At first glance the building does look like it needs a bit of attention (one lift not working, the main entrance door not working, and cracking plaster around doorways) these items are being dealt with as money becomes available.
There have been a number of reoccurring plumbing problems. The bathroom waste fittings from the unit above leaks, effecting the unit below. If the problem is caught early enough it can be fixed without too much expense. The problem gets costly when the problem is left and water damages the ceiling. We have sent our plumber and builder to sort out a number of these units.
There are the usual complaints about noise however this is a common problem in any build environment.
Sipho, the caretaker is a stern man and takes the job seriously.
There have been a number of incidents of cell phone muggings outside the building and tenants are to be reminded to be careful.
The building is still attracting good rentals and we are very positive for the next couple of years.
Showing posts with label management. Show all posts
Showing posts with label management. Show all posts
Sunday, August 8, 2010
Wednesday, May 6, 2009
10 Questions to ask Property Maintance workers
When you are a landlord, there is always maintenance to be done. Whether it is a burst pipe or a broken washer-dryer, there are all manner of problems that can strike a rental dwelling. If you do not have the time or skill level to fix these problems, you will probably need to hire a professional.
But repeated calls to specialized workers, such as plumbers or electricians, will quickly devour your profit margin. If your rental property is having continual problems, you may want to hire a full- or part-time maintenance worker.
Before you begin your search, check with your current tenants. If one of them is qualified to perform the necessary maintenance, you may be able to work out a barter arrangement in which you trade work for rent-free accommodation. Over time, this can be a great way to save money on repair costs.
Whether you end up hiring a tenant or outsourcing the maintenance position, there are several things to be mindful of. Asking these 10 questions can help you find the most qualified person for your maintenance position ahead of time, saving you trouble and extra expense down the road.
1. Are they experienced? There is a big difference between fixing a leaky faucet and caring for a property. If you own a large apartment complex, the complexity and frequency of problems may be too much for the average handyperson. Before hiring anyone, make sure that they are completely capable of handling the most demanding tasks they may face.
2. What is their skill level? Can the worker handle a variety of problems? Are they qualified to work as an electrician, or do they have certain limitations?
3. Does their expertise match your problems? If you have a building with chronic plumbing problems, hiring someone who is more skilled at carpentry will not be very helpful. Try to find a jack of all trades rather than a master of one.
4. Where do they live? If your maintenance person does not live on site, how far away is their primary residence? If you find someone who is absolutely perfect for the job but lives too far away, you may want to consider providing them with housing either within your rental property or nearby.
5. Will they be full- or part-time? This will depend on the size of your property and the amount of problems you anticipate. If you have a large apartment complex, you may need to have a full-time maintenance person on the job. However, if you have only one or two rental houses, a part-time worker would be the economical choice.
6. What is their response time? This is very important if your worker does not live on site. Some problems just cannot wait until morning. For example, if you have a furnace go out in the middle of a very cold night, you will need to have this fixed as quickly as possible. If your maintenance person cannot get to your property in a timely fashion, you may need to find someone whose schedule will permit them to be on an on-call basis.
7. Can they provide references? Request both employer and character references. Have each applicant complete a written application so you can follow up on the references that they provide.
8. Are they ethical? An unethical maintenance worker can quickly drain your wallet and poison your reputation with your tenants. Ask the applicant's former or current employers about their work ethic and personality.
9. Can the applicant keep up with demand? If you have several properties, or if your properties are spread out over a wide area, one worker may not be enough. Take into account how often you may need them, and how far your properties are from their current location.
10. Are their rates reasonable? If you have infrequent problems with your rental properties, the added expense of hiring a maintenance worker may be more than you would pay for one-time jobs. This is something you will need to weigh before making your final decision.
But repeated calls to specialized workers, such as plumbers or electricians, will quickly devour your profit margin. If your rental property is having continual problems, you may want to hire a full- or part-time maintenance worker.
Before you begin your search, check with your current tenants. If one of them is qualified to perform the necessary maintenance, you may be able to work out a barter arrangement in which you trade work for rent-free accommodation. Over time, this can be a great way to save money on repair costs.
Whether you end up hiring a tenant or outsourcing the maintenance position, there are several things to be mindful of. Asking these 10 questions can help you find the most qualified person for your maintenance position ahead of time, saving you trouble and extra expense down the road.
1. Are they experienced? There is a big difference between fixing a leaky faucet and caring for a property. If you own a large apartment complex, the complexity and frequency of problems may be too much for the average handyperson. Before hiring anyone, make sure that they are completely capable of handling the most demanding tasks they may face.
