If you have an investment property, you would like to have good tenants for obvious reasons.
Good tenants will take care of your property, keep you up to date with any maintenance issues and provide a reliable source of income. Bad tenants can disrupt your cash flow, prematurely age your property and will end up costing you more in property management fees.
Don’t underestimate the value of tenant retention. Each time you lose a tenant, you’re losing valuable cash while your property sits vacant.
Try these five tips for attracting and retaining good tenants.
- DON’T SET RENTS TOO HIGH
While slugging tenants with the highest possible rental rates might seem like the best way to squeeze cash from your investment, the practice may actually harm your tenant retention rate, costing you more money in the long run.
If tenants are too pressed for cash or see something more affordable pop up on the market, they may move on, leaving your property empty while you search for new renters. Just because one tenant can afford to pay extra for now, that doesn’t mean that others will do the same once that renter moves on.
To attract and retain a good tenant, it may be a good idea to keep rents slightly below the market rate.
For example:if your rent is set at $590 per week rather than $600, it will cost you (and save your tenant) $520 a year – this is less than one week on the market will cost you, if they decide to vacate.
Setting your rents too high will also scare off good tenants. Beware of prospective renters that are willing to pay well above and beyond market prices – they may be desperate because they have poor rental histories.
- DON’T SET RENTS TOO LOW
Setting rents too low may leave you vulnerable when you decide it’s time make an increase, with a big jump in the rent likely to scare away your tenants. Gradual adjustments to market value over a long period of time are more likely to go down well with your tenants than a leap at the six month mark. Be cautious about setting your rent too low to attract tenants. If your tenant is living in your property only because it is affordable, rather than desirable, they may not take good care of the property.
Remember, you probably won’t hold your investment property forever. When it comes time to sell, buyers will enquire about your rental yield – and will be turned off if it is well below market value.
- KEEP UP WITH MAINTENANCE
Although rental markets in certain capital cities are tight, don’t underestimate your tenants’ need for quality housing.
As a landlord, it is your responsibility to provide safe, clean and well maintained housing to your tenant. Don’t be fooled into thinking you hold on the cards because you are the property’s owner – they are paying you money in exchange for the provision of a service. If you want to maintain a good relationship with your tenants and your source of income, maintain your property. Don’t dodge calls from your property manager, don’t be stingy when it comes to required repairs and if you’re choosing to maintain the property yourself, make sure you show up on time.
Properties all see inevitable wear and tear, regardless of the tenant. But when renters see that you are on top of the necessary repairs, they will be more likely to take good care of your property.
- HAVE A GOOD RELATIONSHIP WITH YOUR PROPERTY MANAGER
Property managers are there for every step of the tenancy process, from sourcing good tenants to keeping them happy and finally guiding them out of the home when the time comes.
Your property manager should be on good terms with your tenants and work hard to keep them happy. They should be on top of any necessary maintenance issues and quick to let you know if any issues arise. Don’t have unrealistic expectations of your property manager, but do make sure that you are in regular contact.
Unfortunately, not all property managers were created equal. Some will be easier to get into contact with than others, who never seem to be within answering distance of a phone. Make sure you choose a good property manager when you purchase your investment property, and don’t be afraid to change property managers if you need to.
- LET THE BAD ONES GO
Don’t think that you have to put up with bad tenants. If your tenant is failing to pay rent or causes damage to your property, you are able to take action.
Depending on the state, you may be able to immediately evict a tenant if they are causing malicious damage to your property or after two weeks if they are late on rental payments. You may also be able to evict a tenant before the end of their lease if they are using your property for illegal activities, putting their neighbours in danger or keeping other tenants in the property without your knowledge.
Being a good landlord isn’t just the right thing to do, but will end up making you more money in the long run. If you are a reliable landlord who takes care of your property, you can retain reliable tenants who do the same.
Original article published on www.propertyobserver.com.au by Jessie Richardson 20/5/ 2014
Why Hope Island is attracting every kind of buyer
The best representation and offering of Hope Island living is the standout Hope Island Resort gated community, of which the Peninsula Collection represent the last apartments on offer
Hope Island, despite not being named after hope but instead colonial aristocrat Captain Louis Hope, remains one of Queensland’s premier living and holiday destinations.
Hope Island is attracting every kind of buyer, from young families who are attracting to the local schools, to downsizers and retirees who want to live the lifestyle that Hope Island offers.
Investors, as well as first home buyers, have been interested given the price point of the apartments on the island in comparison to the houses, which have fetched upwards of $10 million in recent years.
Infrastructure is already well in place on the Island, with marina shopping and dining precincts, medical facilities, and three 18-hole golf courses. The Links Golf Club in particular is recognised internationally for its 18-hole championship design and multi-million dollar clubhouse.
Some other activities on offer include the nearby tennis centre, theme parks and diving attractions.
Hope Island also plays host to a bustling nightlife with some highlights being Georges Paragon, Boardwalk Tavern and The Verandah Bar.
New property on Hope Island however is becoming increasingly scarce, with only a limited amount of land left to be developed.
