MAXIMISE YOUR INVESTMENT PROPERTY INCOME

by Administrator 20. August 2015 19:41

Investing in real estate is a great investment which virtually ensures profit through capital growth and of course the tax advantages associated with owning an investment property.

There are many ways in which the investor can maximise the income derived from their investment property. Most investors think that the only way to do this is by asking for or achieving the highest possible rent.

There are a number of invisible ways in which the property investor can maximise the income of their investment property.

First is to have an annual program of reviewing and increasing rents to a figure just below market rent. This ensures not only a growth in rental income, but by setting rent just below market rates, you ensure that your tenant's perceived value and interest in your property and is more than likely to remain for an extended time, therefore reducing the chance of vacancy and real loss of income of minimising the chances of having a non income producing asset.

Another invisible way that investors maximise their investment property income is to tailor the lease term around the peak letting times of the year. Rather than having the standard six month lease term in place, savvy investors steer clear of standard lease terms and ensure that a lease term expires in the better letting periods of the year. In these instances, should the tenant vacate the property it will be on the market in a better reletting period which in turn reduces days vacant and increases the opportunity of achieving a higher rental.

By tailoring the lease term, the investor is taking advantage of market place conditions to ensure a better continuity of income and ability to have  a greater chance to increase cash income via a higher rent achieved in a peak letting period.

Your property manager is pleased to assist you in tailoring your lease term to assist in maximising the income you derive from your investment property.


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MAXIMISE YOUR INVESTMENT PROPERTY INCOME

by Administrator 20. August 2015 19:41

Investing in real estate is a great investment which virtually ensures profit through capital growth and of course the tax advantages associated with owning an investment property.

There are many ways in which the investor can maximise the income derived from their investment property. Most investors think that the only way to do this is by asking for or achieving the highest possible rent.

There are a number of invisible ways in which the property investor can maximise the income of their investment property.

First is to have an annual program of reviewing and increasing rents to a figure just below market rent. This ensures not only a growth in rental income, but by setting rent just below market rates, you ensure that your tenant's perceived value and interest in your property and is more than likely to remain for an extended time, therefore reducing the chance of vacancy and real loss of income of minimising the chances of having a non income producing asset.

Another invisible way that investors maximise their investment property income is to tailor the lease term around the peak letting times of the year. Rather than having the standard six month lease term in place, savvy investors steer clear of standard lease terms and ensure that a lease term expires in the better letting periods of the year. In these instances, should the tenant vacate the property it will be on the market in a better reletting period which in turn reduces days vacant and increases the opportunity of achieving a higher rental.

By tailoring the lease term, the investor is taking advantage of market place conditions to ensure a better continuity of income and ability to have  a greater chance to increase cash income via a higher rent achieved in a peak letting period.

Your property manager is pleased to assist you in tailoring your lease term to assist in maximising the income you derive from your investment property.


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MAXIMISE YOUR INVESTMENT PROPERTY INCOME

by Administrator 20. August 2015 19:41

Investing in real estate is a great investment which virtually ensures profit through capital growth and of course the tax advantages associated with owning an investment property.

There are many ways in which the investor can maximise the income derived from their investment property. Most investors think that the only way to do this is by asking for or achieving the highest possible rent.

There are a number of invisible ways in which the property investor can maximise the income of their investment property.

First is to have an annual program of reviewing and increasing rents to a figure just below market rent. This ensures not only a growth in rental income, but by setting rent just below market rates, you ensure that your tenant's perceived value and interest in your property and is more than likely to remain for an extended time, therefore reducing the chance of vacancy and real loss of income of minimising the chances of having a non income producing asset.

Another invisible way that investors maximise their investment property income is to tailor the lease term around the peak letting times of the year. Rather than having the standard six month lease term in place, savvy investors steer clear of standard lease terms and ensure that a lease term expires in the better letting periods of the year. In these instances, should the tenant vacate the property it will be on the market in a better reletting period which in turn reduces days vacant and increases the opportunity of achieving a higher rental.

By tailoring the lease term, the investor is taking advantage of market place conditions to ensure a better continuity of income and ability to have  a greater chance to increase cash income via a higher rent achieved in a peak letting period.

Your property manager is pleased to assist you in tailoring your lease term to assist in maximising the income you derive from your investment property.


