Over the last few months I have had enquiries from potential guests and tenants looking for pet friendly accommodation. I recently had a call requesting pet friendly short-term accommodation while waiting for a property settlement and at the time I had nothing to offer. We have only three explicitly pet-friendly properties in our portfolio, and even they were not in the right location. Holidaying With Dogs to the rescue!
In another instance a prospective tenant enquired about a seaside property we have listed looking for a 6 month lease, however she has a tea cup poodle; I phoned the owners who live interstate and asked if they would agree to accept this tiny pet; unfortunately, they refused. The prospective tenant was willing to provide a pet reference and provide evidence that in the past there has been no problems with having their dog in residence. As a consequence the owner lost a 6 month lease at $1000 per week and more rent was offered per week to allow for a pet. Instances like these has lead me to investigate pet friendly accommodation in Australia more thoroughly.
Australia has one of the highest rates of pet ownership in the world, proving that we are a nation of pet lovers.
An article I found on the Holidaying with Dogs website estimates 39% of households own a dog. This equates to 3 million dogs living in homes across the country. The transport industry has recognised the need for pet friendly travel in some locations, allowing dogs to travel on trains, trams and buses.
The pet-friendly short term accommodation market is growing,
however in the residential tenancy market there is significant lack of property being offered as pet friendly.
It is estimated by the Australian Companion Animal Council that of the national rental property listings in Australia only 4% were pet friendly, providing a massive difference between supply and demand.
Local figures from realestate.com.au for the Adelaide metropolitan area appear to agree with this percentage – there appears to be an overlooked opportunity for many landlords to decrease vacancy rates and increase revenue by allowing a pet. It is unfortunate that the majority of landlords and agents have a ‘no pet policy’. Pet friendly properties are in high demand across Adelaide and tenants are struggling to find properties that accept pets.
I am a pet owner myself and thought of giving up my two cats as the only option to be considered as a tenant would cause a great deal of heart-ache.
So I submit the plea to all landlords: that they consider a pet friendly option for their properties and I offer a personal conversation with anyone considering the pros and cons of allowing pets in their investment property. Let’s work together to address this housing shortage and the untapped pet-friendly accommodation market!
Property managers is not the easiest role in the world; how often do we hear, ‘the property manager did not communicate with me, tenant selection was poor, my property was just a number and the managers kept changing’?
The waters of property management can be treacherous; you’ll want a sound navigator.
I agree that there are property managers out there who fit this scenario, however there are professional managers who have years of experience and are passionate about what they do. They have exceptional customer service, have outstanding communication, negotiation and organisational skills. The best property managers know how to apply a broad skill set to the unique situations they encounter including the ability to manage the more tangible related concerns such as maintenance and repairs. This skill set is acquired with years of experience, the support of mentors and the personality trait of being a “people person” and having an eye for detail.
This skill set is a prerequisite for any property management role for the following properties:
The easiest mistake to make is to choose a management company purely based on price alone.
It is an important factor, however the old adage “you get what you pay for” is never a truer word. You may end up with a bad experience in hiring an unprofessional property manner who can’t perform their duties and you could end up losing money.
So, what should you go on when you hire a property manager?
Look deeper than price This bears repeating! You may think that all property managers or management companies are essentially the same, so the lowest commission must be the best. When it comes to the care and management of your property, it behoves you to base your decision on factors outside the scope of a simple percentage. A typical management fee for rental properties is between 8 – 12% of the weekly rent and it is at the higher end for the management of fully furnished properties. Be sure to check what the percentage is based on.
Ask for references Be sure to ask for references from other property owners, ideally owning properties similar in size and scope to your own. If the property manager cannot provide suitable referees, this in itself is a warning sign that they may be inexperienced or may not have any positive reviews.
Is the property manager qualified? Requiring a qualification to be a property manager has not been enforced until recently. In the majority of states in Australia there has been legislation passed to have all property managers qualified. A trained and qualified property manager gives you confidence that they will provide a professional level of service and have a good understanding of legislation relating to the role of landlords and tenants.
