SELECTION THE RIGHT TRADESPERSON

by Administrator 28. July 2014 23:13

It seems to be accepted that when appointing a contractor to do work on an investment property that the cheapest quote is always the best. This accepted rule of thumb couldn't be further from the truth.

We have found that the cheapest quote is not necessarily the best quote at all.

When appointing a contractor to do work on your investment property we take into consideration a host of factors determining contractor's suitability to do the work.

Other than price the following must also be taken into consideration:

- Is the contractor licensed to complete work for that trade?

- Is the contractor insured? If the contractor is not insured you carry the risk.

- Can the contractor provide references for similar work that he has completed?

- On work such as refurbishments, have you been given a start and completion timetable?

- Is the contractor going to complete the work himself, sub contact the job or oversee other employees to complete the work?

- Have you confirmed the materials used and any warranty periods applicable?

The above may seem a little over the top, but  all too often we  have seen investors appoint a contractor on price alone and ignore the host of variables to be taken into consideration when appointing a contractor most suitably qualified to do the work.

We always suggest to investors to take the time and care in appointing a contractor as you would appointing a contractor in your own home.

Although we may present a quote to you for work that may seem a little high in comparison to some, the above must be taken into account in order to protect your interests, the dollars invested and your property.

At M Residential, we ensure we have quality list of trades people covering all possibly works required.  To find out more, contact Laura Levisohn at M Residential.

 

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CONSIDER YOUR TENANT AS WELL AS YOUR INCOME

by Administrator 14. July 2014 21:55

Your property manager understands that a secure tenant equals a secure income. If your tenant is on a fixed term lease, they will feel secure and that feeling will often translate into a renewed lease when it comes time to extend that invitation.

Many people may never own their own home, either by choice or by circumstance, but feeling like the house that they rent is home will reward you, the landlord in two ways.

Firstly and most obviously with a regular rental income and secondly; a good and happy tenant will take good care of the property because it is their 'home'. 

If you have a good tenant, you might fall into the trap of allowing the lease to remain open ended after the fixed term expires because you don't want to 'confront' a good tenant with a new lease to sign. The fact of the matter is, the new lease will provide your tenant with the peace of mind of knowing that they will have somewhere to call home until that lease expires. 

Should you wish to enter into a new lease with your current tenant, we will ensure that the tenant is listened to and feels happy upon the signing of the new lease agreement and understands that by entering into a new fixed term lease we can guarantee them security of tenure for that term. 

Keep in mind that renewing the lease with your current tenant will save you fees and expenses as well as wear and tear that occurs when tenants vacate and move in to your investment property.

If you would like to discuss keeping your tenant on a fixed term lease or having M Residential manage your investments, contact Laura Levisohn.

 

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TOP TIPS WHEN CHOOSING A PROPERTY MANAGER

by Administrator 4. July 2014 01:48

Once you have found the investment property that you intend to purchase, there are many things that should be top of mind for every property investor.

When thinking of appointing a property manager to manage your property, many property investors initially thinks that fee is the first and main thing to take into consideration.

Of course, we are all price conscious these days and it would be unwise not to take your property manager's fees into consideration. However, when viewed in the context of the dollar value of the management fee annually compared with the sale value and capital appreciation of your property, a capable and professional property managers fees are a modest tax deductible expense.

All too often, property investors fall into the trap of appointing a low fee property manager with the thought that this is a saving. In fact it is false economy as there are a myriad of factors that must be considered when appointing a property manager. A low fee property manager may, at the end of the day cost you money through extended vacancy, the inability to train and be aware of industry trends and legalities and being unaware of how their actions impact your bottom line.

Before appointing a property manager, ensure these questions are answered:

  • Are they aware of prevailing market conditions and tailor lease terms to meet the peaks in the leasing cycle? A standard lease term my cost you dollars by ending at the bottom of the leasing cycle.

  • Has the property manager asked about your investment goals and expectations? A good property manager should be aware of your needs and expectations in your investment to reach its full potential for you.

  • What advice have you been given about compliance and legalities that are imposed upon property investors before they lease a property? Not being aware of your obligations can expose you to legal action and compensation.

  • How have they determined a market rent and how often are rents reviewed?

  • Have you been informed what may need to be done to the property so you can realise its full income earning potential? 


When appointing a property manager, don’t dwell on fees. Look and ask questions about how the property manager can maximise your income and minimise the expenses of your investment property.

If you are looking for the right property manager to manage your investment property/s, make sure you contact Laura Levisohn from M Residential.

 

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