5 traits of good property management companies – how does yours compare?

Life as a landlord can be challenging (and we’ve all heard the self-management horror stories) but if you choose a proactive property management company you will likely find being a landlord more enjoyable and attract a better quality of tenants.

Here are five qualities that great property management companies have in common – how many traits does your current company possess?

1. Property managers are inquisitive. The best of them know exactly the right questions to ask potential tenants. Highly inquisitive, with sharp minds, they genuinely enjoy getting to know people and have developed great intuition. At LJ Hooker Mandurah we do this through having a dedicated Leasing Manager and experienced office staff who have detective like minds when it comes to checking applicants and their previous rental history.  Selecting reliable tenants is a skill and the more experienced you are at it the better. As a self-managing landlord you might check tenants once a year when you find someone new. We do it every day and we’re not afraid to ask the tough questions – although our team always do this with the utmost respect and courtesy for all applicants.

2. Good property managers know that relationships are critical, they know how to build relationships and a mutual trust between landlords and tenants. At first glance you might think, hang on a minute – aren’t tenants meant to be the reliable and trustworthy ones? But landlords have a role to play too because renting a property is a two-way street. There needs to be mutual trust between both parties. The more your tenant trusts your property management company (and vice versa), the healthier the professional relationship will be, and the longer it will last. Finding tenants can be time-consuming and costly, so make sure your property management company develops solid relationship with your current occupants. This will minimise the risk of conflict, your tenant moving on, or of your tenants paying you late!

3. Good property managers are proactive when it comes to property, there’s always the risk that something might go wrong unexpectedly. A pipe could burst, a window could break, the shower could stop working. Whatever the trouble, it’s important that your tenants can trust that you, as the landlord will fix the problem quickly and to your best ability. If you take too long to respond, this could lead to resentment, conflict and ultimately to the tenant leaving or potentially even taking legal action. If for some reason you can’t respond to the problem quickly things can quickly escalate. That’s why it’s vital that the property management you choose are proactive. At LJ Hooker Mandurah we have a list of preferred contractors and will always endeavour to resolve issues in the shortest time possible for you and your tenant.  It’s all about showing the tenant that you care and keeping them happy to minimise vacancy time. A happy tenant stays for longer, giving you less stress and expense.  

4. Good property managers are excellent communicators. When landlords choose to self-manage, major problems can arise if landlords and tenants stop communicating regularly. Good property managers keep the lines of communication open throughout the entirety of the tenancy, not just in the beginning of the agreement. They check in regularly to make sure the property is in good condition, there are no issues that need to be fixed, and that the tenant is comfortable and content. This helps to foster a sense of trust (as per point two) and has the added bonus of helping you stay on top of maintenance.

5. Good property managers are highly organised. After all, a property managers job requires a fair amount of paperwork. The best property managers have online systems that ensures nothing get missed. They aim to stay one step ahead of the game at all times. For example, things are scheduled in advance like rent reviews, lease renewals and property check-ups, so nothing is sprung on their tenants unexpectedly. Good time management skills are a must, and will reduce your chances of experiencing stress or conflict.

At the end of the day you want a property management company who give their property managers time to focus on the job they do best…managing your property. That’s why at LJ Hooker Mandurah we have a large team including Relationship Managers who carry out appraisals and look after our owners until the property is leased. We have a Leasing Manager who conducts all our viewings and gets to know tenants well, helping them find the perfect property and ensuring they’re perfectly suited to your property. Plus we have Assistants for our Property Managers so that our Property Managers ensure they focus on looking after you and your property to the highest standard possible.

To learn more about property investment contact Jo Lockwood-Hall on 0413 076 165 or Mark Labrow on 0431 025 449.

Renting Basics: Understanding Real Estate Leases

Know the Time Period

As part of our ongoing renting basics series, we have been looking at the important aspects of choosing the right place to move into as a tenant. But once you agree that a place is right for you and your potential living companions, there is still a lot of ground to cover! If you have your finances in place, you need to make sure the lease is fair.

This can be a hefty document, and one that requires careful consideration. So what should you be looking for to properly understand a lease?

Too often, people get over-eager to move into a property immediately and sign themselves on without properly checking the length of a lease. This is generally 12 months, but can vary. Make sure you can afford to stay there for this period and pay rent. If not, some negotiating over the exit date might be necessary – this isn’t always easy!

It’s a legal document, so you can’t just up and leave when you feel like it – once you sign, you’re bound as a tenant for this time period. Make sure you know how long you’re going to be there.

Read the Fine Print

A tenancy agreement, according to the Queensland Residential Tenancies Authority (RTA), should have the length of the lease, how much rent is paid and how it is paid, as well as special terms of the lease. This could be anything from not smoking on the premises to only having a certain number of people living in the house. Depending on the property, there will be specifics that you must be aware of.

You don’t want to be caught out finding out too late you must clean the carpet once a month, or moving into a house with your pet cat only to find out that the tenancy agreement states no pets!

Check the Property

According to Fair Trading NSW, tenancy agreements in this state will outline any repairs or modifications that have been promised by the landlord. For example, if a window doesn’t function, then this could be listed in the agreement. Make sure you get exactly what you agreed upon, and go over all of this before you sign on the dotted line.

Generally, a landlord will be happy to provide good living conditions for you – raise any concerns about the home you have and get these fixes down in writing.

Keep Good Records

A year can be a long time, and it’s easy to lose documents or throw out old paperwork. Don’t let this happen with your tenancy agreement. It’s a vital document that you will need when the lease ends, and is effectively the rules you must live by in the house.

