Nightmare Tenants: Why is Tenant Screening Important?

Everyone has heard nightmarish tales of bad landlords. But what about nightmare tenants?

Today, there are more people renting for longer periods than ever before. As property prices continue to rise, fewer people can afford to buy, which creates a large pool of long-term renters.

With more people renting for longer periods, it’s inevitable that landlords and property managers will encounter more problem tenants.

Thorough and proper tenant screening helps to stamp out problem tenants.

Avoiding Nightmare Tenants

Take Landlord A, for example, husband and wife investors. They liked the sound of Tenant A until they realised the tenant hoped to lease the property for his second wife, who had not yet been granted a Visa into the country.

Landlord B is a long-time investor with multiple properties. He rescinded Tenant B’s application only when he learned the tenant’s plan to advertise the other bedroom as short-term rental accommodation.

And Landlord C, based interstate, rejected Tenant C once their employment history and financial statements showed they couldn’t pay the rent.

Luckily, these landlords averted potentially nightmare tenant problems because they used the expert guidance of a qualified property manager.

While the Rental Application form gives the landlord some indication of whether the applicant is a worthy choice, it doesn’t tell the whole story. Stringent tenant screening and reference checking are the best defences against a nightmare tenant.

In the case of the above examples, the property manager’s thorough tenant screening process tells the rest of the story:

  • Tenant A – an in-person interview with the applicant quickly uncovered his true intentions.
  • Tenant B – previous rental history revealed prior evictions for similar conduct.
  • Tenant C – a quick call with current and previous employer’s and a review of recent bills and statement showed the applicant couldn’t afford the rent.

Professional tenant screening can save landlords untold anguish, both emotional and financial. Appoint an experienced property manager to ensure you avoid nightmare tenants and find the right tenant for your property.

How to manage your investment property over the Christmas break

With Christmas just around the corner, you’re probably looking forward to a well-deserved break. Trouble is, your property manager and tenants are probably doing the same. So how do you keep your investment property safe over the holidays?

Follow our 5 tips.

Tip 1: Be prepared and plan ahead

If your investment property has any plumbing or electrical problems, fix them NOW. Chances are, those niggling little concerns could become major problems when the only help at hand are emergency plumbers and electricians. Over Christmas, they’re hard to find and charge accordingly. Attending to them now could save you a lot of money and your tenants a lot of grief.

Tip 2:  Does your investment property have air conditioning?

Air conditioners must be serviced regularly to ensure they remain in good working order. Like plumbing and electrical problems, you don’t want the expense of emergency repairs over Christmas. Remember to clean filters at least once a year to help prolong their serviceable life and reduce repair costs.

Tip 3:  Does your property have a swimming pool?

If so, you must have an up-to-date Swimming Pool Certificate of Compliance. In NSW, these Certificates are essential. They last 3 years but it’s important to ensure the pool gate and fencing are regularly checked. You are also required (by law) to have a resuscitation chart clearly visible.

Tip 4: Window locks are a legal requirement

Since March 2018, all strata buildings in NSW are required to have robust, child-proof window locks to restrict how far a window can be opened. This regulation applies to all windows that are 2m above the ground outside and 1.7m above the floor inside. The locks must prevent windows opening more than 12.5cm.

Tip 5:  Your tenant’s holiday plans

If your tenant has holiday plans, they need to advise your managing agent how long they will be away and provide their holiday contact details. While away, your tenants need to arrange for someone to regularly clear the mailbox. An overflowing letterbox is an advertisement the property is empty.

What’s your managing agent’s holiday plans?

Obviously, your managing agent is entitled to take a holiday but your investment property and tenants still need to be supervised – especially if the unexpected happens.

At Stills Properties, we ensure all tenants are provided with a list of emergency phone numbers for electrical and plumbing services. These trades have been working with us for years because they are reliable, highly trustworthy and ethical. We also keep on top of all property maintenance issues to minimise the need for any emergency call-outs.

Does your current property manager do this? If you don’t feel your investment property is getting the care it should, get in touch with Stills Properties on 1300 091 638 or email propertymanager@stillsproperties.com.au.

Real Estate on the Radio – Festive Edition

Brigitte Stills returns with a festive edition of her Real Estate segment on Northside Radio 99.3FM next Monday – 9th December – between 9.30 – 10am.

  • Investors – is your property ready for the Christmas and New Year break?  Now is the time to ensure any outstanding repairs and maintenance is carried out, before your Agent disappears on holiday. 
  • Buyers – if you’re looking to buy an investment property, make sure you’re discussing your plans with a reputable Property Manager before you buy. Get the inside knowledge of what’s hot, and what’s not. The right rental market advice can help prevent expensive mistakes and difficult to rent purchases.
  • Sellers – thinking of selling in the New Year?  When is the right time?  First quarter?  Second quarter?  When?  Talking to a real estate professional early on lets you plan your strategy with confidence and in good time to achieve your goal.

Brigitte Stills of Stills Properties brings over 38 years of real estate and property management experience to dispensing her advice on these topics and responding to listener questions on Sydney Real Estate.

Send your questions in beforehand (time-constraints prevent us taking queries live on air), to:

Settle back with a mix of music and real estate on 99.3FM then have yourself a Merry Christmas and Happy New Year.

Prepare now for new residential tenancy laws

The NSW Parliament recently passed a number of amendments to the Residential Tenancies Act 2010. With over 30% of the NSW population renting, these changes are designed to make it easier for tenants to make a rental property feel like home.

