Archive for category: Property Management

Furnished or Unfurnished Rental Property: Which Should You Get?

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Renters do not only face the issue of what type of rental property to live in. They also need to decide whether they want a full furnished, partially furnished or unfurnished rental property.

As the name implies, a furnished rental property includes all furniture and appliances. A partially furnished property normally includes only furniture. An unfurnished property has no furniture and appliances.

Here are a few pros and cons to consider for each option before deciding which one is the best fit for you:

Furnished Rental Properties

The actual items that are included in a furnished property will differ depending on the landlord and what type of property you’re renting, but the following items may also be included:

  • Rugs, scatter cushions for beds and couches, linens
  • artwork for the walls, centrepieces, mirrors
  • cutlery, dining sets, cookware, stemware, knife block
  • bookshelf
  • other accessories

Appliances should include:

  • a standard refrigerator
  • stove
  • dishwasher
  • washing machine and dryer
  • air conditioner.

For entertainment, these items may be included in the property:

  • LCD TV
  • DVD player
  • cable and stereo system

The Pros

For tenants

  • Moving will be easy, especially if you frequently change address. You can move on short notice because most of the cumbersome items like furniture will already be in the furnished rental. It’s less expensive to hire professional movers as they’ll have fewer things to pack and move.
  • You don’t need to buy furniture, therefore you save money.
  • If you’re moving on short notice, or if you’re relocating to a different state and can’t see your new home on moving day, renting a furnished property will save you a lot of trouble. Your home is ready to move into; all you have to do is show up.
  • If you’re not ready to commit to a long-term lease, renting a furnished property is the right one for you. Landlords of furnished properties will often accept a shorter lease as they cater to people who don’t remain in one place for too long such as students, sales representatives and other travelling professionals.

For landlords

  • You can easily access lucrative markets, including the business and corporate travellers, and tourists, which in turn can land you high-quality tenants.
  • You can charge about $50 to $100 more in the weekly rental, depending on the location and the quality of the furnishings.
  • The furnished market gives property owners more flexibility in pricing, allowing them to adjust rent according to market trends.
  • There are tax benefits for furnished rental properties. Property owners can write off furniture and other items as a depreciating asset.

The Cons

For tenants

  • Furnished rental properties may require a higher security deposit. This is a kind of insurance for any possible damage to the furniture.
  • Your liability is greater because there are a lot of items that you can break. You don’t own most of these items, so be careful. Your security deposit may not be enough to pay for all the damages throughout your stay.
  • You have no say about the interior design. The looks of the rental property and all the things in it are controlled by the landlord. If you happen to dislike the couch or the bed, you could buy a new one. But what would you do with the old one? Would the landlord allow you in the first place?
  • There are not many furnished rental properties out there. Though a furnished property has a competitive edge in the market, it takes lots of hard work on the part of the landlord to furnish and maintain a property. This makes furnished rental properties hard to come by.
  • The items in a furnished property vary. There is no guarantee what you’re getting because there is no specific standard for “furnished”, so you have to expect to provide the “missing” items in your rental.
  • You may not have a lot of things but you have a few things. If you rent a furnished home, you may need to find room for them. Expect to have some difficulty finding room for the stuffs that you already have.

For landlords

  • Your target market is limited to people who already own furniture and appliances, which can leave your rental property vacant for longer periods of time. The kind of renters that gravitates to furnished rental properties is looking for short-term leases, which means a higher rate of turnover.
  • With a lot of items inside the home, wear and tear is higher, which means more to pay for maintenance costs.
  • Consider your location in your decision to enter the furnished market. Furnished rentals located in the heart of the CBD, with stylish décor and furniture, will attract more prospective tenants than those in the suburbs.

Unfurnished Rental Properties

An unfurnished rental property is empty. No furniture. No appliances. All items are provided and belong to the tenant.

Majority of tenants are looking at a long-term lease, a place where they can stay long enough to make it their own. This category of tenants is mostly looking for an empty property, or with a few neutral-toned furniture or appliance that they can work around to fit their particular taste.

