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Best ways to advertise a rental property

BMT team — Wed, 16 Feb 2022 05:18:26 +0000

There are many reasons why you might need to advertise a rental property. Maybe the investment property is being advertised for the first time. Perhaps an existing tenant doesn’t want to renew the lease or has handed in a notice to terminate. Whatever the circumstances, your property professional will be able to walk you through the best advertising options available to you. When listing a property it’s best to have your ‘perfect’ tenant in mind. This will help your property professional work out how to reach them effectively to minimise the period of lost rental income. Here are some of the best ways to advertise a rental property in today’s market. Online listing portals Social media Newspapers Signs and flyers Online listing portals When Australians are looking to find a rental property, they generally head online. Online portals like Domain and realestate.com.au have a substantial audience reach, with millions of users accessing these portals nationwide. Your property professional will be able to guide you as to which listing portal is more common in your area and will reach a more suitable audience. Example, Allhomes is more common in the ACT than other sites. These portals are easy to understand and navigate. Social media Advertising rental properties on social media platforms like Facebook, is becoming more common. With the opportunity to use both free and paid advertising, social media can be cost effective. While it’s not necessary to use paid ads, there are many benefits to doing so. These include micro-targeting for specific audiences, reports and analytics, ad forecasting, performance estimates and more. For instance, your ‘perfect’ tenant is easier to target than ever with Facebook’s audience targeting software. Using filters that target specific demographics like age, location, interests and even online behaviours can track and target potential tenants to receive your rental property advertisements. If paid ads are not an option, posting rental properties on real estate agency or personal pages can still be an effective advertising option, reaching a targeted audience with key word and filtered searches. The Facebook Marketplace page is also an alternative. Newspapers Newspapers are another effective way to advertise rental properties. Online newspaper ads can include links to other websites with directory to further information and photos. This could be a real estate agency website or the original property listing. It is good to keep in mind that online newspapers generally have a younger average reader whereas printed newspapers generally reach an older audience. If advertising in a printed newspaper, listing rental properties on Saturdays and Sundays may be more effective as people read newspapers more often on weekends. These advertising slots may be more expensive than weekdays but will likely reach a larger audience. Signs and flyers Signage and flyers can be an effective way to advertise and generate interest for an investment property in surrounding streets and suburbs. They are an inexpensive way to broadcast in specific locations, providing receivers with property and contact information. This may be important if seeking a specific type of tenant or advertising in areas with similar community engagement or services. Hire flyer delivery services are available in most main cities in Australia for a relatively cheap price, with some packages starting at $130 per thousand flyers. It’s important to remember that rental advertising costs can be claimed at tax time. The advertising expenses can be claimed in the same year that they were incurred, reducing an investor’s taxable income and improving their cash flow. A vacant investment property can also present an opportunity for improvements to be made to the property, since tax deductible expenses can be claimed as long as it is genuinely available for rent. If planning to make improvements to an investment property, it’s best to reach out to a tax depreciation specialist like BMT. A BMT Tax Depreciation Schedule outlines every depreciation deduction claimable from the rental property. To learn more about depreciation contact BMT today on 1300 728 726 or Request a Quote.

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Wanting to attract quality tenants? Here are 10 things they want in their rental

