Forum Replies Created
Hi Earlstongardens
Ok, happy to help.
PM me your email address on this forum's private messages .
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Don't know what sort of property you intend to use.
My suggestions are
Instal comforts tenants pay to run, like watering systems, R/C Air Cons.
Tenants aren't keen gardeners, so minimise it, expect dead plants.
No pool.
Handyman to visit once every 12 months to replace every washer in the property.
Inbound & outbound condition reports and 3 monthly inspections must have photos and written reports sent to you.
PM must give you written arrears strategy, stating at how many days arrears warning letters, phone calls and termination notices are issued.
Rent arrears must be handled surgically and promptly.
PM must be instructed that repairs must be done immediately at lowest price, ring first.
The quality of your chosen property will decide the quality of tenancy applications you can expect.
Higher unemployment rates are normal in rural areas. Bread n butter housing enjoys higher occupancy rates.
Good luck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Doogs
Just sold our motel in 2 parts, landlord and tenant.
Basically sold the leasehold tenant part myself because the broker was hopeless but contracted.
Not all but many brokers were ill-informed, lazy, slow, argumentative, expensive relative to effort.
Widespread situation of poor salesmanship and poor marketing skills, especially inept at writing ads to sell the sizzle and highlight the property's attributes. Weak or non-existant follow-up of leads and even interested parties after inspections.Websites difficult to navigate, and they treat buyers as if location doesn't matter so don't mention it.
Ghosting to get enquiries (advertising non-existent properties).
Buying listings.
Treating sellers and buyers like there will not be any repeat business, and they're right, someone else gets it.Just by doing the basics properly, the market will reward a newcomer in motel broking.
Not hard to compete with the above. However, be ready for all the anti-competitive tricks in the book.
As in war, the first casualty is truth.
good luck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi D
Can recommend our solicitor based in Forster NSW.
Will PM you his details and why we recommend.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Your info is helping a lot, but I've been a while trying to understand it, there is light at the end of the tunnel,sorry it's not my forte.
So I assume this means that the banks get funds from the following :
depositors of all kinds, anyone who places money in a bank such as term deposits, businesses depositing their daily takings, mum n dads small accounts, loan repayments, slow clearing cheques (grrrr), and all the other myriad of reasons why money is passing through the banks hands and then there are the funds they access from outside Australia. It seems to me that these overseas funds are the ones they claim are expensive, perhaps because we already know how much they pay us for our money inside Australia,, but it's too difficult for us mere mortals the general public to find out the truth about exactly how much the banks pay for this overseas money.
This enables them to spin us any story they like about how expensive overseas funds are.Am I reading this right ? Some one straighten me out please, appreciate it.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Sorry guys, as an economist, I make a great motelier. So I'm confused.
Re Q1 – Where do our banks borrow from , and what does it really cost them ?
By your answers, does this mean that our banks borrowing costs are not related to the cash rate or recent .50% RBA rise? – hence all the RBA has done is give banks the signal to increase their lending interest rates charged to Australians irrespective of the bank funds coming from overseas, locally or the "money markets (wherever they are) ? Is the RBA just throwing a bone to the banks, or is it accidentally throwing thewm a bone while genuinely trying to prevent the anticipated inflation ?
Or is it something else, is there an elephant in my room ?
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Look in the right hand column of this forum and you'll see the ad and link titled "1-On-1 Property Mentoring".
That's the RESULTS Program. It was very successful for us.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Banker
Hope you don't mean leaving the forum.
Your input is amazing and shows special insight which is always appreciated and much needed on this forum.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Corey
10-12 hrs a day = 50 -60 hrs a week assuming only a 5 day week . . . hmmm. Long hours for $800 nett depending on the job.This person can work long hours, that may come in handy.
For a single person, assuming that means no partner, no co-habitation person – that's a lot of rent that could be probably halved by sharing and better spent ( invested in reno ), or saved as disposable income & used to increase borrowing capacity.
