Rising stress levels causes landlord, tenant and agent relationships to break

Just ask anyone and they will tell you: “I’m so stressed!”  

While  just enough stress can be a good thing, stress overload is a different story — too much stress isn't good for anyone. For example, feeling a little stress about getting a rental property or a property let can motivate you to be organised and professional throughout the process.  But stressing out too much over it can increase  stress levels and in turn, tempers flare.

Some stressful situations can be extreme and may require special attention and care.

But for most of us we just let everything get on top of us. Prospective tenants can get tense and anxious as the clock ticks towards when they must find a suitable property. Landlords see their savings disappear as the mortgage payment which now must be made by them if their property isn’t letting quickly enough.

Financial burdens and concerns are commonly a cause of stress. This leads to landlords not wanting to spend money on maintenance and tenants not wanting to pay the rent or wanting a reduction if maintenance isn’t being done

Everyone experiences stress a little differently. Some people become angry and act out their stress or take it out on others. Some people internalise it, resulting in negative consequences, often detrimental to their health and wellbeing. Some people who have a chronic illness may find that the symptoms of their illness flare up under an overload of stress.

Keep this in mind if you are a landlord, tenant or agent. Usually there is a reason behind a person’s behavior and that could be stress, so take a breath and put yourself in the other’s shoes.

An agents’ role is to be the mediator between the two parties and to assist relationships. A good agent will do this diplomatically serving g the best interest of all parties.

Beware of screening tenants via Facebook - The States are already facing legal cases over privacy issues!

Source: the Chicago Tribune News

Recently, a tenant applied for a rental and thought they would get the place. They had an excellent record as a tenant, a stable job, and a string of happy landlords in their past. However they were refused... Perhaps they should have checked their Facebook page before applying. Landlords and agents regularly check these, and they make decisions based on what they find. In this tenant’s case he was a political lobbyist and was a devotee of an eastern religion.

Was the information the landlord found the major contributor to his decision, if it was if we were in the States it would have been illegal?

Online searches of applicants' social media postings are on the rise. In the employment area, studies show that employers regularly conduct such searches. For example, a study by the Society for Human Resource Management contacted 541 job recruiters and found that 18 percent said their companies regularly researched their applicants on sites such as Twitter and Facebook. There's no reason to think that landlords and agents are proceeding any differently.

But as tempting as these sources are for information about potential tenants, using them carries a significant legal risk.

Suppose, for example, that you're a landlord who regularly goes online to research applicants. You're about to reject an applicant because of a poor credit score, but you've also viewed his Web page, which reveals that he's a devout (name a mainstream religion). Your applicant is incensed when he doesn't get the apartment and files a complaint with ombudsman...

What could happen from here?

They question you about your motives and, although you explain that the poor credit score alone justified your rejection, you also admit that you knew about the applicant's religion. Unfortunately, you have to convince the investigator that this latter bit of knowledge played no part at all in your decision. You'd have been far better off if you'd never learned of the person's religion in the first place.

You, however, are the applicant with a rejection and a revealing Facebook page. Unfortunately, you have no evidence that the landlord actually saw your page. You won't know whether he did unless you ask him. He's not likely to answer, and you won't get any information until you put him in a position where he'll have to answer. But to do that, you'd have to file a complaint that a fair housing agency will pursue. But your conjecture alone that he may have gone online, because lots of landlords are doing that, probably won't be enough to convince a fair housing official to act on your complaint and initiate an investigation.

There's a lesson here for both landlords and tenants. Landlords, be wary of going to social media sites to check out potential tenants. You may learn information that is totally extraneous to your decisions, but may come back to haunt you when you're challenged to prove that your knowledge of the applicant's religion, ethnicity, age and so on was irrelevant. True, you may also learn that he's a party animal every weekend, but you could probably learn that the old-fashioned way (by talking to past landlords or agents).

And tenants beware: What you post is likely to be viewed by landlords and employers. Think twice before sharing with the entire world!

