Whether you are new to property investment, have an existing property portfolio or are a full time property investor, this webinar will help you maximise the financial performance of your portfolio and improve profits. This interactive masterclass covers: > 9 tips that will ensure you have tenants queuing up to rent your vacant property. > How to find an A-grade property manager in an industry of full of average people. > How to get 5-10 property managers competing for your business on every rental property. > How to easily compare the costs and services of each property manager. > 11 things you can do to boost your rental income by $1,000 to $10,000 per year. > How to select and retain the best possible tenants and achieve 0% vacancy rates. > How to figure out the best tenancy rental strategy for each property. > The pros and cons of residential tenancy types: long term residential, boarding houses, short stay and holiday homes.

1. Master Class:
Managing your property to
maximise financial results

2. We help investors
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their property
portfolios

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7. Treat property investment as a business….
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8. Portfolio solutions – Start your team here

9. Portfolio Solutions Master Class
• Designed to share knowledge.
• Desire to provide extra value to our
clients.
• Great for both new and experienced
investors.
• Plenty of opportunity for Q&A
• Market leading industry partners invited
by Real Estate Investar to present and
educate.

10. Our special guest
Michael Banks
CEO
Local Agent Finder

11. Local Agent Finder
• Are you paying agent and property managers
the right amount and getting the best service?
• Local Agent Finder makes it simple to:
• View average agent commission stats in every
suburb
• Request & compare quotes from 9,000 agents to
sell, lease or manage your property portfolio.
• In less than 5 days you’ll know if you need to
change your manager.
• REI have worked with LAF to customise their
tools for investors with portfolios.
• It’s a free service.

12. Property management master class
In this session, we will cover:
1. The pros and cons of residential tenancy types.
2. How to find an A Grade property manager.
3. How to get property managers competing for your business.
4. How to easily compare the costs and services of each.
5. Tips that will ensure you have tenants queuing up.
6. How to select and retain the best possible tenants.
7. Things you can do now to boost your rental income.
8. How to figure out the best tenancy rental strategy.

13. Property Management

14. Property Management
No matter your investment, some
level of property management will
be required.
Property management involves:
• The letting of the property
• Management of Tenants
• Management of repairs and
maintenance to the property

15. Property management options
There are 4 different options for
property management:
1. Non-management (No one!)
2. DIY
3. Family member or friend
4. Professional property
managers

16. 1. How non-management occurs
• Buying property with existing tenant
• Existing tenant has no tenancy
agreement – ‘Handshake’
• No bond.
• Former owner keeps no tenant
ledger or other records.
• Former owner has no inspection
records or ‘respects’ the tenant’s
privacy therefore inspections are not
done.
• New owner adopts that approach.

17. Benefits of non-management
• None to the owner
• Several to the tenants
This is a common approach by new
investors

18. Negatives of non-management
• Tenant can:
• Pay rent if and when they want to.
• Keep the property in any state
they like.
• Leave whenever they are ready or
wanting to.
• Rent arrears.
• Damage.
• Investor abandons the investor
market “too hard, too much trouble’.

19. 2. How DIY management occurs
• Generally first property investment for
owner(s).
• Can be a new investment from a relatively new
investor. Perhaps they have had another
property ‘with no real issues’ previously.
• Could be owned by investor with the mindset
‘I’m a nice person so they will also be nice to
me’.
• Owned by a typical ‘Tradie’ or ‘Handyman’
type. “I can sort them out myself” or “My old
man owned property”.

20. Benefits of DIY management
• Hands on.
• Save fees.
• Something to do during the day.

21. Negatives of DIY management
• Investment in time.
• Investment in setting up systems.
• Learning curve.
• Costly errors.
• Increasing liability.

22. 3. How friends/family management occurs
• Owner goes overseas or is based
overseas.
• Buying a property with existing tenant.
• Might be a first time investor, investing
local to friends & family.
• Could be owned by investor with the
mindset ‘I’m a nice person so they will
also be nice to me’.
• Owned by a typical ‘Tradie’ or
‘Handyman’ type. “I can sort them out
myself” or “My old man owned property”.

23. Benefits of friends/family management
• None to the owner.
• Several to the tenants.
This is also a common approach by
new investors

24. Results of friends/family management
• If done well: save on fees.
• If done poorly, tenant can;
• Pay rent if and when they want to.
• Keep the property in any state they
like.
• Leave whenever they are
ready/wanting to.
• Estranged family or friends ‘when things go
bad’.
• Can result in property damage and
abandonment of investing by investor.