Assuming no prior knowledge in renos, this person should get a mentor or mentor program (see Steve McKnight's RESULTS in right hand column of this forum), but first see the accountant, like Terryw says, well said Terry, but accountants don't teach renos so the person will need to accumulate the reno & real estate investing knowledge and assemble the team – reno advisor, mentor, accountant, network, etc.
Wishing this person good luck on the journey.
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Quite right Scott.
The tenant vetting version I outlined is a low risk one for those considering self management.
It only allows for referees who also have jobs ( because if all of someone's friends are at home unemployed it tells you something about the tenant) and also those referees must be contacted at their places of work so their employment and position is automatically confirmed through the switch or first phone answerer, (can you put me through to John Smith please oh and by the way what's his position there please) and notice the mention of checking all contacts with White or Yellow Pages, so you can be sure you have a listed number not just what the applicant wrote on the form, so it's harder to fake a business. Mobile phone numbers tell you nothing, no good for references, not listed in the White or Yellow Pages with an address. Silent numbers no good for same reason. The phone book is a powerful ally for vetting people.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi All –
TSAU. Sure is something that can be learned, and you're quite right about some aspects.
If I was planning for the best result in a tenancy with no regard for CG or anything about the investment potential of the property, I would choose a nice property that 75% of the population would be happy to live in. This ensures that the property attracts a number of the right type of tenant. Poor properties attract bad problematic tenants.
Second is the tenant selection process. This involves vetting the tenants from their applications. This takes some skill, experience, practice and preferably access to the database of TICA, which I used everyday as a PM.
A certain number of tenancy applications contain a bad tenant. Not surprisingly, they lie and camouflage their tracks. An experienced PM who vets tenants on a daily basis becomes sharper in perception, develops a nose, and if using TICA, has the edge.By all means try self management, but understand you are vulnerable until you gain enough experience to vet bad tenants.
Until that time, I suggest you only rent to tenants with the ability to pay the rent and to be safe, must have details you can confirm absolutely by phone or in person or by paperwork like –
a good employment record (no unemployed – Centrelink won't talk to a landlord),
clean car interior (your property will look like their car interior in 3 months),
well dressed and groomed,
previous good rent record with a reputable Real Estate Agent (not private landlord setups popular with scammers),
refererees contactable at their workplaces,
all of which double checks with numbers and addresses in the white pages and yellow pages,
100 points ID like drivers licence, medicare card, bank plastic, phone bill, rego papers, utility bills,
all must be current and match, so you know that the person you just checked out as "tenant wonderful" is actually the person standing in front of you.
Now that is about 75% of the list I used to check on as a PM. The above list will weed out all but the best scammer, who will beat most PMs coz they're not thorough enough, and as you can see from this hot topic, good PMs are a small percentage.However if it all turns pear shaped, and you're in over your depth, take it to a good PM who will take it over for you for fees, and clean up the mess.
Hope that helps those considering self management.
Good luck
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
HI Sonyasal
Suggestions.
Sounds like poor management in Forbes. Parkes is thriving and only 30 kms away and you may find other landlords having the same problems have their properties managed out of Parkes. Suggest you make some enquiries there. Your property could be managed from Parkes, tenants search for available properties in the local paper, pay into accounts, 30 kms for an interview is nothing in central west NSW, PMs can do all the routine inspections on Forbes properties at the same time. Prefer Parkes as it's thriving, Forbes seems depressing to me every time I visit, maybe I just seem to visit on Centrelink day. I'd invest in Parkes if I had a choice. Just moved out of Cowra after selling our motel, know the area.
Good luck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Is there a man in the house ?
Gotta tell this story – tenant rings the PM complaining about rats in the roof, says "definately rats."
PM rings pest man who inspects roof space declares it's a possum, "doesn't do possums" departs and sends $60 callout fee bill to PM, property owner not happy, tenant not happy, tenant wants possum removed, rustling noises.
PM calls possum remover man. He makes possum box for $80, traps possum and removes it for release elsewhere.