BMT team — Sun, 23 May 2021 23:18:45 +0000

The current rental property market is fierce, making it harder to find the quality tenants for your investment property amongst the applicants. Quality tenants mean a consistent cash flow, long-term leases and lower risks of tenant-related property damage. Holding a property that has what tenants want in a rental is what will help you land the perfect tenant. 10 things quality tenants want in a rental property 1. Location Tenant location demand largely depends on your tenant target market. So, this is where it pays to do your research before buying your next investment property. If your ideal tenant is a working family, then a family-friendly location with ample schooling options in the school zone should be your priority when narrowing down the location of your property. But if your target market is working professional singles or couples, then urban convenience should be top of your list. 2. Maintenance levels Manageable maintenance levels of a property is a win for you, and often for your tenants. This means that while an immaculate garden with exotic but needy plants may look great, it’s not favourable for tenants without a green thumb. The same applies for the indoors, you want areas like the bathroom to be easy to maintain and clean and the floor covering option needs to withstand high levels of traffic. There’s a long list of high maintenance vs low maintenance features of a home. The key takeaway here is to go with the option that’s going to make it easier for yourself and your tenants. 3. Security and privacy When your tenant feels the rental is like home, they will treat it that way. This means they need to feel a level of privacy. Try doing things like giving plenty of notice before scheduled inspections and allowing them to organise times with any required tradesperson. Then comes security. By this we don’t mean security cameras in every corner, alarms and high barbed-wire fences. Getting the basic security features will help your tenant feel more at home. This includes sturdy locks on doors with the option of an interior latch, lockable windows and security screens. 4. Parking Luxury in built-up urban areas comes in the form of off-street parking. While a driveway is dependent on the space you have, you should always offer it as part of the rental if possible. The convenience is a sure-way to attract tenants in competitive urban areas. 5. Little details that makes it feel like a home It’s the little things that count when it comes to rentals and attracting the quality tenants. This means avoid the stereotypical rental property features like painted-shut windows and dodgy DIY repair jobs. Having the property move-in ready with no need for repair should always be at the top of your list before leasing the property. While the upfront costs may seem to outweigh the benefits, it’s important to remember that repairs are 100 per cent tax deductible in the same financial year if the property is genuinely available for rent. If the repairs are completed before the property is available for rent, they can be depreciable as part of a capital improvement. 6. Approachable landlord and property manager Clear lines of communication and transparency are essential when it comes to getting and keeping quality tenants. This is where you need to count on your property manager. Communication is key at the very beginning to ensure expectations with your tenant are met. Factors like repairs also need to be dealt with in a timely manner to keep your tenants happy. Transparency around considerations such as rent increases and inspection requirements are also important for any tenant-owner relationship. When this is done correctly, reliable long-term leases are often obtained. 7. Storage Incorporating storage with the property will make it more comfortable for your tenants. This applies to both the indoor and outdoor areas. Providing an area outside the living space where possible, like a storage shed, can go a long way in terms of tenant-appeal. A big deterrent for rentals is when the owner is using part of the property, like the garage, for their own storage and making it unavailable to the tenant. It’s understandable given they own the property but it’s equally as important to allow the tenant to use the property like it’s their own. 8. Heating and cooling Australian summers can be unforgiving, while winters in some areas can come as a body-shock following the warmer months. Ensuring your property has adequate temperature control is something that will draw tenants in. This means well-suited ventilation to the environment and investing in assets like air-conditioners and heaters to make it a more comfortable place to live. 9. Natural lighting Natural lighting is a healthy way to enjoy the indoors. It can lower electricity bills and bring warmth inside even in the depths of winter. Lack of natural lighting can be inevitable due to the property location, but where it can be helped it should. From the first inspection, natural lighting can make a big impact on prospective tenants. This means providing window coverings that can provide privacy and the option of natural light – like venetian blinds instead of heavy block-out curtains. Or if you are planning on building your next investment property, strategically place windows where they can take full advantage of the sunlight. 10. Modern or upgraded Style preferences change, but generally tenants like to have ‘nice things’ and a space that doesn’t feel outdated. This doesn’t mean only purchase brand-new investment properties – we know realistically this isn’t always an option. But upgrading areas of the property that will add to the tenant-appeal factor can be worthwhile, such as renovating a kitchen, bathroom or removing old carpet and replacing it with new floor coverings. Tenant-appeal isn’t the only benefit of new or upgraded properties. You will also benefit from heightened depreciation deductions. New properties produce higher depreciation deductions in comparison to their second-hand counterpart. Meanwhile, any renovation you complete will unlock further depreciation […]

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Best tenant screening processes and background checks