It’s the little things that count when building an Investment Property

If you're thinking about building and investment home, rather than buying an existing residence, there are some little things to take into consideration when designing the property from scratch...

1. Technology

These days, it’s all about how we can connect so having data cabling and wireless is a key feature.

It also means you do not have to put in at a later date for a greater cost.

2. Water

Saving water in everyday use and the garden is a key benefit tenants look for as utilities bills soar, so consider rain water tank, grey water use and timers on irrigation systems.

3. Living spaces

The preferred option is to have several shared space areas one that blends indoors to outdoor area and at least one other for social gatherings. If it is family home it definitely needs a second living space.

4. Swimming Pools

The appeal of water is high and the preferred option is a lap pool as they can be used for exercise and fun.

FOR RENT: 21 Gilding Street, Royston Park - $870 p/w (Donna Hughes - 0424 178 804)

5. Air conditioning

In our recent hot weather evaporative air continuing in large homes doesn't cut it. Tenants want well ventilated and air conditioned areas in the entire home not just the living area and or bedrooms.

6. Energy efficiency lighting

With the higher price of electricity n natural light and energy efficiency light fittings are critical. It’s a selling point as lowering electricity bills is appealing especially if you want a higher rent. Also make sure light fittings have easy to change globes and fittings are simple to clean

7. Appliances

It’s still stainless steel but consider functionality as well as aesthetics they can him hard to clean. Put a focal piece in the kitchen i.e. a coffee maker, ice dispensing fridge or a wider cook top. You can also put in lighting that adds a great look to the kitchen. Lighting can change a whole room. Make sure appliances have a long warranty.

FOR RENT: 4/6 King Street, Unley Park - $390 p/w (Jenny Coulls - 0488 136 155)

8. Floors

Durable and easy to care for so this means no cream plush carpets. Hard surfaces such as tiles or floating floors (timber floors can soften and indent easily). Carpets only in the bedroom and go for dark colors.

9. Décor

Keep to neutral tones and go with either white and charcoal or white and brown/beige tones.

Don’t use patterns and feature walls as if you have to repaint this just add extra cost.

FOR RENT: 4/21 Edmund Street, Norwood - $270 p/w (Donna Hughes - 0424 178 804)

10. Windows

Shutters r slim line blinds – Venetians get dusty and curtains fade rip and get dirty quickly.

11. Durability and visual appeal

Always think of durability as well as looks. Also consider replacement of appliances and décor items if they have parts or attachments that can’t easily be fixed as you may look at expensive repairs down the track. There is no point paying a little at the beginning only to pay for it in expensive call outs and parts in the future. Sometimes paying a bit more for a reliable brand is better than going for a lesser known cheaper brand.

FOR RENT: 22 Fortrose Avenue, Seaton - $400 p/w (Kate Fuller - 0410 886 677)

Finally - you’re not going to live in the house, you are not building as your dream home. Think of the widest appeal and most functional use first. Whether you would have it or not is irrelevant, many an investment build has not returned what it should as the investor has gone for high end that a tenant won’t appreciate.

Property Management the star of Toop.TV!

On this week's Toop.TV - Toop&Toop's weekly live property update - Kerrie Akkermans, General Manager of Property Management took centre stage and stepped in as host.

Her guests were Toop&Toop Senior Property Manager Debbie Copley and Leasing Partner Sue Belleli.

Toop&Toop's Sue Belleli, Debbie Copley and Kerrie Akkermans

Below are segments of the episode which we think are very valuable for Landlords and Tenants.

Have a look and let us know what you think!

The first segments is all about the proposed changes to the Residential Tenancies Act (this relates to selling a tenanted property, changes to your bond and breaking your lease). To view this segment, follow this link: http://youtu.be/TFVA5KOzkRY

The second segment is about possibly increasing rent prices, the pet bond and when you apply for a rental property treat it like a job interview where you dress nicely and have all of your references in order. This segment is accessible via this link: http://youtu.be/ohYNGuDZEcE

And the third segment is a market update which goes through the vacancy rates:
http://youtu.be/HCKLpWmImuE

Happy viewing property people!

