Property Management Newsletter RLA 150557
December 2019
How To Identify The Ideal Tenant 30 Day Snapshot
16
Properties Leased
Generally speaking the perfect tenant is one who pays their rent on time, does not make constant demands and looks after the property like it is their own. Securing the right tenant can make owning and managing an investment property a dream. On the other hand, a bad tenant can turn the dream into a nightmare… property damage, unpaid rent, angry neighbours, illegal activities, overcrowding, squatting… the list goes on. Our Top Tips for vetting Tenants: • • • • •
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Ask all potential tenants to fill in a rental application form and closely scrutinise the information they supply Check all identification (we ask for 100 points of ID - passport and/or driver’s licence, utility bills, etc in the tenant’s name) Speak with previous landlords and property managers they have listed, asking… o Is any rent still owed? o Was there a history of late payments? o Did they leave any major property damage? o Were there any recorded issues with neighbours or police? o Did they get their bond back? o Would you rent to them again? Check all references thoroughly (landlord, employer and character) Confirm income (we ask to see 3 months’ of payslips or bank statements). Their income should cover the rent plus normal living expenses Review history of their rental payments if they have previously rented through a real estate agent
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Confirm employment status (check income and how long they have worked for their current employer; if they have recently changed jobs, call their past employer to establish their employment record) Search national tenancy databases to see if they have been listed previously as a ‘bad’ tenant Meet prospective tenants in person to get a ‘feel’ for who they are before they sign a lease
Watch out for these ‘red flags’: • • • •
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Tenants that have a thin employment history (i.e. a string of short-term jobs, gaps in employment and unstable income). Gaps in their rental history or the names and contact details of some landlords are missing from the application. They don’t show proof of income. The ratios are out – spread of rent-toincome should be between 25 and 38%. If the tenant would be paying more than 30% of their income in rent, they may not be able to afford it. They try to negotiate the bond or ask to pay after they’ve moved in They don’t have independent references (e.g. they only provide the names of family or friends) They offer to pay in cash and weeks in advance (this could be a warning that the intention is to use the premises for illegal purposes like drug manufacture) all. Article sourced EBM rentcover.com.au
1,038
Property Enquiries
20
Average Days on the Market (-2 days from November)
54
Open Inspections
531
Prospective Tenants Through
$405
Adverage Rent Per Week (+1% from November)
Adelaide Crowned Top Performing Capital for Price Growth
Adelaide’s property confidence is set to hit new heights with the state capital officially named Australia’s leading market for house price growth by Terry Ryder, a specialist researcher/writer on residential property for over 35 years, and the creator of Hotspotting, dedicated to identifying emerging property markets. The latest today quarterly price predictor index released showed 65% of Adelaide suburbs experiencing growth in their median house prices over the past 12 months.
The Marion LGA, a middle-market area in the southwest of Adelaide, has been a market leader for the past 18 months, and a real standout, ranking nationally.
This equates to a total of 56 Adelaide suburbs, compared to just 18 in Sydney, 21 in Brisbane and Melbourne, 35 in Perth, and 10 in Hobart.
Marion LGA has 9 suburbs with rising sales patterns, including Ascot Park, Glengowrie, Hallett Cove, Marion, O’Halloran Hill, Sheidow Park and Seacombe Gardens.
Mr Ryder said Adelaide’s sales performance was remarkable, with two-thirds of its suburbs recording price growth of more than 5% and continues to rank well ahead of Sydney, Melbourne and Brisbane, as well as the recovering Perth market, in terms of the number of growth suburbs.
In the five years Hotspotting has been conducting quarterly surveys of sales activity and price trends, Adelaide has never delivered a poor result.
There are 11 Councils across the metropolitan area with three or more suburbs showing upwardly-mobile markets.
Most cities experience peaks and troughs in that time, but Adelaide just keeps on producing steady markets with consistent demand. 3 1 5
$400
Tips to Protect Your Home While You’re on Holidays
Information sourced & full story on realestate.com.au
Adverage Rent Per Week
The Christmas – New Year period is a time when many of us decide to travel and take a holiday. There is more involved in preparing for a trip than simply packing enough beach towels or finding minders for the family pets. At this time of year burglars are opportunistic in their activity and on the prowl. Here are some tips to better protect your home while you are away. 1. Check and secure all locks & make it look like you’re at home - If you have faulty locks on doors, windows or entry points, replace them. When leaving, double check all locks are secured, and have another family member triple check. Lock the garage and gates, activate your security system and bring in the spare key you have hidden outside. 2. Make your home look occupied - Mow your lawn just before leaving and keep the second car, if you have one, in the driveway. Thieves are 3 to come 1 3 if anyone walks onto your drawn to dark spaces to hide their activity. Consider installing outside motion detector sensor lights on property. Add timer switches to some of your internal lights so they come on automatically for a period of time each night. 3. Cancel the post and deliveries - Having junk mail and letters spilling out of the mailbox is an obvious sign no one is home. Think about redirecting or getting a hold put on your mail and newspaper deliveries. 4. Carefully discard Christmas packaging - You may be excited about the new large screen TV sitting under the tree, and happy to get the bulky packaging it came in out of the house. But displaying the cardboard box it came in, complete with its make and style on the front kerb next to the garbage bin is bait for thieves. 5. Don’t be too social - While the holidays are a time for us all to enjoy each other’s company, be careful in how you share your adventures displaying Instagram photos from New York or checking into Facebook from Fiji lets everyone know you’re not home. 6. Talk your neighbours - Let your neighbours know you will be during the Marion holidays and that they can contact you if anything was to 2Aaway Jacob Street, happen. If you have a good relationship, ask them to keep an eye on your place. 7. Check your insurance - For peace of mind before you head off it’s worth making sure your home and contents insurance is up to date and paid. $360 per week | Rented after first open
Gary J Smith Real Estate Property Management 403 Marion Road, Plympton SA | (08) 8297 9323 Note: The articles contained within this newsletter are intended as information and opinions only and readers should not rely solely on its content. Whilst every endeavor is made to ensure the content is current and accurate, readers should always seek their own independent professional advice before making decisions. If your property is listed or managed by another agent, please disregard this communication. | RLA 150557