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Investments · News & Updates · Property Management

Three Reasons Why You Haven’t Found A Tenant Yet (And Why)

If only finding a tenant were as simple as uploading some smartphone photos of our property on the internet.

Some property managers make it sound this easy… I call these property managers debt-collectors. They sit back and do little other than charge a % just for collecting your rent!

They expect tenants to come to the property, whereas a real property manager hunts for a tenant for your property.

I believe all landlords are entitled to the hands-off, feet-up landlord experience

I believe all landlords are entitled to the hands-off, feet-up landlord experience, given they’ve done the hard work of saving for and securing a property. So, if you haven’t leased your property yet, this is the post for you.

I’ll run through our Sydney Listings diagnostic tools for when a property hasn’t leased straight away, and what you can do about each type of problem.

Reason 1 – No views or enquiries online

If no one is seeing the ad for your property online, then no one will enquire or show up to inspect your property. This means no one will lease it any time soon.

First, always check how many views your property ads are getting on the internet.

How to check the number of views on your property ads

This is simply done through the back-end of realestate.com.au, domain.com.au, or any other listing portals you are using to rent out your property.

There’s a few examples below.

Domain.com.au Example
Domain Example Analytics
Domain Example Analytics

In this example the green line shows the property views, and the light blue shows the views of similar properties on the market at the same time.

What you can see is that there are not a high number of daily views (usually less than 10 per day) but that this is consistent with the market.

Realestate.com.au example

In the realestate.com.au example during the COVID-19 downturn, even though the total views (red) are lower than the market comparison (grey), they start off quite high. 75-100 views in a day is definitely a lot, and should be generating enquiry.

What to do about low views

low views

In this green highlighted section of the analytics, the views are a bit lower. What could we do to increase the eyeballs that are seeing the property?

  1. Price a property accurately from Day 0 … this doesn’t sound helpful, I know! But a good lesson when you are struggling to lease is to take advantage of the first week of advertising next time you’re on the market. Properties get more attention when they are uploaded to the internet. (Check out our book on the 6-steps to doing this)
  2. Pay for upgraded advertising– on both realestate.com.au and domain.com.au, you can pay to have your property ad show up higher in the list of search results. The upgrade cost varies based on suburb, but will always be less than a week of rent, so it can be worthwhile.
  3. Revise Pricing Strategy – tenant searches filter out for their desired price. This means that by lowering price, you might appear in more searches – whilst normally a last resort, it is better to do this sooner rather than later.

Hint: Take special care of ’rounded numbers’. For example, tenants are more likely to screen a search for “$500-$550 per week” than say “$495-$555 per week”… so make sure your property isn’t narrowly missing out on search parameters!

Reason 2- Views but no enquiries

Lotsofviewsnoenquiries
A lot of views… so where are the enquiries?

In the above example, we are getting a lot of property ad views, but not as much enquiries or property page views (people clicking into the ad).

As pointed out my book (The PROVEN Strategy to Leasing Your Property In ONE WEEK), our first job is to sell the click, not the rental application.

To get people interested in the property as they scroll online, we need a well-presented hero photo showing off an amazing part of the  property, as well as a competitive price.

The photography and the display price work hand-in-hand to sell the click. So how do we remedy this?

How to increase enquiry and inspection levels

  1. Quality online advertising – photography is the most important part of this. For a rental property, you shouldn’t need to spend more than $120-150 on quality property photos that can be re-used for years.
  2. Box Brownie – Paying around $40 to virtually stage one photo with furniture, will make your property stand out when potential tenants are scrolling online. Click here for Box Brownie.
  3. Pricing Your Property – this is explained here. If you need further help, contact us to help price your property more accurately.

Reason 3 – Busy open homes but no applications

If people are enquiring as well as showing up to inspect your property regularly, then there must be a good reason why it hasn’t leased yet.

There are two possibilities: Price or Presentation. 

In my book on the PROVEN Strategy I emphasise the importance of presenting your property like a luxury listing. 

This is important given that you are competing with other properties in the marketplace. If they are presented in a better and cleaner way, but are at the same price or slightly higher, you’re likely to lose out on the tenant.

Top tips for touching up presentation

  1. Touching up paint
  2. Improving natural or internal lighting
  3. Decluttering the property

For more on property presentation, check out this video.

If price is the problem, that will become clear in the feedback from open home attendees via your property manager. You’ll notice lots of applications coming in low, attempts to negotiate, and complaints that your property is more expensive than others in the market.

Good luck and remember – stay hands-off, feet-up!

Keep the image in mind of the hands-off, feet-up landlord that you deserve to be. Turn that rental campaign around, and get your property investing path back-on-track.