Top tips for dealing with trades people

Deciding on getting building, renovating or repair work done on your rental property is the easy part...selecting who to do it is a different matter.

The cheapest quote isn't necessarily the best, and inferior materials and workmanship can see you paying out far more in the long run.

To find the right trades people is trial and error, but when you find a good one, it is best to stay with them as you build up a relationship on how you both like to work. Build your own list and always have another two to cross compare or call on if your time frames are short and your regular supplier can’t do the work.

1. Check credentials, including registrations and endorsements

It is important to check that the trades person has the right credentials – just because they say they are a builder doesn't mean they are licensed.

Ask whether they have any quality endorsements i.e. ISO9000 or  Master Builders Association certifications.

Enquire if there are any registrations they must have i.e. if your trades person is installing any gas appliances, they must be Gas Safe registered.

Request them to identify any sub contractors they use, as they must comply with the same requirements as the contractor who is the lead on the job that you have the arrangement with.

2. Check they have insurance

Insurance is critical and often forgotten, especially to ask for yearly confirmation. Ensure that the cover is adequate for public liability.

3. Check referencesMake sure you get references. And ask to see previous work – iPhones have it easy to obtain photos and if you can personally inspect their work.

4. Ask for a detailed quoteYou need to be specific in what you want quoted and ask if the type of materials used changes the price and if so, make sure you know what materials are being quoted on.

The labor and parts should be separated out and any contingencies should be stated i.e., if it is a painting job and there is wall paper to remove, make sure it is quoted for if any difficulties arise in removing it.

5. Payment PlanRegardless of what invoicing timing the trades person gives you, ask for staged payments, so you can monitor the work as it is being competed. You can keep them coming back and they have to finish before the last payment is made.

6. Job versus a day rate

If you pay on a day rate then there is no incentive to get the job done in a timely manner, so you are better off getting a fixed rate for a job.

If you are not able to fix prices beforehand, ask the trades person to let you know of any cost over runs before going ahead with the job.

7. Get a written quote

For jobs that run into the hundreds of dollars and above, you should have a written contract with any clauses on pricing differentiation, timings and use of specific materials written in.

8. After the job check the quality

The job should be checked to ensure that the work has been competed to the required skill level and that suitable materials were used. Any supplied goods must be in working order.

If the work is faulty then the trades person needs to fix it before the final payment is made.

9. Payment

Confirm payment has been received and keep a copy of any invoices and receipts for work.

Is buy-to-let still a good strategy?

Buy-to-let has always been an appealing investment option, even more so with the current low rates and the stock market still in an unpredictable state.

The criteria of course is to have a sufficient deposit, so if interest rates move you can still earn a reasonable return on the property as capital value is not increasing to the degree it used to.

Many investors who bought at the top of the boom and with high interest rates are struggling with negatively geared properties. Rental priorities are subject to unexpected costs at any time. If a tenant leaves with unpaid rent or damage that a bond won’t cover the investor is left having to pay out of their own pocket.

However the lower house prices and improving mortgage deals are luring investors once again.

With the flood of sale properties on the market this has meant greater choice for tenants and rental rates have stabilised and in some cases have gone down.

Of course there is no one hundred percent guaranteed return investments for those who prefer property to the stock market then bricks and mortar is still a good option.

That is, as long as you follow some tried and tested rules...

1. Research the market

Make sure buy-to-let is the investment you want. Consult a financial planner to determine where your money will perform best for your situation.

2. Choose an area that has wide appeal for tenants

Wide appeal does not mean most expensive or cheapest. It means a place where people would like to live and this can be for a variety of reasons. 

Is it close to public transport, schools, and lifestyle facilities? Asking yourself the question from the perspective of the potential tenant, not where you would live. But they are probably the most important aspect of a successful buy-to-let investment.

