Archive for category: Rentals

A Fast Tenant or the Right Tenant?

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two people holding moving boxes

As the country begins to return to relative normality and living with COVID is now the preferred approach to its management, every segment of the economy, including the real estate industry, is now assessing the effect of the inevitable changes that have taken place. Government emergency measures to protect tenants from eviction have been revoked and this is just one trend that is affecting the property market.

Inflation and Rising Interest Rates Affecting the Market

Some others are the increased uptake of the option to work from home, movement by workers in the eastern states from the cities to regional centres and a shortage in all states of housing stock. An additional pressure, not only here but world-wide, is rising inflation as well as current moves by our Reserve Bank to increase interest rates from an historic low base.

The Law of Supply and Demand in Action

The effect of these economic trends on tenants looking for suitable rentals in the current market is very difficult, with vacancies the lowest in approximately 40 years. The REIWA defines a balanced rental market as a vacancy rate of 2.5 to 3.5 per cent, but the vacancy rate this time last year was 0.7 per cent with little improvement since. In economic terms, this is a classic example of the law of supply and demand at work.

Not Every Prospective Tenant is a Good One

In this unusual market, property owners looking for tenants have no shortage of applicants but finding the right tenant for their properly as quickly as possible is still not easy. Getting the wrong tenant can lead to expensive property damage, rental arrears that may impact the owner’s ability to service a mortgage and unexpected vacancies if the tenant suddenly leaves.

Fast Tracking a Tenant Not a Good Idea

Selecting a tenant is time consuming if done well. It is also a two-way street. To attract the best tenants, the property itself should be clean, tidy and well-maintained with good services. It does not have to be palatial, but it should appear looked after, so the tenants will look after it too. Reference checking is vital to eliminate prospective tenants who have a poor rental history.

The best way to find a tenant quickly is to appoint a property manager to handle all the details. Here at Bunbury Real Estate, we have experienced professional staff with the skills and tools to keep your property occupied with good quality tenants.

We have access to industry information, enabling accurate background checks on rental, credit and criminal history, visa status where appropriate, and other processes. We also manage all tenant communications and perform regular property inspections to ensure that your property is kept in good condition.

Understanding Tenancy Options

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a woman in jeans carrying boxes

For both owners and tenants of residential rental properties, deciding between short-term and long-term tenancies is equally important, but the outcomes are different. One party looks for a return on investment and the other needs a secure and affordable place to live.

Legislation Protects Tenancies

Tenancies in Western Australia are controlled by The Residential Tenancies Act and the Residential Tenancies Regulations. The legislation is designed to protect both owners and tenants and sets out the legal responsibilities of both parties. The regulations give guidance regarding issues such as the terms of the tenancy agreement, bond and rental payments and processes for both fixed term and periodic tenancies.

Lessors and Fixed-Term Tenancies

When a lessor offers a fixed-term tenancy, the start and end date and the rental amount is specified on the tenancy agreement. Rent can only be increased if the amount is stated on that agreement. There are other conditions but the advantage of this for the lessor is that the rental income is more secure than a periodic tenancy. The disadvantage is less flexibility to end the tenancy should the lessors’ circumstances change, and they need the tenants to leave before the end date.

Lessors and Periodic Tenancies

A periodic tenancy can last for an indefinite time and ends when notice is given by either party. This option gives lessors more flexibility to end the tenancy. They must give tenants a minimum of 60 days’ notice (unless the tenant is in breach of the agreement, or the property is sold). The disadvantage is that the tenants can move out with a minimum of 21 days’ written notice. The lessor’s rental income is less secure as they must secure new tenants.

Tenants Needs are Different

For tenants needing to choose between these two options, the decision is about rental affordability, proximity of the property to essential services such as schools, parks, shopping and entertainment venues and transport, as well as access to employment opportunities. Tenants are bound by the same conditions on the tenancy agreement as the lessors.

Tenants and Tenancy Options

The fixed term tenancy option gives tenants more certainty and security as the term and the rent are agreed. The periodic tenancy option gives tenants more flexibility than a fixed term tenancy, as they are only required to give a minimum of 21 days’ written notice as previously mentioned.

