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Apr 21, 2021
How to make the most of Perth’s property market boom
With so many other countries battling high COVID-19 cases, I’ve never felt luckier to live in our isolated city. Perth beaches, warm weather and smaller population have always made me happy to call it my hometown but now we have added reason to feel appreciative. It seems I’m not the only one feeling this way with people flooding home from living abroad (and even interstate), which means our real estate market is booming. For those selling their investment properties, it has been an amazing time. Personally, I sold an investment property at first home open at asking price when 12 months ago, we had no bites at all. How the market has changed! However, the flipside to this has been our rental market has reached crisis levels. The sale of many investments means tenants have been moved out of their rentals or have been asked to pay higher rent to match the very competitive market rates. Ouch! Can you believe the vacancy rate has dropped to below one percent?! If you’re renting, you may feel anxious about what is happening and if you’re an investor, perhaps you’re wondering how to make the most of a booming market while keeping a good relationship with a great tenant. So here are my tips for you to consider as you navigate this tricky time… Maintain a good relationship with your property manager Renters: Now more than ever, you need an industry expert on your team as they will vouch for you when it comes to providing references, they’ll be ahead of the pack of what’s coming onto the market and able to offer advice on appropriate rental prices. Investors: Maintain open communication with your property manager and tenant because at the end of the day, your tenant pays the mortgage and you need to negotiate terms that benefit both parties. Just because the market is hot doesn’t guarantee you a great tenant – so if you have a good one, look after them! Always remember, you might own the property but it is their home. Readjust your financial goals Renters: While prices are high, it might be a good time for renters to consider purchasing your first home to skip the rental market madness and create some security for where you live. Interest rates remain at record lows, so despite property prices being slightly higher there’s some relief on the other side! Buckle down and safe for that deposit… Investors: Maybe it’s time to reconsider your portfolios. The COVID crisis will pass and I think it’s key to receive some good advice on where to from here. Again, a property manager with years of experience will set you up for success long term. It’s a very exciting time to be in the Perth property market and seeing the confidence buyers are displaying, particularly first home buyers and first-time investors. It’s a great position to be in for a property manager to present our clients with an array of applications to choose from, particularly with multiple offers above asking price. If you need assistance with your property or renting the right place, I’d love to help you. Contact me on 0402 888 550 to discuss further.
Jan 6, 2021
Maximise your investment over the next 12 months
The holiday season is a pretty special time – not only do we get to have all the annual parties, festive celebrations and a few public holidays giving us a well-earned break, it’s also a time to look forward to a shiny, bright new year. We are so pleased to see you, 2021! Have you started thinking about how you want this year to look for your investment? It’s a great time to have a property for lease, with rentals in high demand in Perth. Before you jump in and take the first offer with a decent reference, we have done the leg work for the ultimate guide to maximise your investment in 2021. Happy New Year! Presentation Add value with a simple renovation or by adding a few key, new furniture pieces and watch the rental price tag climb. If money is tight, a fresh paint job (go for neutrals for broad appeal and a brighter appearance) or an afternoon in the garden can boost the overall presentation significantly (yep, mow the lawn please!). Adopt a minimalist mindset for your property, which means clearing all paths, hallways and balconies, and decluttering so potential tenants can visualise how they will live in the space. The best time to find a new tenant There will always be people on the lookout for somewhere to live, but there are certain times of year when interest will be higher. Right now, from January to February, is prime time for people to move due to people moving their kids into different schools or universities, new jobs or renters after a lifestyle change as the new year rolls in. The second busiest time is winter (June to August) with six-month tenancies expiring and second semester of university kicking off. Also, when signing up a new tenant, align the rental agreement to finish during these two peak times. Set your lease to match the market environment This is where a property manager can make a big difference to your life with a broad understanding of the market and experience with trends to advise you on what your new lease should look like and the ideal rental amounts. Otherwise, head down and you-know-what up for some serious research into the current market for the city and locality your property is in before setting new fees and lease terms. Simple and effective home improvements Aside from looking pretty, keep on top of minor home repairs consistently (another area property managers improve your quality of life – handball that one our way!) and consider small home improvements in line with your ideal tenant. If you have an apartment, install a washing machine and dryer. If you’re near a university, consider creating a study whether it’s a room or nook. If you’re currently sweltering away in Perth like us, air-conditioning units will be receive a big tick of approval from all potential tenants. Hirea good property manager Include all the above in things you don’t have to worry about when you have a great property manager looking after your investment. From marketing your property to securing the highest rental income, D Residential Group has a well-referenced list of potential tenants and if none are the perfect match, we create inspired online listings designed to attract further good applicants. And that’s just the start… Contact me on 0402 888 550 to discuss how we can help accelerate your investment and make the process enjoyable this year.