3. Do your sums

It isn't just about "can you afford to pay the mortgage with the rent?" or "can you get the loan?" You need at least three months rent up your sleeve and have sufficient insurance to cover bad tenants or periods without tenants.

Then there are maintenance and upkeep costs. A hot water service will set you back at $1,800 - $2,000, so you need to have sufficient funds to cover it as tenants are entitled to basic services.

A buy-to-let is still a good strategy, just remember to research, find the right property and do your sums.

Home stage your property for maximum rental return

These low cost tips will help you, the Landlord, present your property in its best light. This is critical because if you want to get the most rental return for the property, you need potential tenants to feel that it’s a “not to be missed property”.

Consider the street appeal

Landscaping is nice, but not in everyone's budget. At minimum, lawns should be freshly mowed, and leaves raked. Consider a hanging or potted plant for the entrance. Sweep the porch, deck and all walk ways and ensure that garbage and recycling are tucked neatly away from the front of the house.

Make sure gutters have been cleaned.

Scrub your front door, porch, outside railings and steps. This is cheaper than repainting and makes a world of difference! Once the outside entrance is clean, decide if the paint really needs a touch up.

Get rid of clutter!

If the property is furnished get rid of the clutter.

Office with LOTS of clutter...

...the same office after being de-cluttered - what an improvement!

Turn excess inventory into cash.

If you have a collection of items for projects you never got around to, return them. This also applies to the two-year supply of light bulbs, canned goods or paper products sitting in your basement. You can also put any larger items on Gumtree or eBay.

Watch where the eye goes

There are speedy and low cost solutions to many of the little problems that together make a home seem shabbier than it needs to. Walk along each corridor and into every room and check where your eye is drawn (better yet, ask a critical friend or family member). If the eye is drawn to the chipped white paint on the door frame, take some "white out" and fill it in. If it's those old nail holes in the wall, see if you can hang a picture to cover them.

Find a fix-it person

Ensure cupboards open and shut and that no taps are dripping. Look in all rooms for things you never got around to fixing and decide which ones might be distracting to potential tenants. No, it's not OK for door handles to fall off, even if you have learned to ignore it!

Clean, clean and clean again!

Most mortals can't live in a spotless environment all the time — but it's worth the effort to rent your home for top dollar in this competitive market. You can hire a professional service to come in and deep clean everything.

Untidy hallway...

...the same hallway after being cleaned! See the difference?!

Appliances should sparkle even if you're not including them with the house. After all, you might throw them in later as a negotiating tool. Counter tops, taps, sinks and bathtubs should be shiny and free of water spots.

Dust shelves and vacuum or "Swiffer" the floors. Remember clean windows let in more light and look newer. Hire a service if you have to— it's worth the investment.

If all this attention to detail seems over the top, remember that a very clean home leaves the impression that the house is well cared for. This helps put renters at ease.

Let in some air

Open some windows to air the property. There is nothing worse than walking into a stuffy house or one that smells of smoke and pet odors!

Let in some light

Dimly lit rooms tend to look small and dingy— especially during the day. If you have a particularly dark room, consider investing in better lighting.

With the flood of beautifully staged properties from the sales side flooding the rental market, your property needs to be able to stand out amongst them. Put these tips in place and you should see your property rented quickly let at the rent you want.

Add to your portfolio with this smart investment!

9/34 Byron Road, Black Forest - $255,000

If you're looking for a low-maintenance, single-story unit that looks beautiful on the inside and outside, don't miss the opportunity to check out this charming character unit in popular Black Forest.

This sandstone-fronted unit is perfect for first-home buyers looking for a "home" or investors looking for an attractive, easy-maintenance rental property.

The spacious living/dining area exudes a warm and inviting ambiance and features polished floorboards, high ceilings, skylight, picture rails and a decorative fireplace. It also has a r/c split system and ceiling fan. 

The living/dining area leads into a bright and appealing galley kitchen which has tiled slate floors, ample bench space and is equipped with fridge and washing machine (optional inclusions).