The Pros

For tenants

You are free to decorate the house the way you want it. You may need to ask the landlord’s permission to paint the walls with the colour you like, but you can pick the furniture, appliances and furnishings that match your style.
You can sign a long lease with an unfurnished rental property. This gives you the time to settle in and create a place that you can call home.
An unfurnished house is the perfect way to incorporate your personal style into a place and turn in into a safe haven.

For landlords

  • You’d be attracting tenants who are looking at a long-term lease. This is steady rental income, which means financial security.
  • You don’t need to spend money on buying furniture and appliances.
  • You don’t need to maintain a furniture inventory and stress over replacing any item that becomes
    damage.

The Cons

For tenants

  • If furniture shopping or interior design is not your thing, you’d probably feel annoyed at having to fill up an empty property.
  • It is expensive to buy furniture and appliances, and you’d have to deal with bringing bulky house stuffs when you move. You’d be the one who has to move everything and take out everything again when your lease expires.

For landlords

  • It is not likely to attract high paying tenants like transients and travelling executives.
  • You’d miss out on the group of renters who are willing to pay more for the convenience of living in a home that is already fully furnished.

Partially Furnished Rental Properties

A partly furnished rental property has a few items in it, such as couches, tables, chairs and white goods like a refrigerator, washing machine/dryer, stove and dishwasher.

Tenants who prefer to bring their own belongings but don’t mind a few items already in the rental property, specifically white goods and furniture, would fit greatly with a partly furnished home.

This is a way for property owners to tap into both the furnished and unfurnished markets. It is even better for property owners who have storage where they can keep the furniture and appliance if tenants prefer to use their own.

For investors, consult with your property manager regarding what is best for your property: furnished, unfurnished or partially furnished. They know the market, what most tenants are looking, and how you can position your rental property to appeal to a broader range of renters.

Want Great Tenants? – Get A Good Property Manager

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Are you a homeowner looking for great tenants who will look after your property as if it was their own, and pay the rent on time, every time? There are plenty of horror stories in the media about tenants who wreck every wall and fitting in the house, refuse to pay their rent and resist every legal action to move them on. However, there is a lot you can do to make sure you are letting your property to reliable people who do the right thing.

The Best Tenants Prefer Good Locations

The best tenants are just like the best home owners. When you looked around to buy your home, were you attracted to properties that were clean, neat and tidy, had modern conveniences that worked properly and were located close to employment, transport, schools and other facilities? Of course, you were, and so are the ideal tenants for your home.

Good Tenants Appreciate a Clean and Tidy Property

If your property is looking a little worse for wear, now is the time to spruce it up. Clean any rubbish out of the yard, tidy the gardens, mow the lawn, do any minor repairs, including painting, and finish off the exterior with a complete washing down. The interior should be just as spotless with all fixtures and fittings in working order, window treatments and floor coverings cleaned, and cupboards emptied.

Managing Your Own Rental is not Easy

Now that the property is ready for inspection, you need to decide if you are going to manage the whole rental process yourself, or hand it over to professional property managers. One of the biggest mistakes made by property owners is in believing that finding and keeping good tenants is easy. Property management is time consuming and requires current knowledge of relevant legislation, an administration system that keeps records of prospective tenants, an accounting system that tracks rental payments and staff who know the property market.

At Bunbury Real Estate, we ensure that our property managers are professionally trained and we provide them with all the resources they need to follow up enquiries, perform tenant reference checks, conduct inspections and perform all the other duties that come with this demanding role.

Professional Property Management is the Answer

As a home owner, naturally, you are looking to secure a suitable, reliable tenant for your property. You want to keep your vacancy rates low, your maintenance costs under control and have your rent regularly deposited into your bank account. If you engage a professional property management company like ours to act on your behalf, all this will be done for a small fee, leaving you plenty of free time to get on with your life.

