Landlords' Newsletter July 2014

In this edition: How long will it take for your property to rent? Don’t Let it all Go Up in Smoke! (Chimney Maintenance for Beginners) The Five Worst Renting Mistakes and How Landlords Can Avoid Them 7 Signs to Spot if Your Investment Property is Being Used as a Drug Lab!

July 2014

A Selection of Properties Recently Leased Quote Another happy customer—Wow Mo-ment Calendar of Events

Dear Landlord,

End of financial year has finally

come around, thank you to all the

owners that engaged with us to

ensure that items are completed

prior to the end of month for tax

purposes. Please find attached

your end of financial year state-

ments to assist your tax

agent. Haleigh has worked tire-

lessly for days now checking and

preparing these for you.

The team has been working hard

to cover Helen Bryan's well de-

served annual leave. We are glad

to hear her trip to the snow

slopes didn’t end with any injuries

as she continues on the next

chapter of her holiday.

Lisa has come back from her

leave refreshed and pumped and

working towards reletting the cur-

rent vacant properties. Please

keep an ear out for her contact

should your tenancy due to be

ending in September and Octo-

ber. Please be aware the market

for rental is slow in some areas

and it may be in your interests to

be conservative with rental in-

creases.

Julie has taken control of the

rains and is overseeing her own

portfolio, it is great to have her on

the team she is a real asset with

so much experience to offer.

Having expanded our team to

offer better service we are con-

tinuing to look for new properties

to manage and owners to take

care of. Communication, expert

advice and compassion from our

team is ensuring we are continu-

ing to grow. Contact our Busi-

ness Development Manager

Christopher McCall should you

know anyone requiring care and

assistance in the management of

their properties.

Thank you again for your sup-

port. We hope the year has

ended well for you also.

Best regards,

Christina & the team

End of financial year statements and team updates

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

How long will it take for your property to rent?

That of course depends on the time of the year so here are the latest statistics for June.

BRISBANE STATISTICS The Market

Source: rentfind.com.au

Brisbane, QLD June 2014 Annual Change

Median Weekly Rent - House $410 2.5% increase

Median Weekly Rent - Unit/Apartment

$380 1.3% increase

Days on Market (Avg) 26.7 1.7 decrease

Days Vacant (Avg) 15.8 2.4 decrease

Don’t Let it all Go Up in

Smoke! (Chimney

Maintenance for Beginners)

Tips to consider when lighting

your first fire of the season.

Dancing flames, spreading

warmth and the crackle of well-

seasoned wood are but three of

the pleasures of a roaring fire.

Despite the strong move to gas,

there are still enough working

fireplaces to keep the profession

of a chimney sweep alive.

Before lighting the first fire of the

season, it's important to perform

a thorough safety check. Chim-

neys and flues should be ser-

viced on an annual basis. Cracks

and leaks can lead to heat loss or

even chimney fires. Debris, in-

cluding leaves, nests and dead

animals, can block your chimney

and must be removed prior to

use.

One of the major safety issues is

the build up of soot and grease,

particularly highly flammable

creosote. Gas fires may not pro-

duce smoke, but safety checks

are still vital. A damaged or

blocked flue can lead to a dan-

gerous build up of carbon monox-

ide. There are some visual

checks you can make yourself, if

you're game to climb on the roof,

but chimney maintenance is best

left to the professionals.

Source : HomeLife (July 2013)

The Five Worst Renting

Mistakes and How

Landlords Can Avoid Them

Setting the rent too high or low

Before purchasing an investment

property, carry out extensive re-


search to help determine an ap-

propriate rental price.

Setting the rent too high may re-

sult in limited interest from pro-

spective tenants, leaving you out

of pocket if the property remains

empty for an extended period of

time.

However, setting the rent too low

may place you under financial

pressure, limit your rental income

and has the potential to attract

unsuitable tenants.

Look on real estate websites and

through newspaper classifieds to

find listings with similar features

to your property, as this will give

you a guide on the rental market

in that area.

If you appoint a property man-

ager, they should be able to pro-

vide you with information on com-

parable properties and advise an

appropriate rent for your own in-

vestment.

