Tag Archives: Renting

Not Paying Your Rent Has Consequences…

Because we work in the real estate industry, it’s much easier for us to understand the implications of things like late rental payments on landlords. So if you’re a tenant, this might be a good read for you because it will help you understand what happens when you’re late paying your rent.

Property investors provide a means of housing for people who prefer to rent or can’t afford to buy, but that doesn’t mean they’re loaded with cash. For many mum and dad investors, they’re just as cautious about family budgeting as anyone else so when their tenant doesn’t pay their rent on time, it can have dramatic consequences.

1) Late rental payments mean the investor doesn’t get the money they expect to receive from that property.

2) This could disrupt budgeting for their investment mortgage payments and leave them out of pocket quite significantly.

3) If this happens consistently, the tenant may be issued with notices about their arrears, and eventually could be asked to vacate the property so that the investor can find a more reliable tenant. This isn’t a good prospect for tenants, and not ideal for investors because they’ve entered an agreement with the tenant that they would pay their rent on time.

4) Because most investors rely on the income from their investment property to cover some of the cost of the mortgage of the investment property, if things become too financially difficult they may have to sell the investment property, which is not only a major inconvenience for tenants, but the property could be sold to anyone… and may not be another investor.

5) With very low vacancy rates here in Mudgee, demand is high, so losing a secured rental property definitely isn’t something that most tenants in this area would be keen on.

The lesson here is that as tenants, you need to ensure they’re budgeting for your rent as a major priority because the consequences of paying your rent consistently late can be more than you think. So hopefully this post has given you some insight into why it is important not only to the landlord but to yourself as a tenant, to pay your rent on time.

Moving Tips for the Budget Conscious

Moving house can be more expensive than people realise. By the time you’ve bought boxes, tape, hired a moving company with two big blokes and then spent all of your energy coordinating everything, your precious time and money can been chewed away quite significantly.

Here are some tips we came across that we thought you might find helpful, especially if you’re moving on a budget!

  1. Sort out whether you’re going to keep, sell, give or throw things away. Only keep what you’re going to use in your new home.
  2. Time permitting, sell old belongings online or in a garage sale to make a little extra cash.
  3. Empty your fridge, pantry and freezer as much as possible by eating what you can.
  4. Contact your utility companies and service providers to advise of your vacate date.
  5. Pack it yourself, but start as early as possible so you’re not rushed to meet your moving deadline.
  6. Pack into things you already have, like suitcases, shopping bags, school bags, tubs etc.
  7. Use recycled boxes from friends or local businesses.
  8. Save newspapers or ask local newspaper or newsagents for old paper to wrap breakables.
  9. Ask friends to help, they’re generally cheaper than professional movers.
  10. Get multiple quotes if you’re going to use professional movers.
  11. Clean up as you go, it will make the final clean up after everything’s gone a bit easier.
  12. Have a plan for moving day – who takes what, when things need to be moved by etc.

Do you have any other moving tips you could share with readers? We’d love to help out as many people as we can, so feel free to share these tips or comment below.

New Tenancy Act big news for Rental Property Owners in Mudgee

As you may be aware from recent media the residential tenancies act 2010 has been passed by the NSW parliament and is proposed to come into effect on 31 January 2011. If you’re an investment property owner in NSW, this can mean some important changes for you – so what are the main reforms in the Act?
 

1.        “No grounds” termination notice
The act increases the notice given to tenants who are no longer in a fixed term lease from 60 days to 90 days.

2.       “rent arrears evictions” The act will give a guarantee to tenants that their tenancy can continue if their rent arrears are paid of if they follow an agreed repayment plan, however this guarantee will not apply if the tenant is shown to have frequently failed to pay their rent on time.

3.       Alterations
The act gives tenants greater flexibility to add fixtures or make minor alterations at their own expense, provided they obtain the landlords consent. Landlords are able to reasonably refuse such requests. For example if it involves painting the premises or structural changes.

4.       Sub-letting
The act gives tenants greater flexibility to sub-let part of the premises or wishes to include an extra co-tenant, provided they obtain the landlords consent.
 
These new laws emphasise the importance of selecting a professional property manager – if your property manager isn’t abreast of the new laws and changes it will affect how well they can look after your valuable investment.
 
So please, only appoint a property manager that has experience and preferably one with some experience as a landlord – then they’ll have a great grasp of what is in your best interest.

Looking to Rent? This Will Help.

If you’re not ready to buy a property, don’t have the finance to sustain a mortgage or are between purchases, then entering the rental market can hold unforseen challenges if you’re not familiar with the renting process.

Here in Mudgee the rental market is very competitive and investors are spoilt for choice when it comes to tenant selection, so our first tip is to provide as much information as you can. This will give you the best opportunity of being noticed by the landlord when they’re presented with multiple applications.

There are also upfront and ongoing costs that you’re going to need to consider when you’re looking to rent. These include the bond which is normally four times the weekly rental amount of the property; moving costs if you’re using a removalist or require storage between properties; contents insurance that you’ll need to cover any loss or damage to your own property inside the home; of course the weekly, fortnightly or monthly rental payments; and finally your everyday living expenses which can include utilities if they’re not included as part of your lease agreement.

If there’s one thing that we’d warn people against, it’s putting in multiple applications simultaneously. If you’re accepted for more than one property you may be liable to pay a get-out fee if you retract your application post acceptance.

Our office has a very friendly and helpful team who can help you with your rental needs, so please feel free to drop them a line if you wish to discuss your renting needs. Don’t let renting cause you stress, as long as you’re educated about the facts of renting, you will give yourself an advantage over other potential tenants.