Missing The Boat On Rental Applications? Preparation Is Everything

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Having a safe and secure place to live is an essential part of having a fulfilling life, so if you are constantly missing out on a rental property, you must review your application process to find out how you can improve your chances. If you have a history of being a reliable tenant, it could just be an adjustment to your application documents that is needed to get your next home.

Are Your Income Details Current?

Most of the application forms used by rental agents ask for similar information, even if the forms themselves are slightly different. Obvious identifiers are your personal details, current address, previous addresses and your income details. Make sure these income details are the current ones and not those of the previous financial year.

Fill Out All the Fields on the Application Form

A common mistake that we see all the time is a tenancy applicant not completing all the fields in the application form. Often these are names and contact numbers of referees, so we then need to contact the applicant to obtain that information. This delays the application and it could be the difference between making the shortlist and missing out altogether.

An agent asks for detailed information for one reason. It is our responsibility to make sure that the tenants we place in the properties we manage have the financial capacity to pay the rent on time. At Bunbury Real Estate, we also carefully check all our tenant references, so our owners can be assured that their properties are occupied by responsible people who will look after them.

Have Multiple Copies of Identification Documents on Hand

There are two other pieces of advice we can give you to prevent you from missing out on likely rental properties. The first is that you have multiple copies of your identification documents ready on hand to be attached to any application form. Time is of the essence, so instead of chasing around to get copies when you see a suitable property, you can fill out the application and lodge it immediately with the rental agent, complete with attachments.

Check Contact Details for your Referees

The second piece of advice is to have references from former rental agents and/or property owners ready on hand, rather than wait to find a property then need to chase them up. Again, this causes delays in your application. Also, make sure you check that the contact details you have for them are current, and let them know you are moving and that rental agents will be contacting them.

Remember that preparation is everything when looking for a rental property and being the best prepared of all the applicants could just be the edge you need to get your next home.

Rental Applications Being Knocked Back? Check This Out

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Finding a suitable rental property to make it your home is difficult enough without the added stress of the application process. Getting it right means being able to put your feet under the dining room table in a place you know is yours for the term of the rental, while getting it wrong means starting the search all over again.

Get the Process Right in a Competitive Rental Market

If you are struggling to have your application considered, especially when there are several people applying for the same property, it is time to take a closer look at your approach. The rental market is very competitive. So, just like the job market, you need to have everything covered to give yourself the best chance.

To help you master the process, we have a few suggestions that may help. Here at Bunbury Real Estate, we have an application process that is typical for the rental industry. We are property managers with rental choices to suit a wide range of lifestyles and budgets.

Take the Time to Get Your Documentation Right

Having all the required documentation available for us is one of the most important things to get right. Applicants who have everything we have asked for are the easiest to process, and it is even better if you go the extra mile and have everything copied and presented in a folder for us to start your tenant file. This also applies to any housemates who will be sharing the property.

Punctuality and Good Manners are Remembered at Inspections

We often open rental properties at specific times to allow prospective tenants to view them. This is very time consuming for us, so we remember tenants who arrive on time. Punctuality is a courtesy in every industry and ours is no exception, as are visitors who are pleasant. The initial inspection, before even being accepted as a tenant, is not the right time to demand repairs or changes.

Dress to Impress

You may be surprised at our next suggestion, but again, just like a job interview, it helps to dress the part. We don’t expect people to dress in formal wear to view a rental property but looking dirty and dishevelled does not leave a good impression. When you show up neat and tidy, we know you are treating the application process seriously.

Follow Up Contact Indicates Genuine Interest

Finally, if you have put in an application and not heard anything after a couple of days, there is no harm in contacting the rental agent and offering to supply extra documents or references to indicate your interest. If they are tossing up between your application and another candidate, receiving a courteous contact from you could just be the thing that makes up their minds.

How Much Do You Know About Tenancy Laws?

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More people than ever these days are living in rental properties, so tenants need to understand their rights and responsibilities. The Residential Tenancies Act is the legislation governing tenancies, but the issues most often reported are ending a lease before the time is up, who pays for maintenance and repairs, getting behind in the rent, tenants’ right to privacy and getting the bond back when the tenancy is over.