The need for strong communication You will be hearing from the property manager often enough so you need to feel comfortable that you will be able to get along with them on a personal level and you like their style of communication. It is important to recognise that you will be working through large and small issues with the manager. You need to feel that you are on the same page from the start and have confidence that they will choose the right tenant for your property. Ask how they would communicate, by what method and how often. Suss out whether they are interested in building a trusting relationship with you and do they ask questions to get to know your ‘needs & wants’. They must understand your persona.
Managers need to be exceptionally organised Property management requires a high level of organisation relating to all aspects: routine inspections, maintenance and repairs, open inspections, assessing tenant applications. It is a good idea to ask the property manager to describe a ‘day in the work place’ to you, ask specific questions around daily routine and any management software used to keep things on track.
Understanding the basics of marketing Most property managers are skilled at property maintenance and related tasks but may lack the skill of basic marketing. It is important to know how to write the content when listing a property both on and offline. Writing a great property description requires knowledge about the amenities of a property and the surrounding location and therefore identifying the type of tenant the property would attract. Ask for an example of how they gather the content about a property and their involvement in advertising the property.
How many properties do they manage? The number of properties managed by a property manager, too few and too many can be problematic. Too few can be due to inexperience and or poor service, too many can mean that the property manager has too much to do leaving not enough time to manage your property effectively. Be mindful of extremes.
Do they own any rental properties themselves? This in an interesting question to explore – if the property manager has owned a rental property they would possibly have more understanding as an investor. This knowledge is invaluable!
Property Managers deal directly with prospects and tenants, saving you time, money and worry over marketing your rental properties, collecting rent, handling maintenance and repairs, responding to tenant complaints and tenant breaches. They also must have exceptional customer service skills backed by effective property management systems. There needs to be a personality match between you and the property manager and you should feel this synergy between you in the first 5 minutes of meeting. It doesn’t need to be a difficult process, and ideally these tips will help guide you in finding the correct property manager for you.
Working with a Property Manager is not something all owners will consider. Many are happy to deal with all the aspects of property management themselves, from responding to enquiries from guests or tenants, organising change-overs, meet and greets, inspections, even to doing the cleaning and laundry on departure.
For others, particularly new investors and those who value their non-working time, it makes huge economic sense to engage a professional property management company to carry out all the administrative and marketing responsibilities.
Deciding whether to hire a Property Manager is a ‘given’ if the answers to the following points are YES;
You don’t live near your rental property, as it is in a different city, another state or even overseas
You own many rental properties
You are not familiar with the aspects of managing rental properties or you just don’t like undertaking the role
You need professional advice regarding legislative requirements and the market value of nightly and weekly rates in the location
You have a full-time job and simply do not have the time
Engaging the services of a Property Manager can really save you time and stress when it comes to taking care of your property, liaising with guests or tenants, managing income and expenditure, maintenance and repairs – the list is always growing.
Australian Luxury Stays had a scenario recently where a property owner, who had retired from a long-term government job. His expertise are still highly sought after and a result of ongoing contract work offerings, he is even busier than before. Part of his retirement hobby was to manage his recently renovated Art Deco 1930s villa. A great idea, in hindsight however he is too time poor! So he searched on Google to find a professional “high end property management company” and found Australian Luxury Stays.
Most property owners prefer the services of a Property Management company as they will earn a good income hassle free, and they don’t want their investment to give them a job.
That being said, some owners like to be more hands-on and do want to manage their own properties, however they need to be able to factor in a dollar for the work they do per week otherwise it is not a realistic investment at all.
In my next post I will give you some tips for hiring the best Property Managers – don’t go on price alone! It is often the first question a property owner will ask, what is your management fee and how much rent can I expect per week. Do these words sound familiar to you?
Why are Property Owners renting their properties Fully Furnished?
