Hi Kristine
Very clever question, you’ve really tapped into everyone’s engine room.
For me, it was gaining knowledge and experience by books, jobs and hardship.
Identifying and building on strengths, we all have them.
The responsibility of raising a family (call that one burning the boats if you like)
There are joys too, this has gotta be the best fuel there is : about 4 years ago, my little girl said to me, “Daddy, I know you and Mummy really want to buy a motel to look after us ’cause we always go everywhere in the car every weekend looking at motels, and you keep saying we don’t have enough money and I want to help so here’s my money (she gives me a $20 note) I saved it from my pocket money, have we got enough now ? “
It’s framed, priceless, on display in our motel reception area, gets me right here in the engine room every time I look at it. Fuel that never runs out.
cheers
thecrest

Hey Domo
You’re doing well. The ideal situation is to have good tenants who stay long term, look after the property, pay on time, and don’t bother your PM on little things, or become demanding. Encourage the PM to get & keep those type of tenants for you.
So, discourage tenant turnover by reducing the profitability of tenant turnover for the PM, by reducing the fees the PM gets when changing tenants, such as fees for :

First let – 1 week’s rent.
re-let – max 1/2 weeks rent, ( limit of one p.a. but $ nil for a re-let during 1 st year )
condition reports ( $ nil )
tribunal appearances ( $ nil )
ads ( $30 max per re-let )
periodic inspections ( $ nil )
annual statements ( $ nil – push of a button ).

Fees charged to you should be :
5%-6% + gst of rent collected, might have to pay 6% for your first property, but 5% for 2 or more.
1/2 of lease preparation, $17, limit one p.a.)
Twice yearly discretionary personal bonus to PM for achievement ( $100 cash each time ) for stability of tenants and low maintenance costs of property.

Remember, the licencee of the REA gets the profit from the rent roll & fees etc,, but, on a day-to-day basis, it’s the PM who chooses your tenants, keeps the maintenance costs down, keeps the tradies honest, collects rent, and takes an interest in your property, and protects your interests.
Be firm, be hard, they do it all day long.
cheers and good luck [biggrin]
thecrest

Hi Nikki
Looks like the forum has given you the answers to your problems like selling off the worst problems. But, looks to me like you might have a very expensive repairman, and a slow PM and Agent.
sewerage blockages $200 each ? WoW !
Not one buyer enquiry in 3 months ? Agent on holidays right ?
20 % of tenants trashing ? PM is not vetting your tenants !
6-8 weeks vacancy after repairs? PM is useless !

All the above is no way to treat a property owner with 15 properties is it !?
Try changing PMs, you could only do better.
cheers
thecrest

Hi Helmutb
80% sounds pretty high, and high occupancy is only a small part of the equation. Redwing is right, get a list of all the costs – over the last 2 years, and projected and planned costs over the next 2 years, high occupancy creates high wear ‘n’ tear. Is it tired yet ?
I remember inspecting a place mid north coast NSW had very high occupancy, turned out it was owned by a Sydney footy club and it was supplying cheap accommodation packages to members as rewards.No wonder it was busy. Do ALL the sums. Good luck.
cheers
thecrest

Sounds expensive for a renewal only. Read the Managing Agency Agreement to ensure the agent is complying.
cheers
thecrest

Jeez Jo, i can’t type rolling on the floor laughing, ya got me.[laugh3][laugh3]
I propose Jo runs the next election, howzat ! [bulb]
cheers
thecrest

….What I’m aiming for in my life is a “triple bottom line” of satisfaction and success in financial, emotional and spiritual realms….Good for you Leigh, that sounds like the snippet I read somewhere recently which really took my fancy – “work like you don’t need the money, love like you’ve never been hurt, and dance like no-one’s watching”. Wish I could quote the author, they should get a pulitzer for that one.
Hope it all runs smooth for you and you find a great spot in Sydney. Didn’t mean to be mean with the cats question, good luck
cheers
thecrest

Hi Blitzem
Wish all tenants were like that, and stayed long term and did the good quality repairs, but I for one still have the visions splendid of the tenant being the disappearing dust cloud on the horizon, and the walls looking like the a firing squad used it.
cheers
thecrest

Hey Countryboy
Guess there’s nothing to stop you refinancing for another 10 yrs after the first 5 or so.
I just financed a commercial property for 10 yrs myself. Doesn’t seem to be as popular with the lenders as residential that’s for sure.

Hi Mortgagehunter
would you please give me some details on those friends of yours with the 20 year loans ?
‘twould be much appreciated.

cheers
thecrest

Hi Ali G
Up the time schedule immediately, so you get a decision now, and time to recover the situation if it goes wrong.
Place a new earlier deadline on your availability because you have to give an answer to another agent on another property which is $15 cheaper within the hour.
If you are that popular with them, you are that much better than the next best tenancy applicant, then it is worth a discount – how much ? who knows. good luck [wink4]
cheers
thecrest