25. 4. Benefits of professional management
• Full services are available:
• Finding tenants
• Managing tenants
• Record keeping
• Systemised: computers &
software
• Not personal / less Stress for
you as the owner
• 24/7 Service
• Leveraged time for owner
• State/national/OS coverage
• Avoid liability:
• Current & future laws
• Mediation/tribunals
• Debt collection
And many more…

26. How to identify professional management
• Specialist company or department.
• City wide or large coverage/multiple offices.
• System based vs personality based.
• Key staff.
• Time in market = experience.
• Most important:
• Communication with the landlord.
• Treat the tenant as a customer.

27. Questions to ask a professional manager
• How many tenants on your rent roll are in arrears?
• How often do you make disbursements to owners?
• What is the vacancy rate across your managed properties?
• How often have you found malicious damage with tenants?
• How often have you been to the tribunal?
Handy tip: Get in touch before you invest in an area.

28. Who is the best professional manager?
 Someone with systems and
processes.
 They are a career property
manager.
 They are happy to discuss
plans and goals.
 They are open with KPIs, and
sticking to them.

29. Remember you still have obligations
• Provide the property in ‘reasonable’
state of repair.
• Provide it in a ‘reasonably’ clean state.
• Comply with legislation in respect to
buildings, health and safety.
• Stay on top of reported maintenance
issues or compensation may result.
• Know the Residential Tenancies Act. A
professional manager can help you
with this. It differs by state.

30. How to find a professional manager
• Local Agent Finder is a unique
partnership for Real Estate Investar.
• Local Agent Finder provides a simple
and free service that helps our clients
find the best agent or property manager.
• Local Agent Finder is not a property
management company.

31. Local Agent Finder
Demonstration

32. The benefits of Local Agent Finder
Local Agent Finder helps you:
• Understand what agents and
property managers charge, and
why
• Gets multiple agencies competing
for your business
• Enables you to easily compare the
costs and services of each
www.realestateinvestar.com.au/LAF

33. Always treat your
investment
like a business
And remember tenants are ‘customers’

34. Treat your investments like a business
• Have a plan
• Have goals
• Businesses have costs
• Businesses manage risks
• Businesses are profitable
Create a business plan!

35. Set Targets & Goals

36. Measure results

37. Monitor your property

38. Make changes as needed
• Review your goals and targets.
• Make adjustments to your plan as
needed.
• Don’t be afraid to make changes to
rents, management, the property or
method of renting it out.
• Monitor your investments closely, no
matter what your property management
strategy is.
• Don’t just wait for tax time to see how
much tax you made or lost.

39. How to select and retain
the best possible tenants

40. Finding a tenant
• Professional management has the
upper hand here as they have
access to people coming to them,
and the various online advertising
portals.
• However there are plenty of other
options:
• Website portals that take direct
listings.
• Major & minor local papers.
• Signage on site.
• Some agents will do casual
letting or advertising for a fee.

41. • Even when using a professional manager, it pays to take your own
photos and write up your own property (If you think you can do a better
job).
• Promote the key items:
• Weekly rent.
• Number of bedrooms & bathrooms.
• Condition.
• Privacy, security, parking & transport.
• Any included furnishing or fittings.
• Outdoor living.
• Sell the features and benefits.
Think like a tenant when advertising

42. Tenant enquiries
• Keep a log of responses (name, contact details).
• Vet tenants over the phone prior to meeting.
• Run an open house if you are expecting a lot of
interest;
• 20 minutes maximum.
• Multiple copies of documentation.
• Be punctual.
• Open windows, turn on lights.
• Take a vacuum.
• Promote the address, it encourages research and
drive-bys for ‘pre-inspections’.

43. Tenancy applications
• Have formal application forms and a tenancy
agreement available printed and digital.
• Request references:
• Written (previous landlords, work, church,
school, personal).
• Verbal is great.
• Run a credit check.
• Run a tenant check (tenancycheck.com.au).

44. 14 step letting process
1. Advertise
2. Take responses
3. Arrange appointments or open
homes
4. Complete application forms
5. Check references
6. Do credit and tenant checks
7. Complete tenancy agreement
8. Fill out property pre-inspection
form
9. Complete bond, bank and any
other documents
10. Lodge bond
11. Make a folder or file
12. Make a computer folder or file
13. Send confirmation letter to
tenant
14. Hand over the keys!

45. Handling inherited tenants
On or preferably prior to settlement,
ensure that:
• You get a copy of the tenancy agreement.
• If there is no agreement but is occupied, get
the tenants details.
• If the previous owner will be the tenant, get
an agreement in place.
• You get a change of landlord/agent form
signed if applicable.
• Collect a copy of the keys on settlement.
• Contact the tenant prior to provide
management details, banking details etc.

