Day: January 3, 2020

How to avoid getting blacklisted on a rental database

The fear of ending up on the national database of tenants that future landlords use to screen tenant applications is a real concern for many renters

With the rental market becoming increasingly competitive, the last thing a ‘would be tenant’ wants is to be rejected as a result of having a troubled rental history. Good news is it does take a lot for a landlord or property manager to lodge a formal complaint with the tenancy screening services, but just to be sure here are three ways to help keep your name and reputation clean.

Pay your rent on time, every time

When you sign the tenancy agreement, you agree to pay the rent at the agreed installments, whether that be weekly, fortnightly or monthly. You are legally obliged to pay this rent. The property owner relies on this money to pay their management fees, investment mortgage, rates etc. Therefore, if you I don’t pay the rent, the landlord will have to find the shortfall themselves.

Whilst a few late payments here and there probably won’t mean your name has been added to a list, but if you are a consistent offender, or have months of rent owing, you may well find your name has been blacklisted.

The message here – it’s best to pay your full rent on time as agreed in the tenancy agreement. If you have issues paying contact your landlord or property manager immediately to discuss payment options.

Pay to repair any property damage you have caused

Landlords understand that their rental property will suffer from normal wear and tear, or in other words normal deterioration of a property from everyday use. Exposure to the elements, time and day to day living can cause fair wear and tear. Although real estate tenancy laws vary across each state and territory, the industry broadly accepts this definition.

However, damage caused to a property through negligent, irresponsible or intentional actions that cause damage to the premises is a different story and if you as the tenant don’t rectify this you could find yourself on a listing. Here is a look at what is considered damage to a property:

Deliberate Act – means an act carried out without permission but without malice, vindictiveness or spite and with the full knowledge that the action will alter the current state of the property.

Malicious Damage or vandalism – means a wrongful act motivated by malice, vindictiveness or spite with the intention of damaging the property

Accidental Damage – means sudden , unexpected or unforeseen loss to an insured property

Make sure if you have caused damage to the rental property you pay to have the damage fixed. If you walk away without addressing and fixing the issue you may find your name is added to the rental database.

At the end of the tenancy ensure all expenses and paid

Some renters, often first time renters, believe they can use their bond money to pay their final few weeks of rent once they give notice. However, this is not the case. The rental bond you paid to the landlord or agent at the start of your tenancy is a form of financial protection in case there’s a breach of the lease agreement. At the end of the tenancy agreement, the property manager will inspect the property and assess its condition against the original condition report. In some cases, the property manager may make a claim against the bond.

As a tenant you’re required to pay your rent in full and not rely on your rental bond to cover any outstanding payments. Not paying your final rent as per the tenancy agreement, may result in your name being added to the rental database which is not a great way to leave your tenancy.

In a nutshell – Pay your rent on time, don’t damage the property, but if accidents happen pay for any damages to the property that you have caused and make sure all outstanding rents are paid before you move out of the property. Tick all these boxes and your name should stay well away from any national database of bad renters.

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Easy ways to improve your investments bottom line

A key focus for all savvy investors is to ensure they are constantly improving their bottom line. Here are 7 easy ways to review and improve your portfolio.

Prepare a personal family budget and pay attention to the details: Put your pen and paper at work to know where your income is coming from and what are your weekly and monthly expenses are.
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Get a discount on your current mortgage rate: Get in touch with various Banks and ask for a discount on your current mortgage rates. Arm yourself with what their competitor’s rates are and a threat of switching lenders. This could save you thousands of dollars in repayments.

Be inclined to Good Debt rather than drowning in the bad: Focus your efforts on reducing the bad debt that is not deductible and make sure your Investment loans are interest only facilities.

Pay your mortgages on a weekly or fortnightly basis: Banks calculate their interest daily, so get in touch and put in a request to pay the repayments on a more regular basis. This will allow you to save thousands in interest over a loan period. Ponte Vedra Tree Service

Use your credit card sensibly and manage the credit terms on offer versus borrowing: If your credit card cycle is the 20th of the month; defer payments till the 21st if possible which gives you potentially up to 50 days before actual payment is due all interest free.

Create an offset account: Any surplus funds are offset against your mortgage to reduce and save the interest.

If you have any shares and investment properties that are negatively geared, arrange a PAYG

Variation at the beginning of each year: Use the extra cash gained from PAYG variation to pay off the home loan or add to your investment portfolio.

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