BMT team — Wed, 07 Aug 2019 06:35:32 +0000

Finding good quality tenants is often considered one of the biggest hurdles to property investors. To avoid being locked into an unpleasant rental agreement, it pays to perform a tenant background check before choosing who you allow to live in your investment property. Here are some ways to increase your chances of securing good quality tenants who are likely to take care of your property and pay their rent on time. Tenant background checks What information is needed from the tenant to conduct a check? What information is referenced when performing a check? What information is obtained following a check? Who can access database reports? What are the costs involved in obtaining a report? How else can I protect my investment? Points to remember when screening tenants Tenant background checks Landlords and property managers often use tenant screening services to conduct background checks. Tenant screening services contain historical tenancy information and are a good way to determine if a tenant is a sensible prospect to rent an apartment or house. Examples of screening services used to commonly access ‘enquiries’ databases and generate reports include: National Tenancy Database Tenancy Information Centre Australia (Tica) Trading Reference Australia Screening services run background checks to determine a tenant’s previous rental history, verify their income and employment and obtain a credit report to determine the ability of the tenant to meet rental obligations. What information is needed from the tenant to conduct a check? For a check to be conducted and a report obtained by the landlord or real estate agent, a tenant needs to provide the following: Full name Date of birth Photo identification (driver’s licence or passport) Email address Previous address Tenant signature authorising a credit report to be obtained Landlords or property managers should also contact previous landlords, ideally covering the past two years to verify dates of tenancy, monthly rent paid, reliability of payments as well as identify any issues the landlord experienced with the tenants, which may include any property damage. What information is referenced when performing a check? Former president of the Real Estate Institute of Australia (REIA), Malcolm Gunning identified that landlords and agents aim to obtain two results when conducting a tenant screening. They want to know if the tenant can make their rental repayments and if they have a history of looking after properties they have rented. To obtain this information, landlords and property managers will look at sources including: Screening services Past rental ledgers References from previous agents and tenancy database reports Social media sites including Facebook Credit reports What information is obtained following a check? Generally, the information found when conducting a tenancy search and obtaining a report includes: Tenant identity validation (to avoid identity fraud) Rental history details Blacklist information Bankruptcy issues via Australian Financial Security Authority bankruptcy register Court judgments, court writs and summonses Australian Securities and Investments Commission (ASIC) search results Previous searches on the tenant, who conducted them and when Visa status (where applicable) Search results from ASIC’s directorship databases Who can access database reports? Tenancy databases with annual turnovers of over $3 million dollars are governed by the Australian Privacy Act 1988. This law regulates the handling of personal information about individuals. Tenancy database reports can be accessed by landlords and property managers when consent is provided by the prospective tenant. The Office of the Australian Information Commissioner (OAIC) advises that under Australian Privacy Principles, individuals are also entitled to access database data about themselves to know what information is held about their rental history. An administration fee is often charged to cover the costs associated in locating and delivering this information from a database to the individual. What are the costs involved in obtaining a report? Australian leading consumer advocacy group, CHOICE conducted research to determine the process and costs involved in obtaining access to tenancy database information. They found that the National Tenancy Database (owned by Equifax) provides free copies of tenancy files within two weeks of request when emailing info@ntd.net.au. They also offer a $38.50 fee to access files instantly through their partner tenancycheck.com.au, but this method does not contain the additional information found in the former mentioned National Tenancy Database when searching the ‘enquiries’ database. Tica provides access to ten tenancy files online for an annual administration fee of $55. The report includes a search of both the tenancy database and its ’enquiries’ database. Additional charges apply for additional searches. Trading Reference Australia provides free copies of tenancy files within three weeks, or you can obtain it instantly for $22. Their online report only contains information from the tenancy database. Additional information was also requested including a phone number and employer information. Any fees associated in obtaining a tenancy report completed by a screening service, undertaking a credit check or sourcing information from relevant websites can be requested from prospective tenants. How else can I protect my investment? While undertaking background checks and screening potential tenants will go a long way towards protecting your financial interests and your investment property and minimising risks, it is also wise to obtain comprehensive landlord insurance that covers you against: Loss of rent Tenant damage (malicious and accidental) Theft by tenants Flood, storm and water damage Pet damage Standard building and contents insurance may not protect in the above-mentioned instances. It is estimated that up to 83 percent of properties are underinsured. BMT Insurance works with some of Australia’s most experienced providers and can assist you to find the appropriate level of insurance cover to meet your needs. Points to remember when screening tenants Be informed – Know what to look for, as past behaviour is a key indicator of future behaviour. People and the circumstances that affect them can change but be wary of those with an unreliable rent repayment history as you may want to investigate further. Obtain landlord Insurance – Obtain landlord insurance as standard building and contents insurance may not be enough to cover your property in the event of tenant damage or theft. […]