Dec 30, 2020
The five biggest property management myths debunked
There’s a little more to being a landlord than collecting regular deposits from your tenant and occasionally checking they haven’t burnt the property down. Being a property manager is a job I absolutely love, but I’m regularly surprised by the misconceptions around what I do and the value of my role. So, I’ve come up with the top myths I come up against and prove just how valuable a great property manager can be for your investment. Property managers are too expensive The cost is one of the first things I’m questioned on, and rightly so, as you want to maximise your investment. However, ‘too expensive’ is a myth I’m going to crush because the value behind the fee property managers charge will far outweigh the cost. A good property manager has a wealth of knowledge and experience in the local real estate market, engages proactive marketing, has a team dedicated to the upkeep of your home and can often increase your net income. Property Managers just collect rent The role we play is incredibly varied, doing many tasks for many different people every day. D Residential is in control of your investment property on a daily basis overseeing, no surprises, rent, but also ensuring your property is well maintained by the tenant. We arrange routine inspections and repairs, ensuring your tenancy complies with the Act, limiting risks and while doing so, we work hard to ensure a good relationship between you and your tenant exists (which can be a delicate balancing act, speaking from experience!). Renters will destroy a home unless the landlord is diligent It’s time consuming to keep check of a property, but as a professional, it’s booked in my calendar with regular appointments I never miss. On top of that, I thoroughly screen my list of tenants and expect high standards from all of them. I haven’t been disappointed once – my tenant list is top shelf! The Act requirements can be adjusted if agreed to by the tenant and landlord Understanding the intricacies of the Residential Tenancy Act is no small feat and there is no bending the rules – even if both parties think it’s a good idea! The rights and responsibilities for both lessors and tenants described under the Act are there to protect both parties, especially if the tenancy has to end early. The rules from the Act might not be written into a rental agreement, so it is very important you have a property manager guiding you (or be very well-versed in the Act yourself). You’ll have no say in contractor choice Sure, we have our favourites and we’ll recommend them, but that doesn’t mean it’s our way or the highway. We often get called outfor being pushy and forcing landlords to surrender their choice of contractors. However, for us it’s about simplifying maintenance needs for our many and varied clients, and that’s why wehave affordable contractor services readily available. However, it’s also no problem to adjust our terms to ensure you have approval over all contractors. We’re nice like that! So that’s today’s edition of myth busting done and dusted – if you have any more myths for me to challenge or would simply like more information about how I can help you best manage your property, call me on 0402 888 550.
Oct 31, 2020
Top qualities of a great tenant
Right now, property investors are sitting in the box seat. Renters are knocking down the doors at D Residential Group to find a place to call home. As a property manager, I guide my clients to look beyond a good credit score (which is of course, still important!) on their quest to find a long-lasting, great tenant to rent their property. If you’re one of the many people trying to find a rental property, here are the qualities we’re looking for in future tenants. You pay your rent on time The ability to pay rent doesn’t always equate to paying it on time, we’ve discovered. This is your most important role as a renter and not doing so can financially set back your landlord in ways you might not have imagined. The best way is to schedule weekly or fortnightly payments straight from your bank or talk to your property manager about good software options. We understand, especially in 2020, that sometimes money can be tight in which case we recommend you always be honest with your landlord. Keep it clean When we said no pets, that includes cockroaches (cockroaches also not welcome when dogs and cats are, #sorrynotsorry). Keeping your rental clean not only makes it a nicer place for you to live, it also gives your landlord the right to withhold some of your deposit or bond. While there might be wear and tear over time, do your best to maintain the house as if it was your own (and for the time being, it sort of is!). Keep your landlord in the loop If you do have any maintenance issues, the best part about not owning the joint is you don’t have to pay for it! You do have to let your property manager or landlord know as quickly as possible, though because a small problem can turn into a much bigger, expensive exercise if left