Property Management in Australia

Property Management in Australia

Have you ever wondered why there is a need for property management in Australia?  We live in a privileged society, with a highly regulated property industry.  Property and tenancy legislation is in place, and we have protection offered to both tenants and landlords.  All around the country, including right here in Brisbane, we have a healthy rental market.  There is a wide choice of properties, and a constant demand for new rentals.

But we have all heard the horror stories – on all sides of the property equation.  For example:

  • Tenants who have damaged a rental property and failed to make good on repairs
  • Landlords who do not adequately maintain their property to the detriment of the tenants
  • Property managers who fail to keep landlords informed of vacancies, and so on.

These scenarios are no longer necessarily a part of your rental experience because of the rise of specialist property management agencies in the Brisbane area.  Fortunately, no longer should you expect a real estate sales office to provide the best property management solution.

Typically, property investors spend considerable effort in finding exactly the right property in exactly the right location.  Or at least – we hope they do!  Trouble is, oftentimes investors would give little or no thought to the management of that property.  Neither was consideration given to the most appropriate tenants, or the correct rental appraisal.  In the old days, a property investor might choose a property manager from the same company as the sales agent, in the mistaken belief that the sales agent would understand the local rental market.  Whilst this statement is true of the property sales market, it is not always a given that the sales agent would be acquainted with the rental market.

Or the investor might try to reduce costs by choosing the cheapest property manager, or do away with a manager altogether, and attempt to do their own property management.

Times have changed in Property Management in Australia

As we all know, purchasing a rental property in Brisbane, or anywhere in Australia these days has become a serious investment, so that much hasn’t changed.  Fortunately, the options to find a professional property management agency have improved significantly with the rise of specialist – or dedicated – property management agencies.

If the purchase of an investment property is serious business, then the management of that property should also be viewed as a serious business, because you need to maximise the return on that investment.  A specialist property manager is more like a business partner, to assist you in the business management of your investment, and to provide the best advice in how to maximise your return, and to provide you with the best outcomes and long term advice.

What is Property Management?

Property Management in Australia is the process by which a property owner can assign responsibility for the property to a qualified manager.  This is usually in the event that the property is leased or rented to a tenant.  The appointed property manager will usually be accountable for controlling, operating, managing and overseeing all aspects of the land, and the building/s on the land.

Why Do I Need Property Management

We really are blessed to live in a country like Australia with a high standard of living.  Along with excellent social amenities, we have a high standard of housing available.  We are blessed to have ample opportunity to work, rest and play.

We live in an orderly sensible society – so why do you need a property manager to look after a rental property?

The answer is that there is a lot more to managing a rental property than simply collecting the rent payments each week.  Property Management is more about correctly matching the needs of the tenant and the landlord, as well as the type of property.  No two properties are exactly the same, and neither should you expect your property manager to be a one size suits all solution.

So do some research to find a good property manager in Brisbane.  Be sure to ask some questions of the property management department!

  • Do you offer specialist property management services?
  • Do you provide a dedicated property manager to manage my property?
  • How much experience does your property management team have?
  • Are your property management team property owners themselves?
  • Are your property management team investment property owners themselves?
  • What areas do you specialise in, or have experience in, in Brisbane?
  • How do you screen prospective tenants?
  • What is the procedure for handling rental arrears?
  • How do you appraise my property for the weekly rental?
  • Do you provide inspection reports?
  • What is your maintenance policy and who are your preferred contractors?
  • Typically how many rental properties is each property manager required to manage?

Do I need a Property Manager?

It is a common conundrum for many landlords. It seems that there are some who fail to appreciate the relationship with their property manager is actually akin to an ongoing business partnership.  Historically, investors would spend hours searching for properties and doing due diligence on potential property purchases.  However, as soon as a deal was struck, the same investor would spend minimal time in the selection of a property manager.  Unfortunately, this is generally in the mistaken belief that rental returns will flow automatically.  Or worse – that they would be able to manage the property themselves.  Almost always, this is not the case.

Landlords tend to decide on a property manager due to the costs of the property management services offered by prospective managers.  But this fails to take into account the success rate for finding tenants, the vacancy rate for keeping tenants, and the overall costs of managing your property in the long term.  This selection method also completely misses the point about the level of maturity and experience of the property manager.

