Running a park requires knowledge of the law and exercising your authority from time to time. It’s easier without permanents to be polite. Fortunately it’s not like a nightclub where you need security staff that have to look like wrestlers. Police can handle those who become troublemakers, but with experience you recognise them and refuse them…[Read more]

You could contact the agent, explain why you’re not happy and whether or not you think it can be rectified and how, and if you want to part company, ask how much notice is required and explain why you think they should agree to less, then give notice accordingly.
Good luck
cheers
thecrest

Now I’m confused re deductibility.
If I replace dead lawn, it’s a replacement, is it deductible ?
If I repair dead lawn, it’s a repair, is it deductible ?
Some outside items must be deductible surely, like fencing, retaining walls, paths ?
Where the outside appearance and street appeal is vital for the business like in a motel, is any money spent…[Read more]

Consider that if the sale price has taken a hit due to local market demand factors then could the rent income level take a hit also ? This could happen perhaps where there is a sudden increase in supply of properties.
Always better to have both if possible – CG potential and reasonably secure rent income.
Good luck
Cheers
thecrest

Yes excellent question Devilz and if you don’t mind – Can we include plants or landscaping in this question please ?
Certainly not cheap and perhaps could be depreciated as well ?
Anyone know ?
Cheers
thecrest

Please PM me the same 3 BAs in those 3 cities.
Can you post them openly ? or not appropriate ?
Cheers
thecrest

Hi Joe.
Just trying to compare and clarify here.
So you borrowed 85% to buy the motel, 15% deposit ? Who financed that ?!! Min 50% deposit in Australia, higher at the moment.
And now the passive return is 8% ? Usually min 9% in Australia.
Your situation is a bit confusing sorry, but appreciate all the info, will try to piece it together.
Hope…[Read more]

Hi Joe.
Thanks heaps for the info, always very interesting to get the US perspective.
Just for clarification, the investment type you’re talking about in Australia is “freehold under management”, not passive, meaning you own the freehold, (there is no lease,) and you operate the motel under management – with managers.
The typical regional return…[Read more]

Hi Joe.
Welcome to the forum from me as just one of the many members here.
What’s an LLC ?
What type of ownership do you have ? Leasehold under management ? ? Freehold under management?

12% sounds like a good return, is that rent or nett profit?
Is it based on buying distressed property during the GFC ?
Can the return be duplicated now ?
What…[Read more]

Hi Tony.
No motel is always 100% but if rarely, why ? .
But depending on the market position and condition of the motel, it’ll do better with new rooms.
New ones are usually min 4 star unless that’s overkill for the area market.
He could either upgrade refurbish existing to match the new or have split star ratings to cover a wider market,
but…[Read more]

Got any pics when it was furnished ? Also suggest you add the split now while it’s vacant to enhance its appeal and avoid installation disruption for the next tenant. “Electric wall heater” doesn’t appeal due to running cost and warming weather. Mentioning “new blinds” makes it sound like it’s one of the unit’s best features, even though you may…[Read more]

As just another forumite, welcome to the Forum, which is full of helpful friendly people and lots of amazing information and hope you enjoy and appreciate it all as much as I have.
cheers
thecrest

Suggest you inspect the property asap and talk to the tenant to find out what they have paid. From what you have said, you have cause to change managing agents without notice as their breaches of the managing agency agreement and the law are serious. Surely Dept Fair Trading will want to audit them without delay if you pass on this information to…[Read more]

Why does geographical location matter ?

Do you think a sub 3% return is attractive ?
Cheers
thecrest

Hi Ryan.
Simple to structure the termination for say end of month so REA can wind up same time and do a full accounting to your Dad.
REA needs to write to tenants to advise change of rent situation so thet don’t pay the agent again after termination.
Then get copies of all docs and rent records and all inspections reports and letters and…[Read more]

Hi all.
Another shire guy, grew up on a Gymea Bay waterfront, how lucky can u get !! The Shire seems to have everything except a University. Surely can’t be any spare land left except on the fringes.
Any cons ?
Cheers
thecrest

Hi Philfella.
Relief Managers can take over management of a motel for you until the lease is sold.
It is a buyers market at the moment.
Take your time, keep searching and learning, the right one will turn up.
Cheers
thecrest

Hi Dezability.
Could you approach the agent you bought the property from ?
Also see the other agents in town even if they’re small and less significant.
Send a direct email asking all agents under what conditions they would manage the property.
Ask if they would like to sell the property for you when you decide to sell it.
How far to the next town…[Read more]

Hi PropertySourcer.
Send snail mail, it’ll probably have a redirection order on it and should reach the owner somewhere.
Ask Council.
Good luck
Cheers
thecrest