Q. Why do I need a property manager?
Some owners choose to manage their property themselves and are able do it well. However, you need to consider the time required to collect on-time rent, keep updated with legislation, arrange ongoing maintenance, organise viewings, select the best tenants and all this whilst maintaining a professional relationship and be on call to attend to such matters. In regards to insurance, some insurance companies will only cover a rental property if it is managed by a third party professional.
Most owners find the relatively small cost of hiring a professional to do the above – and more – is a great investment and a time saving exercise (plus it is tax deductible!). At Your Local realty, our professional property team focuses on increasing the value of your investment property and making your experience a rewarding one.
Q. How long will it take to find a tenant for my property?
Finding a suitable tenant is one of the most important tasks that an agent undertakes for owners. As a general rule, the better a property is presented and priced to the local market, the faster it will be tenanted. In addition, a good agent starts advertising the property immediately after the tenant advises that they are leaving.
Tenanting a property is all about Price, Presentation and Professionalism.
Price – Aiming for unrealistic rent will have your property sitting on the market for too long. Asking too little will undermine your return.
For example: You don’t want to be in a situation where asking $360 per week is at the higher end of the rental value of your property. Even 4 weeks of vacancy (potential loss of $1,440) can impact on your bottom line. A price of $340 per week may be a more achievable amount, and over a year that be the difference of (gross) $400 on the presumption that this example property is leased with no days of vacancy.
Presentation – With a good amount of notice given to existing tenants and a history of clear and friendly communication with them, presentation will be at its premium.
Professionalism – We take great pride in low vacancy rates and we aim to maximise the rent per week you will receive. All of our staff will ensure our professionalism is always at it’s highest.
As the exclusive onsite real estate agent for the Jacaranda Gardens complex, Your Local Realty is in the best position to understand the market and price accordingly.
Q. Do I need Landlord’s Insurance for my property?
We strongly recommend that every investment property has a specific landlord insurance policy. to provide protection for loss of rent and damage to the property. Insurance also includes coverage for public liability and contents (for example, floor coverings, curtains, etc). Contact us for more information.
Q. What happens if my tenant doesn’t pay rent?
Your Local Realty monitors our tenant arrears on a daily basis so as to minimise any potential loss to our owners. When a tenant is 1 day in arrears we will contact them via telephone, email and/or SMS to check if there’s been an issue with payment. On the 7th day of arrears, a Notice to Remedy Breach will be issued, which provides 7 days to pay the rent. If rent is still not paid, the owner will be advised and, if agreeable, a Notice to Leave is issued to the tenant giving them a further 7 clear days to vacate the property.
Q. Do I need to do a depreciation report (and what is it!?)
Capital assets owned and used for producing income are depreciating assets - this includes investment properties. These types of assets decline in value over time and can be written off in the form of tax deductions, which could potentially save you thousands of dollars. Your Local Realty can refer you to consultants who can handle this for you, sometimes for a very low cost.
Q. What if I want to sell my property?
Your Local Property maintains a list of property investors who have indicated an interest in purchasing further properties. In addition, we have a network of agents who specialise in selling rental properties to investors. Contact us and we’ll discuss the best way to sell your property.
Q. How should I know what my property will rent for?
Rent rates can be generally determined by comparing the property to other similar properties in the local area that are currently for rent or have just been rented. Owners can look at websites like www.realestate.com.au or ask us to provide a rent estimate.
Q: Can I charge my tenant for water consumption?
Yes, if your property is separately metered and is water efficient, owners can charge for water usage (not connection or account fees). We can arrange for the bill to be sent to us, which will be sent to the tenant for payment.
Q: Can Your Local Realty handle more than rental properties outside of its office at Jacaranda Gardens in Morayfield?
For clients with multiple properties in your portfolio, we are able to travel throughout Southeast Queensland so that all of your properties can be managed by the one agency. Contact us to discuss your personal requirements further.