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by Joe Wehbe
Investments · News & Updates · Property Management

How to price a rental property in three simple steps

In my book The PROVEN Strategy To Leasing Your Property In ONE WEEK we review the three-step process to pricing a rental property.

Step One in this Six-Step Strategy is of course “Accurate and Competitive Pricing”, and I discuss how pricing a property is not as difficult as most agents and property managers insist.

Sure industry professionals will have a bit more accuracy and speed. But with realestate.com.au and domain.com.au, you can get a pretty reasonable estimation on your own!

The below steps to pricing are what we will discuss today.

  1. List the features of your property
  2. Establish comparables
  3. Rank by value offered
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You’re Welcome

1) List the features of your property

For this we suggest you click and download the worksheet resources: Worksheet Pricing Your Property I Sydney Listings

Hint: This exercise is much better done when written out on paper. The reason is, our minds aren’t designed to balance so many factors at once.

When done on paper, it is a bit easier to see the full picture. This is important because you have to consider the property’s location as well as its other features.

Features

These include the number of bedrooms, bathrooms and car spaces, age, style, outdoor areas, access, aspect and moreThe build of the property and the way it is set up will impact its value.

Location

Location, location, location. A property’s value will be impacted if it is close to schools, beaches, public transport, commercial areas, good amenities, shopping centres and more!

One useful factor to consider is the property’s walkscore – think about how much you’d like to live in a walkable area that is normally hard to drive around or park in.

A comprehensive list of features is provided in the worksheet! Here it is again: Worksheet Pricing Your Property I Sydney Listings

2) Establish Comparables

Now that you have a list of features, you can go identify a few properties that are comparable to yours. We will use these comparable properties to estimate the value of your own property.

Our first requirement for a comparable property is proximity. The exact same house as yours will have a completely different value if it was placed on the other side of the world.

Land has the most value, so ideally choose properties that are within 1-2km if possible. Remember, they must have similar location attributes.

An apartment on a main road might be within 500 metres of a waterfront house in Gladesville- this doesn’t make these properties useful comparisons.

The more features that match, the better the property is as a comparison. Ideally you would like four to five comparable properties.

Note, if you cannot find good comparables, use the Sydney Listings’ “Floor and Ceiling Method” instead. 

3) Rank by value

Weighing each comparable against your property, come up with a rank, for where your property sits in comparison to these. Using reasonable judgments, you’ll be able to come up with a useful price range. 

Congratulations!

You’re now on your way to the hands-off, feet-up landlord experience. Remember you can reach out to the Sydney Listings team if you need help with pricing your property.

Click here to check out upcoming examples on our youtube channel of the three-step pricing guide!

by Joe Wehbe. 

Investments · News & Updates · Property Academy · Property Management

How Property Investors Can Claim Depreciation Deductions of up to $15,000

Depreciation is an aspect of property investing that most property investors fail to take advantage of. 

And it costs them thousands of dollars every year!

So if you’re not claiming depreciation already, we’re going to explain what it is and more about how it can improve your returns on your property. 

How can property investors take advantage of depreciation on their property?

Let’s hand over to Bradley Beer, CEO of BMT Tax Depreciation to explain. 

6monthmoneyback

While the value of your property goes up over time the value of the items within it will tend to go down, or ‘depreciate’ over time! This is just like buying a new car for example.

When these items like carpet and light fittings lose their value over time, the ATO will actually give you tax exemptions, because of the loss of value.

Wow, it turns out the Tax Office can be kind after all!

All sounds pretty amazing doesn’t it? So you must be asking…

How much can I save through claiming depreciation on my property?

Back to you for this one Bradley…

“Average return for the last financial year was $9,000”.

Gee, that’s not too bad.

Importantly don’t forget! Old properties can claim depreciation as well, just not as much as newer properties.

So enough beating around the bush. How do you get started?

Well even though this is tax, it’s not as simple as going to your accountant. You need what is called a depreciation schedule. This is done by a Quantity Surveyor. So let’s go back to Bradley one last time…

Can you use an accountant to claim depreciation?

There is no question that depreciation deductions are the most under-utilised part of property investing.

Our Solution

At Sydney Listings, our property management team gets proactive making sure our landlords and investor community make the most of depreciation. We partner with quantity surveyors and organise for the information and inspections required to take place.

We also extend a courtesy to others in the community to help you organise this. If you’d like our help, please contact us or email info@sydneylistings.com.au. 

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Marketing and Selling Properties · News & Updates · Property Management

Can you use video to advertise properties for rent?

