Before Settlement - Questions

[Alex P Keaton]

Hi

I'm stressing out! I have a lot to do in the next couple of weeks and I need advice and help. I figured its probably best just to make one big topic and put all my pre settlement questions here. Cos there will be a few!

Settlement is set for December 1st.

I'm really happy about this because I thought it was going to be later than this.

As I think of things to talk about i'll post in here. It just all seems a bit overwhelming.

I am having tomorrow off so I can make some phone calls, prepare and organise myself. Now that I have a concrete date for settlement I can start arranging appointments for tradies.


Question # 1
Would it be safe to book the painter, the handyman, the insulation guy, the air con installation guy for the 1st week of December seeing that i settle on December 1st. What are the chances settlement would be held back? My settlement agent said settlement would definately be Dec 1st.

It would be great if I could get all the work that needs to be done completed in that first week of December and then the tenant can move in during the 2nd week of December. Is 1 week long enough to get all the work done?

Perhaps I could say in the ad, ip will be available December 13, so that way i know all works will be completed by then. But also maybe Dec 13 is too close to christmas and would be hard to get someone wanting to move at that date. Perhaps I could make it December 7th.

Please help What time frames do you guys look at?

I will be seeing my property manager on Friday. I'm thinking she will need to start advertising ASAP


Question # 2
The insulation guy is coming on Friday morning. The agent says he will let me in and leave the keys with me and then i just need to return them to his office. I'm thinking whilst im in the unit this would be a good opportunity to check things over in the place. Make a list of work that needs to be carried out. Take measurements so i know what size air con to get.

Any tips on what else i could look at whilst I am there?

 

[The Y-man]

Kim,

Connect the power up in your name prior to settlement

Do a thorough presettlement inspection (see threads related to this). It's too late if you find all the electricals fried after you have settled.

Cheers,

The Y-man

 

[13910]

Question # 1
What are the chances settlement would be held back?

Give us every detail about the vendor, your situation, those handling the transaction for you...and we still won't be able to give you an assured answer. All part of the fun.

My settlement agent said settlement would definately be Dec 1st.

Well, it must be true then

Cheers
Greg

 

[Alex P Keaton]

Kim,

Connect the power up in your name prior to settlement

Do a thorough presettlement inspection (see threads related to this). It's too late if you find all the electricals fried after you have settled.

Cheers,

The Y-man

hiya

What happens after i connect the power up in my name? Does it then need to be transferred into the renters name?


Y-man

We settled a property once without connecting the power - the electric HWS exploded the minute we powered up.

After arranging with Western Power to have the power connected how do i go about checking all the appliances to see they are ok? What do you mean by you powered up the hot water system? Did you just turn it on somewhere? I guess I'd have to figure out how to go about turning it on. What other appliances run by electricity should i be checking?


I will read up on pre settlement inspections here on SS

thanks

 

[Alex P Keaton]

Give us every detail about the vendor, your situation, those handling the transaction for you...and we still won't be able to give you an assured answer. All part of the fun.



Well, it must be true then

Cheers
Greg

ok get it

...........

 

[Ausprop]

gees I would ease up. Settlement may not ever happen. See the other thread running about a fellow forumite (seller) who can't settle off because the bank just said no. And the settlement agent wouldn't have a clue about the other persons circumstances or what may happen. I wouldn't be making any plans...


http://www.somersoft.com/forums/showthread.php?p=606009#post606009

 

[Minxdamanx]

gees I would ease up. Settlement may not ever happen. See the other thread running about a fellow forumite (seller) who can't settle off because the bank just said no. And the settlement agent wouldn't have a clue about the other persons circumstances or what may happen. I wouldn't be making any plans...


http://www.somersoft.com/forums/showthread.php?p=606009#post606009

Don't get discouraged Kim, but I'm afraid I'm in agreement with Ausprop. Do the necessarily legals and checks & get the power on in your name (tenant changes into theirs at start of tenancy). Organise your PM, sort out the rent you can get, but don't go much past that. Settlement can be delayed for any number of reasons, both on your side and the vendor no matter what your settlement agent says. Both of ours have been delayed and the first one was our fault (bank lost signed mortgage docs) and the second was the vendor (bank wanted more money tipped in to settle), each was approximately 3 weeks delay.

