A simple example:

Purchase Price: $300,000
Weekly Rent: $300 X 50 weeks
(Allow for a vacancy factor)
Gross Total Rent: $15,000
Less Expenses: $ 5,000

(E.g. Maintenance, insurance, management fees, cleaning, interest costs, depreciation)
Net Rent: $10,000
$10,000 / $300,000 X 100
Net rental yield return = 3.3%

It often starts out with all parties having the best of intentions. A landlord who is on friendly terms with their tenant verbally agrees to a new pet, or consents to a room being painted, or out of compassion says that it is okay for the tenant to catch up on rent – without consulting the property manager.

The Tenants' Union has recently completed its submission to the Tasmanian Government on the Residential Tenancy Act with the key recommendation being the introduction of minimum accommodation standards for rental housing.

Presently Tasmania has the lowest standards of any state or territory in Australia, simply requiring landlords to maintain the house as near as possible to the condition at the beginning of the lease apart from wear and tear. All other jurisdictions require premises to be maintained in a reasonable or good state of repair.

On 30 November 2009, the premier of Tasmania announced changes to the way your water and sewerage account is to be calculated and paid.
This includes the increase for your total account to 5%.

Increases to service charges are now capped at 5%
All customers were originally advised of increases up to 10% in this year’s water and sewerage charges. In November 2009, the State Government announced that a new, lower cap of 5% will apply to your total account.

Negative Gearing

Choosing the right insurance policy can be a difficult decision, particularly given the number of products currently available in the market place. One of the first choices you need to make is whether you will engage an insurance broker or go direct to the insurer. Many Insurance Brokers have niche products that have been specifically designed to cover particular items and events.

The team @home are always looking out for potential tenancy risks, while our competitors continue to use "standard forms and letters" we are always evolving and improving our systems. Below are the most recent changes made to our Residential Tenancy Agreement.

I speak for all property managers when I say gardens are a management nightmare! Gardens are the number one cause for dispute between owners and tenants, closely followed by cleaning. With no clear guidelines set out in the Act, often property managers have to make decisions based on what is fair and reasonable and at the same time act in accordance with the owners requests....as piggy in the middle we try and find a fair solution.

Do your research on the area and have superior knowledge of the marketplace.

Knowledge is power when negotiating. Research is the key here attend auctions, research recent sales, importantly talk to agents and go to open for inspections; become an expert in the area. Use your superior knowledge of the market combined with facts and figures to negotiate back and forth until a mutually acceptable price and terms are agreed upon. Remember this is not a place you are going to live take emotion out of it and walk away if need be.

Helping tenants understand their responsibilities as well as their rights over fixed term leases could prevent potentially expensive misunderstandings down the track.