Some property owners decide to try without a property manager and try to do the property management tasks by themselves.   This is risky when they may not realise that property management is much more than just visiting your property every now and again.

Maximise returns from your property – minimise vacancies!

Not only is there more to property management than just doing a cursory visit, there is more to reducing the vacancy rate of your investment property than meets the eye.  To effectively maximise the return on investment from your investment property, it requires specialist property management expertise from your chosen manager.  Because we live in the information age, it is no longer a requirement that your property manager be located in exactly the same Brisbane suburb as your investment property.  However, it is reasonable that you expect your property manager to have experience in that location and good knowledge of the surrounds.

Here is a list of some of the factors that should be important in your choice of property manager:

  • Location specific experience in your Brisbane suburb
  • Industry specific knowledge in the marketing of your property
  • Location and industry skills at rental market appraisal in Brisbane
  • Choice of rental rate to match your property with the best tenant
  • Selection of tenant to meet the long-term objectives of both the tenant and the landlord
  • Choice of lease agreement to be fair to both tenant and the landlord
  • Screen prospective tenants to find the most reliable tenant for the type and location of the property
  • Policy for conduct of repairs and maintenance
  • Professionalism as a business partnership to maximise your return on investment.

Why choose Position One Property?

At Position One Property in Brisbane, we pride ourselves on providing specialist property management services to our loyal clients.  We strive to be your number one business partner in property, and we aim to deliver the best return on your property investment.

We achieve this ambition by matching the best tenants with the best and most appropriate rental properties in Brisbane.  Furthermore, we believe that by accomplishing the best outcomes for tenants and landlords alike, that we will achieve the best long-term outcomes for all of our clients.

What this means is that Position One Property management services are the best choice for your investment property.  This means we take very seriously the responsibility for the property under our management.  At Position One Property, property management is our business specialty.  Most of all, we strive to earn the right to be your trusted business partner in the management of some of your most significant investments.

We Treat Your Property Like Our Own

At Position One, we treat all of our clients as valued customers, and that includes tenants and landlords alike.  The reason is that we treat each of our managed properties as if it were our own property.  That means we manage each and every occurrence with the importance that you would place upon your own property.

We will keep you informed and up to date, whether it be:

  • a routine inspection,
  • rental appraisal,
  • preventative maintenance,
  • or an impending vacancy.

If you wish to be involved in making decisions or prefer to leave it to us, we understand.  We keep your priorities uppermost in mind.

Are you new to the property investment market?  Or you have an existing property with an existing tenant? Or any situation in between these two?  We can discuss and arrange a tailored solution to meet your needs, and to help you maximise the returns on your investment property.

Get in touch with one of our Brisbane property management specialists today at Position One Property on 07 3843 4511!

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Dealing With That House For Rent in Brisbane

House for Rent in BrisbaneAt Position One, we love Queenslanders!  As a professional property management specialist in Brisbane, we confess that we have a passion for Queenslander style houses.  We love matching these gorgeous character homes with people who also have a passion to live in them.  If you have a Queenslander style house for rent in Brisbane, we’d love to help you find a suitable tenant.

We also love modern homes, units, apartments, new, old or in between.  It’s fair to say that what we love is matching people from all walks of life with their ideal homes.  And the possibilities are endless.  Whether you are looking for a house to rent in Brisbane or you are a property owner with a house to rent in Brisbane, you will find Position One Property to be your ideal choice of Property Management Agency.  We say this because we consider each and every client as though they are the only One.

Whether you may or may not be into Queenslander style homes, Position One Property will find the style to suit you.  If you are looking for a house to rent in Brisbane, we have a large variety of properties and styles to suit you.  Take a look at our available rentals (at https://www.positionone.com.au/rentals/find-a-rental/ ) for the location, style and property features that suit you.  If you can’t see what you need, please contact us so that we can tailor a search for your requirements.

If you are a landlord placing a house for rent in Brisbane, or if you have a forthcoming vacancy, please feel free to visit our agency (or click this link to our Property Management Agency at https://www.positionone.com.au/property-management-services/our-services/).

Whether you are looking for a house for rent in Brisbane or whether you have a property looking for a tenant – Position One Property is the best placed agency to help you.  When you think of a house for rent in Brisbane, think of Position One.

