Forum Replies Created
Hi JPHoth
Valuation between $3-$5K.
Legals $3-5K.
Lots depends on how smooth the banks move.
Stock at value incl all liquor, food, room amenities, equipment maybe.
Allow for settlement adjustments for all utilities, subscriptions, ads, rates.
Some slow payers like wotif only settle 16th every month, expect loose ends.
We’re still sorting out loose ends 6 months later, nightmare issues, dream vendor, so it pays to maintain friendly relationships.
It’s a really long handover list these days depending on how many booking sources are involved.
Tech stuff includes domain names, websites, ISPs, email addresses, forward bookings, debtors, eftpos machines, ins, workers comp.
Start your list and leave plenty of room.
Hope it runs smooth for you.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Welcome to capitalism. When some company makes enough money, there is a job for an employee.
Work hard, build reserves, you’ll get there.
Good luck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Bumskins.
Glad you mentioned that so I had to re-read the first few posts from John.
The rents have been increased to more than cover the costs of utilities, so the landlord makes a profit there,
and because the utilities bills tax deductible for the landlord, he makes a profit there too.
Nice thinking, I like that.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi & welcome to the forum.
Saving for a deposit is the litmus test for investors.
It tests motivation, patience, determination, money skills, discipline, goal setting, . . . . .
It’s not easy so many fail.
It requires you to adopt the principle of delayed gratification – save now enjoy later.
Sounds like you’ve reached a fork in the road.
I wish you success.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Here is how these problems start. REA did not handle the tenant complaint problem either themselves, did not report it to the owners or to the BC. PM is poor communicator so is not professional.
It also appears the owner heard about the problem once, but they don’t say when or from whom. So they knew about it.Quote from Andy Donnelly :
. . . . “the real estate agent didn’t tell us the tenants face this issue seriousely and we don’t know the problem well ( we only hear about it maybe once), until recently, the agent didn’t send us some monthly statements and the rate payments. we chased up the property manager, but every time we left the message no one call us back. we got really frustrated because hardly get hold on to the property manager. . . . “.
You’re correct in saying that in showing the property to a prospective tenant, it is assumed that any feature of the property functions properly or the tenant be advised to the contrary.
If the tenant decides to take action, the REA will take the first hit, and since they represent the owner, the owner will take a hit too.
Everyone runs for cover at this point.Been there, did my time as a PM running a rent roll.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
If the tenant reported the complaint to the original property manager, then the PM has a duty to attend to the problem somehow on your behalf.
Did the PM fail in their duty to do that ?
Did the original PM advise you of the problem ?
Did you fail to attend to the problem when the original PM reported it to you? (like referring it to the BC)Sorry about the pointed questions but tenants complaints must be resolved by a PM when reported or passed on to the correct person by the PM.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Good one Freckle, gas bagging. can’t wait for peak hour.
lol
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Xavier01.
Your skills would add much to a “low tech” motel – one that has been operating without a good website or strong internet presence.
Perfectionism is a hard slave driver but pays big dividends in hospitality, especially in areas of bookings details, repairs and maintenance, and room condition and presentation.
Attention to detail impresses all guests and generates return bookings.You’re correct about food if you’re not a foodie, let someone else do it, nearby.
Business guests are good bread n butter in between holidays, and they are homing pigeons, they like to keep returning to the same place to stay because it works for them, unlike many holiday guests who will go somewhere else next time for a change. Tourists like new, reps like dependable.
Needs 2 people so you’d have to plan to replace your partner’s partial absence with a casual.
With your skills and background, and provided you engage with people, look after them, and they like you, you have what it takes.Ensure when you profile a motel that your strengths address it’s weaknesses and vice versa.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi xavier1.
Welcome to the forum from me as just one of the many members here.
It might help others to help you if you could list some of your priorities or wish list such as :
Restaurant or not?
Price bracket
residence size required
star rating
holiday or business type motel
are you a couple in this venture
relevant skillsjust some outline might help.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Perhaps I didn’t make it simple enough, sorry folks.
The reason I chose to use a hypothetical example and said the magic words “all other things being equal”, was to create an example in which we could isolate only one single aspect of a property and examine its effect on valuation.
So I was only looking at the topic – the effect of the solar system on the property’s value.
Please let’s not scuttle the comparison and discussion by then saying that no 2 properties are identical, we all know that already, so don’t miss the point entirely.
Just isolate the solar system and its effects on the property as I’ve tried to do and estimate what you think the effect of an extra $75 per week rental income would be.
Obviously a tenant will appreciate free electricity if the landlord offers the property with elec included and will pay more rent.
Vacancy will be lower because it’s a sweet deal for a tenant and discourages moving, and would make tenant replacement easier.
Relet fees and advertising costs are lower with less tenant turnover.What do you think ?
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Are you saying that if a valuer were considering 2 investment properties which were side by side and identical in every way except one property returned $75 more rental per week because of reduced utilities costs, then the valuer would place the same value on both ?
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Kristin.
You could increase traffic on your website with obvious benefits by making it a rich source of links to information which would appeal to your clients, rather than “writing books”.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
That’s an interesting site.
It would appear that perhaps the tenant segment of the market’s has a clearer and more urgent perception of the value of cost reductions in utility expenses than the freehold buyer. After all, for the tenant, all money paid in relation to a property is immediately gone forever whereas the freeholder owner has continued rent income and CG to look forward to as an offset for expenses.It’ll be interesting to see a valuer’s opinion of the effect of market rent on valuation, all other things being equal.
So me too hoping a valuer would clarify this for you, and me.
Great post.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
I guess landscaping which is lasting and still making a substantial difference to the appearance and amenity of the place and is still there “in the long run”, will add value. Certainly established trees are more impressive and functional than seedlings.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Serviettes are as good as anything else, just get that great idea written down fast.
Ideas are priceless.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Steve McKnight got started with investing in Ballarat and may still own a number of properties there and be monitoring their progress, so perhaps he can comment on the current investment climate in Ballarat ??
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Thanks IP Freely for clarifying what I thought was a bit obvious.
Victoria is cold in the winter.
Tenants like to be warm in winter.
I spent 5 winters in Melbourne and travelling all over the state for work, and
rented many different homes. Ducted natural gas heating is my overall favourite.
So if gas heating translates into tenant satisfaction and thereby improves your bottom line by reducing vacancy,
and commanding a higher rent, while the tenant pays the ongoing fuel bills, gas is looking good.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Would a tenant pay more for a house with “free” electricity and the option to be a bit wasteful with electricity ?
Surely the answer is yes.
So if you get more rental income from your property, that should affect the value.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
It’s amazing what the Council can do if they want to.
Some time back, my local council in Sydney were awarded a court judgement against my builder for illegal “building” , because he internally divided a huge already approved garage into several rooms without a DA. They issued me a notice to demolish the partitions or they’d enter my home and demolish the partitions themselves. I said I’d shoot the first council demolition man to set foot in my home, so they offered me a compromise – I remove 50% of the partitions and they’d waive the demolition order. So what does that tell you about Councils and their integrity and options and mood swings if they feel like it on a good day ?
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Victoria in winter ? Give me natural gas and lots of insulation please.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
