First National Neilson Partners - Property Magazine - May 2023

Front Cover: 32 Brisbane Street, Berwick

Inside Cover: 80 Payne Rd, Beaconsfield

Featured PROPERTY

Discover ‘Banyandah’ an astonishingly beautiful property amid the glory of the Eastern Ranges.

Discover ‘Banyandah’ an astonishingly beautiful property amid the glory of the Eastern Ranges.

115 Acres of centuries old hardwood rainforest and undulating pastures give way to views across the valley and out to Westernport Bay while high on the ridge sits the timber clad residence, a comfortable 6 bedroom country style homestead with mutiple living areas and a huge farmhouse kitchen. is a very special property for those who live, breath, respect and nuture the natural environment to the core of their being. Once you inspect, you may never want to leave! the core of their being. Once you inspect, you may never want to leave!

115 Acres of centuries old hardwood rainforest and undulating pastures give way to views across the valley and out to Westernport Bay while high on the ridge sits the timber clad residence, a comfortable 6 bedroom country style homestead with mutiple living areas and a huge farmhouse kitchen. This is a very special property for those who live, breath, respect and nuture the natural environment to the core of their being. Once you inspect, you may never want to leave!

the core of their being. Once you inspect, you may never want to leave!

A GUIDE TO BUYING AN INVESTMENT PROPERTY

Buying an investment property is an exciting experience, though how do you navigate the next steps to renting it out? What do you do and who do you talk to?

Step 1: Speak to our Business Development Manager

At Neilson Partners, once you have secured your investment property, your sales agent will consult with you regarding the next step and then put you in touch with Lily Thompson our Business Development Manager.

Step 2: Establish the likely income potential of your investment property

The next step is to establish the likely income potential of your property.

When assessing your investment, many factors will be considered including current and previous market trends, comparative data, property inclusions, presentation, size, location, enquiry levels, infrastructure and much more.

Our aim at Neilson Partners is to utilise our skill to increase the worth of your investment. Our goal is to provide you with a realistic and honest price range between conservative and optimistic, with due consideration for all the factors that may come into play and to ensure a tailored approach going forward.

Step 3: Secure a tenant as soon as possible

To make the process as seamless and stress-free as possible, your Business Development Manager and your sales agent will proceed with open

communication between the Vendor/s and you, the investment property purchaser to ensure a smooth transition.

Our goal is to rent your property for the best rental price, to the best renter, and quicky to achieve great results. Your property can even be advertised for rent before it settles so a tenant can be secured as soon as possible.

Step 4: Matched with a suitable Property Manager

You are now matched with a suitable property manager who will take over the process from here.

Your property manager will arrange:

• Property inspections

• Renter screening

• Renter selection

• Preparation for renter moving in

• Condition reports

The Neilson Partners long-standing property management team understands the complexity of property management and we pride ourselves on exceptional service and results along with a seamless transition for our property investors.

HOW OFTEN CAN A RENTAL PROVIDER RAISE MY RENT?

There are only two reasons that a Rental Provider can issue a rent increase to their Renter…

The Rental Agreement has an end date

The first reason you may be issued with a notice of rent increase is if the rental agreement has an end date. This means the agreement is a fixedterm agreement and most fixed term agreements go for 5 years or less. If the agreement has an end date rental providers can only increase the rent if the agreement states they can and even if so, it can only occur as often as the rules allow.

• Where the rental agreement began before 19 June 2019 the rent cannot be increased more than once every 6 months

• Where the rental agreement began after 19 June 2019 the rent cannot be increased more than once every 12 months

• There are different rules again if the rental premises is a caravan park or a rooming house

The same rules above apply if a rental agreement is a periodical agreement, or monthby-month agreement. Periodical agreements usually start after a fixed-term lease ends.

The fixed-term Rental Agreement is longer than 5 years

The second reason that a rental provider can increase rent is where the fixed-term agreement is longer than 5-years. This is called a long-term rental agreement, or long-term lease. In a long-term lease, the rent may not be increased more than once every 12-months, and this is only if the agreement states so.

Are rental increases legal?

If a rental increase is served correctly under the Victorian Residential Tenancy ACT and in accordance with the above rules then they are legal.

What happens when a Rental Provider increases a Renters rent?

Your Property Manager will begin looking at a rent increase around 3 months before the increase is due.

They will consult with the rental provider and advise them accordingly. If an increase is recommended, a Rental Market Report containing evidence of current market trends and price index will be prepared and then the Renter will be issued with a rental increase notice no less than 60 days prior to the date the rental increase is due to begin.

How much can a Rental Provider raise a Renters rent?

The Residential Tenancy Act does not state exactly how much a Rental Provider can raise rent however when raising a Renters rent, a Rental Provider must provide evidence supporting their decision and how they have calculated the rent increase.

How do you calculate a rent increase?

1. The Consumer Price Index (CPI) as provided by the Australian Bureau of Statistics

2. The Statewide Rent Index which is based on the average rent prices in Victoria

3. A fixed percentage increase

4. A fixed dollar amount

A Rental Provider cannot raise the rent to penalize a Renter for any reason i.e. if they have broken the rental agreement. It should also be noted that changes to the Renter’s bond will not occur when there is a rent increase unless there is a long-term agreement that is being renewed for a further fixed-term of 5-years or more.

LEASED IN MARCH

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