For tenants:

At Position One Property, our priority is to list properties that we have available for lease on our website as soon as we have them approved for release.  In some cases, this happens before they become available!  We encourage you to contact us quickly if you are interested in any particular property – they can be snapped up quickly.  Always register for an inspection, in case the situation changes with the property and we need to contact you.  We provide all property information to the best of our knowledge.  We provide clear, recent photos to represent the property as best we can prior to inspection.  If you can’t find what you want immediately, please feel free to consult with one of our friendly property consultants, and we will endeavour to find opportunities for you, or to check the database for upcoming vacancies.

For landlords:

At Position One property, we like to prepare for property listings before they become available so that we can list them on our website with plenty of time.  That is the secret to keeping increased tenancy rates for our landlords!  The earlier we can present your property, the earlier we can address potential tenants.  Character checks can be underway, and reference details obtained on your behalf.  Thorough condition reports are always conducted.  We ensure that we have clear and accurate photos that represent the property well.  The goal is that the photos show the property in its best possible light to prospective tenants.

Dealing With That House For Rent in Brisbane

At Position One Property, we always strive to be meeting your expectations.  We will endeavour to match a suitable tenant for your property as quickly as possible.  This is always done keeping in mind we try to match tenants and properties appropriately.  It takes focus and attention to always do the proper checks on prospective tenants.  We do this to ensure your investment is protected, and that vacancies are minimised in the long term.

If you are a passionate Queenslander like us and you are looking for a house for rent in Brisbane, Contact Us!  Of course, if you are from any other State or country, we warmly welcome you.  We’re only too happy to help you settle in.  Or, if you are a property owner and want to rent out your Brisbane home, Position One Property is the number one property management agency in Brisbane.

Please give us a call on (07) 3843 4511 today.  One of our expert property consultants will be pleased to help.

 

 

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Property Management Fees – What You Need to Know

Property Management Fees QldEach property management agency may charge different property management fees for their services.  You really do need to know what you are paying for.

Appointing the right property manager can mean a big difference to your property success.  The right property manager can make your property a great investment.  The wrong choice means the opposite, a possible loss maker.

You must be set on finding the best qualified property management agency.  Furthermore you also need to know what the costs are that are associated with engaging an agency to manage your property.

So how much should you pay for property management fees in Brisbane, Qld?

As the saying goes, you get what you pay for!  Not paying too much is important!  But sometimes you need to pay for quality, to make sure you get everything that you really need.

At Position One Property, we can help you understand more about property management fees.  You will be reassured that we will explain how our services can provide you with the very best outcomes for your property.  We understand that investing in property is all about managing the costs on the property.  This is precisely what we can help you with – at the same time as providing the very best service.

Just as important is knowing what you get for those fees.  Therefore, our friendly property management team in Brisbane are ready and willing to discuss all your property management questions. We aim to deliver the best rental experience for our clients, and we strive to deliver the best return on your investment.

What are some of the common property management fees?

Fees charged by property management agencies vary in amount and nature.  There are many reasoons for this, which we’re sure you’ll appreciate. Some typical examples of property management fees include commissions on rent, letting fees, administration fees as well as other maintenance and repairs related fees.

Here is a list of the rental fees you are likely to see on your tax statement:

Rental Commissions in Brisbane, Qld

Under normal circumstances, an agent will charge commissions on the rental income that property owners receive. The common practice is that they will deduct the property management commission from the rent collected.  After that they forward the balance to the property owner.  More often than not, these deductions are a percentage of the total rent, and the typical commission in Brisbane and around Queensland is between 7 and 9%.

Letting fee

The letting fee is payable to the property management agency at the start of a rental contract.  This fee is usually deducted from the first income payment. It generally covers the costs associated with finding the right tenant for your property, as well as those associated with preparing letting documents for your new tenant.  Also worth noting is that these fees can vary depending on the anticipated length of tenancy. Fair Trading cites the maximum allowable fees in all circumstances but may not reflect the exact fees charged under your specific property management agreement.

Lease renewal fee

When your lease is renewed with your existing tenant, the property management agency is entitled to charge a lease renewal fee to cover the cost associated with compiling the lease documents.  The Lease renewal fee will be either a fixed fee or a percentage of the weekly rent.

Administration fee

You can reasonably expect to pay for administration costs which will usually be charged as a nominal sum per month.  These are to cover ancillary costs associated with the trust account, phone calls and postage etc.

End of financial year statement

Preparation of the financial year tax statement is charged at fixed and agreed rate.

