Thanks everyone for your feedback!

I think its the good old communication which will prevent future problems. Its a proactive strategy to manage your PM.

I like the call my agent every few weeks idea. I think once a month would be enough. Its good to know whats happening to the agency as it may give you a heads up of issues that could come…[Read more]

Does the letter box look full?

If not, drop a letter in there. The owner may be collecting them.

Do they do GC? Or do they know of any excellent PMs on the GC?

There have been 2 posts (one from me) asking around if anyone can recommend good PMs!

Thanks
Mat

How about this!

Instead of using Cash Down. Use Total Commitment = equity locked away & cash used to purchase.

eg 100,000 property. Bank requires you to put your house up. Standard rule is they require min equity of 20% (no mortgage ins).
Total Legal and SD = $5000.

Total borrowings = 105000.
Bank equity requires: 21,000

Total commitment =…[Read more]

Hi Ben,
Im new to cash flow property, but am looking in Melb CBD. I have found if Im happy with being limited on capital gain and the potential buyers market, they can be found.

eg. Hotel Room. Purchase price = 140,000. Financed 70% IO loan at 6.47% fixed. Lessee pays all outgoings and pays weekly rental of $230.

Cash Down = 42,000
Annual…[Read more]

I believe the answer is Yes. I dont know the legals, but I own some office space that I can either lease out commercially or reno into a unit and lease as residential. It would be a bit strange having a dental office as a neighbour, but I am allowed to do it.

I dont know how you find them as this one was just by chance.

I know nothing about land and building.

Just wondering, can you challenge the covenant?

Heres my 2c

Tenants, when they default there can be only 2 outcomes:
1. If you can determine a special cause which makes sense. Such as maybe had an accident, or a child or had to attend to an emergency. AND if they pay up at same time of explanation. Keep them and watch them.
2. If you cannot find special cause, or if they fall behind a second…[Read more]

Thanks, please keep ideas coming.

I think the issue I may always face is PMs get to take out costs prior to paying you the rent proceeds. If in dispute I have to work harder to get the money back. A classic example is key cutting. I always question why Im paying for them if it is either the tenant or the PM who has lost them. This issue…[Read more]

Theres nothing wrong with hiring inexperienced staff that have potential.

There is something wrong with a company which lacks financial controls.

I would question if your PM has a healthy business.

Hi Michael,
Thanks for the link. Over the last 10 years I have had 2 bad tenants in 2 separate properties and this has taught me a lot about what to ask a prospective agent. I have found when everything is sweet, all agents perform ok. Its when issues with tenants crop up that tests a good agent.

Hi Shelly,
The two items are small, but are an…[Read more]

Just wondering, what have people found is the standard costs for commercial property management?

eg residential I have found its 2 weeks let fee + $17.5 lease write up + 3-8% commission.

I dont know what to expect from commercial?

Hi Trent,
Im relatively new to property also, and have not made 10% cash on cash (7ish is the best sofar). I found calling the agents who are advertising. If the ad property does not suit, let them know what you are after and roughly how to work it out.

Although you dont see them you can tell some are rolling their eyes, however I have had…[Read more]

Have you called him back yet?

Thanks Dazzling!

Ok ill do it! Im not terribly comfortable walking up to other tenants but I dont want to pay 4w rent either!

I wanted this to be my first property to try managing myself. But also working full time and not getting much interest from the mailout I figured maybe I dont have enough time – or was approaching it the wrong…[Read more]