Tag Archives: owners

How to buy an investment property in another state

True Property - How to buy an investment property in another state

When purchasing an investment property, you first need to determine how much you want to spend and which locations meet your budget. You may prefer to buy in the same area as where you currently live but with property prices rising it may not be possible.

Don’t let a lack of funds put you off investing. If the area where you are is expensive you may want to consider cheaper options, such as another suburb, city or state. If you are working in the city, it may be worth it to rent close to work and buy out-of-town – just to get on the property ladder. Either way, it is important to do your research and make an informed decision.

Do your research in the local market

Regardless where you are buying your investment property, you need to know the local market well. Take time to speak to real estate agents locally and try to get as much information about the area as possible. While you can do the bulk of your research online and by phone, you must also go and visit the area where you want to buy and look around. You will get a better feeling for the place and see if it is somewhere you actually want to buy.

Hire a property manager

Once you have made a decision on the location you want to buy in, it’s time to call in the big guns. Local property managers will help you to find out which suburbs appeal to both you and the local tenant. They will also know the type of tenants you will expect to find in the area you are looking. It is crucial to build a network of professionals to help you and a property manager will be your first point of contact. Once you have a property manager, they will oversee everything and can recommend what you need to make your investment profitable.

If you have been putting off investing in property because you can’t afford to buy where you live, there are other options. Consider buying in another city or state and then have a property manager manage it for you.

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How to attract your ideal tenant and let go of the others

True Property - how to attract  your ideal tenant and let go of the rest

When you turn up to your property viewings, organised and well-dressed, you exude confidence. But does your property present the same impression?

Good tenants, the ones you want to rent your property, all want the same thing – to rent a place that looks and feels good. They want to show their friends and family a house they are proud of, a place they can call home. They want to live in nice surroundings. Other tenants don’t care, they just want somewhere, anywhere, to stay. They aren’t interested in making a place their home and will often bypass well-kept properties, because they know a lot will be expected from them.

What will attract your ideal tenant?

  • A simple well-maintained exterior – landscaping, house and fencing
  • Clearly defined parking or nicely maintained garage
  • Windows washed and sparkling clean
  • Flooring in top-notch condition – carpeting or hardwood flooring (or at least get it to a level where it’s as close to new as possible)
  • Make it as bright as possible, with bright lighting inside or lots of natural light – pull back the curtains and let the sunshine pour in.

What will discourage your less-than-ideal tenant?

You can weed out bad tenants before they even know where the property is – through advertising. When talking about the property, mention reference checks and application fees. This will make a good portion of bad tenants run for the hills. You will catch any that slip through the cracks when you screen them.

Highlight the features of the property

Good tenants are those who are looking for a property that will fit into their lifestyle. Tell them that your property is close to cafes, schools, bike trails or is a historic building.

Use words such as “immaculate”, “new paint and carpet”, or “extremely well cared for”. This lets potential tenants know your property is high quality and that you expect it to stay that way.

It may seem like a lot of work and more money to get your property up to a high standard. But, believe me, it will be worth it when that dream tenant renews year after year.

What things do you do when looking for tenants to attract your dream tenant and repel the others?

Don’t blow your budget doing up your rental

True Property -dont blow your budget doing up your rental

One way to make money on a property is to renovate it. Buying a property at a good price and then renovating allows for a good rental yield and also adding capital value to the property.

However, one of the ways to start cutting into profits is by that renovation dragging out, meaning you cannot rent out the property by the date you had hoped and you want to try to avoid that if you can.

How do you undertake a ‘successful project’ – meaning one that comes in on time and on budget.

Work backwards

It’s a tool that pretty much every planner uses, from mums trying to get their kids to school on time, to party planners and contractors. You want that property to be tenanted by the end of the year so how can you make that happen?

Break down those months into weeks and days. What needs to get done by when to make it happen? Budget extra time each week as a buffer, because we all know unexpected things crop up.

If that’s going to be a realistic date then you need to understand the full scope of the project before you pull out the hammer. You need to get your team to find out if you need permits and approvals, and what work you need to do, before you can really agree to an end date.

If you do need permits, the approval process can be frustrating if you haven’t done it before, but if you have a qualified and smart team they will walk you through it and have it smoothed out in no time. A renovation on a rental hopefully means that you’re not adding a second floor to a heritage building or getting cosy to the property line so it should be relatively straight forward.

Renovations can be impressive, knocking down walls to make an open plan layout, or adding an en suite can make a rental look completely different. These changes are likely to get through the planning and approval process faster than if you were thinking of a fancy 3-bedroom addition.

Your Team

Getting a qualified team in place who have done these kind of renovations before will help you no end. You may be a DIYer and want to throw a hammer around – and that’s fine. Make sure you work with your contractors to set up jobs that you can help with – jobs that you can do after hours that will help the contractors during the day time.

Develop a great relationship with your Project Manager  to get the work done. Find out what they are thinking in terms of time, find out what you can do to help – after hours most likely – and then look at the calendar. After going through everything with a fine-tooth comb, after getting all supplies on site (if possible) and allowing for issues such as finding more dry rot than anticipated, does that deadline look like it will happen?

What tricks do you have when trying to get a project finished on time?

What should you do if your tenant doesn’t pay rent

What to do if your tenant doesn't payChristmas and holiday season is always going to be a tough time for some renters. Buying Christmas presents and taking their family away on holiday, money will be tight and something has to give. Most tenants would have budgeted for this time and will still be able to pay their rent, but there will always be some that may fall behind.

What can you do if this happens to you? Regardless of your tenant’s personal problems, you still have a right to get your rent on time. There are a few things to consider:

Is this a one-off occurrence?

