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Make sure you follow all the instructions to the letter.
If you sign up the person on the lease, ensure you issue them a copy of the free booklet from the Dept Fair Trading about tenancy rights. The leases contain a clause which says something like ….”your rights and obligations as a tenant are contained in the booklet given to you by the landlord etc etc.” If you haven’t issued the booklet, it provides an escape route for bad tenants.
Steep learning curve ahead, proceed carefully.
good luck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Infinite
It’s not a re-let so a re-let fee does not apply. However, it would be correct to re-write the same lease with the same conditions but a different landlord’s name on it. Unless the tenant requests the re-write, the tenant is not required to pay half the lease preparation fee, usually the new landlord foots the whole lease fee, usually about $35 . Also a new Managing Agency Agreement is required authorising the REA & PM to manage the property on behalf of the new owner. This new owner’s name on the Managing Agency Agreement should match the name on the re-written lease. The tenant has the right to know the new owner’s name, but not their address.
Maybe too much info, if so, sorry.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Bacchu
Derek is right. Let an experienced PM handle your first tenant selection, but ask to be kept informed of everything the PM does and why, especially in tenant selection, so you can learn. Let them choose a good tenant for you, but ask to see a copy of every application including the declined ones, and discuss the reasons why with the PM. Read everything. Ask for the PM schedule of inspections, a copy of their inspection reports, copy of the lease, copy of any correspondence with the tenant every month. This will all help you to learn about tenant selection and PM.
Better not to DIY straight away.
good luck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Originally posted by Mortgage Hunter:All the oruginal forums are still there with all the same faces.
All that has changed is a few new closed forums for the paid subscribers.
Any division is in your perception [biggrin]
Don’t build walls where they don’t need to be!
Have a great weekend,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I mentioned this observation as constructive criticism for the benefit of the forum as a whole, and for the attention of forum administrators, who I’m sure don’t want anyone to feel alienated or excluded, even if they are, and I am.
Sorry to cause unrest, sometimes criticism does not feel good to some people, especially if it’s not received well, that’s also a matter of perspective and professionalism, but I didn’t build the walls, someone else did, the walls appeared around me in the forum while I was there as a member. They weren’t there when I joined. They’re now fully in the face of members, and the first on the list of postings when each of us logs in.
The walls and exclusion zones are not imaginary.
I agree with you when you say, and I quote you ,
“Don’t build walls where they don’t need to be “.
Sage advice, send it to the wall builders.I believe the strategy to create the exclusion zones is divisive, and creates a negative impact on the cohesion of the forum, and should be revised for the benefit of members and the forum.
I doubt that a “forum not freely open to all members in all areas of the forum ” was the original intention of the founders.
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
So you’re obviously not developers, and no experience in property management, both are minefields for the unwary and the inexperienced, made worse by distance if you’re overseas, and worse with an older property.
If you want to keep it, there’s a very steep and extended learning curve coming up for you.
In effect you have sudden blind ownership of a property with no research.
good luck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Adambc
Hi AllMy take on flyscreens is that all properties should have them as standard, no exceptions. Like TV aerials, and toilets. It is a health issue, and a basic living standard.
All PM’s should ensure that property owners instal them before leasing the property.
Tenants should pay for any screen damage whatsoever, minor, accidental or otherwise. For this reason, PM’s should check them carefully during periodic inspections and during compilation of inbound and outbound condition reports.
Property owners should provide the basics at least, and looking after a tenant pays dividends. Providing a well equipped home increases tenant satisfaction, reduces claims, and reduces vacancy.
PM’s have the right to refuse to manage a property, and to give notice to the owner and to then hand back the property. When I was a PM, I refused to handle the management of properties for owners who were unreasonable and too labour intensive, because they are trouble just waiting for the next occasion. For the same reason, I removed problem tenants. The PM commission only covers so much work and no more. It’s good business sense to remove from the rent roll any problem properties, owners and tenants, and to give them to a competitor, who becomes weighed down with unprofitable problems, and then has high staff turnover in the PM Dept. I mention this to provide an understanding from a PM perspective. In PM, there are at least 3 sides to the story.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Dazzling clarity.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Adam
CAREFUL tenant selection is always the key, and it is an art form. Some PM’s just don’t care. Good tenants don’t move as often as bad ones. They don’t have to.