There’s been huge demand due to the lack of supply for Peninsula Collection, the last stage of the The Peninsula Hope Island, a development by the ASF Group.
They’ve seen everything snapped up, from the blocks of waterfront land on offer, to a variety of townhouses.
Peninsula Collection is the last piece for ASF, comprising just 63 apartments designed by Archidiom.
The three-bedroom apartments, which have nearly 120 sqm of living space, start from just $565,000. The three-bedroom apartments rise to $780,000 for the 133 sqm apartments, which also include a study room.
The biggest apartments on offer, with five bedrooms and four bathrooms, have nearly 180 sqm of living area and start from $1.28 million.
A limited number of the 5-bedroom apartments include a dual-key access option and many of the three-bedders come with a study integrated into the floorplan.
Completion is forecast for 2023, with construction set to begin in a few months.
Residents will also have access to The Peninsula BBQ area and waterside gazebo beyond the Hope Island Resort offerings like a fitness centre and swimming pool.
Article Source: www.urban.com.au
Why investors snap up apartments in Aria Property Group’s Brisbane apartment developments
Aria Property Group have pushed the envelope not only on sustainability but value at their newest tower, Trellis in South Brisbane
Aria Property Group always have a steady stream of interest from off the plan investors in their Brisbane apartment developments.
Investors who bought in to one of Aria’s most recently completed developments, The Standard, Aria, located in the heart of the Fish Lane arts precinct, saw great success.
Those who bought pre-completion have secured resales between 10 per cent and 38 per cent more than what they paid. Owner-occupiers showed the greatest keenness on the resales.
The investors who decided to hold on to their apartments are seeing strong 5.48 per cent rental yields throughout the building.
Aria’s latest development, Trellis, also in South Brisbane, is also expected to be a hit with investors.
The 12-story building with 110 apartments is Aria’s most sustainable yet, with 60 percent of the building covered in greenery of some variety. It will feature trellises within which improve biodiversity, as well as solar technology and even Tesla batteries and charging stations.
There’s over 1,000 sqm of recreational amenity space, including the Temple of Wellness on the ground floor and the Residents’ Rooftop Club on level 13. That features magnesium baths and an infinity pool with views across Brisbane. Amenity is also high on the priority list for tenants.
Apartments in Trellis start from $739,000 for a two-bedroom, two-bathroom apartment. Three-bedroom apartments are priced from $1,084,000 to $1,224,000.
Completion is forecast for mid-2023.
The Brisbane apartment market has continued to show strength over 2021, after a resilient 2020 in the wake of the pandemic.
Research from property data firm CoreLogic showed Brisbane apartment values rose 0.6 per cent over September, triple the growth of apartments in Melbourne.
At the end of 2020, the median apartment value in Brisbane was at a yearly high of $390,000. Now it’s $430,000.
Unit rental prices have also seen steady growth in 2021, up 3.5 per cent over the past 12 months.
This growth trend is expected to continue, backed in large part by billions of dollars in investment from both private and public sectors as part of the pipeline for the 2032 Olympics.
Article Source: www.urban.com.au
Why the rise of the Sunshine Coast’s prestige market is only just beginning
Once a humble home for barefoot surfers and retirees seeking sand in their golden years, the Sunshine Coast is now one of Australia’s most prized playgrounds for prestige buyers, with property prices swelling by up to 46 per cent in 12 months across its most sought-after postcodes.
Fuelled by exclusivity, driven by development restrictions along the coastline and augmented by the remote working wave – the relaxed region just a couple of hours north of Brisbane is also becoming a mecca for cashed-up tech wizards with nine key suburbs now members of the million-dollar-plus club for median house prices
It’s a region that also obliterated the Queensland house price record with the $34 million sale of a Sunshine Beach trophy home at 17 Webb Road in June this year – a sale that came hot on the heels of the $14 million transaction of 8 Noosa Court, Noosa Heads, a three-bedroom penthouse that eclipsed the previous Sunshine Coast apartment record by $5 million.
Both sales were handled by Tom Offermann, of the eponymous real estate firm.
While the quiet beachside strip still lacks the grandeur of Sydney’s Darling Point or the overwhelming wealth of Melbourne’s Toorak, property experts say the unstoppable wave of buyer demand is paving the way for an unprecedented growth cycle.
“Our buyer base was traditionally wealthy, self-funded retirees, but now we’re seeing this massive influx of young, financially capable families who are picking up properties in A-grade positions, and we’re seeing a lot of younger wealth that’s coming out of IT, finance and tech that’s tapping into new lifestyle opportunities [off the back of COVID-19]. So, we’re right at the beginning,” Adrian Reed of Noosa’s Reed and Co Estate Agents said.
“The abundance of nature, shopping, the beaches and the prestige amenity that is afforded to us is pretty desirable … and it’s all limited stock, so there’s going to be [further] price increases. In fact, we’re probably in what appears to be the early stages of a fairly significant growth cycle.
Article Source: www.domain.com.au
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