The success or failure of an investment property can be heavily influenced by the quality of the tenant. This week we look at 2 issues to do with tenants. Firstly Michael Yardney will talk about whether to buy a property with a tenant in place or not and Shannon Davis outlines the 5 things tenants really hate.

Today in the show Ben Kingsley gives some tips on how to find properties before they hit the market.

Also Brad Beer answers a question from Sonya who inspected some units under construction and was shown a depreciation schedule. Sonya wants to know how reliable they are and would it be risky using those estimates to calculate the units viability.

And hear what a seasoned developer has to say about how to find a decent builder, someone you can rely on so that you can make sure the development you are about to undertake will be finished on time and on budget.

 
Transcripts:
Shannon Davis
Kevin:  There was a saying – there still is, I guess – “Happy wife, happy life.” You can translate that through to investment property, too. If you keep a happy tenant, you’re probably going to have a pretty well-maintained investment property. That’s certainly the theme of our next chat, which I’ll be having with Shannon Davis from Metropole Property Strategists and also Image Property in Brisbane.

Good day, Shannon. How are you doing?

Shannon:  Good day, Kevin.

Kevin:  It’s very important to have that good relationship with the tenant. What have you found are the things that tenants really hate that will turn them off?

Shannon:  Definitely the biggest one would be poor treatment. I think there is an element of disrespect given to tenants sometimes, that perhaps property managers or real estate professionals feel that they work for the owner and don’t have to treat the tenant with as much respect. That, coupled with unwillingness to resolve issues or making the invisible visible, are the things that really frustrate tenants.

Kevin:  Yes. They are treated as second-rate citizens, aren’t they?

Shannon:  Oh, definitely. You cannot be a property investor without tenants, so in that respect we need every tenant we can, especially in a rising market right now where we’re losing tenants to buying.

Kevin:  I’ve heard tenants complain about things like no feedback, being treated like they’re second-rate citizens. “I make a complaint, and I’m just left hanging. I never hear anything.”

Shannon:  Yes, that “left hanging” is a big one. Being ignored; timely responses. Even if it is taking longer than you need to resolve an issue, we need to keep them in the loop. “The owner is overseas at the moment. Once I have the response, I’ll be straight back to you,” or if a tradesman is waiting for a part. These are things that need to be explained.

Kevin:  Of course, we’ve got an obligation to make sure that the property is well kept and be on top of those maintenance requests and issues, as well, Shannon.

Shannon:  Yes. Well-maintained, safe, and secure. Privacy is what they’re after. If they’ve rented a property in a certain state, and through disrepair or maintenance it’s no longer in that state, then they’re expecting – and they should expect – the right for that to be repaired. It’s our obligation as owners and therefore the owner’s representatives –property managers – to fix those things. That’s definitely a bugbear of tenants.

Kevin:  You talked earlier about that being left hanging. I’ve been a tenant; I know what it’s like. There’s nothing worse than being kept in the dark when just a simple email sometimes… You don’t have to make a phone call.

Shannon:  No, definitely. An email, a text message, just something to keep them in the loop of where it’s at. They know that they’re being appreciated and their issue is important to us.

Kevin:  Another issue that I wanted to quickly talk to you about is rent rises. Is there any legislation saying