PM splits the possum man bill and charges tenant and owner $40 each for the possum box bill.
Owner and tenant then start arguing over who owns the box, both want it.
Possum man saws it in half and leaves. True story.Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Lost my shirt overseas, and I know why.
I learnt the hard way that it's best to invest where you have native language skills, acceptance, citizenship, sound economy, democracy and rights. Australia is such a great country, we've got it all here.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Gronk007.
Suggestions.
If the rental property is not far away, you could do a night time driveby and see if the lights are on and any cars there.Ring the property, oops sorry wrong number.
Ensure that the Property Manager sends a warning letter every 3 days after the tenant is 3 days overdue, plus phone calls and then issues a termination notice on the first day that the law allows in NSW Qld or Vic or wherever your property is located.
Your property manager sounds inept, stay on their case and ask for an immediate copy of every letter until arrears are paid up. Ring the PM every 3 days for an update until you are satisfied they are working properly.
If the PM is slack or inept, there will be more rent arrears.
Good luck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi AM2778
Sounds like your accountant or solicitor left you in the dark.
In what State of Australia is the property located ?
Do you have the following :
* a paper lease signed by landlord (former owner) and tenant ?
* a tenant bond lodged with the Rental Bond Board ?
* an inbound condition report ?
* a printed record of rent paid to date during the tenancy ?
* application details of the tenant like personal details like drivers licence details, ID, rego, next of kin, references, work contact details,These details would help. If there is no signed paper lease, you and the tenant can create one yourselves, or if not in agreement to do that, you can apply to the CTTT (Dept Fair Trading) to have a tenancy "legitimised" and placed onto a lease document which protects both parties.
Answers to those questions above will help people to help you.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
I used to rent out part of my place to someone who's work routine was exactly the same, 2 weeks on 1 week off, he worked on an oil rig.
Hardly ever saw him, great to share with.
You should be an ideal owner housemate, hardly ever there.
Adjust the utility consumption costs pro-rata, set house rules, buy the right place to attract the right tenant, but make sure your accountant thinks this is the best way to go. Could be a win-win.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Investorarm
Gutsy. If it's Finance you need, then I suggest you get with the mortgage/finance brokers on this Forum who have thousands of posts to their credit accumulated by being here and providing help for forumites like us for a long time.Also sounds like you need a lot of other experts too.
Good luck with the project.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi McGrandles
Sorry about your stroke, hope you are recovering well.
Agents and their sales staff work for money, excuse me stating the obvious.
If time is more important to you than the sale price, then i suggest you offer a bonus commission to the agency if they sell within a set period and above a set price. Make sure the price you set is market price, not agents inflated buy-the-listing-price. In the eyes of sales staff, that would set your property apart from others in the same price range, and motivate sales staff to promote it and show it to more prospects.If you're not happy with the 2 agents, try a third but ask them to complete a sales folder display to show you how they would sell the property if you listed it with them, and compare it with current agents' efforts.
Spend $300-$400 for an independant valuation so you know what it's conservatively worth.Good luck, hope you feel better soon and sell fast.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
debski wrote:Hi,
My husband and I are interested in running a motel. Can anyone share their experiences/opinions in this area with us? We would want to run the place ourselves as much as possible. Since our personal accommodation would be on site, I would imagine that personal cash outgoings would be minimal which is a big incentive.What sorts of loan terms do banks offer for purchasing motel leases? We have about $1million in residential assests with about $400,000 in equity. Would this be enough security for a lease of up to $400,000?
Any general advice, comments would be much appreciated.
Hi Debski
Any update on your plan and its progress ?
There are some great buys out there at the moment and we have been finding them by doorknocking motels in the central west NSW.Some of these towns are going just great in the motels, some not so good in retail stores, but as you know, with country town retail they depend substantially on locals spending, whereas 99.9% of motel guests don't live locally because locals already have accommodation.
Anyone got more info on motel leases or motel investment for this post and forum ?
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