2. What is their skill level? Can the worker handle a variety of problems? Are they qualified to work as an electrician, or do they have certain limitations?
3. Does their expertise match your problems? If you have a building with chronic plumbing problems, hiring someone who is more skilled at carpentry will not be very helpful. Try to find a jack of all trades rather than a master of one.
4. Where do they live? If your maintenance person does not live on site, how far away is their primary residence? If you find someone who is absolutely perfect for the job but lives too far away, you may want to consider providing them with housing either within your rental property or nearby.
5. Will they be full- or part-time? This will depend on the size of your property and the amount of problems you anticipate. If you have a large apartment complex, you may need to have a full-time maintenance person on the job. However, if you have only one or two rental houses, a part-time worker would be the economical choice.
6. What is their response time? This is very important if your worker does not live on site. Some problems just cannot wait until morning. For example, if you have a furnace go out in the middle of a very cold night, you will need to have this fixed as quickly as possible. If your maintenance person cannot get to your property in a timely fashion, you may need to find someone whose schedule will permit them to be on an on-call basis.
7. Can they provide references? Request both employer and character references. Have each applicant complete a written application so you can follow up on the references that they provide.
8. Are they ethical? An unethical maintenance worker can quickly drain your wallet and poison your reputation with your tenants. Ask the applicant's former or current employers about their work ethic and personality.
9. Can the applicant keep up with demand? If you have several properties, or if your properties are spread out over a wide area, one worker may not be enough. Take into account how often you may need them, and how far your properties are from their current location.
10. Are their rates reasonable? If you have infrequent problems with your rental properties, the added expense of hiring a maintenance worker may be more than you would pay for one-time jobs. This is something you will need to weigh before making your final decision.
Tuesday, May 5, 2009
May Newsletter
Good morning Investors
We hope that you all enjoyed your holidays this last month
We have been involved with the launch of a fantastic new development called the Colosseum. It has been a bit of an uphill journey.
For those of you who have not invested in the building here is some background. The developer wants to keep standards of the building high and has implemented restrictions that do not permit just any letting agent into the building to rent out the apartments. We had to meet with the developer and issue company docs for approval.
This is a great idea and we are quite surprised that this is the first time that we see a system like this being implemented into a CBD block. There are plenty of sub-standard agents out there and we are sure that most of you have had the unfortunate experience of dealing with them.
This type of entrepreneurial thinking is what we need to really see our investments grow.
All our other buildings are doing well with nothing to report.
The only bad news that we have this month is that there was a fight at the Broadway Building, Friday night 30 April, the security did sort out the problem and there is a meeting with the body corporate, Security Company and the managing agent.
This sort of behavior can be avoided by implementing the right house rules. However we think that the Body Corporate of buildings in CBD should start enforcing that only approved managing agents are allowed to operate in their buildings.
Let’s hope that May is a trouble free month,
We hope that you all enjoyed your holidays this last month
We have been involved with the launch of a fantastic new development called the Colosseum. It has been a bit of an uphill journey.
For those of you who have not invested in the building here is some background. The developer wants to keep standards of the building high and has implemented restrictions that do not permit just any letting agent into the building to rent out the apartments. We had to meet with the developer and issue company docs for approval.
This is a great idea and we are quite surprised that this is the first time that we see a system like this being implemented into a CBD block. There are plenty of sub-standard agents out there and we are sure that most of you have had the unfortunate experience of dealing with them.
This type of entrepreneurial thinking is what we need to really see our investments grow.
All our other buildings are doing well with nothing to report.
The only bad news that we have this month is that there was a fight at the Broadway Building, Friday night 30 April, the security did sort out the problem and there is a meeting with the body corporate, Security Company and the managing agent.
This sort of behavior can be avoided by implementing the right house rules. However we think that the Body Corporate of buildings in CBD should start enforcing that only approved managing agents are allowed to operate in their buildings.
Let’s hope that May is a trouble free month,
Sunday, April 19, 2009
Keeping your Tenants happy
Keeping your tenants happy saves you money in the long run. Happy tenants tend to stay in your rental property longer and don’t complain much. Here are some attributes about rental properties that tend to keep tenants happy over the long haul:
A place with not-too-high rent increases. Don’t be unreasonable and raise the tenant rents too high and too often. If the market is a strong market, explain what the rental market is for their apartment and let them know you value them as great tenants and you are keeping the property under the market for that reason.
A place tenants are proud to live. Everyone wants to live where they can invite their friends and family over and be proud of where they live. By providing a rental property that is clean and well maintained, you are providing a property that your tenants will be proud to show off.