Advertising

Your property management agent will need to promote your property through the internet or print media.  This will need to be charged as a fixed fee, dependent on the amount of advertising and promotion required for your property.

Holiday accommodation

Position One Property does not manage holiday accommodation.  However, it does not hurt for you to have the understanding that this type of leasing also comes under State legislation requirements.  Your agent, who is also likely to be the onsite property manager, can charge commission on earnings from letting out your property for use as holiday accommodation.  This property management arrangement can tend to work out a little differently from the usual tenancy agreement.  Do make sure you understand the terms and conditions.

Repairs and Maintenance

A rental agency will most certainly charge extra fees where repairs and general maintenance needs to be done.  Consequently, there should always be a written agreement prior to work commencing. These go a long way to ensuring your property remains in good habitable conditions for years to come.

Queensland Government Fees and Charges

The link to the government web page that states what property managers are allowed to charge is here :

https://www.qld.gov.au/law/housing-and-neighbours/renting-and-owning-property/deciding-how-to-manage-your-investment-property/property-management-fees-and-charges/

So how do you know if you are paying too much?

Here is the big question!  Without bias, we at Position One Property believe that better outcomes for our clients are the number one property focus.  What this means is that we find you the best tenant for your property, we offer

What this means is that we:

  • find you the best tenant for your property,
  • offer personalised management of your property, and
  • regularly inspect your property to maintain high standards.

Our stong belief is in delivering the best rental experience for our clients, and that means a better return on your investment.

And here is how we do it. 

We charge the standard fees expected by the industry in the Brisbane region.  We do not try to undercut prices.  The best outcomes are provided for our clients by delivering the best property management services through the best staff, with the best training.  Rentals arrears are not tolerated.  We actively manage the circumstances around the issue of late payments, and resolve these issues before problems arise.

We believe that you should expect the best quality inspection reports when we sign up new tenants.  Additionally, regular routine inspection reports assure you that your property is consistently well maintained.  We provide you quality maintenance services and records of all work performed at your property.  At Position One Property we will actively manage all of your property requirements.  You are provided with appropriate documentation so that you are assured of quality services. These assist with keeping adequate record for taxation purposes.

We strive to deliver the best property management services to all of our clients.  Our belief is that high standards, high-quality service and attention to detail will provide you with a better long term rental experience.  And as our clients will agree, that means a better return on your investment.

Position One is Brisbane’s highly professional Property Management service.   We would love the opportunity to discuss with you how we can best meet your personal property management requirements.  We can also assist you in understanding property management fees.  Please call our friendly Team on (07) 3843 4511 to learn more.

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Selling Houses Is Not For The Faint Hearted

Like the retail industry, buying and selling real estate is built around providing a product or service to the customer. Just like retail, it is the process of identifying something people need or desire and providing them with that item. It also involves daily interaction with people, most of whom are polite, friendly and a delight to work with, and others who are not.

Most of Our Clients Are Delightful

As professionals in our industry, our people at Position One Property are experienced at dealing with all types of personalities. Part of their role is to remain calm and level headed when dealing with difficult clients, and to do their best to solve their problems. Sometimes the clients have the right to be upset when something unexpected spoils their plans, but sometimes we deal with clients who no amount of exceptional service will satisfy.
For example, we understand that buying a home is both an exciting time and also a very stressful one. Buyers are making a major financial commitment, either as occupiers or investors, and they want everything to be perfect. From our point of view, we can only assist to the extent of the information they have given us about their wants.

I Changed my Mind

After finding the ideal property, we are sometimes confronted with a buyer who asks us to negotiate the purchase, then changes their mind before the contracts are signed. Often they have no appreciation of the effort we have already expended but expect us to do it all over again on another property. Of course we do, because they are our clients and we are professionals.

Did I Have an Appointment?

Everyone is busy these days, so it is quite annoying when we arrange an inspection of a property at a time the client requested, and they either show up late or not at all. These days there is really no excuse. Almost everyone has a mobile phone and a quick call or text to let us know what is happening is just common courtesy.

Last Minute Changes a Frustration

Once we have negotiated sale terms verbally, the next step is to prepare the contracts, most of which are fairly standard, but which also contain additional clauses agreed on by everyone. Some buyers have been known to demand other changes after the contracts have been prepared, requiring us to get agreement from the seller.