The cosy bedroom is at the heart of the unit with an exposed brick feature wall, ceiling fan and louvered windows.

The bathroom is crisp and appealing with white and soft grey colour tones, a good-sized shower area, pedestal basin, heat lamp, mirrored bathroom cabinet and w.c.

Currently presented as a quiet study area, the alcove is a versatile space. It could be used as a pantry, wardrobe or additional storage space, depending on your requirements.

Another unique feature of this unit is the storage room located off of the main living/dining area. This room could be used for storing a variety of items, such as suitcases, bikes, ladders, etc.

There is also carport which is located to the rear of the property and provides easy access to the unit.

Situated on a wide, tree-lined street, this unique unit is perfectly positioned minutes from shops, local IGA and bakery, playground, bus stop, tram plus train. Travelling by car, it's only 10 minutes from the city. 

This is a delightful offering and definitely worthy of your inspection... 

For more details, please visit www.9-34byron.toop.com.au, or call Debi Zecevich on 0412 170 014 or email her on debi.zecevich@toop.com.au

A tenant's tale of the landlord from hell

David M. Green is a 25-year-old comedian, freelance writer, voice-actor and presenter - originally from Adelaide, now based in Melbourne.

Here is an excerpt from a recent ABC show ‘The Drum’ that scarily has some foundation of truth…

Who hasn't had to deal with a bad landlord at some point? From sparking heaters to pen-operated doors, David M Green shares his own experiences with a less-than ideal landlord.

Being a landlord is like being a parent. No qualifications are necessary. Anyone can become one, no matter what your level of complete incompetence.

And unfortunately if you're the tenant, you're the child in this relationship. If your landlord says you can't dig in the backyard or hang that poster of your favourite band on the wall, those are the rules.

When we think of landlords, it conjures images of Victorian era dandy fops with stovepipe hats, grumbling about the price of coal. But the modern reality is landlords are just regular people. Regular people who own property.

What attracts someone to the wondrous world of landlordism? It's surely the envisioned simplicity of the arrangement - You buy a house or an apartment. Someone else lives in it. They pay it off for you. And you don't have to do anything. Besides watching the rent money roll in, of course.

And even better - after a few years of doing absolutely nothing, your property is worth even more! Sure beats working for a living.

We usually hear horror stories about the Tenants from hell, but I don't think I know a single person who hasn't had to deal with a bad landlord at some point.

Maybe landlords should have to go through the same scrutiny that tenants have to go through before they can enter the rental market?

Bad landlords come in a number of forms. Category one is the "Extreme Lord". Extreme landlords are all over you. They're constantly round at the house, checking things, asking invasive questions, sticking their nose in your business and nitpicking every out-of-place carpet fibre at your all-too-frequent inspections.

One of the worst living arrangements has to be living right next door to your landlord. You're effectively under constant supervision. They know when you're sleeping. They know when you're awake. They know when you're practicing the drums. And if you live next door to your "Extreme" landlord, God help you.

The opposite to the Extreme Lord is the "Shadow Lord". You can never get in contact with the Shadow Lord. They may as well not exist.

If you've got the unfortunate combination of living in a self-managed property under a Shadow Lord, you have my sympathy. There's no real estate agent to help you either. Unless it's to remind you, "You'll have to call the landlord about that." Good luck.

Then there's the "Tight Lord". If they're not avoiding repairs, they're DIY-ing it themselves to save money, or deducting it out of your bond.

I reckon when it comes to tight landlords, my landlord is tighter than a vice made from Chinese finger traps.

When my built-in electric heater started sparking, I immediately called my landlord. His reaction: "Oh, no, you shouldn't be using that. Didn't anyone tell ya?" He then reassured me by promising to "put a sign on it" next time he come round.

No need to replace the heater. Just put a sign on it. I can only assume the sign will say "out of order", though "I need to fix this" would also be acceptable. Eight months later, I'm still waiting for a sign.

