The Shortage of Rental Properties: How It’s Affecting Renters

The shortage of rental properties has been a growing concern for renters across the country. It has caused frustration and stress among renters, especially those with low incomes and government subsidies. This shortage, coupled with increasing rental prices, is creating a housing crisis that is affecting more and more people every day. In this blog, we will explore the impact of the shortage of rental properties on renters and what needs to be done to address this issue.

The Rental Market: An Increasingly Competitive Space

The rental market has become a fiercely competitive space, leaving renters with fewer options to choose from. As the number of rental properties decreases, more and more renters are competing for the same listings, making it difficult for them to secure a property that meets their needs. This competition has also resulted in increasing rental prices in many areas, making it more challenging for renters to find a property that is within their budget.

The Effect on Renters: Stress and Frustration

The shortage of rental properties and increasing rental prices are causing stress and frustration among renters. Many tenants are finding it difficult to find suitable housing within their budget and preferred location. As a result, some renters are forced to settle for a property that meets fewer needs, while others are compelled to look outside their ideal location. This situation is particularly difficult for low-income renters who rely on government subsidies to afford rent. The lack of suitable housing options may lead to health issues for some renters, making this an urgent issue that needs to be addressed.

A Growing Housing Crisis

The shortage of rental properties and increasing rental prices have created a growing housing crisis for tenants across the country. As rental prices rise, more people are being pushed out of their homes or into overcrowded living conditions as they search for more affordable options. In some areas, tenants are now moving in with friends or renting a room, leading to further complications for both the owner and managing agent.

The Need for Affordable Housing

There is an urgent need for affordable housing options for low-income renters. The shortage of rental properties and increasing rental prices are creating significant challenges for these renters. Without affordable housing, more and more people could be forced into homelessness or unsafe living conditions. Government agencies and non-profit organisations need to work together to provide affordable housing options for those who need it the most.

Conclusion

The shortage of rental properties and increasing rental prices are affecting renters across the country. It is causing stress and frustration for many, particularly those with low incomes and government subsidies. The shortage of affordable housing options is also creating a growing housing crisis that needs to be addressed urgently. More needs to be done to provide affordable housing options for low-income renters to ensure that everyone has a safe and secure place to call home.

The Ten Most Common Challenges of Property Management and How a Coach and Mentor Can Help

The Ten Most Common Challenges of Property Management and How a Coach and Mentor Can Help

As a property manager, you are responsible for the upkeep and maintenance of a property, dealing with tenants, collecting rent, and managing a budget. All these tasks can be challenging, and it’s not uncommon to face some difficulties. In this article, we will discuss the ten most common challenges of property management and how a coach and mentor can help you overcome them.

Introduction:

Being a property manager is a demanding job, and it’s not for the faint of heart. You need to deal with a multitude of tasks, from managing budgets to dealing with tenants, and keeping the property in good condition. It’s a job that requires a lot of skills and expertise, and even the most experienced property managers can struggle with some challenges. In this article, we will look at the ten most common challenges of property management and how a coach and mentor can help you overcome them.

The Ten Most Common Challenges of Property Management:

Finding and Retaining Good Tenants:

  1. One of the most challenging aspects of property management is finding and retaining good tenants. It’s crucial to have a reliable screening process to ensure that you rent to responsible tenants who will pay on time and take good care of the property.

Dealing with Difficult Tenants:

  1. Dealing with difficult tenants is another common challenge for property managers. You may encounter tenants who are always late with their rent or who damage the property. Having a coach and mentor who can provide guidance on how to deal with difficult tenants can be beneficial.

Maintenance and Repairs:

  1. Maintaining a property and addressing repairs is an ongoing responsibility for property managers. It’s crucial to have a plan in place to address maintenance issues promptly and effectively.

Budget Management:

  1. Managing a budget is an essential aspect of property management. You need to balance income and expenses and ensure that you have sufficient funds for maintenance and repairs.

Compliance with Laws and Regulations:

  1. There are various laws and regulations that property managers need to comply with, such as fair housing laws and building codes. Failing to comply with these laws can lead to legal issues and financial penalties.

Communication with Tenants:

  1. Clear and effective communication with tenants is crucial to maintaining a positive relationship. It’s essential to have good communication skills and be able to respond to tenant concerns and questions promptly.

Time Management:

  1. Property managers have to juggle multiple tasks and responsibilities, which can make time management a challenge. Having a coach and mentor who can help you prioritize tasks and manage your time effectively can be beneficial.