A place that they can move into that’s clean. They want to be able to put their belongings in a clean environment. Be sure old odors are gone and nothing of the past tenants’ is left over.
A place with well-kept common areas and clean grounds. Clean laundry room, clean pool, well maintained landscape, and well lit parking lot.
A place that’s safe and well lit. Let them know that you feel safety is important. Be sure all the smoke detectors are working and that they know how to turn off the water if needed.
A place where everything’s in working order. Make sure before your tenants move in that all the appliances work, and the furnace and air conditioning are in working order.
A place that respects tenants’ privacy. Don’t go over to the property unannounced; instead, let your tenants know you are coming over prior to showing up. This is their home, too, while they pay the rent and live there.
A place that encourages good neighbors. Don’t lose a good tenant due to a bad tenant making noise and causing problems. Take care of the problem. Be sure to let the good tenants know you are attempting to solve the problem.
A place where the rental manager truly cares about the property. From the very beginning, tenants can tell whether they are renting from someone who cares about the property, based on the condition and the reaction to any request before the tenants move in.
A place where the manager responds to reasonable maintenance requests. Tenants want to know that when they have a problem, it will be addressed and taken care of in a reasonable time.
A place that keeps tenants informed. No one likes surprises, so keep your tenants informed. If the plumber is really busy and cannot come out for a couple of days, let the tenants know that. If you cannot make a scheduled appointment, show common courtesy by letting tenants know.
A place with fair rules that are monitored and communicated to all tenants. These are rules the tenants would agree to and sign prior to moving in. It is important that all tenants follow the same rules and that you as the owner see that they are enforced.
Being fair and reasonable will keep tenants a whole lot longer. You don’t have to make long-lasting friends to have a long-lasting tenant.
A place with not-too-high rent increases. Don’t be unreasonable and raise the tenant rents too high and too often. If the market is a strong market, explain what the rental market is for their apartment and let them know you value them as great tenants and you are keeping the property under the market for that reason.
A place tenants are proud to live. Everyone wants to live where they can invite their friends and family over and be proud of where they live. By providing a rental property that is clean and well maintained, you are providing a property that your tenants will be proud to show off.
A place that they can move into that’s clean. They want to be able to put their belongings in a clean environment. Be sure old odors are gone and nothing of the past tenants’ is left over.
A place with well-kept common areas and clean grounds. Clean laundry room, clean pool, well maintained landscape, and well lit parking lot.
A place that’s safe and well lit. Let them know that you feel safety is important. Be sure all the smoke detectors are working and that they know how to turn off the water if needed.
A place where everything’s in working order. Make sure before your tenants move in that all the appliances work, and the furnace and air conditioning are in working order.
A place that respects tenants’ privacy. Don’t go over to the property unannounced; instead, let your tenants know you are coming over prior to showing up. This is their home, too, while they pay the rent and live there.
A place that encourages good neighbors. Don’t lose a good tenant due to a bad tenant making noise and causing problems. Take care of the problem. Be sure to let the good tenants know you are attempting to solve the problem.
A place where the rental manager truly cares about the property. From the very beginning, tenants can tell whether they are renting from someone who cares about the property, based on the condition and the reaction to any request before the tenants move in.
A place where the manager responds to reasonable maintenance requests. Tenants want to know that when they have a problem, it will be addressed and taken care of in a reasonable time.
A place that keeps tenants informed. No one likes surprises, so keep your tenants informed. If the plumber is really busy and cannot come out for a couple of days, let the tenants know that. If you cannot make a scheduled appointment, show common courtesy by letting tenants know.
A place with fair rules that are monitored and communicated to all tenants. These are rules the tenants would agree to and sign prior to moving in. It is important that all tenants follow the same rules and that you as the owner see that they are enforced.
Being fair and reasonable will keep tenants a whole lot longer. You don’t have to make long-lasting friends to have a long-lasting tenant.
Managing your property
The positive aspects of renting property are as follows; a lot of these apply whether you hire a property management company or not:
- You own your own business.
- You save the fees charged by a property management professional.
- Technology has made self-managing your properties easier than in the past.
- It’s a people business.
- It can be fun and challenging.
- You may enjoy it enough to make it your career and even manage property owned by others.
- After everything is set up properly, it’s not a lot of work.
- You can see and touch your investment.
- The business provides continual income rather than the one-time income from a sale.
- With creativity, you can purchase with little cash.
- You can keep a home you may want to move back to later.