For landlords, it creates an opportunity to attract and retain high quality, long term tenants – providing greater income certainty on their investments.

The new laws also improve protections for victims of domestic violence.

The implementation date for the Residential Tenancies Amendment (Review) Bill 2018, is expected to begin in the first half of 2020 so it’s important all landlords start planning now.

The Reforms in summary

A. Minimum standards identified

At the beginning of any tenancy, all properties will need to meet 7 minimum standards to be deemed fit for habitation. These standards will also need to be maintained throughout the tenancy (by way of repairs). While not an exhaustive list, these standards are considered the minimum baseline.

The 7 minimum standards are:

  1. The property must be structurally sound
  2. Each room must have adequate natural or artificial lighting (the exceptions are storage rooms or garages)
  3. There must be adequate ventilation throughout the property
  4. It must have an electricity and/or gas supply with adequate electricity and gas outlets for lighting, heating and appliances
  5. The property must have bathroom facilities (including toilet and bathing facilities) which provide user privacy
  6. The property must be connected to water supply infrastructure for the supply of hot and cold water for drinking, washing and cleaning
  7. The plumbing and drainage must be satisfactory

B. New resolution powers & rectification orders

The property management industry is plagued by disputes over repairs and maintenance issues along with claims of property damage caused by tenants. The new legislation is designed to reduce these problems by providing NSW Fair Trading with greater powers – including the ability to issue rectification orders.

C. Rent increases limited for periodic leases

Rent increases for periodic leases (that is, where the tenancy has no specified time limit) will be restricted to once every 12 months under the new laws.

D. Protections for victims of domestic violence

Tenants who need to escape a violent partner will be able to terminate their tenancy immediately and without penalty. In addition:

  • The victim/s will not be held accountable for any property damage that occurred during a domestic violence incident
  • The same is true if they are a co-tenant who is not the perpetrator
  • If a tenant terminates a lease because they are a victim of domestic violence, the landlord or their agent are prohibited from adding their name to the tenancy database

E. Separate meters for granny flats etc.

With the rise of dual occupancies, granny flats and the like, the Residential Tenancy Amendments include a new definition for “separately metered premises”. The purpose of this amendment is to reduce the number of disputes between landlords and tenants over who pays for water, electricity and gas.

F. Other changes

The amendments are quite comprehensive and include a number of other changes including:

  • The introduction of penalties for landlords or agents if they fail to provide the tenant with a property condition report at the beginning of the tenancy
  • Mandatory set fees for breaking a fixed-term lease
  • Penalties for landlords who fail to repair smoke alarms
  • Clarification on taking photos and videos during inspections and publishing them to advertise the property for re-lease or sale
  • Stopping database operators charging tenants to access their own information

Take care of your tenants and they’ll take care of your property

Your investment property is a valuable asset so it’s only natural you want to ensure it’s providing a great return on investment, with tenants that will take care of it.

This new legislation is designed to help you do that by providing tighter guidelines on what’s acceptable from both a landlord’s and tenant’s point of view.

For an informed and conscientious property manager to look after your investment needs, call Brigitte Stills on 1300 091 638 or email propertymanager@stillsproperties.com.au She’s been looking after landlords and their properties for over 30 years.

The 3 essentials of stress-free property management

Purchasing an investment property is exciting but also a large financial commitment. Whether you own one or several, you need tenants who are reliable, care for your property and pay their rent on time.

Some landlords choose to manage their own rental properties while others use a professional property manager. Whatever you choose to do, there are 3 essential elements to ensure your property investment generates good rental returns.

1. Securing the best tenants

Problematic tenants are costly and time consuming. It takes careful, strategic marketing and thorough screening of all potential tenants to ensure you quickly eliminate any troublesome ones.

The best tenants will respect your investment and treat it as if it was their own home. They will take good care of the property, promptly report any maintenance issues and pay their rent on time. Ideally, they will want to continue on in the property for years to come.

2. Minimising vacancies

Once you secure a great tenant, you’ll want to keep them for as long as possible. Therefore, tenant retention should be your top priority. Longevity in a tenancy equates to better returns on your property investment.

Relationship building, good communication and knowledge of the rental laws are the keys to building a long-term tenancy. It’s also important for any maintenance requirements to be dealt with in a timely manner.

3. Caring for your Investment

Regular property inspections are essential to ensure your investment is being looked after and any necessary repairs and maintenance addressed.

When carrying out routine inspections there are a number of things you should be looking for:

  • Is the tenant sub-letting the property?
  • How many people and/or pets are living at the property? Does this comply with the rental agreement?
  • Has furniture been placed to hide any damage?
  • Has the property been cleaned adequately to ensure there are no issues at the end of the tenancy?
  • Are smoke detectors in place and operational?

In most cases, tenants simply need education on their responsibilities for caring for the property.

Maximising the rental return on your investment property doesn’t happen by accident

Every landlord hopes their investment property appreciates so they see increases in their rental return. But successful, stress-free property management is never a “set and forget” investment. It takes active management and open communication between the property manager, landlord and tenant.

If you are looking for an experienced, knowledgeable and dedicated property manager, contact Brigitte at Stills Properties. She’s been managing investment properties for landlords for over 30 years.

For further information or to discuss your investment needs, call Brigitte Stills on 1300 091 638 or email propertymanager@stillsproperties.com.au