Who Me? What Did I Do?

Often the buyer seems blissfully unaware of the drama, but contacts us continually wanting updates and asking what the hold-up is. While we do our best to be patient, this type of buyer wants everything done yesterday, but takes no responsibility for their role in the proceedings.

All is Well that Ends Well

Thankfully, this doesn’t happen often as most buyers are obliging and happy that we have found them a home they love.

How Interest Rate Changes Affect Mortgage Repayments

Interest rates in Australia have remained at unusually low levels for several years. Many home owners with existing mortgages took advantage of the situation by continuing to pay their original repayments, negotiated when interest rates were much higher. As a result, they have cut years off the term of their mortgage and saved thousands of dollars in interest.
As property agents, we know that at some time in the future, interest rates will rise. Those new to the home mortgage market may not realise this, and could over-commit themselves. At our agency, Position One Property, we are getting steady enquiries, so this is of concern to us. Understanding how mortgage interest works is important so people can make informed decisions regardless of what the market does in the future.

Making Sense of Interest Rates

The Reserve Bank of Australia sets what is called the “cash” interest rate. This is one of a range of tools used by economists to regulate the economy. They increase the cash interest rate if the economy is overheating and inflation is a danger, or they decrease it to reduce costs overall to stimulate a flagging economy. Since the global financial crisis in 2008, inflation has not been an issue, so the cash rate has stayed low to keep the economy moving.

Variable and Fixed Interest Rates – Which One is Best?

Credit providers take their cue from the cash interest rates, and set their lending rates a few points higher. They also offer two different types of interest rates – variable and fixed. It is important to understand the difference between these two types, as they both have advantages and disadvantages.

Fixed Rates Offer Certainty

A fixed rate allows home owners to lock in a mortgage rate for one to five years. The advantage is that, for those years, home loan repayments are known and can be budgeted for with certainty. The disadvantage is that if the rate is locked in at a high point, and interest rates plummet, home owners must still pay the higher rate.

Variable Rates Rise and Fall with the Market

Variable rates, as the name suggests, usually go down if the cash rate decreases, reducing the interest to be paid. They often don’t have restrictions on making additional payments, and this has been the situation for those home owners mentioned earlier who have kept making the same payments and dramatically reduced their loans over the past few years. With a variable rate, however, when the cash rate rises, so does the mortgage interest rate. Lenders can also raise the mortgage interest rate in response to other market factors. The disadvantage of a variable rate is the lack of certainty as well as how that will affect home budgets.
We caution home buyers to understand this before arranging a home loan. As an ethical real estate agency, we know this is not our responsibility, but we want our clients to be happy with their new property. If Position One Property can help them with some timely information, we are happy to do so.

What Does it Take For Your Tenants to Stay?

Keeping Your Property Portfolio Fully Tenanted Takes PlanningWhether you rent out one house, or manage a broad property portfolio, you will soon realise that keeping the same tenants pays.

Retaining existing tenants reduces the financial overheads caused by searching for new tenants and preparing a property for show.  Conversely, replacing reliable and responsible tenants with an unknown quantity also contains an element of risk that it’s best to avoid.

The market for Brisbane rentals is solid for the right property, which is fantastic news for landlords.  But your tenants may also be tempted by a wide range of choice. To avoid losing valuable tenants, you may need to take steps to encourage them to stay. We’ve compiled some useful tips to help you keep good tenants on board.

Know why they’re leaving

Effectively managing your property portfolio involves keeping your tenants in the loop and keeping communications open so they know where they stand. Taking steps to understand your tenants’ motivations can be key to keeping them on board, as Luc Lovenitti, Principal of Position One Property, explains:

“Tenants move for a variety of reasons, however if you are on top of your lease renewals and you have good communication lines with your tenants you will know why they are not renewing. Based on that answer you can then understand the course of action to take.”

There will always be tenants you can’t retain.  Some because they’re moving to another town or are ready to buy.  But there will be others who are actively looking for new local houses to rent. Brisbane landlords who understand the real story are more likely to find ways to keep valuable tenants on board.

Don’t leave it too late

Like anyone, tenants will start to get worried if they think they’ve nowhere to go.  They will start to look elsewhere if they’re not sure they can stay. A recent survey in the U.S.* suggested that just 5% of tenants are likely to renew if you wait until the last minute, with 43% initiating the renewal process when the first lease is signed!