Our property management staff here at Bunbury Real Estate have considerable experience at both managing rental properties on behalf of lessors and providing tenants with suitable properties. We keep up to date with any legislative changes that may impact our clients and ensure all necessary documentation is completed and lodged as required.

A Perfect Plan for Moving Day

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According to mental health professionals, moving to a new house can be almost as stressful as other significant life events such as going through a divorce or losing a much-loved job. All three involve change, pushing us outside our comfort zone, which can lead to stress. However, if the changes are expected and the transition is well-planned, the risk is reduced.

A Checklist for Every Task

The best way to plan for a move is to develop a comprehensive checklist of every task. In most cases, some things will need to be done in the weeks before the actual moving day, then continuing right through the move and sometimes after. Missing any of these tasks could lead to delays, confusion, and financial loss.

The Fourth Week from Moving Day

If you are compiling a checklist for moving, it should include tasks for the fourth week from moving day, then the third, the second and the week of the move. In the fourth week, identify and dispose of anything that is not making the journey. A garage sale, donations to charity and a dump run will do the trick. It is also time to book the moving van.

The Third Week

Start administration tasks in the third week. If your move is long-distance, organise copies of personal information such as medical and immunisation records and if you have children, advise their current school, and arrange transfers. Back up your computer and secure the backup. Source packing boxes, strong tape, and large black marker pens, then start packing items you will not need before the move. Mark the boxes as they are packed, room by room.

The Second Week

By the second week redirect your mail, advise changes of address to relevant parties, finalise insurances and confirm arrangements with the movers. Book house cleaners if you are not doing this yourself but keep the utilities connected until the cleaning is finished. Set aside appliance instruction books for the new occupants.

The Home Stretch

In the final week, arrange connection and disconnection of all utilities. Pack overnight bags for everyone, including favourite toys for little ones, so you are not trying to locate essential items on arrival. On moving day, turn off the hot water system and lock all the doors and windows before you leave.

Our experienced sales team here at Bunbury Real Estate continue to facilitate hundreds of sales, which in turn, assist homeowners and their families to upsize, downsize and move around, searching for thre right home. We are trusted real estate professionals ready to welcome you to the next phase of your life.

 

Is Buying an Apartment That Has Not Been Built a Good Idea?

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Apartment living is increasing in popularity in our capital cities and some of the large regional centres. With demand showing no sign of slowing in the short term and with stocks of new and older apartments in short supply in some areas, home buyers and investors are turning towards buying off-the-plan.

Pay a Deposit, Sign a Contract and Wait

For those unfamiliar with this method of buying real estate, the prospective buyer selects the apartment they want from plans and artist impressions of the completed product. They pay a deposit and sign a contract to buy an apartment that will be built in the future or is in the process of being built. At this point there is no completed physical property to be inspected.

Fixed Price Protects Buyers from Price Rises

There are upsides to this way of buying but there are also downsides. Starting on a positive note, when buyers sign the contract the price is fixed, protecting them from price increases that could occur in a rising market by the time the building is completed. Also, buyers pay a reduced deposit, and as they do not settle the transaction until construction is completed, they have extra time to sort out their financials.

Stamp Duty Concessions and Rebates

There are also savings on stamp duty, as in most states, if the buyer signs the contract before construction starts, stamp duty is only levied on the value of the land, not the entire contract price. In Western Australia, the Off-the-Plan Duty Rebate Scheme offers a rebate of 75% on the duty paid on residential multi-tiered apartments, subject to certain conditions.

What Goes Up Could Come Down

On a negative note, one of the downsides to buying off-the-plan is the possibility that after buyers have signed the contract, the market could fall substantially, and unless it recovers before the building is finished, those buyers could be forced to settle on an apartment that has fallen in value.

What If the Developer Can’t Finish the Project?

Another downside is the possibility that the developer may go into liquidation before the project is finished. Like any major purchase, buyers should exercise due diligence over the financial stability of the developer. This is one of the biggest risks in buying off-the-plan. If this happens, buyers may lose their deposits, so it is worthwhile to investigate the reputation of the developers.

Our staff at Bunbury Real Estate are experienced in sales and property management, and coupled with comprehensive local knowledge they are well positioned to find the right property for every client. They have many apartment options to offer clients looking to buy, as well as providing advice to existing apartment owners who want to rent out their apartments and need up-to-date appraisal information.

