If you own an investment property or know someone that does – we are offering a complimentary ‘End Of Financial Year Health Check’ to make sure that you are properly positioned and maximizing the return on your investment property in the current climate.
With so many changes from tenancy laws, to issues surrounding the COVID-19 pandemic, issues, before you lodge your tax return, take advantage of our experience and advice to make sure you are maximising your return.
Some safety obligations that have been advised but not regulated are set to become mandatory – including annual smoke alarm testing and safety checks on any gas and electrical appliances and fittings every two years.
In addition, any properties with a Pool or Spa now need to be registered with their local council by November 1st this year and will require safety inspections to be completed every four years. We are reviewing our procedures and putting in place strategic partnerships and safeguards to ensure this is handled efficiently going forward.
You may have noticed a shift in the wording of some of our communications. This is a result of the latest amendments to the Residential Tenancy Act which has stipulated that ‘Landlords’ are now to be called ‘Residential Rental Providers’, whilst ‘Tenants’ are now legally titled ‘Renters’.
These new laws will mean it is easier for renters to have a pet, but there are also some important steps required to ensure compliance and consent conditions are met.
Check
Renters should first check that the pet they intend to keep complies with existing council laws or legislation,
check that the pet they intend to keep complies with existing council laws or legislation.
Apply
Renters must request consent from their rental provider using the Consumer Affairs Victoria pet request form.
Written Consent
Rental providers then have 14 days to approve or deny the request in writing.
Refusing Consent
A rental provider must lodge a VCAT application and put a case forward as to why they believe the pet is not suitable for the property.
Some reasons that VCAT may review include the type of pet the renter wants to keep, the character and the nature of the property itself including fixtures and fittings, and any other special circumstances.
Things to Consider
Is the home big enough for the type of pet you would like to keep?
Is there adequate outdoor space?
If you move will your pet be suitable for your next home?
How do you manage the noise from the pet?
Pet-related Damage
Renters are responsible for any pet-related damage to the property, so if you are considering a pet you need to ensure you are able to cover the costs associated with any potential damage including scratched floors, damaged carpet and woodwork, or disturbed gardens.
Communication is key
A good relationship between the rental provider and renter is so important.
If a renter is thinking of obtaining a pet, a discussion with the rental provider to get a feel for what may or may not be accepted is advantageous before the formal application process takes place.
This will hopefully ensure that a win win resolution can be sorted for both parties.
If you’d like to know more about these new regulations, please feel free to give us a call on 9899 6099.
Why landlords are leaving Airbnb.
There is no doubt that one of the impacts of the COVID-19 pandemic has been an increase in uncertainty in many areas of the property market. One specific area that has been affected is the short-term accommodation market.
Property owners around Melbourne who have serviced apartments or who offer their properties via online accommodation websites like ‘Airbnb’ have experienced an enormous drop in demand over the past few months. Clearly, people are staying home and isolating, rather than travelling interstate and overseas.
However, it is worth noting that this form of property rental has been experiencing issues that go further back than the arrival of the Coronavirus. So the question that many property owners need to ask themselves is “Is Airbnb still a viable investment?”
A growing number of Property owners have found that their investment in the short-term accommodation market has become increasingly risky. The inability to screen potential tenants before they arrive, the much-publicised wild parties, the potential for your property to be used for illegal purposes, and difficulties in obtaining adequate insurance coverage have all raised serious concerns for apartment owners around Melbourne.
Other issues that are less recognised, but still of concern, include the unplanned expenses associated with property abuse, overuse of utilities and the extra cleaning costs that are even more relevant in the current pandemic. Many lenders are also placing restrictions on owners who generate income via the short-term accommodation market. With additional service costs and management fees also taking it’s toll on returns.
With many Strata managers also taking action to limit these types of tenants, this is an ideal time for property owners to reconsider their investment plan and to look at the longer-term rental market, whether as a furnished property or by selling or storing the existing furnishings.
Here at Ryan Property Specialists we are busier than ever and our team have been able to assist a number of landlords to achieve an easy transition with a minimum of disruption.
To furnish or not to furnish?
While there is some demand for furnished properties, this is a small segment of the market and Property owners may find it more beneficial to on-sell their current furniture to one of the many staging businesses that are able to purchase full house or apartment lots. This gives property owners additional scope within the market, and whilst the furnished property makes for great rental photos, the majority of the rental market look for unfurnished properties.
If you are considering making a change in your property investment strategy, don’t hesitate to give me to discuss your options on 9899 6099.
Kym Ryan
Director
Ryan Property Specialists
