just one little bleat and one phone call is all it takes to start a chain reaction that usually costs a week or two of gross rents to sort out….per phone call….what a game !!!
Oh dear, the tenant who is paying 3.5% gross yield (only about 2.5% nett yield), reckons he’s paying top flight rent and wants the red carpet treatment ??
But we must keep the tenant happy….at all costs….or so the mantra goes. I simply don’t want any fighting or confrontation, just pay to have it fixed and move on, they won’t call again – surely ??
I see my father and sisters play this game over and over…..it’s absolute complete madness….but they really like it.
Rant mode off. [hmm]
kessud….just pay up, and keep paying up whenever they have a whinge….it’s just your lot in life as a residential Landlord.
Oh, and to answer your second question, ummm, as the investor, you don’t decide what you pay for and what you don’t….your PM has 100% discretion over that. What they strip out before handing you the remainder is up to the agreement between yourselves, and you’ll probably find calling out a $ 180 plumber, they are well within their rights and you’ve got Buckleys mate. Since they hold the cash – not you, you’ll have to plead your case with them….that’s simply the way the principals of the agencies set their business models up….to reduce their cashflow risk, they simply impinge upon yours – simple. [whistle]
