Tag Archives: landlords

Resolving Common Rental dilemmas

hiWEB Abel McGrath Claremont Office (17)While renting can offer tenants a certain degree of flexibility and freedom that home ownership does not in some ways, it doesn’t come without its accompanying downside.

Although in the vast majority of cases, tenants and landlords – and the property managers who manage the relationship between the two – things go smoothly on both sides of the equation, there are times when disputes arise, says Abel McGrath Property Manager, Kate Jones.

She said one of the key elements of a good Property Manager’s role is managing disputes and potential disputes before they escalate and ensuring they are resolved swiftly and to the satisfaction of both parties where possible.

Ms Jones said by far the most common cause of disputes was when it came time for the bond to be returned (or not) and often focused on issues regarding property maintenance and care and the condition in which the property was left.

She said with the current market tending to favour the tenants, with lower competition for rental properties across most Perth suburbs, complaints were on the rise with both parties.

“The downturn in the market has certainly added pressure to lessors when tenants request that maintenance be done,” she said.

“However, at times the lessors feel that the returns they are getting on their investment are not consistent with the rental income.”

Ms Jones said it is often when disputes arise between the parties that both sides realise the value of having a good property manager.

“The advantage of having a good property manager is that they will ensure all of the documentation relating to the tenancy and the property is completed in an orderly fashion to avoid conjecture.

“An effective property manager will also be able to negotiate between the two parties and mitigate any potential disputes without acting on responses irrationally or in an emotional manner so that it doesn’t need to escalate any further.”

She said a good property manager needed firstly to have the ability to listen.

“This will help them negotiate a fair solution, mediate a reasonable ground and uphold professional business standards throughout the dispute,” Ms Jones added.

She said tenants always have the option to seek further advice from the Department of Commerce as does the lessor, should they feel that an agent or property manager was acting unfairly or not in line with the Residential Tenancy Agreement.

“Having a recommended Property Manager should give the client some confidence that the recommendation is based on the experience and the rapport they had with that Property Manager or with the agency,” Ms Jones said.

“This should also be consistent with having proper office procedures to ensure that we as Property Managers are acting in line with the Real Estate Business Act.”

She said acting on problems in a timely manner was also important as it ensured accuracy of administrative records and processes.

“It’s also recommended that tenants and lessors alike understand the terms of the Lease Agreement including any special conditions that will reduce the likelihood of conflict arising and of the potential for misunderstanding.”

 

AbelMcGrath_PropertyGroup_Logo2017

 

Advertisements

Why it’s important to listen to what the market tells you

It’s no secret that the West Coast property market is experiencing one of its most challenging periods in recent years.

While markets in Sydney and Melbourne have continued to experience record growth and seemingly continued unmet spiralling demand, the market here has softened considerably in the wake of the resources slow down.

This has impacted not just sellers, but landlords also, who have been forced to readjust their expectations around expected return on their investment.

While at the height of the boom, landlords might have had the luxury of choosing between a plethora of competitive offers, these days, tenants have a lot more bargaining power.

Abel McGrath Property Manager, Samantha Withnell, says although the market is definitely tough in many respects, there are still ways landlords can ensure they get the best out of their investment property.

“Being realistic and listening to good advice is really the key to achieving a decent rental return in a quieter market,” Ms Withnell says.

She says landlords are in general more realistic and are also willing to listen to good quality advice.

“If we educate our landlords on the amount of rent they may lose by keeping their property advertised at the wrong price, they can usually see that the potential long term gain outweighs any short term loss,” Ms Withnell says.

She says although a reasonable rental rate is always imperative for landlords, it is equally important to secure the right tenant.

“Therefore we do find that our landlords are often open to renegotiating to ensure they hang on to or attract a quality tenant.”She says there are a number of ways landlords or investors can ensure a rental property stands out in a softer market.

“Having professional photographs taken for advertising purposes is essential in a competitive market.

“Ensuring the property is clean and tidy and the garden is well maintained, even if a property is vacant, is also extremely important.”

She says it’s also a good idea to look at the rental rate on comparable properties in the same area to give you a guide as to what to expect.

“However the rental rate should stay in line with the current market and it shouldn’t be necessary to reduce the rent below this.”

Ms Withnell says some landlords currently offer extras such as a week’s free rent or gift vouchers to entice good quality tenants and ensure their property stands out from the crowd.

“Enticements such as including pool or garden maintenance, or being a bit more flexible around the issue of pets, can all help to put your property ahead of its competitors.”

She says the Perth market appears to have stabilised at this point with minimal movement up or down expected in the next 12 months.

“And while we understand that in challenging economic times everyone is trying to save money where they can, ensuring you have a good property manager on your side will be far more beneficial in the long run”.