I always dreaded tenants moving out. I had to conduct the final inspection to determine what needed to be fixed, cleaned or taken out of the bond. The worst part was the disagreements with the tenants. It didn’t take me long to realise a good condition report meant less disagreements and a well left property.
Your investment property could be at serious risk of damage with a new trend of tenants holiday letting rooms or the entire property through Airbnb on a per night basis. This can significantly increase the risk of damage and security of your property without the extra reward for you as the landlord.
In other words your tenant could be making extra income from your property but you are wearing the risk.
When you buy an investment property you have to decide how you are going to own the property. Will it be in your name, a self-managed super fund, a company or even a trust? Each one has their own pros and cons so you need to weigh up what works for you. Solid advice is hard to find on this topic but when we were approached by Alan an avid property investor it was too good of an opportunity to pass up. Alan explains in simple terms how to determine what ownership structure works for you. Enjoy.
You would think making the right investment choice is the key to a successful property portfolio. But having the best ownership structure could be even more important to your portfolio’s profitability.
The options can present as a mine field, so getting the right professional advice ahead of your first purchase is critical to minimise tax.
A few weeks ago I received an interesting message from a long time reader of our blogs with a link to a great resource they had put together that helps you figure out if your potential tenant is going to a good or bad one. They asked me to share it with you however it was just not that suitable for the process we take in Australia to screen tenants. So I had to make a few changes before it was appropriate for you. I have now made the tweaks and here it is.
Just recently my tenants gave me a notice to vacate. They’d been living in my house for close to 2 years and now wanted to find something bigger for their growing family.
I immediately thought about how much I used to hate the confrontation with tenants when trying to give them the long list of things they needed to do to get their bond back.
You might be surprised to hear, even the smoothest tenancies can hit a snag at the end when it comes to cleaning up, moving out and returning the bond. I’ve had plenty of great tenants turn very difficult at the end.
I still remember the pain.
I would wake up in the middle of the night, wondering if the next rent payment was going to come in. Will the kitchen or the new carpet be ruined? It almost killed me.
My worst tenants ever, and they were only in the house for two months. Those two months felt like two years! EVERY DAY I worried what the next day might bring. After I got court orders to kick them out, they graffitied the whole house from top to bottom. I will never go through that again. Never!
People have been placing For Lease signs in front of houses for almost as long as they have been leasing houses and printing signs. Certainly for much longer than they have been advertising houses for rent on realestate.com.au.
After all the hard work of advertising your property, holding inspections, screening tenants and getting the lease signed, it is hard to imagine why you would want to give your tenants a Notice to Vacate. However, I can say from experience that reasons do come up.
If you are ever faced with a hearing at tenancy tribunal, the first thing is to be sure that you are in the right. However, right or wrong, quite often the tribunal will side with whomever can produce the most accurate and relevant documentation to back up their case.