Beginning the renewal process early gives you the chance to put your tenants’ minds at rest.  It’s a great reassurance to them that they still have a home and you’d like them to stay. We would suggest initiating communications as early as 3 months before the renewal date.  This gives both parties the chance to prepare and gather their thoughts.

Offer an incentive

Increasingly in Brisbane, rentals are being renewed with the aid of incentives.  These incentives make your property seem more valuable than the competition in tenants’ eyes. As their current landlord, you do have the advantage that moving is costly and cumbersome, so offering an incentive shouldn’t have to break the bank.

In the U.S., tenants have suggested that a financial incentive holds the most power over their decision.  Reportedly, over 50% prefer this option to property improvements or gifts.

Surprisingly, a cash offering is not as attractive as a reduction in rent.  So offering a discount for a limited time or waiving the rent for the first month of your new agreement can be a powerful incentive for your tenants to stay. One solution which costs you nothing is to allow your tenants to earn back their security deposit over a period of time. If you feel confident that your tenants value your property then this will strengthen your relationship as a gesture of trust.

Want to know more?

With extensive experience managing property rentals in Brisbane, Position One Property will be happy to help you manage your property portfolio.  A well managed property will often result in happier tenants and keep your best tenants for a longer period of time.

As your property managers, we are the first point of contact for your tenants.  We give them the care and attention they deserve, and they feel they deserve. Our expertise helps us advise you on the current rental market prices.  Want some realistic retention incentives that won’t break the bank?  Ask us!

Please get in touch and we’ll provide all the information you need.  Call the Position One Property office on 3843 4511 !

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Quick Action And Solutions Prevent Rent Defaults by Tenants

We have all heard the old saying that there are two sides to every argument. In property management, this means that every situation must be viewed from two perspectives.  One perspective is from the owner and the other from the tenant. When the subject under examination is rental arrears, we approach it from both sides.  However, the bottom line is always that the rent must be paid on time.

So how does a property management agency ensure that tenants do not fall into arrears? Here at Position One Property we have strong management systems designed to protect the legal interests of both parties. We are members of two of the leading professional organisations in our industry, and we operate our business to the highest ethical standards.

Protection for Property Owners

To protect our property owners, we scrutinise every tenant application to ensure that we are putting forward only the most reliable people. Our belief is that if we accept tenants who have already proven themselves, we are unlikely to be dealing with a default situation further down the track. Not only do we conduct thorough security and reference checks but we also check the Tenancy Information of Australia database for previous defaults.

Missed Payments are under Immediate Scrutiny

Under the terms of the tenancy agreement, rent must always be paid in advance.  Our systems monitor the timing of payments. If a payment is missed, we act immediately rather than let tenants fall further behind. We offer them a range of payment options including BPay, bank cheque, money order and internet or telephone transfers.

Our property owners receive monthly and bi-monthly payments deposited directly into their accounts.  Electronic statements are emailed simultaneously.  Consequently, they can check that the rent is being received as per the tenancy agreement. We also conduct regular inspections of the rental property to check that the tenants are looking after it.

Options for Tenants at Risk of Arrears

Our tenants are also our clients, and we treat them with the respect they deserve as the occupiers of our rental properties. Sometimes though, despite good references and income, unexpected circumstance arise that affect their ability to pay their rent on time.

We always advise our tenants to contact us immediately their circumstances change. The Position One Property approach is to work with them so they can continue their tenancy where possible. This is always preferable to allowing the situation to get to the point where we have no choice but to take legal action.

Solutions for Both Parties

To further protect our owners, we recommend they take out Landlord Insurance .  This is purely for those rare occasions where tenants have fallen into arrears. An insurance claim in these circumstances allows them to recover lost income. This is another way to minimise the impact of rental arrears where they cannot be avoided. At Position One Property we like to provide both parties with solutions.

Don’t Think Your Credit Score Is Important? Think Again

Searching for that perfect property can be frustrating and time consuming so imagine the disappointment you would feel after making the final decision to buy, then being rejected by a lender when you applied for a loan. With all sorts of emotions and thoughts going on, it would be easy to immediately apply to another lender, but this would be a mistake.

We advise our clients to find out how much they can borrow before they start looking so they know what they can afford. This is where the question of a credit score becomes important as the lender assesses their capacity to repay a mortgage. It also makes it easier for our sales staff at Position One Properties to show them properties in their price range.