Keep this, any bond lodgment forms and copies of emails in a specific folder for safe keeping. Nine times out of 10 they won’t be needed to resolve a dispute, but better safe than sorry! Taking photos of the residency before you move in is also an excellent idea, to prove the condition of the dwelling both before and after your tenancy.

Know Your Rights

The RTA states that you shouldn’t put down any money before you sign a lease, while Fair Trading NSW reminds us never to be rushed into an agreement. Take your time and make sure you know exactly what agreement you are entering!

Renting is a fantastic way to live, and by following these steps to fully understand the paperwork in front of you it should be pain-free and fun. Engaging a legal professional to help you work through everything can always be a good idea.

For further advice contact our office on 9586 5555 or visit http://mandurah.ljhooker.com.au/myljhooker

Tax Time Basics – Time to Get Sorted Pre 30 June

Tax Time Ahead

The end of another financial year is fast approaching and now is a great time to think about the ways you can build and protect your wealth. In this article we take a look at some of the key opportunities that you can potentially take advantage of in the lead up to 30 June.

Time to Boost Your Super

If you have surplus cash flow this financial year, you may wish to consider making additional concessional contributions to super. Doing so may mean you pay less tax this financial year and retire with more superannuation savings.

The concessional contribution cap is an annual limit which for this financial year is $35,000 for people who were aged 49 or over on 30 June 2014 and $30,000 for everyone else. This cap is offered on a ‘use it or lose it’ basis so if you don’t make the maximum contributions, any remaining amount cannot be carried forward or used in future years.

If you’re employed:
Your superannuation guarantee (SG) and any salary sacrifice contributions will count towards this cap. If you want to increase your salary sacrifice you may need to act now as you can only salary sacrifice remuneration that you haven’t yet earned (i.e. any income you earn between now and 30 June and/or beyond 30 June).

If you’re self-employed:
Don’t forget your obligation to make Superannuation Guarantee (SG) contributions of 9.5% this year if you have paid yourself or any employee wages. You also have more flexibility to make concessional contributions at any time up until 30 June. Remember if you do intend on claiming a tax deduction for money you’ve put into super, you will need to complete and lodge a “Notice of Intent” form.

For everyone:
Those who have received money from the sale of an asset, inheritance or with savings set aside, you may wish to consider making an after tax contribution to super, also referred to as a Non-Concessional ContributionMaking non-concessional contributions to super is a great way to boost retirement savings and is a tax effective long-term investment strategy due to the low tax rate payable on investment earnings in super. For this financial year you can put up to $180,000 pa in non-concessional contributions in to super. For those under age 65, you have the option to make larger contributions to top up your super of up to $540,000 using the ‘bring-forward provisions’.

Depending on your income, if you make an after-tax contribution to your super you may be entitled to a Government Co-Contribution of up to $500.

And if you top up your spouse’s super you may receive a tax-offset of up to $540.

If you have a Self Managed Super Fund (SMSF)

Being the trustee of your own self-managed super fund comes with a range of responsibilities. Each year, SMSF’s are required to provide certain information regarding the assets of the fund at 30 June. And if you run a pension within your fund, then it’s important to double check you have paid at least the minimum pension for the financial year.

Selling Assets and Managing Capital Gains

If you’re considering selling assets that trigger a capital gain or capital loss it can pay to seek advice on the timing of the sale as any capital gain or loss made will be assessable in the current financial year.

Deferring the sale of assets may defer the capital gain until future financial years and defer any capital gains tax (CGT) liability. This may be an appropriate strategy if your income in future is likely to be lower than the current financial year.

If you hold an asset for under 12 months, sell it and make a profit, tax will be payable on the entire gain. Deferring the sale of this asset until after you have held it for 12 months or more will attract the general 50% CGT discount.

Prepaying Expenses

If you have an investment loan you could consider pre-paying 12 months interest expense to bring forward a deductible expense and reduce this year’s assessable income.

You can implement a similar strategy if you hold an income protection policy in your personal name. Prepaying 12 months’ worth of premiums on the policy will bring forward a tax-deduction and may reduce the tax you pay this financial year.

Giving to Others

Any donations made to a charity (or “Deductible Gift Recipient”, in tax office jargon) over $2 are tax deductible. There is an ability to spread a deductible donation over a number of years, however you need to make an election to do this. This could allow for the donation to be maximised for its tax deductibility. If you wish to take advantage of this election, you should speak to your taxation adviser.

The best tip when it comes to End of Financial Year planning is not to leave it until the last minute as a little planning now could save you some tax.  For more handy tips, see last year’s article “Stop Horsing Around – Tax Time Tips” or speak to your Financial Adviser about how to take advantage of the tax planning opportunities that are available to you between now and 30 June.

Please visit myljhooker for further articles and tips on a wide range of subjects regarding making the most of your home.

Disclaimer
The article content has been supplied by Innergi Pty Ltd AFSL No 428680 and is under copyright protection. This article does not necessarily reflect the opinion of the publisher.  It is intended to provide general news and information only. The content does not take into  account your personal objectives, financial situation or needs.  While every care has been taken to ensure the accuracy of the information it contains, neither the publishers, authors nor their employees, can be held liable for inaccuracies, errors or omission.

Free ‘Investment Property’ Information Session.

Join us on 21st November for a FREE information session on Investment Property.

Our expert panel will be available to answer your questions, whether you’re just considering an investment or looking to expand your portfolio. Limited spaces so please visit: www.mandurah.ljhooker.com.au/register to register

6pm
LJ Hooker Mandurah
68 Mandurah Terrace, Mandurah