too long. High maintenance equals high turnover Constant complaints is tiresome for the most patient of landlords, so if you can fix the small issues within the terms of your lease, you’ll come off smelling like roses. Many landlords have more than one property, alongside other elements of life such as family, career and hobbies… While a good landlord will do their best to make your property comfortable, you’re probably not their sole purpose in life. New housemate, who dis? Your lease agreement needs to be signed by your landlord and anyone over the age of 18 living in the property. While we’re so happy for you if you’ve found your soulmate, keep your landlord updated with any new, long-term residents. Here for a good time AND a long time Staying in a rental long-term (especially if you’ve paid heed to the above tips) will make life much easier and less expensive for your landlord. So, when you’re lease agreement is nearly up make sure you check in with your property manager and renew your lease, pronto. Follow through with your lease agreement Following rules in life can be tedious and some are meant to be broken (like licking your ice cream bowl or eating Nutella straight from the jar #guilty), but your lease terms are worth sticking to. Most lease terms are reasonable, forbidding illegal activity and any antisocial behaviour. Breaking them not only makes bad friends with your current neighbours, it also means your landlord has the right to kick you out with no warning. So if pets aren’t allowed and loud music has a late night curfew, be an epic tenant and follow the rules. Consider renter’s insurance We’re optimists here and we hope this won’t happen to you, but break ins happen and things get broken or stolen. So, we advise a good renter’s insurance to protect you if things go wrong and it also looks really good for the landlord who doesn’t want to be left with bills you might be unable to pay if things go really wrong. Back yo’self. If you want to discuss properties for rent in Mount Hawthorn and surrounds or purchasing an investment property, contact me for a chat.
Oct 19, 2020
Top tips for tenants in Perth – how to stand out in the crowd
It’s a tough time to be in search of great properties to rent in Perth, with queues at inspections in my local area of expertise Mount Hawthorn often extending beyond 50-metres. You need to stand out and prove that you’ll be an exceptional tenant. So, here are my best tips to successfully renting in Perth – I’ve got your back! Be prepared First in, best dressed is sage advice in this current market. Get ahead by treating the inspection like a job interview (for a job you really want, too). Be punctual, polite and dress well. First impressions count because you’ll probably only get one – so dress like a tenant who will look after the investor’s property like their own. Complete the application in full If the property manager has to chase you to fill out an incomplete form, they probably won’t! It could be the difference between you and another good tenant – so go through your application thoroughly and answer every question. No gaps. All the words. Complete application gets the destination… we even made you a rhyme. Now you know how important it is. Fill out ALL of that form. Disclose everything We get it, it’s not ideal you adopted Brutus the Rottweiler just weeks before your current rental gave you notice (we hope it was just a coincidence, poor Brutus). However, being dishonest to score your next home will not end well for anyone because if they discover your secret, you’ll find yourself in hot water and potentially breaching your contract. Be upfront and ideally, consult with a respected property management expert (call me 0402 888 550) so I can help find the right place for you (and Brutus). Prepare and provide verifiable references Here’s where good friends, family and workmates come in. Line up your most trusted, loyal and well-spoken friends who will vouch for you when the property manager calls for a reference. Personal and employment references should be lined up and prepared for the call well in advance, so you’re on the front foot when your ideal property comes up. Pro tip: Do not enlist the help of your mate who ‘never answers the frigging phone’ while your dream property lands into the lap of the next prospect. Find a trusted Perth property manager If you want to really jump that queue, put your name down with local rental property experts who know what’s available, what’s coming up and want reliable tenants like yourself on their books. Give me a call or email me to talk through your options. Good luck, the right property for you is out there but it might take some more effort and better connections right now. On the flipside, it’s an excellent time to have an investment property in Perth, especially suburbs surrounding the city centre. If you would like to add to your property portfolio and find a place tenants will queue for miles to rent, contact me and I’ll share more on my local property management expertise.
