Asset Plus Property has been in existence for over 1o years now. Over that time, we have learned through experience how to work with and manage expectations of property owners, tenants and properties. Our expertise is built on experience.
Below are the five essential lessons we have learnt managing thousands of properties in Brisbane over 10 years.
Top 5 lessons from 10 years of Property Management in Brisbane.
Property Management and Real Estate Services can be an emotionally charged business. You are dealing with people’s homes and large investments.
Property Owners understandably often have emotional attachments to their properties, especially if they have lived in the property previously. Sometimes it is difficult for Property Owners to treat the property as a pure investment, as you would treat shares or other investments.
In addition, a property being a tenant’s home justifiably also requires sensitivity in handling issues.
As property managers, we are continuously negotiating with tenants & landlords to manage & meet expectation, all while being impartial and complying with legislation.
It is about being professional and not taking sides. Often it is considered that an agent is Landlord sided, this is not true. We must comply with the Residential Tenancy Act and act in a manner which is fair, objective & balanced.
There are Landlord & Tenants which try and take advantage, which can result in poor outcomes for all parties. It is better that Agents, Landlords & Tenants all act respectfully with consideration for the other party’s position. This results in a good long term relationship, which is advantageous to everyone involved.
Having the right insurance is very important and can be the difference between a loss event being covered or not. Like anything the devil is in the detail.
We recommend Landlords to have Building, Landlord & Contents Insurance and recommend Tenants have Rental Insurance to cover the unexpected.
It is important to have the right insurance, with the right excesses, at the right premium.
Landlord’s usually consider insurance for protection of tenant default, however there are many unfavourable events covered by the right insurance, some include:
- Absconding tenant
- Defaulting tenant
- Death of a tenant
- Untenantability Accidental loss or damage
- Deliberate damage
- Malicious damage
- Storm or rainwater
- Water damage
- Fire or explosion
- Accidental loss or damage
- Deliberate damage
- Malicious damage
- Theft or damage due to theft
- Pet damage
Having the right excess is also very important. Some policies have no or low excess in the event of a claim and other have high excesses which almost make the policy only effective in the event of major loss.
Review your policy, its PDS and ensure you sufficiently cover your risk comfort.
The value of having a good longer term tenant is often discounted in the investment value chain.
A good tenant who maintains a property well and looks after it like their own, can save a Landlord thousands in maintenance and repairs.
A vacancy of even a week and the cost of reletting the property can add up quickly. One weeks rent of $500 plus the let fee $550 and advertising of $300 totals $1,350 or $25 p.w when averaged over a year.
It is often better to extend a good tenants lease for the long term instead of having $5 p.w annual rent increase model.
The Real Estate Industry is governed by several acts including but not limited to the Residential Tenancy Act and Property Occupations Act. There is also legislation governing pool safety, smoke alarms, boundary fencing & tree management plus many more.
It is very important to understand what legal rights all parties have and how to implement the legislation in the day to day business environment.
Managing expectations within the legislation is also difficult. It is important to educate clients on their legal requirements & rights. Often times, common opinion on a position is not in line with the legal obligation.
All too often quality workmanship is overlooked in favour of price. Price is important but ensuring a tradesman is licenced, insured, reliable and does a good job is also very important.
If a job is not done right the first time it can end up very costly in the long run.
We ensure all our trades people have the right licences & insurances in place and if we have not used them previously that they come recommended or have trade references. Most of our contractors we have long term relationships with and we know they do the job right the first time around.
Real Estate maintenance work is not for every contractor. Working with tenants for access and working within agency policies can be challenging. Some contractors specialise in Real Estate maintenance and others will not touch it.
All too often, we are asked to rectify jobs that has not been done properly by a tradesman or as DIY job.
Our rule is do the job right the first time.