Rejected for a Home Loan? Find out Why

If you have been rejected for a home loan, the first thing to do is to find out why. If one lender has already rejected an application, the chances are that others will too, for the same reasons. Being rejected by multiple lenders will have an adverse effect on the credit score which is not what you want. Instead, you need to know how to improve that credit score so the next application is approved.

We suggest to clients in this position that they source a credit repair expert to check their history for any defaults that have been incorrectly assigned to their record. This person can also help with the process needed to get these removed. While this is happening, check personal credit habits like overdrawing on credit cards. This is a clear sign that you are not living within your means. Make sure you pay off any purchases every month.

Keep Your Credit Record Clean

It seems obvious but we need to say it. Pay all your bills on or before the due date and pay off any defaults found on your credit file. Moving house and changing jobs are also behaviours that raise red flags against your name as far as lenders are concerned. Stay in the same job and at the same address until your mortgage is approved. If you have not developed a regular savings habit, start now and have, at the very least, a three months history of regular savings of reasonable amounts.

A Little Pre-Planning Goes a Long Way

Depending on the state of your credit history, this may be a long-term project rather than something you can fix quickly. This is why we suggest to our clients that, if they suspect their credit score is not as it should be to get a home loan, they should first focus all their efforts on establishing good spending and saving habits.

At Position One Property we like to help our clients find the home of their dreams. A little thinking and planning before looking for a mortgage lender will make the search so much easier.

Landlords with a House for Rent in Brisbane – Take Note of Reasons People Rent!

It is widely thought that people only rent properties because they can’t afford to buy. These days, however, the property landscape is changing and people are choosing to rent because it suits what they want from their lives.  If you are a landlord with a house for rent in Brisbane (or anywhere else for that matter) this information is critical for you to be aware of.

The common misconception about the reasons people rent paints a picture of unloved properties occupied by people who want to pay less and who would move somewhere else if they could get their hands on some cash. It raises expectations of investment properties being occupied with a string of unsatisfied tenants, one after the next.

House for Rent Brisbane

In reality, some Australians are renting instead of buying as a positive choice and in fact one third of all tenants stay in a property for 10 or more years*. For Position One Property landlords with a house for rent in Brisbane, we know this means the possibility of a long and fruitful relationship with your tenants that offers security and satisfaction for both parties involved.

Reasons people rent

In a changing cultural landscape, Australians are making different choices from those they may have made half a century before. The reasons for renting are changing and with it the opportunities and responsibilities a landlord might face. Here are some of the common reasons your tenants may have rented your property and what that might mean for you:

1. Saving for a down payment

The tenants that still dream of owning their own home are never going to be long-term tenants but it doesn’t mean they won’t care for your home. These people will be enjoying the lower overheads that rental affords while hoarding their savings for a down payment on a property in the future, and possibly repairing their credit rating to be approved for a loan.

It’s worth noting that it may take them some time to achieve their goals and in the meantime they’ll be taking care not to endanger their bond by causing damage to your home. They’ll also be avoiding the costs of moving around. Taking care of these tenants can pay dividends if they recommend your property when it’s time to move on.

2. Can’t afford to buy in their chosen area

The rental map is often very different from the property buyers’ map, where purchasing properties in one suburb is affordable and in others it’s not. Tenants who are fiercely loyal to a particular suburb but simply can’t afford to buy there are ones who have adopted rental as a long term choice.

This is where if you have a house for rent in Brisbane suburbs that are included in catchments for some of the well-reputed Government schools, you may do very well.  If this is an area you wish to know more about, you may find the following link handy : School Catchment Maps http://www.qgso.qld.gov.au/maps/edmap/

When they love a location, there’s a high probability your tenants will stay. The implications of long-term renters is a stable income for you, as well as losing the hassle of locating new tenants time and again. Creating an investment property that feels like a home – making some efforts with fixtures and fittings and extending the use of the outdoor space – helps increase the likelihood of tenants staying with you.

3. They have alternative investments

Crazy as it may sound, buying a property is not the best option for all. In fact, as many house owners move on average every 7 years, the savings made by not owning your own home soon add up. Without the additional overheads of buying and selling fees, council rates and insurance as well as maintaining the property, quite significant savings can be made.