Ensure that your PM selects tenants with a verifiable and good history, previous rental record with an agent – not a private rental, adequate income for the rent level, appropriate socioeconomic match for your property – don’t put ferals in a mansion, good reasons for wanting to rent that property in that area, good reasons for leaving the previous property, high level of disclosure on the tenancy application, no mistakes or lies, no inexplicable sense of urgency, clean & tidy well maintained vehicle, same with personal grooming. If they pass that, any problems should be minor.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
If there is a For Sale sign up, then the property is on the market. If the REA obstructs, you are well within your rights to go direct to the owner.
Tread gently of course, in case the owner wants the REA to delay for some legit reason. But, if the sign is up, no-one should object to your response as a potential buyer.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Matt
Sounds like you need to say “NO” to your PM more often.
The booster saga happens to every PM until they learn to include the booster on the inventory and remember to check it is still in the property after the tenant has moved out. Often the movers grab it with the TV, or a helper does, or the tenant has been looking at the thing near the TV for so long he thinks he owns it. If the tenant takes it, the PM should deduct the cost from the bond.
Keys – the complete set should be Xerox’d on a flat bed copier, you get a copy signed by the PM, and the tenants sign off on a copy after receiving a set of keys. After the initial 2 sets are provided by you to the PM at your expense, any missing ones are paid by the tenant or the PM.
Suggest you review the Managing Agency Agreement with the PM reminding them of what their responsibilities are, and to use their initiative and act on your behalf, give them their parameters and tick them off if they ring you needlessly for authority already given.
good luck [biggrin]
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Maruco
A Tenant breaking a fixed lease is obliged to pay all expenses incurred which the landlord would not normally have to pay if the lease had not been broken. Usually this includes rent until a replacement tenant starts paying, ads, cleaning, lease document prep, re-let fee, prep of condition report, etc. If the tenant objects to the length of time taken to replace the tenant, then the landlord might have to prove the rent advertised was fair market rent and that all reasonable steps were taken to re-let. The landlord is not obliged to take a bad risk replacement tenant .
With your lease breaking tenant, I would take all the bond for a start, not settle for one week’s rent. In this case, if the PM doesn’t have a good excuse for settling for less than your entitlement, then the PM should do the relet for free and thereby cut some of their own entitlement. Doesn’t sound like they looked after your best interests.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Bet you’re glad you asked Resiwealth, must be all clear as mud by now, having had some input from the experts and a moderator, eh ?
rotsa ruck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Take some time to formulate a comparison spreadsheet on van parks, ROI, watch land tax ( Van parks are land gobblers).
Van parks have variations – some have permanent residents who own their own mobiles & pay rent for the land under them. Some are just holiday units like motels and van sites & camp kitchens. Some have owner holiday-occupied mobiles. The quality of the accommodation will decide the type of guests you will have to deal with.
Note which part of the market each van park addresses – permanent residents (dramas), travellers in vans, tourists in cars, boaties, water skiers, greenies, surfers, wine lovers, in other words, what’s the guest mix or focus in that particular geographical area. ABS can provide visitation numbers by market segment in most areas e.g. grey nomads, pampadours etc. Different groups have different requirements like some are big on camp kitchens, some not, amenities blocks are not always a pleasure to clean daily. Repairs & maintenance is a big issue and one of the owners should be pretty handy in this area.
Large acreage van parks require many hours on the whipper snipper & ride-on mower. A shop or kiosk is a pain, sometimes a necessity, takes many hours. Are sites wired for TV, phone, water & elec ? The list goes on.