What is the Best Name for a Dwelling? Home, of Course!

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Regardless of whether you are a tenant or a property owner, everyone wants a place to call home. As the mix of dwelling types becomes more varied, there has never been more to choose from. Where once it was either a free-standing house or a flat, now we have the duplex, the townhouse, apartments, units, flats, and finally from the USA, the condominium.

Renters Just Want the Right Property

Actually, only the word arrived from the USA, as here in Australia, we have had strata title properties for some time. Strata title is another name for a condominium. For renters, this means nothing. They just want a property that suits them, so they will happily call any of these dwelling types their home.

Ownership is the Key for a Landlord or Buyer

The situation is completely different for a landlord or buyer. A landlord is in the property market to invest, earn income, increase equity, and build wealth. A buyer may also be in the market for these reasons, but additionally, to own their own home. For them, it is all about ownership.

Here at Bunbury Real Estate, we do our best to help our clients find whatever type of property they want. Our sales professionals have a wide range of properties to show potential buyers, and our property managers are eager to help renters find their perfect dwelling, whatever type that may be.

An Apartment Block Described

In an apartment block, typically all the dwellings within the building are owned by a single entity or a company, which rents them to tenants. The company has total control over the complex and establishes the rules the tenants live by in their individual apartments. The company employs a property manager who lives in the building and is responsible for the maintenance of the individual units, as well as rubbish collections, security and enforcing the rules.

What is a Condominium?

Condominium blocks, on the other hand, are owned under the strata title system. When a person purchases a unit or apartment within the condominium, they own their individual lot and a part of the common property that everyone uses, such as the stairwells, gardens, common driveways, and recreation areas.

The common property is managed by the body corporate, an entity that is formed by the owners of the individual lots. Owners of a strata title property own and maintain everything inside their apartment and pay an annual fee to the body corporate for the maintenance of the external facilities.

The Difference is Ownership

The question of ownership and not the name of the property type is the key to making the right decision about purchasing property. Potential buyers should do their own research to protect their investment or contact our professional sales staff for assistance.

To Rent or Buy – That is the Question

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man and woman carrying boxes

Owning a home with a yard big enough to accommodate two cars, a caravan and a pool was once the holy grail for most Australian families, but demographic and lifestyle changes have given dwelling buyers far more options these days, than those available to their parents. Housing lot sizes in major cities have shrunk to the bare minimum, and the growth in apartment living has become a long-term lifestyle choice.

For Those Who Prefer to Live in a House

Many home seekers have already decided that an apartment is not for them. They may have an aversion to living too close to neighbours or have possessions that need space to display and store. Perhaps they already have a menagerie of pets, or they want a yard and garden to get outdoors and enjoy leisure time. Now their only decision is whether to rent or to buy.

Pros and Cons of Renting

Renting is an excellent option for those who struggle to save a house deposit. Once tenants pay their bond and the first couple of weeks rent, they can move in and, provided they pay their rent on time, the property is theirs to live in and enjoy, with just the occasional pre-arranged property inspections to manage.

Another benefit of renting is that, apart from keeping the property tidy and well-managed as required by the tenancy agreement, the landlord pays the repair and maintenance expenses. It is also easier for tenants to move to another area at the end of their tenancy if they wish. However, this can be a negative if they want to stay but the owner does not want to extend the tenancy.

Our sales and property managers at Bunbury Real Estate see both sides of this conundrum every day. They use their market knowledge and professional expertise to assist clients to find the accommodation solution that suits their individual circumstances and lifestyle choice.

Pros and Cons of Buying

Just like renting, buying also has its positives and negatives. Those with a deposit and a housing loan can either buy an existing property or build a new home. People who buy rather than rent usually want stability and to become a permanent part of a community. They know they must pay for repairs, but they also have the freedom to decorate to their own taste.

On the downside, emergency circumstances can see homeowners desperate to sell their property for quick cash. This leaves them vulnerable to losses through market fluctuations. However, as owners, they can, instead, raise cash using the equity in their home rather than sell. The biggest benefit to buying rather than renting is that eventually, they will own a substantial unencumbered asset.