Also unless the place needs major work done, I wouldn't do anything prior to first tenancy, not even paint as you can't claim it if the work was done prior to letting. (Get proper advice from your accountant though, don't listen to me). We bought our first nearly two years ago and still haven't painted it as it's never empty long enough, what do I care if the tenants don't?

Regarding the checks at final inspection.
Try all burners on stove and oven, check all other appliances like dishwasher etc.
Turn on every light
Flush toilet (put paper in and flush too), run all taps at same time, make sure water drains properly.
Plug something into each power point and make sure it works (I usually take a radio)
Run hot water to make sure it works
Open and close all doors.
Check all keys work and you have a key for each lock.
Not too much else in a unit that I can think of, but in short try everything.

 

[RumpledElf]

I had one settlement (I was selling) that just got extended and extended and extended by the buyer .... this most recent one the bank decided they just didn't want to settle on the last day of the financial year (they told us this the day before) and my conveyancer talked them into settling on time. The other two went through just fine though.

With the power, make sure you get it DISCONNECTED before you get a tenant in, and make sure the electricity company actually does a final read not an estimate. Otherwise your tenant might assume the electricity 'just works' and continue using it and you get the bills.

And I'd second not doing too much before someone moves in. Aircon though ... that's a must. You guys getting this heatwave too?

 

[13910]

With the power, make sure you get it DISCONNECTED before you get a tenant in, and make sure the electricity company actually does a final read not an estimate. Otherwise your tenant might assume the electricity 'just works' and continue using it and you get the bills.

This is a great bit of advice. Applies to when you sell a place as well.

I really must thank the guy who sold us our place We did the right thing once the madness settled a little and set it up in our own name after four weeks but who knows how long we could have taken advantage of it.

(Would have done it sooner, but between signing on the dotted line and moving in I had a slight issue where my patella decided it was all about location, location, location and tried to find a new one. This meant I had my leg in a brace for the big moving day and millions of medical appointments during surrounding months...hell, the appointments are still going. It did mean I got to take up a supervisor roll as my two best mates helped my partner move all our stuff though . Another good example of how the best laid plans can still fall to ****.)

Cheers
Greg

 

[HappyCamper]

You can still have potential tenants inspect the property while it's still a WIP to minimise the time it is vacant. I went through this recently with a 3 bedroom house - internal paint, floorboards polished, light fittings and powerpoints replaced and a few other bits and bobs. Took 2 weeks start to finish and this was with no time gaps between tradies.

 

[Alex P Keaton]

Settlement can be delayed for any number of reasons, both on your side and the vendor no matter what your settlement agent says. Both of ours have been delayed and the first one was our fault (bank lost signed mortgage docs) and the second was the vendor (bank wanted more money tipped in to settle), each was approximately 3 weeks delay.

So do you and ausprop think it would be too early for me to be making apointments for tradies for 1st week of december.

Shall I just wait till settlement happens and then arrange the appointments?

I also am not sure when to buy the air con. Mum was saying wait until the bank has got my signed loan documents back and then I could buy it. But shall i just wait till settlement actually happens and then organise it and everything else.

Regarding the checks at final inspection

Thanks for the list

I will start reading some of the topics here.

thanks

 

[Minxdamanx]

So do you and ausprop think it would be too early for me to be making apointments for tradies for 1st week of december.

Shall I just wait till settlement happens and then arrange the appointments?

I also am not sure when to buy the air con. Mum was saying wait until the bank has got my signed loan documents back and then I could buy it. But shall i just wait till settlement actually happens and then organise it and everything else.

Personally Kim I'd wait for settlement, though I understand WHY you want to get organised. With our second settlement, I didn't find out until the actual day of settlement that there was going to be a delay.

Up to you of course! Just methinks.

 

[Alex P Keaton]

Also unless the place needs major work done, I wouldn't do anything prior to first tenancy, not even paint as you can't claim it if the work was done prior to letting. (Get proper advice from your accountant though, don't listen to me). We bought our first nearly two years ago and still haven't painted it as it's never empty long enough, what do I care if the tenants don't?

I am doing as little as possible to the place because i dont have the money to.

Yep thats the other good reason not to do too much because you cant claim on it before you put someone in.

I need to chemically seal the shower and paint the pealing bathroom and a couple of other things the handyman has to do like nail the shelves in to the cupboards, put the towel rail back in place.


Was thinking about putting new runners in the windows (but only if it really needs doing) I will check it out when i inspect.

Was thinking of putting a new flyscreen door on but i dont think i will yet.