Renters can channel these savings into alternative investments that do not have the overheads that properties involve. Once again, this translates into long-term tenants for landlords who make an effort to care for their investment property and meet their tenants needs.

4. They prefer to have less responsibilities

In today’s hectic working world, when you can turn to your landlord or property manager to deal with a leaking pipe or exploding appliances, then rental starts to look like a good deal.

Although this may be one of the reasons landlords dread (after all, if your tenants aren’t responsible, why should they care), this is simply another reason that can entice renters to stay. Without the danger of unexpected costs, the regular outgoings of renting your home are reassuring for some. A strong rental agreement and security bond can protect your property from careless tenants, while a well-maintained home and access to a reliable property manager when things go wrong can be a reassuring prospect that’s hard to leave.

5. They like the flexibility that renting affords

Home owners are always in danger of not being able to sell quickly, easily and cost-effectively if they wish to move on. Combine this with the high costs of buying and selling and you can see why not everyone wants to own their own home.

As we have seen, however, some tenants have more stable lifestyles than many homeowners who sell in around 7 years. Sometimes the ability to move on is what your tenants prefer, but that doesn’t mean they will immediately move. Flexibility is also having swifter access to your savings for other investments or a less pressured lifestyle, all of which renting continually affords.

Take care of your tenants

Understanding why your tenants rent takes some of the fear out of being a landlord. It’s good to understand that many tenants nowadays are looking for a long-term home and not planning to leave as soon as they can.

This translates into families and individuals who wish to rent a home that is cared for, from a landlord who will swiftly respond if something goes wrong. Get this right, and you have less chance of having to re-advertise every few months and less risk of losing income while the property’s not let.

House for Rent in Brisbane

At Position One Property, we can advise on the best investments you can make to attract the kind of tenants who are likely to stay.  We offer a comprehensive property management service that makes renting your Brisbane property simple and clear. Get in touch now to see how we may be able to help.

Contact the Position One Property Team Now on 07 3843 4511

 

 

* http://www.domain.com.au/news/the-australians-who-prefer-to-rent-not-buy-20150721-gigib6/

 

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Trying To Save A Home Deposit? Read On!

Despite the recent small rise in interest rates by some of the major banks, there has never been a better time to buy property in Brisbane. Low interest loans and median property prices much lower than Sydney and Melbourne are still attracting buyers into the real estate market.

Buyers with a reasonable deposit are in a much better position to secure their ideal property than those who have to borrow most of the funds. Having a smaller mortgage to service is less stressful and gives the borrowers some room to spend money on other, more pleasurable pursuits. Despite what others may say, it is possible to save a deposit but it does involve commitment.

We asked a few of our clients for their top money-saving suggestions and without exception, they nominated sticking to a budget as the place to start. As boring as it sounds, this advice has been around for many years, but they also offered a few other tips that set them on the property ownership path. To help other prospective buyers, Position One Property suggests using these other additional strategies.

Keep Deposit Savings Separate from Other Funds

Open an interest-bearing account specifically for a property deposit and use whatever means available to lock the funds in so they cannot be plundered for other uses. Commit to making regular deposits. The old adage of saving 10% of your gross income is an excellent place to start. This is likely to have a major impact on the budget for those who spend everything they earn, but having the discipline to change old habits is essential if you are serious about saving a deposit.

Pay Off Existing Loans Quickly

Other debts such as credit cards or a personal loan should be paid off quickly. This will immediately free up hundreds of dollars a month that can be put into the deposit savings account. Again, having a strict budget should leave money available for this that would otherwise have been spent. If not, sell unwanted items at a garage sale or online and use the proceeds to pay off debt.

Be Ruthless with Unnecessary Luxuries

It is surprising how much money we waste on things we could do without. Cancelling TV or other similar subscriptions can save around $100 a month or $1,200 a year. Taking lunch to work instead of buying it every day should save around $200 a month or $2,400 a year.

Get a Part Time Job

For those who can, this is a quick way to boost the deposit savings account. A couple of shifts each week at a restaurant or take-away, mowing lawns or any other casual jobs that suit could add $1,000 a month to the deposit account.
Having given all this advice, the other attribute we notice in people who manage to save a substantial deposit is determination. With the willingness to change old habits and stick to a savings plan, anyone can save a home deposit. When you are ready to look for real estate, contact us here at Position One Property** **and we will help you find your perfect place.