Ppor into Ip,off to a good start:rolleyes:

Discussion in 'Property Management' started by Spades, 4th Apr, 2014.

  1. Spades

    Spades Banned

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    Hi All,

    My foray into resi investing has got off to a good start,tenant defaulted after the 1st month and then after some prompting from the agent,tenant pays 2weeks rent and promises to come in next week and pay a months rent.
    Suffice to say,it didn't eventuate.Agent told me i have a hearing date for the end of april,he said it normally takes a week but apparently there is a backlog of 12,000 cases:eek:I'm hoping there out before vcat,as agent is applying for a Warrant of Possession and the Police will physically remove them from the unit.
    I didn't bother with insurance with some of the storys i've read so thought i'd test the waters,anyhow lesson learnt.
    Now i'm thinking of offloading this prop,not because of the above but crap cg's and future cg's.Putting funds into a better performer is a no brainer.
    It has been renoed just before the tenants moved in,probably more aimed for investors or fhb's.Would SS'ers sell tenanted or vacant possesion?

    Cheers Spades.
     
  2. neK

    neK Member

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    vacant possession is my preference.
    (if you intend to have these same tenants in during the sell process, I believe it will hurt your sell price)
     
  3. zimby

    zimby Member

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    Depends on Multitude of factors.
    Is it a student area?
    Is it a home-owner area?
    What matters is the target audience in the suburb/Street.
    Investors won't usually mind Tenants(albeit Must have a good payment history)
    Selling with Vacant Possession can be a pain to achieve as two months notice is required(not 100% sure of this as its been a while)
    Figure out your target audience Majority and work back from there.
     
  4. impala67

    impala67 Member

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    Depends on target area and presentation of the unit. I'm assuming presentation would be poor. Speak to at least 3 agents that specialise locally only, to weigh your opinion.
     
  5. Spades

    Spades Banned

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    Hi neK,
    Sell vacant possession is my preference also but bare in mind though,the free loaders do keep the place tidy on a recent valuation/inspection:p

    Hi zimby,
    Would you hang onto an IP just for cashflow with dismal cg's?

    Unfortunately cashcow is flogging a dead horse atm :D

    Presentation better not be poor,i just renoed before the tenants moved in:cool:

    Cheers Spades.

    Ps:Lol @ the law & tenants rights.
     
  6. 5ammi

    5ammi Member

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    A Word On PM's

    You need to stress to your Property Manager that you have no tolerance for late payment.
    Instruct them to breach as soon as the tenant is in arrears, and have them warn the new tenants this when they are signing for their lease.
    Have a court order issues as soon as the 14 days is up on the breach and
    get in front of the magistrate.
    This way, with tenants insurance and acting fast, you wont be out of pocket. You will recover all of your money and have the place re-let, or already interviewing a new tenant.