Failing to monitor arrears

If a tenant falls behind in their

rent, it can be a very long and

costly process to resolve and

could leave you considerably out

While it can be tempting to save

a small percentage of rental in-

come by self-managing your

rental property, the benefits of

appointing a property manager

can far outweigh the costs.

Property managers are able to

conduct regular property inspec-

tions to identify maintenance is-

sues, have systems in place to

find and screen prospective ten-

ants, and have access to data-

bases that list tenants with a his-

tory of defaulting on rental pay-

ments, damaging property and

eviction.

If a dispute arises with a tenant,

they are also familiar with the

relevant legislation and can fol-

low the correct procedures to

help resolve the problem as

quickly as possible.

Neglecting maintenance

As a landlord, once you have

been alerted to maintenance is-

sues, it is your responsibility to

act on these or authorise your

property manager to do so as

soon as possible.

If a maintenance issue arises and

you are slow to fix it, you may be

legally liable if your tenant injures

themselves. It is also important to

of pocket.

Diarise the dates that your ten-

ant’s rental payments are due

and check your bank account on

those days. If your tenant doesn’t

pay on the due date, monitor

your bank account on a daily ba-

sis. If they fall into arrears a

breach notice should be sent for

non-payment of rent.

The number of days in rental ar-

rears before a termination notice

can be sent, and the time be-

tween presenting the notice and

requesting vacation varies

around Australia, so it is impor-

tant to be familiar with your local

tenancy laws.

Regularly monitoring arrears and

issuing tenants with appropriate

notices promptly may help re-

solve issues sooner and mitigate

any financial loss

Attempting to self-manage a

property

Self-managing a rental property

can create headaches for land-

lords, especially if they do not

have enough time or resources to

commit to such a task.


ensure that all maintenance is

completed properly and to appro-

priate standards.

Inadequate insurance

Specialised landlord insurance

cover can protect investors from

many of the risks associated with

owning a rental property, provide

peace of mind and ease a land-

lord’s concerns about receiving

regular rental payments if their

tenant damages the property or

absconds.

Standard building and contents

insurance policies usually don’t

cover landlords for these risks.

Landlord insurance can cover

property owners for malicious

damage by tenants, accidental

damage, legal liability for occur-

rences on the property that cause

death or bodily injury, and loss of

rental income as a result of prop-

erty damage or a tenant ab-

sconding.

Even the most careful tenant can

damage a property, whether acci-

dental or otherwise. This can be

extremely costly for the landlord

in terms of repairs and the loss of

rental income.

Source: http://spionline.com.au/

first contact their property man-

ager, and also the police. Ob-

taining insurance coverage often

requires a police report. A tenant

will be required to vacate, after

which time insurance assessors

can determine the damage.

In the meantime, here are the

five things to watch out for:

Regularly Inspect

There's no way to figure out

whether illegal activity is being

undertaken if you are not regu-

larly inspecting.

Detecting temporary drug labs

can save you money, particularly

if they're found early, as this will

help mitigate loss and will allow

you to lodge an insurance claim

as soon as possible, said Parella.

“It takes three months to cultivate

a hydroponics crop so carrying

out quarterly inspections will in-

crease the chances of detecting

any illegal activity as soon as

possible," she said. Ensure you

undertake routine inspections.

Neglect of Lack of Furnishings

The first thing you should be

looking for at an inspection is a

lack of furniture, and/or signs of

neglect.

7 Signs to Spot if Your

Investment Property is

Being Used as a Drug Lab!

Illegal drug labs set up in rental

properties can cause fear for

property investors, particularly as

the clean up costs can be signifi-

cant, not to mention a hefty repair

bill in some instances.

While it's uncommon for tenants

to be engaged in this type of ac-

tivity, it's worth every property

m a n a g e r a n d i n v e s t o r

(particularly self-managing land-

lords) to be keeping an eye out

for any suspicious activity.

Terri Scheer Insurance's execu-

tive manage,r Carolyn Parrella,

explains that whether it's canna-

bis, methamphetamine or ec-

stasy, illegal drug cultivation has

specific signs that astute inves-

tors can look for.

