“You Deserve the Tenant’s You Get ”

The tenants you get are a direct reflection on yourself and how you handle your property investing business.  Yes this is a business.  

        I was at friend’s place in March and noticed the for rent sign across the road. I commented “Wasn’t that property for rent when I was last here??”  . “Its always vacant no one ever stays. The owner won’t spend a cent on the property. It’s the worse property in the street. They don’t think tenants deserve anything. It was good enough for us. The owner is really tight, he is always complaining about the tenants or the property manager. 

The location is fantastic 500m from the beach. It’s a great 3 bed house. Similar renovated houses rent for $450pw. This place was lucky to rent for $350pw. as is. Then the tenants never stay. Why because everything is 30yr old and the owner won’t even carry out basic maintaince without complaining to the property manager for two months. Then Guess what, the tenant gets their new lease in the mail saying please sign up for 12 months.

They never do they just leave. Then the whole process begins. The owner never trims the garden, paints the walls, the toilet runs, the stove looks YUK. The bathroom is  PINK  So the property looks it’s age sits vacant for a weeks until they drop the price and someone who has no choice rents for six months then leaves. Again. 

  If they just spent some money, hell they have owned the property for over 15 yrs. So the property has done its jobs and there is plenty of equity. A $25 000 renovation would turn the property around. Just think what a new kitchen & bathroom would do, clean the garden up trim the  tree’s.  It would easily rent it for $450 pw. Tenants then would stay for years not months.

Lets do the maths. Spend $25 000 get an extra $100pw in rent. In Five years the renovation has paid for it’s self.

Or in Bank terms that’s the same as a bank account paying 20% Hmmm.   

 At the very least carry out basic repairs as they occur. Don’t be tight live up to your part of the deal and provide a clean well maintained home for you tenants.

        

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A $195 Renovation

Here is a good example of what you can do for less than $200 and a days work.

This is the front our house. it was a Yukky mess full of weeds.  



All my wife ( I sort of helped  with advice & good ideas)  did was rip out the weeds and clean up the area.

Remove the old plands
Put weed mat down
Put in Paver for Statue
Put wholes in in for Mondo Gras
Back fill small white pebbles
Then the large white rocks

Finally
Go and get a back massage

Costs
Statue  FREE  (It cost $70 when we bought it but he was sitting in the back yard )
White Rocks small     $ 40
Large White Rocks     $110
Small Plant                $ 30
Weed mat                  $ 10
Paver                         $5

Challenge
Here is a challenge. What can you do over the weekend and $200.