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Brisbane landlords

Posted by admin on 13 August 2010

With the rental market so much more unstable than a year or so ago, vacancy rates are up and so there is a smorgeousboard of available properties for tenants to choose from. Across the inner city it’s not unusual for an apartment to sit vacant for over a month if the leasing agents don’t keep their ears open for market feedback on the asking rent.

So what can a landlord do to attract more tenants and keep the good ones? Presentation and maintenance upkeep of the home is critical. Allowing pets is a biggie – lots of people have their surrogate child/lap warmer and aren’t allowed to bring them to their rental home. And there’s a list on our website of other items tenants always look for.

One idea that landlords often forget is the offer of a long term lease. Tenants don’t enjoy moving (help me carry the fridge down the stairs anyone!) and if they’ve been there for a term, they like it, you’re happy with their payment history and regard for the home, why not offer them an extended lease of 2 years?

Bees Nees head of Property Management Annie von Rudzinski says the stability of a long lease can be a big attraction to tenants.

“If they are happy with the property a longer lease might just be the reason they need to put down their roots. A home is a personal thing to all of us and some landlords probably overlook the connection a tenant can make with the property. Offering a long lease means they can enjoy a greater sense of security and pride in their home and that is a positive thing for all parties.”

Annie says annual or bi-annual rent increases can be agreed in advance. “In this quieter market they might not agree to big jumps in the future but an investor can consider that against the costs of turnover of tenants.”

Posted by Rob Honeycombe on 3 August 2010

Why would both a government and an opposition look to dramatically reduce Australia’s fourth largest export industry? International students are big business for inner city Brisbane and if you’re a landlord or property owner in the area the current election threat to slice their number is likely to have a direct impact on you.

Generating revenue of $19 billion in 2009, a BRW Magazine report says Australia hosted 751,000 international students last year. Those who watch Brisbane’s CBD rental market closely will tell you much of our housing demand has been from this group. It’s no exaggeration to say that whole residential towers depend on students for survival. Take a walk down Albert Street yourself. And this isn’t a new trend

Not to mention the food, travel, entertainment, retail and other industries that benefit. Many of these students are great spenders! Access Economics estimate that for every $1 on education they spend $1.90 elsewhere. Brisbane’s Lord Mayor says this is our city’s largest export service industry and Universities Australia’s CEO says a 50% drop in international students would cost us 60,000 jobs. But Labor’s Sustainable Population Minister says cuts in numbers are warranted and many use their student visas as a “pathway for permanent residency”. The LNP’s Tony Abbott says they’re the “largest contributor to net overseas migration”.

Politics and race aside this is big business for inner Brisbane and especially for property owners. Yes the trend to inner city living is strong but a big chunk of our demand is from international students, especially in the CBD itself. Drop them and we may see a big reduction in rents.

What do you think? We’d love to have your comments.

Posted by admin on 19 July 2010

The Residential Tenancies Authority recently released their June quarter stats and analysis by Bees Nees Research shows inner Brisbane’s rents have now remained flat for well over a year. Small drops in some suburbs shows landlords are being cautious and reducing their rents to keep their homes rented.

Bees Nees head of Property Management Annie von Rudzinski said a more balanced market had replaced the strong rental growth of 2007-2008.

“In postcode 4101 for example we have the same median rents for a 2 bed apartment that we did in September 2008 at $450 per week. The appeal of South Brisbane, West End and Highgate Hill is still very much on the rise but saving money in tougher times has drawn some tenants into cheaper areas further out.”

The RTA shows rents are flat right across Brisbane and Ms von Rudzinski believes landlords are reluctant to push for rent increases. “Rising interest rates do make some landlords nervous and that has a flow on effect. To see a drop in popular spots like Fairfield and Annerley (down $10 to $310 per week for a 2 bed apartment) suggests tenants are getting good value. A typical house in that area is still $400 per week, the same level as September 2008.”

One of the few inner city areas to see a rise in the June quarter was a $10 increase for Woolloongabba/Dutton Park apartments.