Can’t Decide Whether to Rent or Buy? Try the Rational Approach

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redhouse with paper and pen

Are you looking for long-term accommodation but cannot decide if you should rent or buy? If you favour an apartment over other dwelling types you have already made the first decision, so all that remains is choosing between buying and renting.

Look at Both Sides of the Issue

Like every major life decision, there are pros and cons for both, but sometimes, people prefer to rent because they are not ready to commit to home ownership. It is helpful, therefore, to take a rational approach to the issue of renting vs. buying by examining both sides.

Pros of Renting – Flexibility

Apartment living for renters offers flexibility as tenants can move around to different locations whenever their lease expires. This is a great option if you have moved into a building where there are problem neighbours, or you are not ready to put down roots.

Fewer Upfront and Ongoing Costs

Renting is cheaper than buying with no large deposit required; it is just the standard bond and rent in advance. This enables tenants to choose a rental close to inner city locations to take advantage of the employment and lifestyle opportunities on offer. Also, there is no maintenance or ownership costs as these are paid by the landlord.

Cons of Renting – Uncertainty and Lack of Privacy

The biggest disadvantage to renting is uncertainty. Good tenants often have to leave locations that tick all their liveability boxes when their tenancy agreement expires and may have to settle for less suitable apartments.

They must allow their property manager or landlord access, by mutual arrangement, to their apartment several times a year for inspections. While there are laws that protect the rights of renters, the fact is they are not the owners and will always be paying rent without accumulating an asset.

Pros of Buying – Ownership and Stability

One of the pros of buying an apartment is that, although the entry costs are much higher than renting, and provided the mortgage payments are made, the home loan will eventually be paid off. This will leave the owner with an asset of substantial value.

Owners have the stability that renters do not and only leave their chosen location if they decide to sell or rent out the property. If they sell, they can buy elsewhere, or if they become landlords, they have an additional income stream.

Cons of Buying – Up Front and Ongoing Costs

Buying an apartment involves saving the required deposit and taking on a mortgage that must be paid regardless of life circumstances, such as losing your job. Home buyers are also responsible for ongoing costs such as insurance, rates, utilities and maintenance.

At Bunbury Real Estate we believe there are no right or wrong answers and both options are equally suitable depending on circumstances. Either way, we have the experience, market knowledge and professional staff to help people find their perfect home.

Renting With Pets? How To Show Them In Their Best Light

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Finding a suitable rental property that meets your needs is difficult enough, but when pets are permanent members of your family, it can sometimes seem like all lessors have a “no pets” policy. Australians have some of the highest rates of pet ownership in the world, so being able to have our pets around us while in a rental is an essential part of life for many of us.

Changes to Legislation give Tenants with Pets More Rights

Residential tenancy legislation is a state matter. Currently, the only state that has legislated to give tenants the right to keep pets is Victoria, with Queensland likely to follow suit. Lessors must still give permission, but it is much harder to refuse, and tenants have a right of appeal to an external body.

Many Lessors Willing to Negotiate with Pet Owners

Attitudes are changing, however, and even though a property advert may say no pets, many lessors are willing to negotiate with tenants who have good references. Some states allow lessors to apply a pet bond or include a clause in the rental agreement requiring extra cleaning, fumigation and repair of any damage caused by pets when vacating the premises.

Here at Bunbury Real Estate, our professional property managers look at past rental history, personal references and financial capacity when we are assessing a new tenant. If they have pets, we recommend that they also include a pet resume with their tenancy application. This document is becoming increasingly popular and is helping pet owners to keep their pets with them.

What Information Should Be in a Pet Resume?

Just like a human resume, a pet resume should contain all the information needed for someone to decide if the pet will be suitable for the vacant tenancy. Information such as the age of the animal, its breed, sex and desexing status, as well as its local government registration and microchip details will show the reader that this is a well-cared for pet.

Include Copies of References

Vaccination, flea and worming schedules are essential pieces of information, as are copies of the actual vaccination and desexing certificates. Copies of references from previous lessors and a brief description of the pet’s temperament, along with some photos, will also help to build a complete picture of how the pet behaves in a home environment.