If your tenants are usually great at paying but slipped up this once, it may be worth it to give them the benefit of the doubt. If they have come to you and explained the situation (rather than you finding out when the money doesn’t appear in your account) you may be able to work something out with them and agree on a payment plan or deadline of when they will get the money to you.

Does this happen on a regular basis?

If this happens all the time without good reasons you may want to consider taking further action. If the tenant owes at least 14 days rent you can give them a 14-day Notice to Vacate. This is the last resort after you have tried everything else. It is always best to call your tenant first and see if you can come to an agreement and if not, explain to them that further action will be taken.

According to Consumer Affairs Victoria the Notice to Vacate must:

  • be sent to the tenant at the premises by registered post or hand delivered (‘hand delivered’ means giving it personally to the tenant or leaving it with a person apparently over the age of 16 and apparently residing or employed at the tenant’s usual or last known home or business address).
  • be addressed to the tenant.
  • give a specific reason or state that no reason is given in the case of a 120-day notice.
  • be signed by the landlord (or their agent).
  • allow the correct amount of time to give the notice.
  • give the date for the tenant to leave.

How would you deal with a tenant that didn’t pay rent over Christmas? Would you give them the benefit of the doubt?

Is it a good idea to buy an investment property in another city?

As with anything, you need to do your research when it comes to property investment. You first need to determine how much you want to spend and which locations meet your budget. You may prefer to buy in the same area as where you currently live buShould I Buy Property in another Cityt with property prices rising it may not be possible.

Don’t let lack of funds put you off investing. If the area where you are is expensive you may want to consider cheaper options, such as another suburb, city or state. If you are working in the city, it may be worth it to rent close to work and buy out-of-town – just to get on the property ladder. Either way, it is important to do your research and make an informed decision.

Know the local market

Regardless where you are buying your investment property, you need to know the local market well. Take time to speak to real estate agents locally and try to get as much information about the area as possible. While you can do the bulk of your research online and buy phone, you must also go and visit the area where you want to buy and look around. You will get a better feeling for the place and see if it is somewhere you actually want to buy.

Hire a property manager

Once you have made a decision on the location you want to buy in, it’s time to call in the big guns. Local property managers will help you to find out which suburbs appeal to both you and the local tenant. They will also know the type of tenants you will expect to find in the area you are looking. It is crucial to build a network of professionals to help you and a property manager will be your first point of contact. Once you have a property manager, they will oversee everything and can recommend what you need to make your investment profitable.

If you have been putting off investing in property because you can’t afford to buy where you live, there are other options. Consider buying in another city or state and then have a property manager manage it for you.

Getting Your Holiday Home Ready for Summer

I don’t think anyone wants to be reminded that Christmas and the summer holidays are Summer is coming - is your holiday home ready?literally around the corner. Whether you plan on using your holiday home yourself this year or rent it out to tenants, now is the time to get everything organised so it isn’t a mad rush come December.

Carry out a thorough Inspection

It’s important to open your home up and get rid of all the dampness and dust. This will depend if you have rented it out over winter or not. Give it a good spring clean  if it has been shut up all winter. Also, make a note of any repairs that need doing and if any furniture needs replacing.

Redecorating Tips

If you plan to redecorate this year think about what the property is generally used for? Energetic families or laid-back adults require different interior design. If your property is at the beach consider hard-wearing furniture that requires minimal upkeep. Furniture that can be wiped clean easier and bare floors are essential to a beach house, where sand and salt will be trekking through the house for months on end. Keep decor simple so it doesn’t require constant dusting and cleaning.

Security

Security is absolutely essential if your property is left vacant at times. Meet your neighbours and ask them to look after your place while you are not there. If this is not possible, consider hiring a security company that will keep a close eye out. Spend the time and create an inventory of all items in the house. Include a detailed description of what it is and take photos too. It has been suggested to engrave your driver’s license or other ID onto valuables as extra security as well.

Hire a Property Manager

Unless you have an agreement with a tenant who comes back year after year, you may find yourself renting to many tenants over one summer. This can be hard to keep track of and you may wish to hire a property manager to take care of all the details for you. They will carry out regular checks on the place and will also ensure your property is not left vacant, which means more income for you!

Do you have a holiday home you rent out? Or do you prefer to keep your place for yourself for your own family holidays?

How to Make a Small House Appear Larger

how to make a small house appear largerIf you own an investment property that you want to rent out, you want to get the best price possible and you want to have a selection of good quality tenants to choose from. Things like location of the property and any amenities you have will all help you to make more money from your investment but what can  you do if your property is on the small side? Well, good news! There are a few decorating tricks you can apply to ensure you get what your rental is worth.

Reorganise

Get rid of anything that doesn’t belong. The less stuff you have in your place, the bigger it will appear. Tidy up and have only simple furniture. Be creative with your space to make the tenants believe they are getting more space. Show them what the space could be used for. A room will feel bigger if it has a few larger items compared to many small ones.

Keep it light

Paint the walls in light colours such as white or beige and keeping the windows uncovered will create the illusion of depth in a small room. Adding colour will shrink the space whereas white bounces off the light and makes it feel bigger and brighter. A small house will feel bigger if you have wide open spaces outside but if you have to hang curtains for privacy, keep them light and airy.

Multi-Purpose

Having one room that doubles up as another is a good way to save on space. Have a small dining table that can be put away when not in use to convert the dining room into a living room. Or, if you work from home you want to be able to pack your desk away and leave the space free for entertaining.

What design tricks have you done to make your place look larger and more appealing to potential tenants?