Forum Replies Created
- pijoko wrote:Thanks for all your suggestions.
I'm just wondering how the 'hand over' will occur. Should I just turn up at the property and advise the current tenant that, as the owner, I will be taking over the property management, and give my contact details along with new bank account details.
What is the usual procedure here? I guess I should also get my current agent to be involved in the handover, so that the tenant knows I'm legitimate?
The property manager is very lazy, someone was meant to contact me 2 weeks ago in regards to finishing up with them, but nothing, so I guess I'll have to probe them.
I've prepared a list of things I need to do..
– Get a copy of the current tenancy agreement from agent
– Find out bond details for current tenant
– Organise return of agent keys for property
– Agent to change mailing address for invoices etc.
– Notify tenant of management change
– Give tenant new bank account details
– Give tenant my contact details
– Get contact details for the tenant
– Organise dates of property inspectionsand maybe…
– Get list of good tradespeople (for future)Any advice is much appreciated.
I'd set a time with your PM very soon for you to pick up all the paperwork, keys, etc. Everything should be ready for you at this time, including a reconciliation of any money they are holding for you on trust and a cheque/EFT receipt for the return of this money to you.
In the meantime, write a note to the tenant advising that you'll be self-managing and enclosing your contact and bank account details. If you have their phone number, you may wish to ring and introduce yourself.
You can also change all the bills to your address right now – you don't need the agent to do that. Once you have the paperwork from the agent, attend to the relevant bond transfer form.
If your PM is uncooperative, tell them you will lodge a complaint with your State's Consumer Affairs Department and Real Estate Institute unless they play ball. Also tell them you'll be spreading the word near and far about their lack of professionalism.
For more information on switching from a PM to self-managing, check out the Rentwise blog: http://blog.rentwise.com.au/index.php/2010/04/21/guide-to-switching-from-a-property-manager-to-self-management/
Good luck!
Ernie, make sure you examine and understand all the figures and fees very carefully.
Look out for commissions and ongoing management fees – these may be excessive or unnecessary e.g. a 1% annual management fee in additional to PM management fees is typical of one-stop-shop investment schemes. Ask yourself if it's really worth paying fees like this or can you do the work yourself. Make sure you understand EXACTLY what it is they're claiming to do for you so you can make an informed decision.
Don't be rushed or pressured into anything – nothing is urgent and everything can wait.
Phorsha wrote:Turns out this is the cheapest fee schedule i can find….anyone got any recommendations for a Perth NOR property manager that charges more like what people get over east in melb etc? I am starting to think i should do this myself but have no idea where to start, seems a lot of paper work (initially anyways)…
Phorsha, we were in your boat – just couldn't afford expensive PM fees anymore. So we started self-managing and created Rentwise to make it easy. As we're still in development stage, we're looking for self-managers to try Rentwise out for free, for as long as they like. If you (or anyone else reading this) is interested, please jump online and sign up. No payment or contracts involved. We're just after your comments and suggestions for how to make self-management as easy and cheap as possible.
As for PMs, we only use them now to find tenants because of their access to the default databases. I guess if we ever needed to evict someone or go to the Tribunal, we could use a PM just for that but we're not prepared to pay expensive ongoing management fees in the meantime.
JessW wrote:Hi KateMelb – I'm still certainly interested in self-managing in the future – I'll check out your website – wish I had of looked at it before I made the decision to go with the PM!!! I was struggling to find easy to understand, straightforward info about self-managing…..Cheers,
JessJess, we were in your shoes when we started self-managing in order to save money on PM fees, which is why Rentwise was created. As we're still in development stage, we're looking for self-managers to try Rentwise out for free, for as long as they like. If you (or anyone else reading this) is interested, please jump online and sign up. No payment or contracts involved. We're just after your feedback and suggestions for how to make self-management as easy and even fun as possible.
GeraldineM wrote:If you keep the tenants during the sale, why not offer them reduced rent as a 'thank you' incentive to open the house whenever needed and to keep it presented really well? This could cover giving access for any repairs and gardening.
G
It is the tenant's obligation (at least in Victoria) to provide access for sales inspections upon 24 hours notice. They don't deserve a reward for complying with this. But you could entice them to clean up the place with a few days free rent. I've done this before and it's worked a treat.
Jess, contrary to the myths, self-managing is really very easy. I only use a PM to find a tenant. Once they're in, I take over and in all the years I've done this with a number of properties, I've never had any issues with evictions or Tribunals – finding a good tenant in the first place and treating them with respect and courtesy once they're in is probably why!
The contract of sale should have the building permit in it. You can also special condition a sale based on the provision of a certificate of occupancy by a certain date, otherwise you can walk away.
But based on his apparent financial difficulties, I wouldn't be giving him a deposit directly – his agent/lawyer should hold this on trust in case the contract fails and you want your deposit back.
maree_bradross wrote:You would have to check with your states legislation but in Victoria you can evict a tenant with 60 days notice if you or a family member need to move into the house. If you use this option there is rules about when it can be rented again though.Why don't you make your offer subject to vacant possession and let the vendor sort it out? May just mean a longer settlement.
Actually Maree in Victoria a landlord can only evict tenants on 14 days' notice before the end of the lease in order to live in the property if they previously lived in the property immediately before the tenant or immediately before the previous (2nd) tenant (if there was one).