Quality of the Information More Important than the Format

Some people present their pet resumes in the form of a letter, while others with the time and knowhow follow the format of an employment resume. In fact, pet resumes are becoming so popular that a quick search online offers templates and examples. Whatever method you decide, it is the quality of information in the document and the attached references that help an agency like ours to make fair decisions.

Plenty Of Options For Apartment Buyers

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Are you in the market for an apartment? If you are in that happy place where you have enough money for a deposit and a credit rating that will get you a substantial loan, there are a couple of things to consider before making the jump. After all, you want to get the best outcome for your particular circumstances and to make the most of current market conditions.

When Price is the First Consideration

The first step is to decide between going all out and buying a pristine, shiny new apartment or settling for something that has been around for a couple of decades. The key ingredient here is price, so if your budget does not stretch to one of the new buildings, you will be looking in the older suburbs for pre-loved units.

Investor or Owner/Occupier?

Another consideration is whether this apartment is where you intend to live or if you plan to add it to an investment portfolio, or perhaps start one. In the latter instance, you will be looking for a property that is attractive to tenants, close to all amenities and offers rental value for money.

At Bunbury Real Estate we have multiple listings of both old and new units in good locations that would suit both owner/occupiers, as well as investors. Our experienced staff can arrange inspections of suitable units and, in the case of an investor, they can also source good, reliable applicants from our tenant database. In this way, the client purchasing the unit can have a tenant ready to pay rent on settlement.

New Apartments Should Mean Low Maintenance

Reliable tenants with a good income usually prefer new apartments over older ones, especially if there is little difference in the rental costs. For both the investor and the owner/occupier, a new apartment usually means little or no maintenance for some years. Newly developed units often include facilities such as pools, gyms, and retail outlets which also appeal to tenants and owners/occupiers.

Older Apartments Love a Renovation

Older apartments appeal to the segment of the market that is watching the budget. The body corporate fees are often cheaper, and units built in the 1980s also have large floor plans offering plenty of space for the occupiers. Units that need refurbishments are a very attractive proposition. Cheaper to purchase, they respond well to renovations which, once completed, add value and increase the equity in the property.

A Personal Choice

Whether new or old, when you are buying an apartment, follow the tried and true rules of real estate and look for a great position handy to work opportunities, shopping, leisure outlets and transport. There is no right or wrong answer. Old vs new is a personal choice.

Do Some Suburbs Suit Sole Parents More Than Others?

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Being a sole parent is not easy, but thousands of people are in this situation and most of them are raising happy, healthy children. They are achieving this either alone, or with the help of family and ex-partners. Regardless of this assistance, the statistics consistently show that most of Australia’s single mums are doing more than fifty percent of the active parenting.

Parenting Responsibilities of Single Mums

Many single mums are making all the critical decisions alone, and often find this constant responsibility a strain. They must choose the schools, the health practitioners and the after-school activities. They are responsible for finances, to make sure there is enough good quality food available, and even which suburb and what type of housing they occupy.

Services and Facilities Need to be Close to Home

Finding the best suburbs is always a challenge but especially so for single mums. Generally, they need easy access to education and junior sporting facilities, child care, medical centres, public transport, shopping and for many of them, employment opportunities. Even with their own vehicle, fuel is expensive if they need to drive every day, so having everything within a 10-20klm radius of home is the goal.

Expensive vs Affordable

Recent studies show that nationally, the most desirable suburbs are often the most expensive to live in. Those with all the facilities needed by single mums are often closest to the CBDs of our capital cities. Properties furthest from the coastal areas or in regional and rural locations are the least expensive, but often do not have the same level of support services.

The Best of Both Worlds

Here at Bunbury we are fortunate to have the best of both worlds. Our city is located on the Indian Ocean, south of Perth and is the third-largest in the state. With a population currently at approximately 87,000 people it has the perfect mix of affordable housing, all the essential services and employment opportunities in a range of occupations.

Picking just one suburb out of many as the best one for single mums is not easy for us here at Bunbury Real Estate, as we can find something outstanding about all of them. We work hard to find the perfect property to suit the needs of every client, whether they are renting or buying, and we find that single mums have the same needs in a property as any other client with children.

Affordability is usually the first consideration and determines the size of the property and its features. This is followed by proximity to schools, public transport, services and employment. Our clients, including single mums, occupy properties in every suburb of Bunbury to our delight.