"The benefits of using a property manager"

The following was sourced from REIWA. It's an interesting article about the importance of property management.

 

If you own an investment property and rent it to tenants, you can run this business yourself or hire a property manager to do it. And that’s how you should regard this situation; it’s running a business.

In Western Australia, around 60 per cent of investment properties are professionally managed by a real estate agency and the remaining 40 per cent are self-managed by private owners. The evidence suggests however, that the percentage of properties under professional management is growing.

If you work part-time or are retired, have some basic legal competencies and understand the complexities of the Residential Tenancies Act, then managing your own property may work well for you.

The problem is that many private owners don’t understand their legal obligations under the RTA and some get into difficulties as a result.

Most owners underestimate the amount of time that goes into managing a property, or just how difficult, expensive and unpleasant things can become if a dispute arises. For example, if the tenants default on the rent, abscond or require eviction.

This is where a property manager can be invaluable. From the start, a good property manager can arrange the public viewing of the property and then thoroughly check all applications and references from prospective tenants. This includes scanning the National Tenancy Database to see if any applicants have a history of unacceptable behaviour.

Once suitable tenants are short-listed by the property manager and then chosen by you as the owner, the property manager can arrange all the lease documentation, take care of the rent collection, bond lodgement, occasional maintenance, quarterly home inspections and utility expenses, such as water and Council rates.

Property managers are also skilled at understanding the market rate for the property and setting the weekly rent accordingly. Many private owners tend to misjudge this or feel uncomfortable about reviewing the rent with renewed leases for existing tenants even though this can be unwise over the long term.

The most important role of the property manager is to act as the link between the owner and the tenant in a professional way, so that the owner is not exposed to any situations that might be uncomfortable, while at the same time ensuring that the tenant can also raise issues without having to confront the owner directly.

If a situation arises that requires going to court, which sometimes happens, property managers are familiar with the law and can represent you at the hearing.

Property managers charge a percentage of the weekly rent as their fee, but this is fully tax deductable as part of your business expenses each financial year.

 

As a side note, it will be interesting to see what the Reserve Bank does next week with the official cash rate.

"Population in Snapshot"

I recently found this information in a newsletter sent to me by  Loancom (Affiliated company of Acton). I thought I might share it with you  as it contains some interesting statistics.


As the year draws to a close, it's a good time to take a look at Australia in snapshot. The latest census figures and Housing Affordability Sentiment Index results provides a range of interesting data that could prove useful to both property buyers and sellers.

• Australia's population has risen by 8.3 per cent to 21.5 million since the 2006 census.

• Western Australia's population grew at the fastest rate in the nation, jumping by 14% in five years, while Queensland's grew by 11%.

• The states that recorded the lowest population growth were Tasmania, South Australia and New South Wales.

• Darwin and Canberra are the highest earning capitals, typically taking in over $93,000 per household.

• There are good returns to be found in rental property with median rental payments up by 50% between 2006 and 2011.

• The proportion of people living in detached houses has fallen by 1%, with a shift towards more people living in units and townhouses.

• Almost one in four Australians was born overseas, while 43.1 per cent of people have at least one parent who migrated here.

• Half of prospective home buyers are not willing to buy further than 10km from their ideal location and won't sacrifice outdoor space and privacy in order to enter the market.


Source: ABS 2011 Census of Population and Housing & Realestate.com.au Housing Affordability Sentiment Index.

St. Bartholomew's House

The St. Bartholomew’s Foundation is a not for profit organisation that helps thousands of people rebuild their lives each year, and is on a mission to eliminate homelessness in Perth, Western Australia. This is done through a range of crisis accommodation, aged care, and accommodation services which are provided to all those who need them.

I am involved with  this organization and we would welcome your support.

For more information, please visit their website or offices during opening hours, give them a call, or send them an email.

 

St Bartholomew's Foundation, Inc

Website: http://www.stbarts.org.au/

 Address: 7 Lime Street, East Perth, WA, 600

Melbourne Cup Trifecta

Next week is going to be a busy one. Or to be specific, next Tuesday is going to be a busy day. There are three large events happening on the sixth next week, and each one impacts the world in a different day. On a global level, the US presidential elections take place on this day. On a national level, the Reserve Bank of Australia will have its monthly meeting to review the official rates. In addition to these two major events there's also the Melborne Cup, which is an iconic Australian day.