Hi again,

Now that you have decided that this guy isnt the right guy for you have you approached him to say that you do not want to go ahead with the subdivision, and that you would like to get your money back (maybe less whatever he has spent on skips and 2 random guys)? There are people out there who can renovate your property, but if this guy is changing his mind, and hasn't given you a clear scope of works (in writing) then he may not be the guy for you.

If it was me, I'd try asking for my money back and explaining that I wasn't happy with the way he was doing things, and that I was going to put the renovation on hold at this stage, until I thought about what I wanted to do.  If he then refuses to give back the money, then I would see a real solicitor (you've handed over $10k, its worth paying the $250-$300) and getting them to write him a nasty letter demanding a refund. Then you can go from there. If you do need to take further legal action you then already have someone familiar with the situation who can advise you, and you have a solicitor who can provide you unbiased advice for next time. 

Hope this helps.

D

Interesting…

The latest figures on population are growth for Vic by 95000 people over the next year. (No sorry too busy to quote where from, use Google friends) and 350-400k population growth for OZ. Vic has the largest amount out of all the states. Might be a turn around coming?

Supposedly Vic has also been in recession already for 9 mths (can't remember where that is from, it's not working for me today!) It's a tough gig, but you have to admit some tradies are flat out coz they are good, and some are slow coz they are not so good. Also I think it depends on your network as word of mouth can bring in a lot of jobs.

Nice photo Freckle.

D

Hi all,

Terry and Freckle, I'd go with the partial drop too. Good call Johann as well to keep an eye on the market.

Jacqui is right in the points that legally you don't have to do anything, but happy tenants pay bills on time.

The other suggestion I would add is how is the market going for sales in your area? Are there more rentals because more people are choosing to buy rather than rent? Might be worth talking to an agent about what sort of sales price you would achieve.

I know – half the room just sucked in a breath when I said sell – but as a wiser person once said, sell when you can do something better with the money.

Cheers

D

This was the most random thing ever.

KRUDD thinks he's a hero double talking everyone, thank goodness we got rid of Crean, and Julia, keeps on keeping on.

Dear Governor General,

Are you able to fast forward to election?

Cheers

D

Lol!

Were the landlords being charged for a gardener too?

D

Maybe do the inspection with the PM Dennis, then you can see exactly what the property is like in person.

You can then decide –  hey $40 is a small price to pay, or wow I wouldn't pay the extra $40 to live here!

If you really want to dig deeper, head to a couple of rental properties that are open and see what competition you have.

Do the maths, $40*52 = $2080 extra per year. So you only have to have a vacancy for 1mth at that $500 pw mark to make a rent increase not worth it.

Just playing devils advocate here really. It's all these small factors that make up the big picture when being a landlord. You really need to view from all angles to make sure you make the right decisions.

Keep us posted, and keep learning.

Cheers

D

Lol!

Went to the shops today and these two guys were handing out Labor fliers and wearing Labor shirts. They looked very dejected, I don't think they were having much luck.

D

I'd get the agent to drop off a nice bottle of wine, or get some flowers delivered.

The selling agent needs to really get in good with the tenants before you do anything. You can help by offering an decrease in rent over the selling period to help ease the annoyance factor. You'll want the tenant to be agreeable to opens when they need to happen.

Also you really need to see if the end buyers want to by with vacant possession or with a tenant. There's no use promising high and low that you'll let them stay if the end buyers only want to buy to live in. You'll stuff the tenant around as well as put off all the buyers.

softly, softly, and at every chance be as accommodating (within reason) as you can.

Good luck

D

Hi Dennis and all.

Have to say you may have just had an attack of  "Bull in a China Shop" !

Recently becoming interested in property does not mean that you can break laws trying to remedy situations that you may thing are wrong.

The first step to do is get a market appraisal of rent from a couple of real estate agents. This means getting a property manager through the property first. Over the phone they can give you general numbers but only by seeing the property can they tell you exactly.

It's possible in a SLOW RENTAL MARKET (yes there is such a thing) that the PM will be very conscious of keeping a good tenant rather than trying to find another tenant, and have a possible rent drop.

It's important to keep a level head, and put your emotions to one side when viewing property as a business. If you have come in part way through, not really done much research, then blasted away at a PM then you may need to take a step back and really think about what you want to achieve.

It's no use you burning through 3 PM's saying "I want the rent at $560, coz that's what I think it should be!" because you'll lose your (or your parents, by the sounds of things) good long term tenant, and you'll end up with an empty property for a long time. This will cost your family money, possibly be vandalized etc. Not the way to go.

Legally (in Vic at least) you can only increase the rent every 6 months. Doesn't matter if it has never gone up, or if they aren't paying market rent.

If your PM does follow your instruction (they may be in trouble if you are not the owner) then the tenants (once again in Vic) can take you to VCAT claiming that your rental increase is unjust and you may end up with no increase.

It is so important not to charge in, take the time, ring and APOLOGIZE to the new property manager and explain that you have only just become aware of the issues and no you have further understanding you hope that you can both work together to keep the good tenants and have a moderate increase in rent.

Enjoy, but do make nice with the new PM, if they know you and understand you and you are good to them they will look after your property.

D