Best van parks I’ve seen return enough income to support 2 couples as partners, and have 2 homes on them, although you can always add another one yourself. 2 men is always better security, and easier with some R & M jobs. But the big plus is that in quiet times, one couple can easily run the place while the other goes on hols, BIG plus.
Plenty of cash income. Research very very carefully, slowly, until you understand which types of van parks make the most income for the least amount of drama.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi All
2 weeks before this snow season started, I visited Jindabyne & Thredbo. My purpose was to find a holiday unit for my family to use 1-2 weeks of the snow season plus other times of the year, and to let out during the remainder of the snow season through local agents / agencies. No doubt it’s a beautiful place. However, the ROI on investment properties lost its shine with the excessively high booking commissions and other charges raked off by the local booking agencies. Because you’re at such a distance, and during the 16 week snow season, there are difficulties visiting some areas, they take advantage. The typical ROI on a unit in Thredbo or Jindabyne is 4% if you’re lucky. The Cap gains have plateaue’d.
However, if you live there and can handle all the matters yourself it’s a big cost saving on : cleaning, booking fees, key handover, deposits, final payments, outgoing inspections, minor repairs & maintenance.
Not worth the trouble and risk for me.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
I’ve managed 3 van parks, now a motel owner, so I might be able to help. The management positions used to be advertised in the situations vacant column of Sydney Morning Herald, especially Wed & Sat, as well as under ‘Managers’ and under ‘Caravan Park Managers’. Some used one big ad and made the other ads little pointer ads to catch the eye of those who looked in the other places.
Also contact the CCIA – Caravan & Camping Industry Asscn located at Rosehill Racecourse in Sydney, they used to keep a list of managers seeking employment.
Some of the Van Park Brokers selling Van Parks also keep lists of managers.
Please be careful as van parks are not smooth sailing.
Can you describe the deal ?
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Tenant needs to be reminded that the property was a WYSIWYG , and that the rent is attached to the goalposts too, move one & you move the other.
Improve the property, improve the rent.
Want a/cond, sure, only an extra $20 pw. What else would you like ?
good luck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Good post Dazzling.
Traps I’ve experienced with commercial leases :
place controls on the lessee doing subleasing or selling the business to a new owner, ensuring the outbound owner has fully complied with all terms of the lease before being allowed to move on, especially in regards to maintaining the property or passing on the tenant’s obligations to return the property to it’s original condition in the event of tenant vacating. Ensure you have the option to decline the tenant the use of your property if you disagree with any change or intended change in the nature of the business conducted therein.
Check the rent increase method, graph it out to 5 or 10 years hence, see what you’d be getting, ensuring it contains adequate options for the lessor to increase the rent if the market has a major increase.
What are your options if the rent is overdue ?
Are they enforceable ? Can you lockout the tenant ? Can you remove the tenant’s goods and place them in storage in order to allow another tenant access? Who insures the goods then ? Transport costs ? Storage costs ?
Get bank guarantees for tenant bonds if pos.
Cover every angle, like who pays for what in the event of an incident – breakdowns – broken loos, blocked drains, vandalism, storm & tempest, roof blows off, water entry, Council work or whoever blocks access, interruption to energy or water or phone supply, think negative thoughts and cover them in clauses. Try to get a peep at as many commercial leases as possible. If you intend using an agent, ask them for copies of other leases similar to your planned situation with blanked out names & addresses so you can do some planning.
good luck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Been a PM, always acted ethically. Have seen the system in operation, read some of its training material, definately not my cup of tea.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Pensio
Crunch your numbers first, get all your quotes and costings on the table, then you can make an informed decision, or place it in this post.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi CTA
I think you need a judgement recorded against them for the agencies to accept a bad rap on a tenant. In NSW, you have to lodge a judgement by the CTTT ( Tribunal) for collection by the Sheriff and the credit agencies pick it up somehow. Otherwise, their databases would be full of malicious gossip and poison pen letters.
I just got a free report on my personal credit rating file from Baycorp, easy to request, and free. Otherwise, use TICA, used it myself heaps and love it.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
