Forum Replies Created
Hi Tman
Elika is right, and others too. But it is most important to identify the problem and do something about it, otherwise it might cause your tenant to move, and it’ll be there for the next tenant too. Check that the rent level is correct. Check with the neighbours about noise or other local negatives. If there’s too much supply, Monopoly & Richmond are right, drop the price.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Shaunwalker
Check that McDonalds or some other large takeaway biz is not moving in nearby. Check council that the property and business complies, pizza shop near me was ordered by council to instal a greasetrap for $30K.
Value the shop without the business, they might declare bankrupt & go, you might have to sell it empty.
Don’t take on the $600 pw debt for the equipment for their business. They must rent/lease/borrow for themselves. Otherwise, they will not look after it. If they default and skip, you ar eleft owing $600 pw, lender will forclose, food equipment sells for peanuts at auctions, you lose.
A factor in the value of the shop is the stability and security of the business and tenant.
Usually the tenant pays all outgoings, inside maintenance, energy, water, council rates,licences, periodic inspections like health, fire, etc. PO only pays building insurance.
Commercial leases differ considerably from residential, and enforcement of payment of rent arrears is totally different, so are all the other lease clauses. There are many different leases and extra clauses to protect the PO, read as many as you can. Best bond is an irrevocable bank guarantee, redeemable at your discretion.
Commercial leases in NSW can have clauses allowing the PO to lockup the premises after rent arrears reach 2 months. I collected rent arrears once from a very busy newsagent / takeaway shop while being accompanied by a security guard, locksmith, big chain and padlock, and 5 minutes notice to lockup. Better get your ducks all in a row before you buy this one.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Monopoly
You’re very understanding, thank you.
Haven’t had a reply or acceptance of help yet from mikesemple, but the door’s still open.
My inheritance process was quite complicated, stressful and was a very steep learning curve for me. I had no prior knowledge, and felt I was swimming with sharks. If I could make a similar situation easier for someone else, it would be very satisfying.
You’re also correct that Mikesemple’s query requires clarification as per your questions.
Could be an interesting posting and thread when he replies.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi all
[offtopic] ??
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Malachii
That’s a dirty deal. If it was found that either REA has not acted in your best interest, they are liable. The process is available, and is probably lengthy. It’d be tempting to put a very sharp-toothed 10% ambulanace chaser type legal hound onto the REA’s heels.
Sounds like you need a good PM and a good REA, and you are suffering from a lack of both.
Tenant is liable for the rent until the end of the fixed period of the lease (2 years?) and all break lease / re-lease costs associated with changing tenants during the fixed period of the lease. Claim it all at a Tribunal, then claim it all on insurance. If they don’t cover it, change insurance companies to one that does.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
The PM has the legal obligation to act in the PO’s best interests at all times. That covers most problems. The rest you should be able to cover in the MA. Particular attention should be paid to clauses covering who pays for ads, 30 day notice to terminate MA, re-let & other fees. Avoid Tribunal and inspection fees, makes them bother good tenants too often and also encourages selection of lousy tenants who have a high rate of tribunal attendance.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Rodie
The goalposts have moved, and if your ex teams up with another partner who also wants to plan ahead, a collision is likely.
Why not set yourselves an exit strategy / agreement in writing for 2 years hence, get your own personal and private wealth creation plan formulated with all the right professional help, and then you’re set on your own sweet course.
You might be able to finance a buyout of your ex’s property, it would have good credibility with the current lender and therefore should be easier to finance.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Mikesemple
Unfortunately I completed this personal scenario last year and handled it myself with professionals.
PM or email me for a chat and I’ll give you the details, maybe a bit morbid to torment a forum with these details.
cheers
crest133thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Millsy
You will need a handyman, they are always available, especially in rural or remote areas. Pay him some extra to do property inspections for you, while he is doing routine maintenance. While he’s there, replace all tap washers, oil anything, check insect screens, carpet, cleanliness inside & out, roof & gutters, read the water meter, inspect issues raised by tenant.
cheers
crest133 [biggrin]thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
It would be very convenient if it ceased working and had to be replaced.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Muppet
Say, just while you’re in your clairvoyant dreamstate, would you happen to have 6 winning lotto numbers for Sat night too ? Just so I know which numbers to avoid.