One question few agents ask is whether you can use videos to advertise properties for rent?

So much attention goes into selling property. But there are improvements we can make to the way we advertise properties for rent.

Why is video advertising for rental properties rare?

1) Cost

Property marketing videos are traditionally not cheap and hurt your pocket. Normally they will cost in excess of $2,000… so this is rarely worthwhile for a rental property.

Video Symbol
Video Symbol

The difference we make in our agency is that we have in-house videography solutions. This makes video cheaper and easier for landlords to access as an option, making their property stand out against the competition.

2) Agents who are not bothered

One of the most common jokes in real estate: “Property Managers are agents who can’t make it in sales”. The stereotype for agents working in rentals is that they are less ambitious and talented.

There is less incentive for innovation and creativity. Property Managers normally have less property marketing skills than sales counterparts, and they will not think to make videos for rental properties.

3) There is a shortage of true marketers in the industry

In our business for example, we consider ourselves marketers who happen to be working in property.

A marketer is someone who understands their customer, and then designs advertising that is most likely to attract and convert the target customer.

Most real estate agents make their living by simply uploading properties on the internet. They are not strategic and don’t adapt over time to changes in customer behaviour.

You can absolutely use a property video to advertise your property for rent

Check out our example below which shows an in-house ad for Asquith. Filmed and edited to highlight unique features and short enough to capture attention.

A video advertising apartments for Lease in the Asquith Area of Sydney

The benefits of video advertising in real estate are…

Want to understand the benefits of using a video to advertise your property? You should check out our article is a property video worth the money?

In it we discuss how video consumption is on the rise. Customers prefer video and it plays a major role in their decisions. So, we recommend taking advantage of video when selling OR renting your property.

Neighbourhoods · News & Updates · Property Management · Reports

Property Management: Macquarie Park and Ryde Report

Ryde and Macquarie Park remain great areas to rent. Our business has always worked hard offering property management in Macquarie Park and Ryde.

Macquarie Park

Birds Eye view of Macquarie Park
View of Macquarie Park

In 2019, the Median Property Price in Macquarie Park for 1 bedroom apartments is $500 per week, $450 per week for 2 bedrooms and $690 per week for 3 bedrooms. (Courtesy of realestate.com.au).

Need more tips and insights?

This is an unusual trend given the median 2 bedroom price is lower than the 1 bedroom price. However this is attributed to the oversupply of 2 bedroom apartments in the area, and availability of older style apartments which are cheaper than new one bedrooms.

Check out census data for more information on Macquarie Park

Ryde

In Ryde, the median rental price for 2 bedroom houses is $500 per week, $650 per week for 3 bedroom houses, and $800 per week for 4 bedroom houses.

Top Ryde Shopping Centre Eatery
Top Ryde City Shopping Centre, located in Ryde

For Apartments, the median for 1 bedrooms is $460 per week, $550 per week for 2 bedrooms and $685 for 3 bedrooms. This data is heavily skewed however. Ryde has diverse pockets, ranging from sections closer to Meadowbank, Putney, North Ryde and also the submarket around Top Ryde Shopping Centre.

Each of these Submarkets is quite unique and will perform differently.

Check out more information on Ryde

More on Property Management in Macquarie Park and Ryde

For more information about Property Management in Macquarie Park and Ryde that is designed to save you thousands of dollars, read more here.

Investments · News & Updates · Property Academy · Property Management

How can landlords save on Sydney Water expenses? 

Landlords can save a little bit of money on Sydney Water expenses every year. 

Reece Sammons, our Head of Property Management breaks things down in this video!

http://https://www.youtube.com/watch?v=3X3WhfQ5wVg

Sydney water 

We all know that the water is included with the rent. However you may not know that detached houses and some apartments in more modern buildings have separate water metres. In this case, you can actually pass on the water usage charges to your tenant. Obviously the fixed charges remain the same, and landlords have to pay this component themselves. But they can claim these expenses back on their tax at the end of financial year.

But before you can actually pass costs along to the tenant there a couple of mandatory things you have to have in place.

Picture of a drop falling into Sydney Water

A Functioning Water Meter

You have to have a function in water metre that keeps track of the tenants water usage. You have to make sure that your property has all leaks repaired so that there’s no water being wasted.

Water Saving Devices

You have to have special set water saving devices fitted to all your taps inside the property, which restrict the flow of water to under 9 litres per minute when the water is turned on.  there’s a lot more than I can say about this but so obviously not going to go into further detail today if you have any further questions please give me a call I’m always here to help. 

For more insights on savings you can make as a landlord, feel free to check us out here

Really your whole property management service should be designed to protect you from avoidable costs and maximise your return.