 

[Alex P Keaton]

With the power, make sure you get it DISCONNECTED before you get a tenant in, and make sure the electricity company actually does a final read not an estimate. Otherwise your tenant might assume the electricity 'just works' and continue using it and you get the bills.

And I'd second not doing too much before someone moves in. Aircon though ... that's a must. You guys getting this heatwave too?

cool thanks for that.

nope no heatwave in perth yet

 

[Alex P Keaton]

This is a great bit of advice.
Greg

There is some good stuff in this thread. I'll definately be printing it out

 

[Alex P Keaton]

You can still have potential tenants inspect the property while it's still a WIP to minimise the time it is vacant. I went through this recently with a 3 bedroom house - internal paint, floorboards polished, light fittings and powerpoints replaced and a few other bits and bobs. Took 2 weeks start to finish and this was with no time gaps between tradies.

yep, my pm will be organising viewings before settlement. will also let applicants know that air con will be installed.

Garbage did you phone the tradies after settlement occurred? How did you go about arranging it all?

So did you do 2 weeks of renovating and then the tenant moved in? Could you tell me more please?

I'm thinking in my situation i should try to get someone in ASAP and then perhaps carry out the works once i've secured the tenant. If I have to the bathroom work and the air con can come after the tenant has settled in. It will be a tough time of year to find someone, being around christmas time.

 

[Alex P Keaton]

Personally Kim I'd wait for settlement, though I understand WHY you want to get organised. With our second settlement, I didn't find out until the actual day of settlement that there was going to be a delay.

Up to you of course! Just methinks.

i think thats what was stressing me out, trying to make all these arrangements based on a date im not even sure is going to eventuate. I have no control over the settlement date, or the date i find a tenant.

I will have a good chat tomorrow with my pm and discuss all this. If i wait till settlement at least then maybe i wont be so stressed out. Oh well if i have to pay a few weeks of the mortgage on my own then i'll have to, i cant control something like that. I'll go with the flow and try not to get too ahead of myself.

thanks for your help

now - to that search button

 

[HappyCamper]

Garbage did you phone the tradies after settlement occurred? How did you go about arranging it all?

So did you do 2 weeks of renovating and then the tenant moved in? Could you tell me more please?

I'm thinking in my situation i should try to get someone in ASAP and then perhaps carry out the works once i've secured the tenant. If I have to the bathroom work and the air con can come after the tenant has settled in. It will be a tough time of year to find someone, being around christmas time.

I did it all assuming settlement would happen on the date it was supposed to. And it did.

A month out from settlement, I booked a few tradies to come out just after settlement for quotes letting them know I'd need them to start almost immediately. Selected a painter who was able to start the very next day and the floor sander started the day after the painter finished. Prospective tenants were then shown through while the other bits and bobs were being finished (lighting, power points, etc). Tenant moved in a few days later as I think they had to move out of their own place.

Given you're trying to squeeze it all in before Christmas, try and suss out how busy the tradies are and how soon they'd be able to start.

 

[marg4000]

Regarding the checks at final inspection.
Try all burners on stove and oven, check all other appliances like dishwasher etc.
Turn on every light
Flush toilet (put paper in and flush too), run all taps at same time, make sure water drains properly.
Plug something into each power point and make sure it works (I usually take a radio)
Run hot water to make sure it works
Open and close all doors.
Check all keys work and you have a key for each lock.
Not too much else in a unit that I can think of, but in short try everything.

The final inspection is NOT an opportunity to look for additional faults. It is simply to check that the property is in the same condition as when you signed the contract. If the above were not carried out then, then it is too late to decide to go through the place with a fine tooth comb. The power will probably be disconnected anyway.
Marg

 

[Alex P Keaton]

I did it all assuming settlement would happen on the date it was supposed to. And it did.

A month out from settlement, I booked a few tradies to come out just after settlement for quotes letting them know I'd need them to start almost immediately. Selected a painter who was able to start the very next day and the floor sander started the day after the painter finished. Prospective tenants were then shown through while the other bits and bobs were being finished (lighting, power points, etc). Tenant moved in a few days later as I think they had to move out of their own place.

Given you're trying to squeeze it all in before Christmas, try and suss out how busy the tradies are and how soon they'd be able to start.

hmmmm ok another opinion.

Yeah that could be a good idea to ring them up see how busy they are. I'm having trouble trying to contact a painter. They all seem to be really busy.