How to transition out of your real estate business.
Running a real estate agency is an exciting and fulfilling career, but there is no denying it takes a lot of hard work! Ask any real estate principal what their hobbies are and chances are they’ll laugh - who has time for play when you’re working six and sometimes even seven days a week?
No matter what level of success you have achieved for your real estate business, there comes a moment when the time seems right to move on. When this is the case, selling is an option.
What many agents and principals do..
Nowadays, housing is about a lot more than housing.
Of course everyone needs a roof over their head, but we also want to be close to work or at least near the public transport corridors which will get us there. Then there’s the matter of being near schools, parks, hospitals and recreational facilities. Everybody is seeking convenience as well as proximity to the outlets that matter to them.
21st century urban designers are responding to this demand by developing housing based on the idea of community and lifestyle as well as bricks and mortar.
Although economists point out how a diehard dependence might be prohibiting young buyers from getting the keys to their first home, coffee is a small luxury almost all of us enjoy on a daily basis.
BDH Solutions are based in Carlton, where the coffee scene is alive and thriving. Who would even consider walking into the office having not first made a pit stop at the likes of Heart Attack and Vine, Wide Open Road or Patricia’s for a caffeine hit?
And here is the thing, who even hits the office any more? The trendy cafes across Melbourne are populated from sunrise to su..
Building a rent roll is one thing… building a premium, sought after rent roll is another.
Elements of a premium rent roll
While profits are important, creating an outstanding rent roll is more than a numbers game.
A rent roll which is an asset to your business will have a profitable number of properties and landlords. It is all the better if some of your landlord's own multiple properties - although beware of tipping the balance of having too few landlords with many properties as it the value of your rent roll will reduce dramatically in one leaves.
How landlords can renovate for better returns.
Many Australians see property investment as an express ticket to wealth and financial security, without taking into account the expenses they must incur along the way.
As a property manager, it can be frustrating to be asked to find a tenant who will pay a premium, only to realise a home or apartment is in dire need of work. If you find yourself in this situation, it may be time for a talk with the the landlord about how to optimise the property.
Spelling out the benefits of upgrading an investment property..
“Of droughts and flooding rains…” our sunburned country has its fair share of extreme weather.
Cyclones in the far north have decimated entire towns while those ‘flooding rains’ have a habit of making their way around the country.
Damage to rental properties from events like storms, bushfires and high winds is all too commonplace. From your perspective as the managing agent, this can spell a major headache. It makes sense to be across the facts for when this type of issue occurs.
Rules around property damage
Specific tenancy laws do differ from state to state. Generally s..
Your rent roll is only worth as much as the worst property you manage.
There is a saying in business - it is 20 percent of your clients who take up 80 percent of your time.
This also applies when you are managing a rent roll. No matter how many properties you have on your books, there are always a few which are wasting your time and money.
The problems can be with the property themselves - constant leaks, faulty plumbing or poor structural foundations can turn a home into a money pit for both owner and agent.
Then there are difficult landlo..
In Australia, the standard rental agreement is for 12 months. Once this expires, most agencies and tenants continue on a month to month basis for so long as everyone is happy.
This arrangement, however, works in a tenant’s favour as they can move out with only four week’s notice.
As an agent managing a large rent roll, having a large proportion of tenants whose leases have expired is actually a destabilising factor due to the unpredictability of tenants.
The benefits of a long term lease
At present, there is no law about the length of a lease in Aus..
A real estate business can be quickly taken to the next level with the acquisition of a rent roll. This gives you instant access to ongoing management fees and allows you to build relationships with potential future buyers and investors.
Borrowing to buy a rent roll is similar to buying a house - there are caveats, policies and guidelines which must be adhered to. The bank will do just as thorough a check on your business as they would with anyone applying for a loan, so it is important to have financial records and details available for inspection.
Integral to the success of any real estate agency is an ever-growing, good quality rent roll.
The more properties you manage, the more contacts you have for potential buyers, sellers and investors. A strong rent roll also counts as an asset when it comes time to sell in the future.
As a smaller agency looking to grow, you may find yourself faced with the decision of whether to build your rent roll from scratch or buy one ready to go. There are pros and cons for each.
Build it up
There’s no doubt about it - creating a healthy rent roll from scratch i..
Thanks to your rent roll, you are receiving commission for collecting rent and managing properties on behalf of your landlords. But if you are considering selling your rent roll, what would give it extra value?
A poorly organised rent roll can impact your profits. By introducing online systems and initiating a better level of consistency, you will be able to eliminate stumbling blocks and leverage your rent roll for maximum results.
Why systemise your rent roll
It simply doesn’t make sense to have different ways of doing things for every landlord and every tenan..
One of the pivotal roles in any rent roll is the property manager.
Typically, the property manager role is relatively temporary, and seen as a fairly junior role. It is not uncommon for the receptionist to move into a property management role as they become familiar with the processes and system in place in the agency.
It is also quite common for these employees to be younger and more ambitious – which means they are easily tempted into roles with better pay and more responsibility. To put it plainly – they are easily poached by other agencies.
What this means in terms of a rent roll ..
Because a rent roll transaction is largely the transition of relationships, the way the landlords are informed and managed is vital to the success of any rent roll sale.
In terms of the landlord’s options at this juncture, the rules vary from state to state. In Victoria for example, the landlords on the rent roll are given notice by the Vendor selling the rent roll that the assignment will happen within 14 days should they not object to the assignment. In N.S.W. the requirement is to obtain a new authority in the name of the purchaser.
If the sale goes through, the landlord can potential..
Rent-roll sales are much more complex than they appear and the role of the rent-role broker is far more involved than a real estate agent.
On the surface a rent-roll sale is simply a case of establishing the value of the rent-roll and then finding an agency willing and ready to purchase.
In reality, the steps and nuances of such a transaction require a specialist rent-roll broker.
An experienced and successful rent roll broker will cover all the following steps:
Understand why the vendor is selling in the first place. A vendor who is looking to retire usually wan..
For most of us, home is our safe place, a haven where we go to relax at the end of the day.
It is sobering then to read that for one in four Australian women, this is not the case. According to a report from Australia's National Research Organisation for Women's Safety, this is the number of women who have experienced at least one incident of violence from an intimate partner.
Being in this kind of situation can make ‘home’ a scary place.
In response to the crisis of domestic violence in Australia, Women’s Property Initiatives was established as a registered housing provider a..