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How to show your tenants some love

BMT team — Wed, 14 Feb 2018 04:17:37 +0000

While there are lots of variables in property investing, there is one key thing that all investors have in common – they want to attract and retain good tenants. They’re the ones who take care of the property as if it was their own, keep it clean and in a good state, always pay rent on time and generally cause no trouble, all of which obviously benefit you as an investor. What will also benefit you – once you have a good tenant – is tenant retention. Keeping a good tenant in there will minimise re-leasing fees and periods when your property in untenanted. So how can you hold on to these good tenants when you find them? In the spirit of Valentine’s Day, here are some easy ways to show your tenants a bit of love and keep them happy in your investment property, which in turn, should keep you happy with your investment. Be respectful and allow them privacy Remember that while the property is your investment, it is the tenant’s home. As such you should respect their privacy – that means no unannounced showing up or driving by each night to check on the property. Leave this job to your Property Manager, who will perform inspections in line with tenancy laws. This is where keeping the emotional detachment from your investment also comes in handy. Keep on top of repairs and maintenance Not only is tending to repairs a legal requirement for landlords, but doing it in a timely and helpful manner will keep your tenants happy. As well as responding promptly to repair requests, be proactive and keep on top of what needs replacing, updating or fixing in the property. Getting onto repairs as soon as possible will help prevent damage from snowballing and leading to a cost blowout in the long run. Also, by having a well-kept and nicely presented property in the first place, you’re much more likely to attract a higher quality of tenant who will continue to keep the property in a good sate. Take requests seriously Before blowing off requests that you don’t think are needed at the property – like a hook in the wall for a picture, or painting the nursery wall a new colour – remember once again that this is the tenants’ home and their requests should be considered and taken seriously. All within reason, of course. Should you wish to deny their request, take the time to provide an explanation for your decision. Be fair and gradual with rent increases As a property investor, you should ensure that the rent you are charging is suitable for your property and suburb and in line with current market conditions, in order to maximise your returns and have a strong performing investment. This means that from time to time, a rent increase may be warranted. However, you should avoid increasing the rent just for the sake of it, or because you would like a bit more extra money in your pocket each month and think you can get it from your tenant. While it may seem like a quick fix, it can be detrimental to your strategy in the long run when your tenant moves on to a more affordable place, and you struggle to get a new tenant in at that price. A Property Manager will be able to tell you if you’re charging the right rent for a property in your area, and determine how much any increases should be. When it is time to increase the rent, try and do it gradually so it’s not such a deterrent for the tenant. Have good communications When it comes to communicating with your tenant and Property Manager, be open, honest and prompt in replying to any calls or emails. It can be frustrating for tenants when they want to ask a question or request a repair but the Property Manager cannot get in contact with the landlord. Once again, if you can’t fulfil a request or won’t be able to do it for some time, make the effort to explain why, to create better communication and understanding with your tenant. Be human It’s very easy for tenants to think of landlords in a negative light – they’re the unknown figure whose mortgage they are paying, often while struggling to put enough aside for their own home. But there’s a very simple way to help overcome this: If you have a good tenant, thank them! There are lots of easy ways you can do this without going over the top – you could send them a bottle of wine at their lease renewal, send a card at Christmas, or simply ask your Property Manager to pass along your thanks for them looking after the property so well.

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