“Temporary drug laboratories in

rental properties can be difficult

to detect if you do not know what

to look out for,” said Parrella,

even though tenants will go to

significant lengths to hide this

type of activity.

For those who do find evidence

of a drug lab, investors should


While some certainly live with the

bare minimum, it's unusual to see

a rental that has a lack of per-

sonal effects.

“When conducting an inspection

look for signs that the property is

being lived in. Illegal drug manu-

facturers generally do not live at

the properties they use to culti-

vate drugs, therefore the prem-

ises may appear under furnished

or neglected," she explains.

It is always worth asking the ten-

ant if they've been away, and

looking for another reason before

assuming they run a drug lab!

Look For Modifications

Creating a drug lab isn't exactly a

simple task. As anyone who

watched Breaking Bad can tell

you, it requires some specific

equipment, materials and prod-

ucts.

“Some hydroponic systems or

temporary drug laboratories re-

quire specific modifications to the

property,” Parella said.

You want to be on the lookout for

tampering with the property.

Pipes and hoses are often re-

quired in hydroponic setups, that

filter through the roof or a man-

hole. Holes in the ceiling can be

a signal of a drug lab set up.

“It is also a good idea to check

whether the metre board has

been tampered with or rewired.

Holes in nearby walls or built-in

cupboards are common in order

to feed wires to a power source,"

she advised.

Look for Specific Items

We can't all know what every

item is that someone else owns,

however an abundance of un-

usual items may suggest that

something untoward is happen-

ing.

“Certain items are commonly

used to manufacture illegal

drugs, including glass flasks,

beakers, rubber tubing, gas cylin-

ders, chemical containers,

drums, drain cleaner, acid garden

fertiliser and cough, cold or al-

lergy medicine,” Parrella said.

A portable air conditioner is also

frequently a key part of kit when

cultivating hydronic crops, she

said. Again, don't jump to conclu-

sions - similar items have been

owned in children's chemistry

sets - however, use your com-

mon sense. Some of these items

in combination may set alarm

bells ringing.

Sealed / Covered Windows

Windows that are constantly cov-

ered or sealed during the day

may also be a small suggestion

that these tenants are looking for

an extra level of privacy. Win-

dows covered in aluminium foil,

in particular, however should

have you concerned.

Bills

If you're seeing unusual signs in

the property, then it's time to turn

to the bills.

“A dramatic spike in water con-

sumption could signal drug

manufacturing as more water is

generally needed to cultivate

drug crops," notes Parella.

Unusual Wear and Tear

Temporary drug labs can leave

signs in unusual ways. Colour

variations on the walls, such as

behind hanging pictures or art-

works, after a short-term period is

worth a second look.

“If there are intense lights being

used as part of a hydroponics set

up it may visibly fade paintwork,"

notes Parella.

Source: propertyobserver.com.au/

http://www.propertyobserver.com.au/

15 July Mid Month Accounting 1 August End of Month Accounting

A Selection of Properties Recently Leased

Windsor Unit $480p.w.

2 bed, 2 bath,

1 car accommodation

Quote

"A man does not have to be an angel in order to be saint."

—Albert Schweitzer

Bardon House $695 p.w.

4 bed, 2 bath,

1 car accommodation

RE/MAX Profile Real Estate 141 Boundary Road TEL 07 3510 5222 FAX 07 3876 5544

www.profilerealestate.com.au Bardon QLD 4065 Chris [email protected]

www.propertyrentalsbrisbane.com PO Box 388, Paddington, 4064 Helen [email protected]

Julie [email protected]

Errors & Omissions: These details have been prepared by us on information we have obtained and while we trust it to be correct, is not guaranteed by us and you should rely on your own enquiries.

Herston Unit $330 p.w.

2 bed, 1 bath,

1 car accommodation

Calendar of Events

We are much appreciated for your professional manage-ment of our property since the date we bought this property. Your professionalism impressed us quite a lot and we thank you again for your work in these years, and if we have more property in future, we would be happy to use your team as service provider. Thanks and kind regards! Henry Huang

Another happy customer—Wow Moment

Landlords' Newsletter July 2014

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