Reputable Property Managers do the Right Thing

If you are a first-time tenant looking to rent a property, using a reputable agency like Bunbury Real Estate is your best chance for a hassle-free tenancy. As property managers, we observe all laws, from the day you lodge your application to the end of your tenancy. Many tenant problems arise when the property is rented directly from lessors, who may have their own interpretation of the law.

Breaking a Lease

Sometimes tenants find themselves in situations where they need to leave their rental property before the lease is up. If you have signed a fixed term lease, you could be liable for compensation to the lessor if you break the lease. There are processes to be followed so get advice from a property management agency like ours before you act.

Who Pays for Repairs?

A rental property should be in a reasonable state of cleanliness and repair before you move in. The tenant is responsible for keeping it clean and advising the lessor if any damage occurs. If intentional or negligent damage is caused by you or a guest, you are liable for the cost of repairs. However, you are not responsible for repairing the normal deterioration that takes place in any property.

Getting Behind in the Rent

Sometimes, even the best tenants get behind in the rent through unemployment or other circumstances. You must notify the lessor immediately to avoid your lease being terminated. However, the lessor cannot just evict you without following some legal processes. You may be able to negotiate a payment plan to bring your rent back on track.

Tenants Have Privacy Rights

As a tenant, you have the right to privacy, so the lessor cannot drop in unexpectedly to check the property. The correct notice period must be given to the tenant and this includes instances where tradespeople need to do work, and if the property is being showed to prospective buyers.

Getting Your Bond Back

For tenants who leave the property in good condition, getting their bond back is a major concern, especially if the lessor tries to claim it without sufficient reason. Be assured that the bond money can only be disposed of by consent or court order, all of which involve legal processes.

For peace of mind, select your rental property through an agency such as ours, and leave all the legal issues to us.

Key Attributes Of A Good Tenant

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Many people are now making a conscious choice to rent rather than buy, so it is more important than ever for prospective tenants to have a good reputation. The competition for desirable properties is intense, with renters reporting that there are many others putting in applications to secure the same property.

How to Stand Out from the Crowd

With owners and property managers being able to pick and choose, what are the attributes that a tenant needs to secure the property of their dreams? While paying your rent on time is the obvious and most important one, there are others that will identify you as an ideal tenant when you present your landlord reference to the next property manager.

Did you know, for example, that the relationship you build with your property manager is one of the most important you can foster? How do we know this? At Bunbury Real Estate, our property managers go out of their way to make life easy for both tenants and owners, so when a tenant returns the favour, they don’t forget.

Take Care of Your Rental and Keep it Tidy

It really is as easy as taking the same care with your rental as you would if you owned it. If you live in a free-standing home, keep the yard and footpath mowed and the gardens tidy. In a unit or apartment complex, help to keep the common areas tidy and other people who live there will appreciate your efforts, whilst you will make some great friends.

Report Breakages Truthfully

Don’t intentionally damage the property, and if you break something accidentally, report the damage and the circumstances immediately. This helps the property manager to arrange better repairs and services and gives the owner the chance to claim on insurance.

Don’t Authorise Repairs – Leave it to Your Property Manager

If there is a Repairs Policy at your agency, make sure you know what it entails. Report any breakdowns or needed repairs, then follow the process in the policy. You should not spend your own money or authorise repairs or alterations without approval. Sometimes things may seem to take too long but be patient and keep in touch with your property manager.

Enjoy your Rental While Respecting the Rights of Others

Respect the rights of your neighbours to peace and quiet, especially if you have parties or regular guests who may create excessive noise or cause parking problems. These days, many people work irregular hours. Check in with others to make sure you are not imposing on their rights.

Protect Your Hard-Won Reputation

If you abide by all the terms of your rental agreement, you will soon be the most desired tenant at your agency. Also, when you want to move on, that good reputation will be your best friend.

