Rhys_T – please find that info, looks like a few people could use it, we all need to be on the ball with tenant selection. I still have bandaids all over me from being a PM, made most of the popular mistakes at least once.

Tenant selection has a risk factor, and by your own efforts you can minimise that percentage, or not.

PM, tenant selection and social work do not mix.
A tenancy applicant without a favourable and verifiable history must be regarded as at least a high risk, and must be placed in the same category as a bad tenant. Sounds harsh but, in both cases, you cannot verify a favourable history. And, that’s not your fault.

When you give a tenant the keys and access to your property, you are risking not less than 10 weeks rent, plus damage. That’s the minimum time/cost required to remove/replace a tenant who does no more than ceases paying rent, and stays put. If the tenant resists, with help from Tenants Advice & Advocacy Service (or similar in other states), pleads hardship, knows the ropes and uses them all, you can kiss the value of 3-6 months rent goodbye.
So, why not treat the tenant selection situation as an application for a loan from you – to the tenant, for say the equivalent of minimum 10 weeks rent ? How much is that to you ? $1000 ? $1,500 ? $2,000 ? After all, the tenant is promising faithfully to pay right ? And you’re giving the tenant the keys and legal possession of your $100K/$200K/$300K (whatever) property ? But, the tenant gets the property NOW, (donkey gets carrot), and promises faithfully to pay (pull the cart) LATER.
Sorry about the verbal 4 x 2 but this is business and PM is a tough game. With tenancy applications, as with CV’s, truth is an early casualty.
So, if you want to minimise the risk factor, decline any weak applications, and never explain why. Confirm your legal obligations in your state under the Discrimination Act before you conduct interviews, so you know how to conduct yourself.
Set your rules, and stick to them, be firm.
good luck.
cheers
thecrest

Hi Carlin
Tenant selection is just about the most important process for a landlord.
The criteria for tenant selection varies with the type of property. If it’s an old rundown place, then you can expect mostly “marginal” applicants, and no gems.
If it’s a moderately good property or better, then it will attract better tenants, so you can raise the selection criteria bar. As a rule, I insist on previous rent records from REA’s only, no private rental records because they are difficult to substantiate. This filters out the applicants who want to use a friend as a cover story.
100 pts ID is vital, to ensure you have the same person as the one you are researching. This means enough of the following to guarantee ID :
driving licence, medicare card, bank plastic, phone/elec/gas bills, rego papers, pay advice, REA full rent record printout, copy of current or previous lease, copy of bond form or refund. These should match signature on each other and on the tenancy application. See them sign the application. Addresses should match. Insist on originals and Xerox the originals yourself.Check the phone book to confirm the numbers on the application(excl silent numbers). Ring their work ( & confirm position held, permanent or casual, how long, income,) REA, (mobile numbers not acceptable), immediate relatives are not acceptable referees. Inspect their car, any excuse to walk them to their car, especially look at the interior, your property will look the same after 3 months of their occupation. If anything doesn’t gel or there are any basic contradictions, and the explanation cannot be 100% confirmed, decline the application.
Use a good tenancy application form from an agent, it will provide you with the applicant-signed clauses relating to the Privacy Act so you can legally collect info about them.
Ask TICA for a subscription, (not sure if they still accept non-REA subscribers. You need a default tenancy database to vet tenants properly.
Good luck, hope you find geed tenants.
cheers
thecrest

Hi All
I’ve been using the software for a bit over a month now, and I like the ease of it all.
My current purpose for the software is to crunch the numbers on an investment IP to be used for self-contained short-term accommodation i.e. one or 2 nights, a week or 2 etc. Business, families, tourism.
I need to budget for the costs of complimentary toiletries/magazines, cleaning/labour/chemicals, replacement linen/towels/crockery/glassware/cookware, booking commissions, phone rental/broadband access, water use, electricity & gas, lawn mowing etc etc
I could sure use some kind of accessible but hidden list behind that little word “maintenance” where I could add a whole lot more specific items which would collectively add up to the “maintenance total”. It is necessary to monitor the ongoing costs on these items and to vary the budget according to occupancy (projected or actual).
ATM, I have to make an external list outside the program which loses some of the program’s magic appeal. Hope you don’t mind a suggestion.
cheers
thecrest