For many property owners, renting furnished properties just makes good sense and provides flexible options. The property is ready to go for short term accommodation, that is from 3 nights, 3 weeks to 3 months, or can be offered for longer term leases say for 6 -12 months. An additional plus is that the property can be offered for sale, as it is already ‘dressed’ for sale.
These days furnished properties offer much more than a studio in a loft, in fact furnished properties can be amongst the most luxurious rentals available and can significantly increase return on investment.
Fully furnished apartments or homes are move-in ready which makes them the perfect solution for:
ex-patriats working overseas on contracts
the executive relocation market
homeowners needing to vacate a property for building repairs covered by insurance
buyers needing accommodation between settlement of properties
One of the main reasons for renting a property fully furnished is the financial gain; upfront costs may be higher however this is balanced by achieving higher rental rates. The financial benefits continue at tax time as furnishings depreciate over time and this depreciation can often be written off quickly. This allows for immediately reaping the benefits of the investment which can continue over the life of the apartment with redecorating and upgrades.
The other Pros for renting a property fully furnished include:
a ready-made flow of potential clients
the property can be upgraded or updated at any time
attracting high-quality tenants who want to avoid long stays in a hotel room
less damage to doors, walls and carpets from moving heavy furniture in and out of the property
Having considered all the pros, there are inevitability a few cons to renting a fully furnished property as there will still be maintenance to attend to and the additional cost of utilities, Wi-Fi, insurance and cleaning. However, management companies like australianluxurystays.com.au can make the entire process easier for you. We have a simple step-by-step process that can get you started and help prepare properties with proper staging. With our help you can be ready to move into the market faster than you imagined.
For the tenant, renting a fully furnished property is the smoother way to make a move – with no furniture to move, potentially all you need are your clothes in a suitcase, grab your laptop, into the car and you’re on your way.
With over 15 years in the short term and long term accommodation industry and as part of our approach to owners, we explain the difference between both options. This sometimes leads to confusion when they start to consider the best option for the property and their circumstances.
Let me explain the difference between the two options. The following definitions are related to fully-furnished and self-contained properties – an area where Australian Luxury Stays specialises.
A SHORT TERM RENTAL (often referred to as a holiday rental) is renting out a furnished property on a short term basis, considered for a period of less than 3 months. We refer to the occupiers of short term rentals as ‘guests’. These properties are rented by the night or by the week, however this depends on the owners’ circumstances at the time and the property location.
Owners may offer their property for short term rentals for the whole year if it is purely an investment, or for the majority of the year when they are not using it themselves.
Short term rentals have become a popular alternative to hotels particularly in recent years with the surge of the sharing economy websites such as Airbnb, Stayz and HomeAway. Guests like the privacy, a larger place to work and play, and the option to soak up the ambience of the locality.
A LONG TERM RENTAL, unlike short term rentals, typically refers to a lease for 6 – 12 months and the occupiers are referred to as a ‘tenant’. The tenants sign a Residential Tenancy Agreement, pay a bond and take responsibility for all utilities, such as electricity, gas and Wi-Fi if required. Rent is normally paid on a fortnightly basis and the owner is paid at the end of each month.
When owners decide to invest in a property for rental purposes, they need to understand their options in deciding what to do with their new property.
There are many options for owners and managers to consider when opting for short term or long term rentals. Often this decision can be made quite easily when the property itself is contemplated, including the location and the outcome the owner wishes to achieve.
However, there are a number of advantages and disadvantages to these two rental strategies. Hold tight for the next two posts while the pros and cons of both types of rental strategies are outlined in detail.
Allrealty Pty Ltd is a property management & real estate company operating out of Adelaide, South Australia. Specialising in furnished accommodation, we also operate short-term luxury accommodation management under the banner of Australian Luxury Stays.
Founded, owned & operated by Tina Villis, Allrealty & Australian Luxury Stays manage property across South Australia & around Darwin in the Northern Territory.
Questions about how Allrealty can turn your property into a revenue stream? Contact us today for a friendly discussion.