Solutions For The Nervous Property Investor

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If you have just purchased your first investment property, the chances are that you may be daydreaming about your second or third and imagining yourself ten years down the track as a multi-millionaire property magnate. Before you get too far ahead of yourself, however, there are still some important decisions to be made if you wish to get the most value out of this new venture of yours.

Get This Wrong and it Costs you a Bundle

One decision you will be confronted with almost immediately is where to find a reliable tenant, and if you get this decision wrong, you could find yourself thousands of dollars out of pocket. The media is filled with stories of tenants wilfully causing property damage and not paying the rent. Delays in the legal process can allow lawfully evicted tenants to remain in the property for weeks or even months, placing an enormous financial burden on the owners, who must still pay the mortgage even though there is no income to offset it.

Professional Property Management is the Solution

Investors should not despair, however, as there is a solution. Professional property management by a reputable agency is not expensive, and their experienced team takes all possible steps to ensure that only reliable tenants are placed in client properties.

Take our agency, Bunbury Real Estate, as a typical example. We have been finding tenants for our clients’ properties for some time, and now have a reputation in the industry for delivering a “hassle free” service. If you are unsure if the rent you are expecting for your property is market value, we offer a free appraisal, giving you a realistic figure by comparing your property with others like yours in the target area.

Proven Management Systems

Once we become your property manager, we go to work using our proven management systems to select the best tenant. Typical steps are to check our database of already qualified prospective tenants for those that suit your property. If the best prospect is someone new to our agency, we then follow our selection process to ensure that the person meets our criteria.

Reference, Credit and ID Checks Essential

We always check references given by previous landlords, ask for identification and evidence of employment, as well as perform a routine credit check to ensure there are no outstanding credit issues. Once the tenant has passed our selection process, we make sure that all the required legal documents are correctly completed and lodged with the appropriate authorities.

If you want your property investment to keep earning with minimal involvement by you, getting a professional agency like ours to do the work for you is the obvious choice.

A Smooth Tenancy Starts With The Right Tenants

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Ownership of residential rental properties is a method favoured by many Australians, especially those with self-managed superannuation funds, to build investment portfolios. The secret to keeping these properties earning income is to keep them occupied by tenants who look after their rentals and pay the rent on time, every time.

Good Tenants Prevent Income and Property Loss for Owners

Owners whose properties are unoccupied for extended periods of time lose rental income, and their assets are at an increased risk of being vandalised. If this happens, they must pay for the repairs and face increased insurance premiums, which add to the cost of holding the property.

The best way to prevent this is to choose tenants carefully, and at Bunbury Real Estate, our rigorous process enables us to put forward quality tenants for the properties we manage on behalf of our owner clients. When a property is advertised for tenancy, we certainly don’t take the first applicant who comes along. There are several checks we do first before any decisions are made.

Background Checks of all Rental Applicants are Standard Practice

The most obvious check is that the tenant has the capacity to pay the rent. This is a similar process to taking out a loan in that we check their employment and credit status to identify any areas where there could be financial stress. We also ask for references from former rental agents or owners where the tenant has already established a relationship.

Some of our rental property owners accept the presence of pets, and it is becoming more popular for tenants who have pets to also present references on behalf of their furry family members. Well-trained pets are often better behaved than some humans, and we have owners who acknowledge and accept that.

Diligent Property Managers Identify Issues Early

Our property managers also like to establish a personal relationship with our tenants, where possible. Regular property inspections are an opportunity to identify issues that could become problems if they are not dealt with quickly. It could be something as simple as asking for the yard to be tidied if it looks a little unruly, to working with a good tenant who may be temporarily in arrears.

Matching Tenants with Their Ideal Dwelling is Important

Choosing the right tenant also involves matching an applicant with the type of dwelling that suits their needs. A good tenant is more likely to stay long term when they are living in their ideal location, in the type of property they were seeking. There will always be management problems if the tenant and the dwelling are not suited to each other.

Our professional property managers have many years of experience at keeping our properties tenanted with good people who turn a vacant dwelling into a home.