46. Never cut corners
• Have a process and follow it.
• Always require references and
check them.
• Be wary of the “need to move in
today, here is the cash” syndrome.
• Always show the property yourself
and never ask a tenant to do it.
• Some tenants have a past to hide.

47. Ensure the inspections get done
• Benjamin Watkins, of Ray
White Real Estate:
• "I had a tenant growing
marijuana in my own personal
rental property, which ended up
costing me $9,500 in damage.
• "I rented it out to a family whose
house I had sold. They had kept
their former home immaculate.

48. Ensure the inspections get done
• "The first time I went to do an
inspection, they cancelled at
the last moment saying their
children had gastro.”
• "It turned out the tenants had
put hoses through the
walk-in wardrobes, installed
exhaust fans and plastered
up the air conditioning
unit all within a six
month period.”
Source: The Australian, October 2012

49. What makes a good tenancy applicant?
• Easy to deal with on the phone.
• Can and will provide references.
• Shows up on time for any inspections.
• Is open with information.
• Will complete an application form
in full.
• Responds favourably when advised
of a credit or tenancy check.
• Has money ready for initial rent and bond.

50. What makes a good tenant?
• Pays rent on time.
• Maintains property to a good standard.
• Allows access when planned and
requested.
• Advises you proactively of any repairs
or maintenance needed.
• Advises you of problems that may affect
continuity of rent payments.

51. 9 tips that will ensure you have tenants
queuing up to rent your vacant property.
Ensure your property is:
1. Clean and tidy throughout.
2. Get carpets steam cleaned
and rubbish removed.
3. Tidy, low maintenance
lawns and gardens.
4. Letter box cleared, working
and numbered.
5. Damage and maintenance
issues repaired.
6. Ask a fair market rent.
7. Buy in low vacancy suburbs.
8. Buy attractive properties with
unique features.
9. Appeal to the widest tenant
pool possible.

52. So you bought a ‘cosmetic do-up’
Assess what really needs doing to maximise
rent.
• Cosmetics make the most impact;
• Painting (especially wet areas).
• Curtains.
• Light fittings & door handles.
• Kitchens and bathrooms.
• Appliances.
• If you have limited funds, attack the
interior first.
• If you can’t spend money outside, make it
neat and tidy.

53. Some of the catches with renos
• Allowing a decreased rent while
‘doing up’ a property can cause
later problems.
• DIY renovations might save
money up front, but can cost
money when you factor in the
time off the market
• DIY might also impact the
quality of finish and therefore
end value and rental potential.

54. 11. Characteristics of high yielding
properties
1. Burglar alarms & other security
features.
2. Heating & cooling: relative to
climate.
3. Fully fenced for children & pets. If
you allow pets, charge a premium.
4. Car parking: especially in cities.
5. Low maintenance: exterior, gardens
& lawns.

55. 11. Characteristics of high yielding
properties
6. Outdoor living areas.
7. Handy to schools, transport,
shops.
8. Handy to highways, employment,
higher education & hospitals.
9. Sleep outs, granny flats, dual
income, studios and bungalows.
10. Quiet private locations /
something unique and desirable.
11. TV aerial, telephone and network
points.

56. Why do tenants leave?
The three main reasons tenants leave
a property:
1. The landlord fails to fix things that
break or need replacing in a timely
or proactive manner.
2. The house is cold or damp in
winter/hot and stuffy in summer.
3. They can rent for less somewhere
else.

57. Good things to avoid in a rental
• Light coloured carpet.
• Carpet in wet areas.
• Vertical blinds.
• Big gardens.
• Swimming pools & spas (in
cooler climates).
• Pets.
• Rough or noisy neighbours.

58. A handy tip
• Keep a copy on file of all
instruction manuals and
warranty cards for any of the
appliances or other chattels in
the property.
• Write down the remote control
models and codes where
available and photograph them
too.
• Always provide photocopies of
the manuals, the originals tend
to disappear

59. Human rights & discrimination
• Race, religion, ethnicity, gender,
marital status, presences of
infectious disease, sexual
orientation, children or employment
status
• Never give a reason for not granting
a tenancy.
• Never discuss any allegation of
discrimination.
• Always deny and leave it at that.
• Always keep your thoughts on this
matter to yourself.

60. Reasons for granting a tenancy can be
based upon…
• Ability to pay rent.
• Provision of full details to you.
• Sustainability of references.
• Number and types of pets.
• Number of occupants and
vehicles.
• Credit or tenant history.
• Non-smoker.