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HOW WE ASSESS THE RENTAL ACHIEVED ON YOUR PROPERTY

by Administrator 4. May 2015 04:31
When reviewing rents and tenancy agreements the question often arises “Should the rent be increased and if so, by how much?”
 
When we review your rent, the first thing we do is determine the nature of the tenancy and then do a comparative market analysis to assess the rent the property may achieve on the current market. This is how the market rent is determined.
 
Many investors are reluctant to increase rents at properties where they have retained a good long standing tenant and although this is sometimes a good practice where vacancy rates are high and the rent has only marginally risen, it is important to refrain from consistently choosing this approach.
 
 
It is also important to move with the market as conditions do not always reflect increases in costs. When these costs occur, as income is not being maximised, the costs can have a negative effect on the performance of your investment.
 
If an investor is put in a position where they need to sell their property, having the rent at less than market value can have a negative impact on securing a sale at a reasonable price.

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EOFY IS LOOMING

by Administrator 15. April 2015 04:30

Well, the End of the Financial Year is only three months away!

Now is the time to review your property investment to ensure that you have got all your financial documentation in order such as all rental statements and invoices for expenses.

It is also a wise time to be undertaking preventative repairs and maintenance to your property, not only  to improve the amenity of the property but also to maximise the tax deductions that you can achieve.

Have you invested in a tax depreciation schedule which could save you thousands of dollars a year in tax deductions? Please call your property manager who can arrange this for you.

The last quarter of the financial year is also a good time to review the insurances on your property. Are they adequate and do they offer a full array of landlord protection insurance features to protect you and your investment? Once again, your property manager is pleased to arrange a quote for you

By getting your paperwork in order now and doing some reviews as outlined, you can save tax dollars for this financial year rather than leaving it to the last minute and then having to wait another year to get the benefit.

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DRESSING UP YOUR PROPERTY TO LEASE

by Administrator 30. March 2015 03:49

It has long been accepted that the styling of a property for sale optimises the sale value and reduces the period of time in which a property is on the market.

The same holds true for rental properties.

Careful thought and consideration should be made when marketing your property for lease. The first consideration is professional photography.

For Lease marketing is littered with properties with poor quality photographs which do not show the true advantages of the property.

By investing in professional photography, your property instantly becomes more appealing to prospective tenants who will be more inclined to click and enquire upon your property. As with sales, statistics show that rental properties with professional photography lease quicker and a achieve an optimal rent.

Styling your property may mean “staging” for the property to be furnished with modern fittings for promotional purposes. Styling also includes clearing cluttered areas prior to photography. By removing clutter from benchtops and living areas you are making the area more attractive and making it appear larger.

By investing in professional photography and a little thought into styling and presentation prior to marketing for intending tenants does make a difference in attracting the right tenant in the shortest period of time.


Article and research on behalf of LPMA (Leading Property Managers Australia)

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TAKE AN INTEREST IN YOUR STRATA AFFAIRS

by Administrator 19. January 2015 23:40

We often hear from our investor clients that they don’t know why their quarterly levy contributions have risen or why a special levy is payable.

In such instances we ask if the client attended the strata meeting or obtained the agenda and minutes of their strata plan’s meetings to gain an understanding of the changes in strata contributions.

Often our clients tell us they don’t have the time to attend meetings or simply are not interested - feeling that participation in strata affairs could be a burden on their time.

The purchase of an investment property is the largest investment other than the family home that most people will make, hence it is imperative to be aware of what is happening within the strata scheme and to become involved in the decision making processes of the strata plan, otherwise others can be affecting the expenses that you incur which ultimately determines your immediate outgoings and the profitability of your investment.

Becoming strata aware does not mean that you are tied to decision making processes or are in constant need to attend meetings. However, it does mean that you are involved in making sure that your money is being used effectively and that you know where your levy contributions are being spent.

To protect your investment, we suggest:

- You attend strata meetings and committee meetings so you are part of the decision making process

- Become familiar with how your strata plan operates and who are the committee members and your strata manager

- Ensure that your building is adequately insured and that the appropriate budgets are being prepared for current and future expenses.

By being strata aware you are protecting your investment and at the same time saving yourself dollars.