Helpful Hints To Getting The Right Agent For Your Property

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When you are looking for an agent to sell your property, or to find you a suitable place to buy or rent, choosing the right agent for your needs can be a bit like buying a lottery ticket. There is usually more than one real estate agency with an office in the local area, as well as multiple agencies dipping their toes in the market via the internet. How can you possibly sort through all the possibilities and choose the right one for you?

Professional Industry Body Generates Confidence

Fortunately, there is a solution. The Real Estate Institute of Western Australia (REIWA) is the peak body for all real estate professionals in the state. This member-owned organisation was established in 1918 and today it represents over 90% of the agencies operating in Western Australia. When you choose a member agency, there are protections and benefits that come with that choice.

As a member organisation of REIWA, we offer our clients a superlative level of service, specialist employees who work together as a team and in-depth knowledge of the local market. When you choose Bunbury Real Estate, you get the benefit of our membership and all that it entails.

Member Benefits – Access to Latest Market Information

Firstly, we have access to the latest market information and sales statistics. You can be confident that when we do an appraisal of your property and suggest a pricing structure, we are using up-to-date figures. This allows you to get the best possible price for your property relative to its style, condition and location.

Standardised Contract and Settlement Documentation

Secondly, the contracts and other documentation we use when we act for a client are all owned and controlled by the REIWA. This means your transaction is being conducted using industry-standard documents that have been thoroughly checked by legal experts, so there should be no complications during the sales process.

Ongoing Staff Training Keeps Agents Up-to-Date

Further benefits to clients are that our staff members are required to update their education continually through various training programs, so that we can provide you with better advice and service. For example, our agents would be expected to ask questions about things such as easements, access to private lanes, the existence of resumption notices and other issues. They are also up-to-date with legislative changes.

Maximum Exposure on the Web

We also list properties on the REIWA website as well as our own, giving our clients maximum exposure to interested buyers. To get the best possible result for your property, choose an agent that is an REIWA member and also who also has a presence in your area of interest. The combination of professional knowledge and ethics, as well as local detail, gives you the best chance for a top result.

Confused About What Is Important When Inspecting Property?

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If you are getting serious about buying property, you will be checking the internet for something in your price range, and considering the locations that best suit your needs. You may even have attended a few open homes and with many of them now staged to sell by professionals, you have come away confused about what is more important, the styling or the structure itself.

Don’t Be Fooled by Clever Styling

While styling will show a prospective buyer how to place their own furniture and accessories for maximum impact, it will not alert you to some of the more important and expensive issues you could overlook. A clever stylist knows how to draw the eye away from the least attractive parts of the property, so it is important to be aware of some of the potential pitfalls.

ID May Be Needed to Access an Open Home

Be prepared when attending an open home to provide identification. This is a security measure and many of our sellers ask us to do this. When we advertise open home inspections, we have a responsibility to the owners to take care of their property and possessions. At Bunbury Real Estate we take this seriously.

Be Practical – Look for Faults

If the property’s street appeal, overall size, number of rooms, amenities and car accommodation are what you are looking for, now is the time to be practical and look for obvious faults. Water leaks, for example, can be hard to spot, so check the cabinets in the wet areas for the smell of damp, or any signs of mould.

Unexpected Repairs Spoil the Enjoyment of the New Property

Bathroom and bedroom walls are another area where mould can build up, and often this just looks like a smudge on the paint work. Excessive mould should be cleaned professionally and the original cause investigated. It could be something that will need expensive repairs you were not expecting.

Check for sloping or bouncy floors that may mean stumps need replacing, and blisters or bubbles on paintwork that could indicate the presence of termites. Cracked walls may be evidence of subsidence. Building and pest inspections by experts will usually reveal the full extent of any rectification needed.

We sometimes have circumstances where a buyer is still keen on the property, and the seller is willing to adjust the price down to take account of repair costs.

Check the Location for Flood or Fire Risk

Be aware that even though the property and the location may look perfect now, it could be in a major flood area or even be a bushfire risk in the right climatic conditions. Buying property is a major financial commitment, so it is worth taking the time to check everything before deciding.