61. Setting initial rents and rent reviews
• Do your research on market rents.
• Rental appraisals can be done by
a knowledgeable agent.
• Review rents no longer than
annually.
• 60 days notice in writing is
required if variable term or at the
end of a fixed term agreement.

62. Monitor the market

63. The paperwork
• Application form: one for each
occupant.
• References.
• Credit checks.
• Written tenancy agreement.
• Inspection report.
• Bond lodgement forms.
• Automatic payment forms.
• Keep rental payment records.

64. Compliance – ignorance is not a defense
• Do you know about the need for a
smoke detector?
• What about the risks associated
with carbon poisoning?
• Do you know about the new rules
coming in in NSW in relation to
pools and spas?
• Do you know what you need to
advise your tenant if planning to
sell or are under mortgagee
action?

65. Residential tenancies act
• Varies by state.
• The Act gets updated every few years.
• Google: “Residential Tenancies Act” to
locate latest documents.

66. Tenant unions are a good resource
• VIC: www.tuv.org.au
• NSW: www.tenants.org.au
• ACT: www.tenantsact.org.au
• TAS: www.tutas.org.au
• QLD: www.tuq.org.au
Not tenant unions, but handy
resources:
• NT: www.dcls.org.au/tenants-
advice.html
• SA:
www.anglicaresa.com.au/housi
ng/tias/
• WA:
www.murdoch.edu.au/School-
of-Law/Clinical-Legal-
Education-SCALES/Tenant-
Advice-Line-Western-Australia

67. Planning your
rental strategy

68. 4 alternative rental strategy options
1. Holiday let
2. Short stay
3. Student accommodation
4. Boarding houses

69. Holiday let
• Renting out the property to holiday
makers.
• Generally located in locations close to
holiday destinations: sea change, tree
change, local attractions.
• Plenty of ways to advertise a property
like this and an opportunity to build a
business in its own right.
• Your property ideally needs to stand out
and be attractive to those trying to ‘get
away’.
• Less than 2 hours drive from CBD ideal.

70. Holiday let – how it works
• You need to furnish the house and supply
everything you might need in an ordinary
house – think appliances (large and small),
cutlery, plates, beds, televisions etc.
• You might provide a linen service, as well as
other perks such as Wi-Fi and Pay TV
• Tenants will book for short stay periods, with
peaks achieved around the holidays
• Your property might be empty for some time
in the off peak
• You need to have a solution for security,
cleaning and gardening.

71. The benefits of holiday lets
• An opportunity to make a business
out of your asset.
• Generally higher yields vs.
traditional renting.
• Better depreciation due to the
additional furnishings.
• You can get access to it yourself in
most circumstances.
• Great way to purchase a future
family holiday home.

72. The negatives of holiday lets
• Involves a lot of management. This will
cost you money and/or time.
• Your tenants are there for ‘a good time’.
• Generally the properties will be a long
drive/flight from where you live, so
harder to check, monitor and/or
manage.
• More stuff to manage: cleaning,
gardening, furniture, bonds and keys.
• If you get it wrong, you may have a
property that takes up your time, doesn’t
grow in value and is negative cashflow.

73. 1. Keep the audience as broad
as you can.
2. Research the competition.
3. Aim for good investment
growth and high yield/returns.
4. Provide things like internet
and pay TV.
5. Easy access to
lakes/beaches.
6. Make it a home away from
home.
9 tips for the best holiday let results

74. 6. Think about who will use your
property, and target where
possible to meet their needs
– think toys, playgrounds,
computer game consoles, or
tea and coffee, tea towels,
bathmats.
7. Stay on top of the numbers.
8. Some factors such as local
infrastructure may mean its
easier and a better return to
rent permanently as a short
stay style property.
9 tips for the best holiday let results

75. Short stay
• Furnished properties available for
short or medium term rent.
• Generally apartments, but houses
and townhouses can be used.
• Generally cater for professionals, but
also strong demand near hospitals
and other health and aged care type
facilities.
• You need to think like a hotel and
provide what people need from a
serviced apartment type
accommodation.

76. Short stay – how it works
• You set up your property like
a serviced apartment.
• Linen is optional, but more
likely expected.
• Tenants will stay in blocks of
time. Generally 1 week or
more blocks.

77. The benefits of short stay
• More professional tenants.
• Higher yields than normal rent
returns.
• Can attract premium prices as
generally in sought after
locations.
• Better depreciation due to the
furnishings.
• You can get access to it yourself
in most circumstances.