If the lease has expired, the tenants can be evicted on 60 days notice to allow the landlord's family to move in.
keiko wrote:I don't know if I agree with that, I left school at 13 and the time I was 20 I had seen alot and done alot and had several businesses running and making a whole lot more money than someone with a degreeI know lots of people that went to uni and studied and then when it came time to go out and do what they studied they had a change in what they really wanted to do and they dumped what they studied and went on a different track
I know other people that stuck at what they studied but still are only making above average wage and there in there mid 20's
The time they got to this age and there starting to make a few dollars, I already had a headstart by 12 years
I guess the time they get to there mid 30's or late 30's then they will be where I am todayI really think it comes down to the individual,
Depending on what type of degree you want doesn't always mean you have to go and study for it, you maybe able to get a job and your boss teachers you everything he/she knows and then you start to make money from day one and by day 3 years you dump the boss and start on your own
But if you want to be a doctor well thats a different story, but if you want to be an accountant well it is possible to skip uni.Thats just my thoughts anyway.
True Keiko, you've made some really good points.
There's no substitute for the school of life (not everything can be learnt through books), but it's fair to say that having a formal education/trade qualification is likely to make navigating through the school of life easier. Talent/natural ability is one thing, but you need to be blessed with opportunity, mentors and luck as well. Education tends to reduce the reliance on these elusive factors.
Getting a uni degree or trade qualification is the smartest way to set yourself up to have a higher-than-average paying job, which will allow you to borrow more and buy more IPs. This is exactly the path I took – sure, had less income while at uni but once I was out in the workplace, that situation changed very quickly. Was well worth the investment of time and sacrifice of immediately higher income while studying.
I definitely endorse the above comments regarding switching to an interest-only loan with an offset account. This strategy has certainly worked for me.
Hi guys,
Like the rego plates say, Melbourne is “the place to be” – not enough houses for everyone makes real estate in Melbourne a great investment. I’d go for anything within 15kms of the city and near a train/tram line.
As for the FHOG, have you checked that you guys are eligible?
Good luck!
To hedge your bets, sell with the tenants there on a month-to-month tenancy. That way, an incoming investor owner can offer them a new long-term lease or an incoming owner occupier can swiftly evict them. And if it doesn’t sell, you still have tenants!
Hi Clint,
When we first started out, we were working longer hours than 9-5 but every weekend for six months we were at the property supervising tradies, painting, etc. There were also some before-work visits to open doors for tradies but sometimes they’d just pick up the keys and access whenever it was convenient for them.
They were tough times but we got through it and it was well worth it – property doubled in value in 5 years and has always been rented. Was well worth the sacrifices.
Good luck!
Sounds reasonable Darren. I just sold a place with internet advertising only (no board, no newspapers) and it cost not much more than $350 after photos and a floor plan. Was well worth it and will be claimable as an exit cost to offset CGT.
emej78 wrote:Hey Rossco, A similar thing happened to me when I moved from a previous rental property. Utilities were cancelled, paid up to date, and I gave them my forwarding address should there be any additional charges once the meter was read. I didn't receive any billing, but found out about 9 months later that I had a default on my credit rating. I was able to have the default removed by phoning the utility company, explaining the situation, and then paying the debt. The first person I spoke to said they couldn't do anything, but after speaking to a manager, and putting the blame firmly on their shoulders, where it belonged, I was able to have it removed. Only took about 2 business days to go through to Baycorp/Veda and all was good again
I'd strongly recommend you do the same thing, don't want to have a default hanging around for the next 5 years. Good Luck! ElleIt's a good idea to do your own credit check before you seek finance/refinance. Defaults are inputted by people who make mistakes all the time e.g. adding an extra 0 to the default amount which could prevent refinance occurring. It pays to do your own due diligence about your credit record and not just leave it to your lender.
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I DIY manage with Rentwise.starbud wrote:What I want to know is how much is too much to pay in body corp fees (I am tight and having to give away $15 extra is going to kill me!)?Quote:This depends on whether you need the deductions to offset your rental income and achieve negative gearing.
If you don't, I'd analyse exactly what the body corporate management is delivering for the fees charged and make a call whether it's worth it.
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I DIY manage with Rentwise.maree_bradross wrote:If you don't already have one I would recommend getting a PO Box so the tenant doesn't know your actual address. If your listed in the white pages I would recommend getting in the nearest CBD and getting it redirected.
Try to keep a distance between yourself and the tenant.Couldn't agree more. I have a PO box, mobile phone number and email address for tenants to contact me. Am not listed in the phone book and my address is not on the electoral roll. Tenants know they can contact me anytime, preferably via email or SMS and I always respond within 24 hours, usually much less.
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I DIY manage with Rentwise.ducata wrote:Purchased for 800k approx three years ago, I am having trouble selling it at 750k now.I agree with others' comments: it depends what your investment strategy is. Mine is capital growth over return, so I recently sold a property that had zero capital growth for the last three years (I mistakenly paid too much buying off the plan). I'm happy to make a small capital loss, free up funds to invest in a new property with solid capital growth and move on – the sooner the better!
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I DIY manage with Rentwise.You may be able to redraw some of the equity (say a $25,000 'top up') without needing to redocument the loan. This will depend on your lender's rules.
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I DIY manage with Rentwise.
I'd strongly recommend you do the same thing, don't want to have a default hanging around for the next 5 years. Good Luck! Elle