First, drown-proof the kids with swimming lessons. Make sure the gates and fencing is the correct kid proof stuff. Instal a pool alarm & advise your neighbours what it sounds like.
and then, GO FOR THE POOL DAD. Your kids have the best playtime years ahead of them. I’ve been fortunate to have a pool, and the kids are always in it with their friends, then I usually know where they are, great for family fun, friends drop in, BBQ’s, healthy exercise, well worth the expense. Get a solar heater for extending the swimming period. enjoy.
cheers
thecrest

On the basis of ” Find out whose problem it is, and give it to them ” it looks like the owner of the problem already has possession of it.
You don’t have a problem at your property, and you have not interfered with the pipes so
there appears to be no reason why you should be paying for repairs or replacement of pipes at someone else’s property. [thumbsdownanim
thecrest

Assuming they want to make the necessary changes and sacrifices, success is theirs for the taking.
They have probably drifted into the current position by not managing their finances.

Firstly, they must clearly want to climb out of the hole. Otherwise, don’t bother.
Then they need a clear method of establishing their true financial position right now, and again on the same day each month, in order to prove progress and the success of the plan.
Then they need to apply themselves to a progress plan with clearly defined successive goals.

Suggested changes :
1. Increase the income by converting the wife from a dependant to an income earner, using day-care, child-minding, whatever.
2. Reduce expenditure to a minimum. There are volumes written on this. They must learn it and apply it.
3. Reduce the interest burden by consolidating the debt by switching to a succession of honeymoon rates credit cards, while paying down the debt.
4. Eventually, the deficit will become a surplus, and the plan must cover what to do with this surplus, otherwise they’ll spend it. While a small celebration would be in order at this neutral point in time, this would also be the time to start investing the surplus to save for a home. Don’t forget the FHOG. The financial record of this transition from deficit to surplus is the record of financial ability which the lending body will use to show the serviceability of a housing loan.
If they have the persistence, it is only a matter of time from buying the first home to buying the first investment property.
They need a financial planner as well as a friend like you.
good luck
thecrest

If the aim is to build people skills, then that is the focus.
Network marketing is a people business, and rapidly builds people skills. From a satellite viewpoint, the products and prices are incidental.

Amway system is financially successful and teaches volumes about motivation and people skills. Not my cup of tea. Unfortunately, some of the recruiters lack ethics.

There are other ways to build people skills. My own early trial by fire was door-to-door selling books, very tough gig, gave up a few times every day, but, it taught me not to, and later, when to.
Nothing like a good teacher.

Whether this post’s topic is building a business, generating business ideas,acquiring people skills or network marketing, one benefits from getting out there in the information flow and online, talking to as many people in a day as possible, and asking the necessary questions. We know persistence pays off, so the methods of success are not a secret.
Good luck to you all on your journeys.
cheers
thecrest

Use a PM. Like any professional, you pick a good one, you get a good job done.
Structure the agreement to ensure that it is in the PM’s interest to avoid tenant turnover, and to have a good tenant who pays regularly and renews the lease every year. Don’t pay for Tribunals, or high fees on re-lets, but pay well for rent collected and a bonus on nil rent arrears and on same tenant long lease renewals.
Insist on a good tenant, and be prepared to wait a little extra for one, preferably employed, with previous rent record from an agent (not private).
Good luck.
cheers
thecrest

Me thinks you need to find out exactly who the target audience is (backpackers from where last, what nationality, age bracket etc) and find out what and where the information flow is. It might be on the wall of every backpackers in Kings Cross & inner Sydney, or the net, or 3 magazines, or all of the above. Whatever it is, you gotta be there. Find a theme which will not create uphill with local authorities, go for it. Total success in satisfying every guest in the first 6 months is vital. This period has the most “gawk factor,” and is the time when your business will attract the most attention and will generate the most feedback and news, so, ensure it is all good news.
No other period in the life of your business will spread good news as fast as bad, so take full advantage of it. Use giveaways, referrals, free nights, be generous, the packet of noodles group want news at all their show & tell sessions.
Ensure you have all the latest big screen & net access gear.
Good luck
cheers
thecrest

Thank Derek

Good Luck Bonnie.

cheers
thecrest