- Renting properties is usually profitable.
- Renting property provides current or future lodging for your children.
- Buying your first property starts you on your way to purchasing more.
- Property values usually appreciate.
- You diversify your investments.
- There are great tax advantages.
- It can be a second income.
- It can be a part of your retirement.
- It can be a long-term business.
Cons of Managing Rental Property
You may have days when you question why you purchased rental property and became a landlord. But then, when you arrange an appraisal and find that your property value has gone up, you’re probably pleased with the gain in value. The time, money, and effort suddenly are all worthwhile, and you realize that hard work really does pay off.
- It takes a lot of time in the beginning to set things up.
- There are many details you need to learn and understand.
- The initial outlay may be greater than with other investments.
- Your property may have a negative cash flow, especially at first.
- Technology is hard to keep up with and takes time.
- Reporting income and expenses on your tax return requires additional time and knowledge.
- Like anything, there is always a risk involved.
- The hours are not 9 to 5.
- It is like having a second job, often without vacations.
- Dropping everything to respond to an emergency isn’t fun.
- Finding and dealing with contractors can be tricky.
- It is a people business, which means you have to enjoy talking to people.
You listen to many complaints. - You can always hire a professional to rent and/or manage your property. This way you don’t have to deal with the emergency call in the middle of the night or all the problems that arise from dealing with different types of people. You let them take on the time-consuming tasks while you receive the income.
Fedruary update
Good morning CBD Investors
First interest rate cut, now a bit of tax relief for us coming out of the budget speech. The great news was an increased exemption for interest and dividend income with company tax was unchanged.
Our tenants do not seen to have felt the credit crunch yet. Demand has been fantastic so far this year.
Bridgeview – (220 units) was 95% let in just 2 months, it is great to see how the efforts to clean up town are paying off.
Broadway – (140 units) now a little more than 1 year old. Cluster Consultants will be the new building managers taking over from Trafalgar this year. We are looking forward to working alongside them to make this another great building.
A first-class class start to the year with all our units let, we have had our team sort out a few maintenance items, shower doors and cupboard door wheels being the most common. A happy tenant is a paying tenant.
Madison – ( 67 units) Black & White properties have replaced Trafalgar as the building managers. Fully tell and still in very good shape.
Liberty – (120 units) is in good running order, Trafalgar just need to keep an eye on the levies arrears that seem to be a little high.
Time Square – (82 units) is well run with trustees that are keeping looked after.
100 Jorissen – (163 units) seems to be having a bit of a tough time coming right, with overcrowding becoming more noticeable. Overcrowding poses the biggest risk to CBD property. Overcrowding portrays a lack of management and interest that then filters down to the residence of the building, we are to have a chat with management to find out if they are aware of the problems.
2009 will be an interesting year with some investors sitting tight for now and some investors getting ready to start looking at new opportunities again.
We should all take a step back and put a little time into our portfolios; check up on body corporate, see that our banks are giving us the best rate, reduction costs and improving our systems to take the worries out of property.
First interest rate cut, now a bit of tax relief for us coming out of the budget speech. The great news was an increased exemption for interest and dividend income with company tax was unchanged.
Our tenants do not seen to have felt the credit crunch yet. Demand has been fantastic so far this year.
Bridgeview – (220 units) was 95% let in just 2 months, it is great to see how the efforts to clean up town are paying off.
Broadway – (140 units) now a little more than 1 year old. Cluster Consultants will be the new building managers taking over from Trafalgar this year. We are looking forward to working alongside them to make this another great building.
A first-class class start to the year with all our units let, we have had our team sort out a few maintenance items, shower doors and cupboard door wheels being the most common. A happy tenant is a paying tenant.
Madison – ( 67 units) Black & White properties have replaced Trafalgar as the building managers. Fully tell and still in very good shape.
Liberty – (120 units) is in good running order, Trafalgar just need to keep an eye on the levies arrears that seem to be a little high.
Time Square – (82 units) is well run with trustees that are keeping looked after.
100 Jorissen – (163 units) seems to be having a bit of a tough time coming right, with overcrowding becoming more noticeable. Overcrowding poses the biggest risk to CBD property. Overcrowding portrays a lack of management and interest that then filters down to the residence of the building, we are to have a chat with management to find out if they are aware of the problems.
2009 will be an interesting year with some investors sitting tight for now and some investors getting ready to start looking at new opportunities again.
We should all take a step back and put a little time into our portfolios; check up on body corporate, see that our banks are giving us the best rate, reduction costs and improving our systems to take the worries out of property.
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