78. The negatives of short stay?
• Hard to predict occupancy
• Can be a more difficult to
advertise vs. traditional
residential and holiday lets.
• Can be long periods of
vacancy.
• Need to stay on top of
repairs, maintenance and
wear and tear. Higher
standards will be expected.

79. • Present it well and aim for a high level of
finish. Think hotel or serviced apartments.
• As you will have professionals as a
primary target, ensure you provide a desk
or even office type area.
• Provide Wi-Fi and pay TV
• Keep the property low maintenance and
very clean.
• Ensure good security, they may need to
store stock or goods if travelling for work.
Tips for the best short stay results

80. Student accommodation
• Located near higher education such
as TAFE’s and universities.
• Gives students the opportunity to
rent at a lower cost.
• Generally it’s rented on a room by
room basis.
• Basic furnishings
• Basic amenities, as well as cutlery,
plates etc.
• Basic necessities are expected; Wi-
Fi for example

81. Student accommodation – how it works
• Students book out on a term,
semester or school year basis.
• You can achieve 100% occupancy,
but depends on location and
demand.
• Students will rent by the room and
share facilities and common areas.
• You will need to provide internet.
• You will need to provide cleaning
and gardening services for common
areas.

82. The benefits of student accommodation
• Higher rental yields than
normal residential rent returns.
• Lower cost to furnish due to
lower expectations.
• Better depreciation due to the
furnishings.
• Multiple income streams from
one dwelling.

83. • May have periods of vacancy over the
holiday breaks.
• Tenants are almost always young.
• Harder to have harmony; many
people from different backgrounds.
• Can lead to tenant issues like over
crowding and conflicts.
• You have to find more tenants each
term or year.
• More rules and regulations than other
methods.
• You will need to stay on top of
cleaning and gardening
The negatives of student accommodation

84. • Provide clean and neat common
areas that are low maintenance
• Provide all the basics to a good
standard.
• Ensure each room has a study area.
• Have phone lines and network
points in each room.
• Additional toilets and bathrooms will
set you apart.
• Work with the local Universities and
TAFE’s. Most have student
accommodation services.
Tips for the best student accommodation
results

85. Boarding house
• Boarding houses provide low cost
accommodation to tenants generally
on a mid to long term basis.
• Tenants may or may not have their
own furniture.
• Boarding house’s can have individual
cooking and washing facilities, but
also can be shared.
• Generally cater to people that can’t or
don’t want to access traditional rental
tenancies.

86. Boarding house – how it works
• Boarding House’s have rooms or
suites rented out.
• Generally there is a manager close
by or on site.
• Rooms and suites generally are
furnished with the basics.
• Similar to traditional renting in
terms of paperwork and terms.
• Alcohol and smoke free buildings
work best.

87. The benefits of a boarding house
• Higher yields than normal rental
returns.
• Lower cost to furnish due to lower
expectations.
• Better depreciation due to the
furnishings.
• Can be located anywhere, so
makes it a solid option to get
better returns from large
properties.

88. • Tenants can come from all walks of
life, and generally have had troubles
accessing other accommodation.
• Harder to have harmony – many
people from many different
backgrounds.
• More rules and regulations than other
methods e.g. fire sprinklers.
• Tenant turnover can be a constant
problem.
• You pay for cleaning and gardening
• You need good management onsite
or regularly visiting.
The negatives of a boarding house

89. • Provide clean accommodation.
• Ensure any common areas are able to
be shared easily without impacting
others space and kept in clean and
working order.
• Provide disabled access.
• Aim to provide a property near to
transport and shopping.
• Have management visible and within
reasonable contact as necessary.
• Have strict rules in place.
Tips for the best boarding house results

90. Which strategy is best?
1. Holiday let
2. Short stay
3. Student accommodation
4. Boarding houses
• Work out your numbers for each
scenario.
• Be realistic about your time and
expertise.
• If in doubt: simple is often best in the
long term.

91. Next steps

92. • If you have existing property, consider how it is managed. Could you do
better?
• If you have existing property, is the current method of rental right for
you? Consider all strategies.
• Take control of your investing and know your numbers. Use tools like
Property Analyser & Portfolio Tracker to stay on top of your business.
Things change.
• Build a team. Whether you are a new or experienced investor, you need
a team behind you to maximise your results.
What can I do next?

93. Plenty of resources available
Take the 21 day free trial at www.realestateinvestar.com.au

94. 21 day free trial
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Find a property manager
www.realestateinvestar.com.au/LAF
Questions?