Marketing Vacant Units:

  1. Marketing vacant units is essential to attract new tenants. You need to have effective marketing strategies in place to ensure that your property is visible to potential renters.

Technology Adoption:

  1. Adopting technology can help property managers streamline their processes and increase efficiency. However, it can be challenging to keep up with the latest technology and identify which tools are best for your property.

Employee Management:

  1. If you have employees, managing them can be a challenge. You need to ensure that they are well-trained, productive, and motivated.

How a Coach and Mentor Can Help:

Working with a coach and mentor can help property managers overcome these challenges. They can provide guidance, support, and advice on how to handle various situations. Here are some ways in which a coach and mentor can help:

  • Provide expert advice and guidance on best practices in property management
  • Help you develop skills in areas where you may need improvement
  • Help you identify and address areas of weakness in your management approach
  • Offer strategies for dealing with difficult tenants or challenging situations
  • Provide support and motivation to help you stay focused and on track
  • Help you identify and adopt the latest technology and tools to improve your management processes
  • Help you develop a plan for employee training and management.

Working with a coach and mentor can be an invaluable resource for property managers. They can help you overcome challenges, improve your skills, and develop a more effective management approach.

FAQs:

Q: How much does it cost to work with a coach or mentor?

A: The cost of working with a coach or mentor varies depending on their experience and the services offered. Some coaches and mentors may charge an hourly rate, while others may offer packages or programs. It’s important to research different options and find a coach or mentor whose services align with your budget and goals.

Q: Can a coach or mentor help me with specific challenges, such as dealing with difficult tenants?

A: Yes, a coach or mentor can provide guidance and strategies for dealing with specific challenges you may be facing as a property manager. They can offer advice on how to communicate effectively with tenants, address issues promptly, and maintain positive relationships with tenants.

Conclusion:

Property management is a challenging job that requires a diverse set of skills and expertise. The most common challenges of property management, such as finding and retaining good tenants, managing budgets, and dealing with difficult tenants, can be overwhelming for even the most experienced property managers. Working with a coach and mentor can be an effective way to overcome these challenges, develop your skills, and improve your management approach. Whether you are a new or experienced property manager, seeking the guidance and support of a coach or mentor can be a valuable investment in your professional development.

With over 30 years of experience building successful Property Management businesses, Brigitte Stills has overcome every one of these challenges and is now focusing on helping others do the same! Reach out today to secure a spot.

Make sure your property is safe?

When owning or managing an investment property, you are bound by a legal duty of care to the tenant to ensure that the property is fit and safe to reside in.

Maintenance and repair requirements can fall into different categories in accordance with each State law, such as:-

  • general repairs;
  • urgent (emergency) repairs; and
  • repairs that (if not actioned promptly) can lead to a litigation claim and compensation payable if someone is injured or adversely impacted.

Throughout the management of your property, if you are confronted with repair requests below, it is important that you take immediate action:-

  • Faulty window or door locks.
  • Ripples or loose threads in the carpet or on the stairwell.
  • Cracked or sharp edges on tiles.
  • Cracked or loose power points sockets.
  • External uneven pavers.
  • Balcony railings – ensure they meet Council regulations and are not loose.
  • Loose or exposed wiring on light fittings.
  • Appliances that are shorting out the electrical circuit board.
  • Circuit board has been upgraded to meet requirements.
  • Inadequate lighting in stairways and external walkway areas.
  • Unnecessary objects protruding out that could lead to a slip and fall.
  • Sagging ceilings.
  • Faulty or non-closing pool gate fence.
  • Dry rot on external railings, floorboards, and steps.
  • Loose or hanging gutters and downpipes.
  • Non-compliant smoke detectors and safety switches.
  • Excessive mould.

If a claim was made; the questions asked to determine liability would include:-

  • Was the accident the result of failure to repair, maintain or clean the space?
  • Could the accident have been prevented in any way?
  • Would it have been reasonable to have noticed the repair/hazard?

We do understand that, for many investors, paying for and attending to repairs and maintenance can place a financial strain on a household. However, the consequences of not being proactive can result in an unwanted lawsuit.

DIY Repairs

With tradie shortages, COVID restrictions and tight budgets, some landlords are attempting repairs and maintenance themselves. Others are engaging tradespeople based on the cheapest possible quote.

