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Call Dixie Walters on 0401 489 025 to discuss your needs.
Take control now and move to the next level of success in your property management business!
We can show you how to perform with a Property Management Business Health Check!
Know what is holding back your performance so you can move to the next level of profitability, growth, performance and efficiency.
Understand what you need to do to take control of your department, reverse any crisis and get back your sanity and peace of mind!
Launch to the next level with a detailed report and action plan so you get absolute clarity of what needs to be done!
Know exactly how much extra fee income you could be missing out on with the business you have right now!
For a full day, we examine every area of your department, leaving no stone unturned and deliver to you a comprehensive 'flight plan' to take you to the next level in efficiency, performance, growth and profitability! Get in contact with us today!
Over a complete day we take a real close look at:
We construct an impressive and comprehensive report outlining where you are at currently, and deliver specific written recommendations so you can take your department to the best levels in Australia today!
Do something about it RIGHT NOW!
For fee information contact Bob Walters bob@bwt.com.au or 0416 267 422.
An article by Karen Herbert
Need to propose a rent reduction to a reluctant Landlord?
Karen Herbert provides Property Managers with some insightful guidance.
Consider this question: what’s the most expensive cost borne by a Landlord?
Most Property Managers will suggest it’s the management fee, or wear and tear on the property. But the most expensive cost is the monthly mortgage repayments. If you’ve ever had to pay a mortgage, then you’ll understand how stressful this commitment can be, especially if your cash flow is limited.
While the mortgage may be the only amount that must be paid on a regular basis, there are other bills to consider: the quarterly rates, body corporate if applicable, and insurances just to mention a few. Furthermore, things can become financially tight for investors very quickly. Often when investors purchase an investment property, they can borrow up to 100% of the loan, leaving them in a position where they usually need to 'top up' the mortgage repayments and put money aside for the above expenses – not to mention any other incidentals, like rent reductions, arrears or vacancies.
It's no wonder a Landlord might resist suggestions to reduce their rent. Of course, they’ll be a particularly unhappy Landlord if their property becomes vacant. Indeed, it’s your job as a Property Manager to avoid this scenario whenever possible.
Another major role of a Property Manager is to maximise returns for the Landlord. There are numerous ways this can be achieved. However, you often walk a fine line when attempting to rent a property and having it sit vacant. This is where strong management and communication skills come into play – and it usually starts at the beginning, with correctly appraising the properties rental capacity given the current market. A Comparative Market Analysis is mandatory in helping the Landlord understand where their investment sits in the current market compared with similar properties. This analysis can be achieved through websites such as RP Data, Price Finder, Realestate.com.au and Domain.com.au. In addition, reports can be easily prepared in a professional presentation and emailed to a Landlord prior to agreeing to a rental amount for their property. Applications such as Inspectrealestate.com.au also provide opportunities for tenants and Leasing consultants to give feedback about the property to the Landlord/Property Manager, enabling any necessary price adjustments to be considered.
Constant communication is the key in any leasing situation. For a new property being leased, my rule of thumb is that a daily phone call and follow-up email should made until the property is rented. For a re-let, I recommend providing feedback and suggestions with a phone call after every inspection and, as always, following up with an email.
If the property is not renting for its current price and needs a price reduction, even after you have successfully provided a CMA, then this proposed adjustment will need justification.
Aside from providing feedback, what other factors could you use to obtain the Landlords agreement to a rent reduction?
Some of the reasons causing the property not to rent could include:
So when you have to ask the Landlord to consider a rent reduction, you better have some justification as to why.
In order to convince your client to drop their rent, you’ll also need to ‘show them the numbers’. Quite often, as little as two weeks vacancy could amount to over $20 less rent per week in a 12 month lease. With a few quick calculations drawn up on a table, you can indicate to the Landlord the advantage in reducing the rent in order to get a return coming in, while suggesting a possible rent rise on the next lease renewal.
In any event, we must remember that a Landlord’s first concern usually revolves around generating enough income to pay the mortgage. It’s your job to understand this motivation and provide solutions as quickly and effectively as possible.
Don't forget, the Agency doesn’t get paid when a property is vacant, so it’s in everyone's interest to minimise vacancies wherever possible, while continuing to bring valued rental returns for the Landlord.
Happy Leasing!
Karen Herbert
Director, Property Management Rescue (a BWT Associate)
karen@pmrescue.com.au
An article by Peter O'Brien (Victoria).
International Women's Day was on March 8th, 2016. It is a global day celebrating the social, economic, cultural and political achievements of women. Was this day acknowledged at your workplace? You know, it’s not too late!
I would like to dedicate this article as my appreciation to all the women that I have worked with who have been responsible for teaching me and guiding me to where I am today.
Property Management is one career that we see where most positions are predominantly filled by females. This is across senior management level right through to employees working in administration and supporting roles. Real Estate Sales departments are still very much in line with many other industries with the number of women employed in this area being far less than males.
I am not here to debate which gender is better than the other or who is most suited to what role. My aim today is to remind us that when we are looking to employ a new staff member it is important to consider applicants of both genders. Ask yourself would your company have a predetermine decision already made as to which gender they will employee for an advertised CEO position? Or whilst we are discussing equality, would your company hire a male receptionist?
