property management

All posts tagged property management

Constant review will reap rewards for your property portfolio

Property investment is incredibly popular in Australia – and why not!?

Hundreds of thousands of people continue to make money on property, with capital gains and rental income among the biggest areas of profitability.

Because property has performed so well for so long, it is easy to become complacent – many people adopt a buy and hold strategy without compromise, and some owners don’t review rental properties regularly (or at all!).

While property is not as liquid as some other assets, your portfolio should always be under assessment, and by reviewing and maximising rental income, your asset is worth more now, and later.

Unfortunately, nobody has a crystal ball predicting property values, but there are times at which it can make lots of sense (and more money!) to sell and buy at different times, diversify into different areas or types of property, or simply to buy in rising markets, and sell in falling markets.

Adelaide values grew 0.9% in September, and are up 3.1% in the third quarter of 2014.

Houses in Adelaide are achieving an average of 4.2% yield, and units 4.7%.

BLOC Property’s client portfolio has been consistently outperforming the market in 2014 – if you’d like help with a portfolio review contact us today at contact@blocproperty.com.au or call us on 7123 0823.

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Recent changes to the Residential Tenancies Act

In 2013 a bill amendment was passed that makes dozens of amendments to the Residential Tenancies Act South Australia. The bill came in operation in March 2014 and it has many property managers and landlords asking “How will the new residential tenancies act affect me?”

For our clients and landlords, nothing much changes. As your managers we will adjust to changes in relation to notice periods and ensure compliance in all cases. Access hours to properties will be restricted and a more uniform and stringent approach to notice of entry will be implemented (7-14 days).

One of the more frustrating changes for landlords and property managers alike is that instruction manuals will need to be provided for all appliances in rental properties, including old appliances. This could pose several issues for partly or fully furnished properties.

We will also need to treat abandoned goods and “bad tenants” more carefully. Strict rules regarding entering bad tenants onto databases will apply and accurate records of abandoned goods need to be kept, to avoid fines of up to $2,500.

We believe it is unfortunate that again the law will be further skewed in favour of the tenant and will not provide any extra protection for our landlords. BLOC Property would have liked to have seen better rules around pursuing rental arrears by shortening the period of time before we can issue notices to pursue the tenant, and the allowance for increased bond when pets are being allowed into properties.

You can view a summary of the changes listed by Consumer and Business Services BY CLICKING HERE.

 

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