Posted by Rob Honeycombe on 22 June 2010

Keeping up with changes in legislation can be tough and for Brisbane property owners the penalties for non-compliance can be nasty. Somehow you’re supposed to absorb all the info and make changes, often without much notice. So here’s a heads-up on one of the latest.

The legislation won’t be passed until September but from December 1st it looks certain you’ll need a pool fence inspection if you want to sell or rent your property. A qualified inspector will need to check it and issue a compliance certificate, and you’ll need to do any works to bring it up to today’s laws. So for example those self-closing doors on the living room won’t be enough any more. Your certificate will need reissuing every 2 years and body corps will be required to have an annual inspection.

Our suggestion: get these underway well before December because you won’t be allowed to sign a lease or a sale contract without your certificate and the inspectors are going to be a tad busy. Watch the small print too – any body of water more than 300mm deep that’s kept full and usually used for swimming will be captured. Visit the website or talk to your property manager now.

Landlords might like to keep an eye on further changes in the wind. We expect you’ll be required to prepare a Sustainability Declaration from mid 2011 to show any prospective tenant if the home’s energy efficient etc. And in a controversial move the tenancy lobby groups are currently arguing for an end to giving tenants a “notice to leave without grounds”. So landlords may lose the ability to choose who lives in their property. If you’d like to have a say on this one why not send the Housing Minister an email? It’s Karen Struthers at communityservices@ministerial.qld.gov.au

Like to have a rant on these issues?! Make a comment.

Posted by admin on 18 June 2010

June 30th is almost here and property investors looking for a hand maximizing their refund cheque from Mr Swan might like to take a look at the ATO’s rental property info paper. It’s easy to leave the claims to your accountant but most of this info is easy to follow and one fresh idea might save you some serious dollars.

Many of us get embarrassed admitting we don’t know some of these rules. We say it’s better to ask than make an expensive mistake! Some errors we’ve seen clients make in past years: using the date of settlement of a sale when calculating CGT (it’s usually the date of the contract) or claiming travel expenses where the main purpose of the trip was a holiday (driving past the house on the way to the Port Douglas golf course mightn’t be enough!)

The ever-tricky one seems to be mistaking an improvement for a repair. There’s a ruling on the ATO website that’s worth a read if you love that kind of thing! It says works may go further than being a deductible repair if it “changes the character of the property or does more than restore the efficiency of function”.

And, as always, please talk to an accountant and don’t look to your real estate agent for tax advice!

Posted by admin on 24 April 2010

A surprisingly high 65% of renters take more than 3 months to find a home, according to a survey by property portal RealEstateView.com.au

General Manager Petra Sprekos said their site’s users were confirming the view that demand far exceeds supply in the rental market and that finding a rental home can prove extremely difficult.

“Most renters report that they have problems finding a home. A wait of three months to find a new home means that if you only have a lease that is 12 months in duration you would need to spend a quarter of your time looking for a new home.

RealEstateView is now Australia’s 3rd largest property portal but it’s still a largely Victorian site, so these stats don’t necessarily reflect Brisbane’s current rental market. But there is info in here for Brisbane landlords, especially on the price-sensitivity of tenants.

“The survey also found that renters knew they had to be flexible if they were to find a home with more than half willing to look in other suburbs or for homes without the features they wanted. One in ten will even look at share accommodation to find a place to rent and just under half will increase their budget.”

“It shows that renters will trade quality and location before they increase their budget.” Petra Sprekos concluded.

Posted by admin on 14 April 2010

The latest rental stats have been released and they help explain the large number of rentals currently available. Here’s our Research team’s media release:

Brisbane’s rental market has had a massive boost, with over 1100 homes added to the rental pool in the first quarter of 2010. According to new Residential Tenancies Authority stats the past year’s decline in the number of rented homes has finally stopped.

Bees Nees Research Managing Director, Rob Honeycombe says investors have replaced first home buyers and are offering Brisbane’s tenants more choice.

“Investors have been sitting on the sidelines and during 2009 the rental pool just continued to shrink.  There’s now a lot more confidence in bricks and mortar and the RTA stats show property investors have started to dive in,” Mr Honeycombe said.