Sep 15, 2020
5 Tips before you begin
Thinking of investing in property? Our top five tips before you begin… Property investment can be one of the most financially rewarding decisions you could make… if you do it well. It’s important to understand risks around any investment and to set up strategies to give yourself the best outcomes. With 16 years industry experience, I’ve come across five key areas I advise all clients to review before taking the plunge and you should consider, too. Review your finances and set a budget Before you even start browsing properties, get your budget in order. Make sure you are crystal clear on your income and expenditure, so you know exactly how much you are willing to part with each month on your investment (hint: spend less than you earn, win at life). Do you have a deposit saved? Do you have a small slush pile you can use for any unforeseen costs? All of these will make your journey into investing much smoother. Find a good financial advisor This type of investment should be considered a longer game when you consider upfront fees such as stamp duty, conveyancing and legal fees, and building/pest inspections. Securing the right loan structure for your needs could see the difference in thousands of dollars long-term and maximising the ongoing tax benefits will see immediate reward – so my advice is to touch base with a great financial advisor who ensures your investment works for you. I have some fantastic contacts I work with and happy to recommend them if you’re interested. Research the area and its growth While property investment can provide you with an income from the rent and tax cuts in the short term, the capital growth of the property has the potential to generate serious wealth long term. Understanding whether the suburb is in a growth phase, the value of a property and rental demand are key to choosing a good investment. When investing, it’s key to use your head over your heart and choose a property which will instantly provide you with rental income rather than waiting for someone to ‘fall in love’ with the place like you did (save that for your own home!). If investing with a partner or group, write everything down Sometimes just getting into the market is tough (Gen Z, I hear you) and the best way to crack in is with a friend or family member. The upside is doubling your borrowing capacity, but it also makes your investment slightly more complicated (no matter how much you love them, trust me!). So, define your roles and expectations so you’re all on the same page with how much you’re willing to contribute to a long-term mortgage and ongoing costs. Write it down, write it down, write it down. He said/she said serves no one in many areas of life, but it’s particularly useless in property investment. You’re welcome. Engage a Property Manager While there’s an abundance of information at your fingertips (thanks google), it can also be overwhelming and occasionally you’ll come up against conflicting advice on the property market. Having an expert who knows exactly what the market is doing, from knowing what’s a bargain and what’s a dud to insight on rental demand, will give you a massive step up, let alone peace of mind. I’m always happy to help with advice on where the highest rental demand is and the current best locations, so call me anytime to talk your ideas through on 0402 888 550.
Aug 27, 2020
How to attract and keep great tenants
Investing in property has many financial benefits – if it’s done right. You’ve all heard the adage ‘safe as houses’, because property is almost guaranteed to increase your wealth. From rental income to tax benefits, an investment property can bring in more income than outgoings short-term and capital growth should see investors benefit significantly long-term. First things first, you need to understand the suburb you are buying in and analyse its supply and demand. At D Residential Group, we do a lot of research into the suburbs our clients are interested in to ensure their financial goals can be achieved. I believe the right location is crucial in determining success while building your property portfolio, so before you buy, please do your own research or contact me for advice. Once you’ve purchased your home, the most important task of all begins – finding the ideal tenant. Here are some key dos and don’ts when you’re tenant shopping; Screen thoroughly before selecting your tenant In a dream world the perfect tenant would find you, but from my experience, that truly is a dream world. A great tenant comes from thorough screening, including employment checks, previous rental references and national tenancy database checks. This can be daunting, which is why a local property manager with time and experience to conduct these checks is a smart move. Meet your tenant face-to-face first This may not be realistic where you live thanks to COVID-19, but in Perth right now, we can and do meet tenants on behalf of our clients to ensure they’re the right fit. You place a lot of trust in your tenant to take care of your property and make their rental payments, so meeting them will provide a much more genuine experience of their character. Another benefit of a good property manager is we do this leg work. On the flipside, I look after all my amazing tenants too so if they have to vacate a property, I will do my best to offer them another rental option. Maintain the property to a standard you would expect in your own home Reality alert! Even properties you don’t live in will have extra costs attached. Maintenance fees are inevitable for property investment (although most are tax-deductible), and fixing things in a timely manner will make a big difference to keeping your great tenant happy. Once you have a good tenant, you want to keep them because continual turnover of your tenant will be more work and money than calling the plumber or electrician. Show compassion – it’s your property, but it’s their home. Negotiate over rent increases If you have a great tenant but feel the property’s rental value is higher, discuss a potential rent increase respectfully. Consider going through an agent (I know a good one, wink), who can negotiate on your behalf to get the best deal for all parties. Sometimes, accepting a slightly lower rent within a great tenant’s budget is a successful outcome. I’ve been both a renter and a landlord, and know that calm communication, honesty and respect always work. Follow through on promises Whether it’s repairing a leaking tap or extending a lease, stick to your word and you’ll create a harmonious environment for your renter. It works both ways too, so try and get all promises in writing to avoid any confusion. Engage a property manage who cares You deserve a property manager who cares as much about your property as you do. I always go the extra mile to understand and achieve my clients’ financial goals, while working respectfully with tenants to ensure their needs are met, too. Ultimately, I work hard to foster a peaceful and beneficial relationship between all parties. To see how I can assist with your investment, call me on 0402 888 550.