When the handle on my screen door broke, effectively locking the door, I was locked outside. Fortunately I had a pen with me, which I used to jimmy open the door. But then I was locked Inside. I immediately called the landlord. He reassured me with some sound advice: "Just keep that pen on ya. And keep a screwdriver in your car."

No need to replace the screen door that could potentially seal me inside my apartment in the event of a fire. Just keep a screwdriver in my car. I used the screwdriver to remove the screen door.

But by far the most entertaining encounter with my landlord came when I finally met him. I'd been living there for 10 months - no inspection, no sign on the heater - when I saw some more sparks. This time they were coming from my circa 1968 fuse box, which proposed a serious fire hazard.

I immediately called the landlord. I suggested a qualified electrician take a look at it. My unqualified landlord insisted he look instead. He came over and literally almost electrocuted himself when he attempted to install a fuse while the main power was still switched on. An electrician was organised within the hour.

So from my ordeal, I can only conclude the way to turn your bad landlord into a good one is through a mild electric shock or near death experience.

Our advice – it’s a funny story just make sure that this isn't you as a landlord.

Tenants turn the tables

Vacancy rates hit an all time high pre Christmas. In previous market conditions landlords have been able to have their pick of tenants, increase rent regularly and were rarely impacted by lease breaks.

This has all changed with the flood of sale properties that have turned to the rental market as their property has not achieved the value the vendors need.

So where have all the tenants gone?

First home buyers are turning away from renting and are becoming home owners, attracted by the lower interest rates and home grants. Compounding this is the increase in unemployment in the highest rental demographic - the 18 to 30 age bracket - as they go back home to live with Mum and Dad. Tenants are now in the box seat when it comes to choice of properties and are offering rents way below the previous market rental returns.

And it's not just in South Australia, many prime rental areas in Melbourne also have homes sitting empty. Landlords have been forced to slash rents as the availability of properties outstrips demand. Diminishing returns has meant landlords are reluctant, and in some cases refuse to maintain properties leading to an increasing number of tribunal disputes.

Residential Tenancies time frames have subsequently blown out and the tenants are commonly favoured when it comes to claims for water or damage.

So who will pay investors mortgages now, as highly geared properties lay vacant and bank fees mount up?

It is important that investors are fully armed with the right information and have access to funding that will withstand market conditions we may have for some time to come. Last year, Toop&Toop partnered with Commonwealth Bank to hold a series of Investment Property  Seminars. The next one is at our Victor Harbor office next Friday, 18 January 2013, 5.30pm – 7pm.

Managing Director of Toop&Toop Real Estate says that the Fleurieu is an ideal location to invest in, and that purchasing in 2013 could prove to be very fruitful.

“We have an aging population who increasingly need to be close to medical facilities, people who are looking for a laid-back lifestyle and activities that are not too expensive. As we age, we also want a quality environment, pretty scenery, to be close to major transport and cultural centres, have all government facilities and support systems readily available... and given that our incomes may be affected, we also need to live cheaply,” Mr Toop said.

“Think about what ticks all those boxes... what is close to Adelaide and has very affordable housing, yet is high class? A place where there are endless activities such as fishing, skiing, sailing, surfing, wineries, tourist destinations, restaurants, golf, bird watching, whale watching, great weather and great scenery? I believe buying here in 2013 will prove very smart indeed.”

Genevieve Toop, General Manager of Sales & Marketing says the event will not only provide valuable information for investors, but that the evening will also be the official grand opening of Toop & Toop’s newest initiative – the Fleurieu Real Estate Gallery.

“We will officially be opening our new ‘Fleurieu Real Estate Gallery’ on the night – a place which will visually showcase what the Fleurieu has to offer in terms of holiday letting, long-term rentals and what is available for sale,” Ms Toop said.

“So if you are in the area, or are heading down to the beach for the weekend, be sure to drop in and find out how you can take advantage of the current market conditions.”

You CAN reserve your place at the seminar online at www.commbank.toop.com.au

For further details, please contact Genevieve Toop on 8366 0811 or 0418 824 178.