Ta mate
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Ask the company who keep the default files for instructions on how to have an error in their files rectified.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Shaunwalker
It’s a free country. You can charge what you like for the rent, the tenant has choices too, object, pay up, or leave. If you want to increase the rent, instruct the PM to increase the rent, end of story. If he refuses to follow reasonable instructions, and let’s face it, $5 is reasonable, then burn him. Fax the PM and CC the licencee offering them an ultimatum, comply or lose the management. It’s no good having a PM who refuses to follow reasonable instructions.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Andrewwest
Just went through the process of a commercial loan for a hospitality property, and bought one.
St George came to the party, LVR up to 60%, and may have gone higher.
However, I found out too late that if I used a residential property as security for the commercial loan, the LVR is higher. This might help you to get the deal over the line.
If you want to PM me, I’ll give you the contact person in St George, who was excellent.
Are you planning to operate the B & B yourself ?
Have you scrutinised the figures carefully ? Easy to salt the mine. If you can compare the figures of a few B & B’s to guage their costs and to make some comparative formulas for yourself, it helps.
good luck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Bennido
Property Management is not social work. Just because the previous owner was soft, ignorant of rent levels, or could afford to be generous, doesn’t mean you have to copy them.
Consider a wrap, they might feel entrenched, not want to lose all that history etc etc.
Or match the market rent.
Provided you have a good property, there are enough good tenants out there for you, if this one decides to leave.
Suggest you decide how long you want to subsidise this tenant’s rent. Then, offer the tenant the existing rent for that period, say 90 days, gives him time to adjust or find another property. In NSW, a rent increase requires 60 days notice, if you give him 90 days subsidy, you should send the notice of rent increase 30 days from now. Time for a reality check.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Stranger
Congrats. Suggest you setup automatic rent payments from centrelink or your bank to guarantee payment is always punctual. Pay one extra week to start and always then pay your rent again when it is still that one week in advance. If you vacate, get a complete printout of your rent record from the REA, copy of final condition report, copy of bond refund, and you’ll never have the problem again.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Check the local paper in your property’s suburb, and see which REA already advertises the most in the category of your property e.g. units, or farm, or commercial, whatever your property is, which you haven’t mentioned in your post.
That REA should already have a reasonably good enquiry rate on your type of property, so capitalise on it.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Been caught with pet problems as a PM. One tenant with a dog moved out, house looking OK, I refunded the bond to the tenant, he relocated interstate. New tenant moves in with no pets. After 2 weeks in residence, he has a flea plague and red spots all over his ankles. The flea eggs had hatched, nice little time bomb. The house needed an immediate pest spray, $120, who pays ?
Should’ve been the tenant with the dog, but it’s very hard to get the money later. REA had to pay it, PMs live ‘n’ learn.
So then all subsequent leases contained the additional clause covering pets which insisted on the tenant paying for a pest spray and any damage if they ever had a pet. [specool]
If anyone is having problems being accepted as tenants with pets, offer additional bond to cover the risk, then the landlord will know you’re putting your money where your promise is.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Milly
doesn’t sound like a good PM. Can’t speak for Qld, but, in NSW, the PM has the legal obligation to look after the best interests of the PO. In your case, the PM placed you, herself and the REA licencee in danger of litigation by the tenant for compensation for any medical problems resulting from the ignored problem of the lice. She’s in the job, so can’t plead ignorance, so it’s negligence. Wouldn’t want her on my team. A Tribunal would eat the PM for breakfast.
And in view of her negligence, shouldn’t be hard to convince the PM and/or the licencee to agree to a quiet and immediate termination of the managing agreement.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Me too please – I operate a motel, and have looked distantly at some Management Rights opportunities, and wondered what they’re really like. Someone tell us all about it please.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