 

Investments · News & Updates · Property Academy · Property Management

What features make a quality Investment Property? 

One of the most common questions we get asked by our clients is what to look for in a good quality investment property?

We obviously spend quite a bit of time focusing on this in our academy and break this down in a lot of detail, as so many property investors get this wrong. 

Rental PropertyRent is very important as we discuss in the academy for two main reasons: first of all it can be a great passive income stream. Secondly, it is a great tool to help you hold onto investment properties long-term so that you can realise gains through capital growth. In other words, afford all the expenses associated with a property while the value goes up, making you wealthier. 

In this article we’re going to talk primarily about getting a good rental return – what ticks all of the boxes for a tenant? Obviously to get the highest rent, we have to appeal to the most tenants. So we have to put a marketing hat on, look at things from a tenant’s perspective and think about what they are going to want in a property. 

Features that achieve a higher rent, and appeal to tenants make a quality investment property. 

Room Size

One of the most common mistakes investors make is buying a shoebox because they think that it will ‘just be rented out’. The problem is that like most other people, tenants don’t like to live all cramped up! In Sydney, we see a lot of people who are used to living in a house downsize and move into apartments. They’re used to space, so apartments with good size bedrooms and living areas will be more attractive.

Don’t forget however, this is very area specific. Many inner city suburbs in Sydney will generally have smaller dwelling sizes, designed this way to accommodate for the bigger demand to live in those areas. Think about areas like newtown, redfern, rozelle, camperdown and randwick, areas with a high percentage of student population for instance. Studio apartments and sharehouses make good sense here but these would not be as practical in more suburban or Western Sydney areas. 

Close to infrastructure

This is my issue with investment properties that are in fringe Sydney suburbs too far away from major urban centres and infrastructure. In some cases, these investors are better off owning properties in other markets if they cannot afford a proper investment grade property in Sydney. 

If renting and not owning your own home, you’re normally less likely to make lifestyle sacrifices. Think about a young person moving out of home, a young couple or an elderly couple. 

Features that make a property easy to rent out

Young people may be less able to afford to buy, but they would elect to rent in a more premium area in an apartment or sharehouse than the more suburban area where their family home is. 

A young couple has normally the combined savings of two people, their common behaviours are to rent in an area to try it before buying or rent in an area they can’t afford to buy in. 

The same can be said of an elderly person if they want to rent. Why would they do this rather than buy? Affordability, and perhaps needing to be within walking distance of the shops and transport if unable to drive? 

So a property that appeals to these types of renters will create a lot of demand, and drive a good rental return. Good infrastructure includes being close to lifestyle amenities like gyms, cafes and pools, schools, train stations, ferry wharfs, shopping centres and business parks. 

A good tool to use is walkscore but infrastructure is pretty easy to observe. 

Internal modern Features

Things like air conditioners, dishwashers and storage cages are becoming more mandatory for renters rather than extra luxuries. Just because a property doesn’t have these doesn’t mean it won’t make a great investment property, as you can normally put these in! They will also add to the purchase value of your property. 

Again, think about yourself. If there are lots of new dwellings in the area that have modern features, what will that do to the demand of a property without these features? 

Picture of a spacious kitchen in a quality investment propertyAnother example is kitchen size. A small kitchen might be adequate for a renter who lives alone and is on the go, but would potentially alienate a family from living in the dwelling.

Why it’s important to consider these features? What if the market is hot?

 

I see your point.

Like the market for selling and buying property, the rental market fluctuates. It is very seasonal year on year, and can be very erratic over the long-term. Several years ago in Sydney, tenants would compete and bid in $50 per week increments to get into properties. Now the market is a lot slower. 

In a slower market, vacancies get larger as there are more properties sitting on the market and less tenants to soak them up. Tenants get more picky under these circumstances as they have options.

The properties that suffer are older properties that present poorly, where rents drop. These are not quality investment properties; whereas some properties we rent out that are newer and within 100 metres of a shopping centre still hold the same rents over a number of years. 

You want to find a property that will rent well in a slow market, so that you ‘plan for a rainy day’ which is one of the tenets of our Sydney Listings Investment Philosophy. If a property has these features it will tend to make for a better investment property anyway. 

Marketing and Selling Properties · News & Updates · Property Management

Is a pest and building inspection worthwhile?

Should you spend the money on a pest and building inspection, and if so when should you do it? We break this down in our latest video below. 

Should you do a pest and building inspection before you sell?

Pest and Building Inspection when selling

An agent in control of the sales process tells you to get a pest and building inspection done before you even hit the market. This will give you the ability to identify if there are any problems with a property early, before you start showing to buyers. It is much easier and less costly to address these before you actually hit the market. 