 

Article and research on behalf of LPMA (Leading Property Managers Australia)

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INCREASE YOUR RENTAL RETURNS

by Administrator 30. December 2014 00:55

As a property investor now is the time to think about making the ultimate new years resolution, and that is to increase your rental returns.

Take the time to review the past rental year.  Did you have a vacancy and if so how long was the property vacant and did you get a rent increase and secure a long term tenant.

Resolution number one: When does your current lease expire? Does it expire during a low demand season? Your property manager can inform you of the high demand periods of the year. So, upon renewal of the current agreement tailor the lease term so it expires in peak letting season of the year. This way should your tenant vacate your property will be available during a premium reletting period resulting in a shorter vacancy and the chance of achieving a higher rental.

Resolution number two: Have you revisited your investment loan terms?  Rates are very competitive at present and many lenders are now offering incentives to property investors to switch and to enter into new loan terms. This is a great opportunity to fix your loan at a historically low rate.

Resolution number three: Review whether you need to update any fixtures and fittings to enhance the rental and capital value of the property. Now is the perfect time to plan this value enhancing exercise. Firstly we are entering into the final six months of the financial year so such works are advantageous from a taxation perspective. Secondly, undertaking improvements be it installing a built in robe, or new blinds, even new tap fittings is often enough to show your tenant that the property is definitely worth staying in for the long term.

Article and research on behalf of LPMA (Leading Property Managers Australia)

 

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THE HIGHEST RENT IS NOT ALWAYS THE BEST OPTION

by Administrator 8. December 2014 19:00

Our role as your property manager is to maximise the rental return on your investment property - however, obtaining the best rent per week is just one component of ensuring that your investment delivers the expected returns.

The term “best rent” refers to the optimum rent that your property can achieve without causing your tenants to vacate the property due to the rent being above market or; if vacant - the rent is above market, which in turn creates extended days of vacancy and lost income.

A consistent income stream is vital to ensuring the financial success of your investment property.

We have found that properties that have a rent slightly below market levels have a higher occupancy rate which means lower vacancy and fewer nil income days.

Another important factor that is often overlooked by investors is that, each time a tenant vacates and another moves in, there will be inevitable wear and tear on the property, which again adds to the financial burden of a vacancy.

When we suggest a rent increase or suggest that the rent remains the same, both due to market conditions, we make the recommendation on the above grounds to maximise the financial return on your investment.

While it is often tempting to squeeze an additional few dollars per week from your tenant, it is important to remember that today, tenants are far better educated due to the growing ease of access to information of all properties on the rental market. In attempting this squeeze, many property investors are causing increased vacancy and loss of rental income - all for the perceived benefit of achieving above market rent.

To discuss achieving the “best rent” for your investment property, please contact M Residential.

(Article and information thanks to LPMA)

 

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FAIR WEAR AND TEAR

by Administrator 17. September 2014 01:20

A final inspection is done at the end of tenancy to determine the final condition of the property and bond refund.  When damage has occurred it could be as a result of ‘malicious damage’ or ‘accidental damage’ both of which are the responsibility of the tenant and the third is ‘fair wear and tear”.

‘Fair wear and tear’ is something that occurs through normal use or normal changes that take place with the ageing of the property.  It is a broad term and can be open to interpretation. So where is the line drawn?  What is a tenant responsible for and what is a landlord responsible for? 

If a bond refund was to be determined by the tribunal/court, they would consider the following;  

  • How long have the tenants resided in the property?  How many tenants have resided in the property previously?
  • Age of the property, fixtures & fittings (i.e. age of the carpets or last date the property was painted, etc)
  • Current depreciation status of the items in dispute
  • How was the property presented to the tenant at the commencement of the tenancy?  

Some grey areas that can be open to interpretation could include:

  • Marks on walls, carpets, curtains, etc
  • Holes in window and door screens
  • Cleanliness (i.e. oven, stove, windows, light fittings, light switches, skirting boards, exhaust fans, etc).

By being prepared you can help to determine the best outcome.  Send the tenant a Final Inspection cleaning guide.  Highlight important areas that need to be addressed prior to the tenant vacating. Use it to set an expectation in relation to what needs to be cleaned and any repairs that the tenant may need to conduct or organise.  A pre-final inspection can help in this regard.

Ensure that ingoing inspections are thorough and have supporting photographs so a direct comparison can be made should a dispute arise.

 

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