19 April 2017
There’s been a number of unsavoury news reports in the last couple of weeks about rental properties being destroyed by tenants. While these types of incidents are relatively uncommon, it’s worth noting in most cases the rental property in question was privately managed.
While it can be tempting to go it alone and manage your rental by yourself – premised upon the notion of saving on management fees – deciding to not use the services of a professional real estate agent is risky and can often cost you in the long run.
Avoid going it alone
The amount of work involved in managing a property and how complex it can be is often underestimated. While the majority of investors choose to use a property manager, there are still around 40 per cent of investments in WA that are self-managed. In my opinion, it isn’t worth the risk.
A property manager will take care of the day-to-day tasks and responsibilities of managing a property, and they’ll be well-versed on the Residential Tenancies Act. This is particularly useful if the property is damaged, maintenance is required or the tenant is being unreasonable.
As the owner of the rental, your emotional attachment to the property can be a detriment when dealing with the tenants yourself. A property manager acts as a link between the owner and the tenant, and will offer advice based on the best outcome for you.
Access to industry databases
A property manager also has access to the National Tenancy Database so they can identify any applicants who have a poor rental history when it comes to paying rent and maintaining a property. This is priceless information and can help you select the most appropriate tenant from the start.
Marketing your rental property
Perth’s current rental market offers tenants plenty of choice, which means investors need to work harder to attract interest in their property. A property manager will assist you with a marketing campaign to give you a competitive edge.
Plus, they have access to property websites, like reiwa.com which isn’t available to private landlords, so you can ensure your property is seen by as many people as possible.
Do your research before hiring
When selecting a property manager, it’s important you do your research. If you are negotiating with an agent about hiring a property manager, ensure you have a chance to meet them first.
You want to ensure you appoint someone who has excellent communication and people skills, is knowledgeable and experienced in the industry, pays attention to detail, and is professional and highly organised. Check too that they are a REIWA member, so you can be confident your interests are being protected.
Management fees are not excessive and are normally tax deductible. It’s a small price to pay for the peace of mind that comes with having a professional handle the tenancy.
02 March 2017
via Community News
THE Perth rental market is showing signs of improvement, with leasing activity for the December 2016 quarter 23.8 per cent higher than the December 2015 quarter.
REIWA president Hayden Groves said reiwa.com data showed all five sub-regions in Perth experienced notable increases in activity over that time.
“While conditions in the rental market remain challenging, the spike in leasing activity levels between December quarter 2015 and December quarter 2016 is a real positive for the market,” he said.
“Tenants are very active and are taking advantage of favourable conditions.”
Leasing activity also lifted on a quarterly basis, increasing 1.9 per cent in the three months to December.
“All but two of the sub-regions saw a lift in activity over the quarter, with the South-East region the stand out performer,” Mr Groves said.
“At a suburb level, the big winners for leasing activity in the December quarter were Burswood, up 78.9 per cent, Palmyra, up 70.3 per cent, Melville, up 59.1 per cent, Langford, up 54.5 per cent, and Beechboro, up 53.8 per cent.”
Tenants continued to benefit from Perth’s current rental market cycle, with the overall median rent price (houses and units) falling to $360 per week in the December quarter.
Mr Groves said median rent prices had softened slightly across all sub-regions.
“In good news for investors though, there were numerous suburbs within each sub-region that bucked this trend to record increases in their weekly median rent prices over the quarter,” he said.
“Ocean Reef and Burswood in particular saw substantial increases to their median rent prices, which can be attributed to a greater proportion of higher priced rentals leasing during the period. In both these suburbs there was stronger demand for three to five bedroom homes, which usually command a higher weekly rent comparative to smaller properties.”
On average, it was one day quicker to lease a property in the December quarter than it was in the September quarter.
“On an annual basis, the average days to lease a house or unit have come in by almost a week, with reiwa.com data showing it was six days faster to find a tenant in the December quarter 2016 than it was in the December quarter 2015,” Mr Groves said.