Be very careful.

When it comes to residential rental properties, there are strict regulations on who can conduct repairs and maintenance. If things go wrong, it can cost the landlord far more than they save.

6 Things you need to know before you DIY on your rental property

  1. Established property managers have a network of excellent tradies who will prioritise work on the properties in their care. It’s certainly the case for our landlords. In fact, we have the power to be highly selective about the tradespeople we use and we select according to their reliability, quality workmanship and value for money.
  2. Trades must carry significant insurance – particularly if they are working on a strata property. If you choose to use your own trades, make sure you ask to see their certificate of insurance and expect to see an 8 or 9 figure sum insured.
  3. Tradies who work on rental properties must have a registered Australian Business Number (known as an ABN). There are huge penalties if something goes wrong and the authorities discover you used an unregistered tradesperson.
  4. Only qualified trades can perform repairs on rental properties so if you are planning to do the work yourself, you need to be a qualified, insured and registered tradesperson. Ignoring this legal requirement could cost you far more than the repairs themselves!
  5. Never contact the tenant direct – even if it is to arrange a time to conduct repairs or maintenance – as it could lead to disputes or complaints between you and the tenant.
  6. Always talk to your property manager before embarking on any repairs, maintenance or upgrades on your investment property. At Stills Properties, we believe an important part of our job is to advise landlords on what work needs to be done so you don’t over invest in your property.

One more peril

Ignorance is probably the biggest risk for any landlord. Whether it’s how to choose a conscientious property manager or what is and isn’t allowed. But that’s why so many of our landlords choose Stills Properties and then recommend us to their friends and family.

We build relationships with both our landlords and our tenants so they feel comfortable asking us questions or discussing their concerns. They know they will receive timely, honest and knowledgeable advice.

If you are thinking about buying your first investment property or you are an established landlord who is tired of being treated like a number, get in touch with Brigitte from Stills Properties. Simply call 1300 091 638 or email propertymanager@stillsproperties.com.au

Make the current lockdown work for you by reviewing your property investment options

There’s nothing like a COVID lockdown to give us time to think about things. After all, there isn’t much we can do. So let’s turn this negative into a positive by talking about how the rental market is changing.

3 Key Trends

Trend # 1:  Tenants are on the move

Tenants are looking for more space because they are working from home, home schooling their kids and craving open space. For families, there is a definite move away from units and into houses. As a result, rentals for houses are on the rise. In fact, it seems like the rental returns for houses are increasing each month.

Trend # 2:  Young people are moving out of home

This is the group who are attracted to units. They are feeling a bit claustrophobic living with their parents and are looking for their own space. In general, they want clean, modern units at a moderate price.

Trend # 3:  Seniors are moving into retirement villages

If you speak with retirement village salespeople, they’ll tell you their industry has never been busier as seniors are realising how isolated they are during COVID spikes. The great news for property investors is that this group is selling their homes, giving you the opportunity to tap into the potential returns from Trend #1.

What do these trends mean for property investors?

When it comes to investing in property, there are 2 investment strategies – purchasing for long-term capital growth or purchasing to gain passive rental income. Knowing your property investment strategy, should determine which type of property you buy.

Either way, now is a great time to review your situation so you can take advantage of the opportunities the current property market is offering.

Of course, you need to involve your financial planner when making these decisions. But we also suggest speaking with us BEFORE you buy as we can provide a comprehensive and accurate Pre-Purchase Investment Property Rental Appraisal. This will give you the latest information on the renters’ profile for the area you are considering. That’s important as it will determine whether you should be purchasing a unit or a house.

We’ll also provide you with information on:

  • The current rentals achieved
  • Days on the market
  • An overview of the suburb
  • Sought after locations within the area you are considering
  • What upgrades you may need to make now or in the future

This is valuable, independent information you need to know before you sign a contract because it will guide you on the returns you can expect from a property. At only $150 + GST, our Pre-Purchase Investment Property Rental Appraisal could be the best investment you ever make.

Make the current lockdown work for you

With over 35 years’ property management experience, you can rely on Brigitte Stills and her team to guide you on your investment property selection.

So don’t waste the current lockdown. Start making it work for you by reviewing your investment property strategy and asking Brigitte to help you select your next property. To learn more or to arrange your Pre-Purchase Investment Property Rental Appraisal, contact Brigitte on 1300 091 638 or propertymanager@stillsproperties.com.au