The RTA track all rental bonds and across Brisbane the total leapt by 1145 in the March quarter. Mr Honeycombe said this data followed this week’s ABS finance stats which showed investors’ share of lending is growing strongly.

“The inner city has been the standout, with 693 extra rental homes added since the start of 2010. That’s more growth in a quarter than we’ve seen since 2006.”

Mr Honeycombe said rents had mostly showed small gains, with Brisbane’s median 2 bedroom apartment rent now at $365 per week.

To get the latest median rent for your suburb visit www.WhatRentMyHome.com.au

Posted by admin on 9 April 2010

Fridays are for fun!

Father O’Malley was pulled up for speeding. The highway patrol officer smelled alcohol on the priest’s breath and then saw an empty wine bottle on the floor of the car.

“Father, have you been drinking?”, the officer asked. “Only water my son”, replied Fr O’Malley. “The how come I can smell wine?” the policeman enquired.

The priest looked at the bottle and said: “Good Lord! He’s done it again!”

Posted by Rob Honeycombe on 23 March 2010

Brisbane homeThe kitchen benchtop was red, the window frames were a metallic red, the tap handles were red, the curtains red and yes, even the toilet seat was red. This lady had a definite favourite colour!

Unfortunately we were trying to sell the house and despite a fair price and vigorous ad campaign no-one could see past the red. It was pretty much impossible to. And that’s why your selling agent or property manager will recommend “real estate beige” for your wall colours pre sale or leasing. It’s safe, it can be dressed up with darker and striking furnishings, it offends no-one and of course you can “move straight in” as the ads say.

But here’s the new twist.

White. The ceilings usually are, but now it’s the benches, the wall tiles, the vanities, the appliances, the curtains, the coffee table. Even the fluffy little almost-dog that’s lying in a corner (on a white rug). The white floor tiles are massive (who will win the ‘biggest tiles’ title and be done with it?) and have that impossible sheen to them.

Agents love these properties because they can use words like “crisp, canvas and clean-lined” in the same sentence. Their photos look like the pages of a designer magazine. And they don’t have to apologise for red toilet seats.

But is it just us or do you have trouble imagining yourself living in a home like that?

Of course plenty of good property advertising is about aspirational marketing, showing what life  can be like if you just buy this home. Couples start holding hands again, the man wears a tux and his wife looks longingly at him over the flute of impossibly expensive champagne. But we digress!

Home buyers do have a desire to live in a magically clean, clinical and ordered world. But what about some personality too? To me a favourite chair, even a slightly worn and out of fashion one, says “I like sitting here”. A rubble of toys (tidy!) says “This is a family home” and a sauce-spotted recipe book says “this is a kitchen where you’ll love cooking”.

One agent we know tells sellers to put away personal photos, trophies and similar so buyers can more easily picture themselves in the home. What rubbish.

Clean and tidy, yes. Uncluttered and with a sense of space, definitely. But for our money we say a home is a home. When you go to sell or rent your property don’t be afraid to show some of your personality.

Unless of course you love red…

Posted by admin on 19 March 2010

carparkNow this report comes as no surprise to us (probably most Brisbane property managers know all about it), but today we read a report about the Oaks Group, onsite managers for several of Brisbane’s inner city towers, letting out residential car spaces to inner city workers.

What’s surprising is the report mentioned nothing of the possible loss of income to landlords!

This practice is not only a breach of Brisbane City Council’s laws, but the Body Corporate Committee’s By Laws which state even tenants cannot privately rent their car space to a friend who works down the street.

Different buildings have different rules; some allow you to rent your space to another building resident, as this would mean the same amount of traffic to the building and no security breaches with non-residents entering the building’s secure environment.

We have spoken to some landlords who have their apartments managed by  onsite managers and don’t even know that their apartment has been leased with no car spaces attached.

If there is a need for more parking in inner city Brisbane, it’s not the responsibility of the resident managers to fix the issue. Is their priority looking after their clients, or filling the needs of inner city workers? Buy a Wilson Parking business if that’s your passion.

Do you know of an incident like this?