The alternative is to get this done after signing up with an agent and hitting the market. However, in this order, a major problem found during the inspection will halt your progress and devastate your campaign – some issues can completely halt the sales process and require a property to be withdrawn from the market. 

This will ultimately hurt the price you achieve. If you need to begin and execute the sales process, please begin here

A series of building contractors When to get a Pest and Building Inspection done?

In our opinion it is better to get it done first and out of the way. This is a small expense to save time and hassle and even streamlines the closing of a sale at the back end of the process. Savvy buyers will always insist on a pest and building inspection, so to have this done before hand makes your property stand out on the market. 

It says that you and your agent are professional, definitely here to sell and have nothing to hide. There is no message that is more appealing to an investor or someone looking for their new home. 

Pest and Building Inspections for Buyers

Pest and building inspections are also a great idea for buyers to complete when purchasing a property. This can be useful as the last thing any new buyer wants is a nasty surprise after settlement that could prove costly.

NSW Fair Trading has some useful pointers on what you should look out for as a buyer. Certain building issues can be hard to spot which is why the right professional could save you thousands.

Investments · News & Updates · Property Management

Do you need to have landlord’s insurance?

Do you need to have Landlord’s insurance? This is an important question to ask and an important conversation to have.

Reece Sammons on whether landlord’s insurance is necessary.

It’s not necessarily feasible for landlords in certain circumstances especially if they own a lot of properties. This is because continually paying lots of premiums will be more expensive than any out of pocket costs that can just come out of the excess rent. 

But if you’re a landlord who owns a small number of properties it is generally quite important for you to have landlord’s insurance in place. 

The first defence against any issues in the property caused by the tenants is of course the tenant’s Bond, but once the Bond is exhausted then that’s when landlord insurance kicks in.

It covers you as a landlord for anything that goes wrong above the tenant’s Bond. 

What is covered? 

  1. Loss of rent
  2. Property damage from storms
  3. Damages from certain types of illegal activity

It is worth noting that landlord insurance will generally cover you for everything that home insurance covers and more, as it is specific to landlord needs. 

Storm damage to a house showing why landlords insurance is necessary

How much does it cost?

Of course landlord insurance ranges depending on the individual circumstances, but we have seen cases starting from as little as $350 to $380 per year. For most rental properties, a policy in this sort of range is an inexpensive solution to the range of potentially very expensive problems that can happen in a rental property. 

But what about my property manager? Don’t they protect my property and find me a good tenant? 

Arguably the best ‘landlord’s insurance’ is a property manager in many respects. At Sydney Listings, we take this perspective of our service particularly under our Contemporary Property Management model.

Property Manager shakes hands with landlordWe take effort to screen tenants before securing them in our landlord’s properties. This is by conducting reference checks and gathering a wealth of supporting documents on an application. We also place an emphasis on pre, post and mid tenancy education of our tenants. Check out some of our videos here for instance to learn more. 

Conducting routine inspections is also vital to this process. But for anyone who knows people, knows that they are unpredictable. People change – in my experience I’ve seen tenants never be late in rent for years. Then suddenly everything changes and they fall behind following a change in circumstances!

I’ve seen perfect tenants turn and suddenly let things go at the end of a tenancy and present properties horribly when moving out. 

But why?

It’s a little thing called the human condition I’m afraid! Accountability goes away. Then people fall back to their own standards, rather than yours. We try everything we possible can to instil our high standards on to tenants for our landlord’s benefit. But it is impossible to do this completely, people remain too unpredictable. 

In my opinion the goal of Property Management is to reduce stress, reduce risk, and cover our fees so that we’re not really getting paid. We rather ‘take a commission’ from the money we save our landlords.  If we’re not doing that, then what is the point of having a property manager? You’re better of doing it yourself!

You may be someone who can’t withstand up to 2 months without receiving rent. Or settle a bill of more than $10,000 following storm damage. Then be aware that there are some things that a Property Manager or Contemporary Property Manager cannot protect you against! 

It is a good idea to understand how we’ve designed Contemporary Property Management to be a semi-landlord insurance policy by downloading this fact sheet

Who to use for landlord insurance?

Our official landlord insurance partner at time of writing is PI Plus who have a pretty strong commitment to protecting our landlords. But we are equally happy to discuss some other options who we don’t share a commercial relationship with. 

Terri Scheer for example position themselves as one of the forerunning brands in landlord insurance. If you have your own insurance broker, speak to them about what policies they can recommend as they will likely be the most aware of your individual needs.