Our industry should lead the way for other industries and be pro-active in raising the female labour force participation rate to match that of men. Real Estate Companies in all states and territories must ensure all their talent processes are equitable, fair and that they further their gender parity and diversity objectives.
As employees and individuals we can seek out perspectives that are different from that of the caveman era and instead prioritize building diverse teams and engage ourselves in mixed networks that help build trusted relationships amongst ourselves. By moving from talk to purposeful action - and with men and women joining forces - we can collectively help women advance equal to their numbers and realize the limitless potential they offer the real estate industry and economies all over the world.
So, I would like acknowledge International Women’s Day, with this message from me!
Women! Without you, our lives would be without care, compassion, love, feelings, control, empowerment, coordination, education, desires, wants, goals, determination, strength, contentment, happiness, joy, laughter, tears, emotions, frustration, thankfulness, gratitude, appreciation, manners, cleanliness, hygiene, work ethic, empathy, goodness, honesty, purity, leadership, personality, immunity, passion, organisation, assistance, help, trust, beauty, children, - a beginning and an end........
An article by Peter O'Brien
In most States and Territories of Australia subletting a house on Airbnb is legal, if you have the "written consent" of your landlord. Landlords are required to give consent to reasonable subletting requests, meaning the subletting operates in a legal grey area.
Our industry is at threat of a number of possibilities that is beginning to result as the popularity of Airbnb grows.
- More and more property Owners are now considering using Airbnb instead of engaging a Property Management Company to lease and manage their property.
- Property Managers find it difficult to “police” this activity in their managed properties.
- Owners are allowing Tenants to sublet their properties because it provides a revenue source which will assist the tenants to meet their rental obligations.
- There is no control that the Property Manager has over who is residing in the managed property.
- If the managed property is now earning an income for the tenant there is question as to the need to change the lease from a Residential Tenancies Lease Agreement to that of a Commercial Lease.
- There are certain factors which may cause implications for insurance coverage. This can affect not only the Owners property insurance but also the P.I Insurance that is held by the Agent.
- There is questions concerning which legislation covers the property if it is being utilised as an Airbnb property. Does it fall under the category of holiday leasing or shared housing?
Airbnb’s true size has been the subject of much speculation by lobby groups for some time but an investigationby Fairfax mediareveals the scale of the booming sharing economy. There are almost 1500 apartments and houses in Melbourne’s inner suburbs listed on Airbnb’s Australian website, 180 alone in Southbank, and 190 in the central business district and 27 in docklands. Further out, there are 171 listings in St Kilda, and 104 in Fitzroy. Ofthe 1500 listings, about 1100 are apartments. Overall, the company says, it has more than 8000 listings across the state, double the number from 2014 – and it predicts it will double again in 2016.
There are many potential problems that Airbnb can cause Property Managers. In the long term, Airbnb could potentially push hotels and motels out of business, leading to job losses. It can potentially so the same to Property Management business’s.
Owner’s corporations are fighting for the right to lock Airbnb out of their buildings for good. Lobby groups are clamouring for the government to regulate the area and give owners corporations/body corporates in apartment blocks the power to stop short-stay rentals. Do Property Managers and Real Estate Business Owners need to be worried about the future?
Below is what Airbnb have published on their website providing advice on what tenants should do when acting as Airbnb Hosts.
Do you have any tips for talking to my landlord about Airbnb?
Sure! Here are some tips to consider before you talk with your landlord about Airbnb.
Understand your lease.
Many hosts already know the details of their lease. If you don’t, start by getting familiar with it. Review any rules about guests or subletting carefully and ask your landlord if you have questions.
Offer to provide advanced notice when hosting.
To show that you want to be courteous to your landlord and neighbours, consider offering them advance notice whenever you have a booking. With your guests’ permission, you could also share their names or Airbnb profile pages with your landlord.
Be a responsible host.
Show your landlord that you care about the property and your neighbours as much as they do. Here are some things you can do that may show your landlord you’re a responsible host:
- Only allow groups of a certain size to stay at your home by setting an occupancy limit.
- Share your home and building rules with each guest.
- Provide your guests with phone numbers for emergency responders and a map of emergency exits and evacuation routes.
- Make sure you have a working smoke and carbon monoxide detector.
- Inform neighbours when a guest will be staying in your home.
Make a great first impression.
Consider giving your landlord your resume or showing them some photos of your home to help them understand who you are. Knowing more about you and the way you take care of your space will show your landlord that you’re responsible, caring, and respectful.
Get the neighbours on-board.
Making sure your neighbours are comfortable might help address some of your landlord’s concerns. If they have any concerns about you hosting, you can let your neighbours know that Airbnb is here to address them over the phone or online, 24/7.
Provide information about Airbnb.
Tell your landlord about Airbnb’s trust and safety resources, including community reviews and verified ID. Remind them that you only host people you feel comfortable with. If applicable in your country, you can also explain that Airbnb offers a US$1 million host guarantee.
Educate, inform, inspire.
Airbnb's hosts have helped over 30 million travellers have wonderful travel expenses. Hundreds of corporations now encourage their employees to use Airbnb for business travel. These are guests that landlords should feel comfortable with.