Property Investor Newsletter, November - December 2012

Christmas is a time of joy, festivity, relaxation, gift giving and holidays. And like many – tenants too can get caught up in spending more money than they have.

From past experience we have found that some tenants (even the great ones) have fallen a little behind in their rent with the added costs of purchasing gifts and planning family events.

We do understand that the payment of rent is important for property owners to fulfil their mortgage obligations as well as to provide for your own Christmas spending.

You can be confident that our property management team are diligent and focused on following up tenants promptly who fall into arrears to ensure that we are minimising your financial risk.

If a tenant does fall into arrears it is important to be aware that our office must follow legislative requirements when issuing letters and notices.  We will also communicate and keep you updated if this situation may arise.

INTEREST AND MONEY SAVING TIPS FOR YOUR CHRISTMAS SPENDING                       

  • Pay a little extra into your mortgage during the year to give you the flexibility to spend more at Christmas time.
  • If you find you need a little extra money or find yourself in debt following the Christmas season look at the interest rates that you are being charged.  If you have the provision for a redraw on your home loan it may be more economical to pay off your credit card from the home loan so the interest rate is not so high. 

 

INVESTMENT TIP:

A COMMON MISTAKE

DIY  

If you are whiz with a paint brush then by all means, spruce up the walls of your own accord. But don’t tackle large-scale renovations yourself unless you genuinely have the skills to get the job done. You can’t be an expert at everything you do, so stick to what you’re good at – and take advice from those in their chosen professions.  It is also important to be mindful that anyone attending to repairs or maintenance at the property must be insured and licensed to do so.

TENANT SELECTION


Anti-Discrimination Reminder

When selecting a suitable tenant it is important to ascertain through reference checking that the tenant can afford to maintain the weekly rent and care for the property.

As part of our reference checking processes we interview property managers, employers, friends and family to gather information about the tenant.  We conduct national tenant database searches to ascertain if they have been listed as a defaulting tenant and we collect documents to verify their identification as well as to substantiate the information supplied on their application form.

We are very thorough in the process of choosing the most suitable tenant for the property.

At times we have received requests from owners stating that they do not want single Mums, sharers or other instructions relating to the status of the tenant.

It is important to be aware that there are strict federal legislative guidelines that prevent owners and managing agents from discriminating about the status of a tenant.  There are large fines that can be imposed.

During the tenant selection process we ask that you be mindful of these laws.

PROPERTY DEPRECIATION REPORT

Are you claiming the full tax benefits on owning your investment property?

As a property investor you are entitled to tax benefits with the fixtures, fittings and appliances that form part of the property.

The amount of tax benefits and when they can be deducted can vary.  If you have not done so already make a call to your accountant to discuss how you can save money at tax time.

 

Merry Christmas from all our team.

May your holidays be happy

Filled with love and laughter

May each day bring you joy

In the year that follows after

THANK YOU to all of our clients who have trusted us with the management of their property.  We wish you, your family and friends a safe and happy holiday season.

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