Finance advice
Fiona Blayney

Is your repair bill accurate?

By Fiona Blayney

How can you be sure that the tradespeople your property manager is recommending are the best and most cost-effective out there? 

Blogger: Fiona Blayney, managing director, Blayney Potential Plus 

When the hot water system bursts in the middle of the night, you want to feel secure that your property manager has developed a relationship with quality, honest, reliable and cost-effective tradespeople. But how do you know this is the case?

One of the most important tools a property management company has is their team of trusty tradespeople. After all, this group of people is an extension of the property manager’s service to you, and the cost of repairs and maintenance to your property have an effect on the annual financial return on your investment.

SELECTION OF TRADES
A reputable agency realises the importance of the tradesperson relationship and has a program in place to ensure both the standard of work is maintained and the fees are fair and reasonable.

It is of utmost importance that all works to your property are completed by a licensed and insured tradesperson. Your property manager will ensure they hold a copy of the tradesperson’s licence, together with a current copy of the business’ insurance and worker’s compensation certificates.

Utilising an unqualified and uninsured tradesperson may be cheaper in the short term, but it will more than likely result in poor workmanship.

Utilising the same tradespeople regularly allows the property manager to form relationships and negotiate a standard set of fees. These fees may include a reduced rate for their clients on the basis of the volume of work they receive, as well as timely payment.

Together with the legal documentation the agency may hold a copy of the standard fees, which can include call-out fee estimates for small jobs and quoting charges.

YOUR COST EXPECTATIONS
It is not unusual for a tradesperson to charge for quotes for small jobs. In some cases, it can take almost the same amount of time to do the quote as it would have taken to do the job, so most trades will only offer a free quote on larger jobs.

Whenever you are concerned about the cost of works exceeding your expectations, consider obtaining a rough estimate up front and agreeing on a fee per hour with a maximum limit.

When the tradesperson is on site, should the price go over and above this, request a quote.

FINAL CONSIDERATIONS
There will always be someone cheaper, who is willing to work for less per hour. You can source and use cheaper materials, or use less experienced, cheaper labour.

State to state, suburb to suburb, supply and demand of trade services change and as such, the fee structure differs.

In my experience, your agent has selected the tradespeople for a combination of factors – reasonable pricing, reliability, efficiency, speed of service, professionalism, quality of work, and the required licences and insurance.

The standard of your tradespeople is a reflection of your care for the property; it sends a direct message of your expectations of the tenant. If you don’t trust the information your property manager is giving you, you have bigger problems and it may be time to find someone you do trust.

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About the Blogger

Fiona Blayney

Fiona Blayney

Fiona Blayney is the managing director of the highly successful consultancy, coaching and training business Blayney Potential Plus, specialising in estate agency services in Australia, New Zealand, the UK and the US. Over the past eight years she has developed a reputation for being one of the best business strategy and growth specialists around.

Fiona’s energetic and motivational presence has ensured her popularity at industry events. She regularly performs keynote presentations for many of the leading industry groups both in Australia and abroad, including the National Association of Realtors (NAR) in the US and the National Association of Estate Agents, England and Scotland.

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podcast

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Purchasing their first property 15 years ago with the intention of creating a property portfolio which would see them comfortably supported during their retirement, Max and Jeanette Schudeboom now have a portfolio of 13 properties.

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Max and Jeanette joins  host Phil Tarrant to discuss their property journey, compare the Australian market to Max’s home town of Holland, and share their plans to maintain the size of their portfolio.

The pair also unpack how they manage and finance their portfolio, discuss the process they go through when choosing where to invest, and share the tips learned from 15 years as property investors.

If you like this episode, show your support by rating us or leaving a review on iTunes (The Smart Property Investment Show) and by following Smart Property Investment on social media: FacebookTwitter and LinkedIn.

If you have any questions about what you heard today, any topics of interest you have in mind, or if you’d like to lend your voice to the show, email [email protected] for more insights!

RELATED AREAS OF INTEREST:

Two components of good investment research
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AREAS MENTIONED:

Castle Hill
Point Cook
Elizabeth East
Huntfield Heights
Mt Warren Park
Albury
Cambridge Park
Penrith
Braemar
Morayfield
Melbourne
Mill Park
Edens Landing

 

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What 15 years in property investment teaches you
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Property investors are now able to identify and bid on auctions remotely using a new live-streaming functionality launched by Gavl.

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Called “Request an Auction”, the new functionality enables users to watch and bid on any Sydney or Melbourne auction remotely.

Through Gavl, prospective buyers are now able to register to bid on their preferred auction. The platform will obtain permission from the listing agent and confirm within 48 hours.

Vendors can also request to have their auctions broadcast to a larger buyer audience.

Co-founder Joel Smith said that auctions streamed on Gavl attract 47 per cent more viewers than traditional ones.

He said that Request an Auction will be valuable for remote buyers.

“Buyers are able to have Gavl attend any auction they nominate, so they will never have to miss out on an opportunity due to logistical complications in physically attending the auction.

“Vendors, too, have the opportunity to directly book an auction with us, so they can open up their event to buyers all around the world. With more potential buyers, they’re giving their property the chance to receive more bids and maximise their sales result.”

Mr Smith said that prior to the Request an Auction app, buyers were limited to what they could achieve through the Gavl technology.

Gavl is a live-streaming and bidding platform for real estate auctions.

Mr Smith said that it has streamed more than 6,000 auctions, which have achieved 3.5 million views from 50 countries.

Gavl’s Request an Auction function is currently being offered in Melbourne and Sydney only.

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Boost for investors as app sets up off-site bidding
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  ["title"]=>
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Having to split her time between Hong Kong and her original base of Sydney has not slowed Julia Tita’s goal of building a high-performance Australian property portfolio. Instead the resulting alterations to her strategy have positively impacted her investing success.

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Having recently purchased her 6th property, Julia joins host Tim Neary to discuss her journey, share her ups and downs over the years, and reveal her thoughts on why some properties are better than others.

Julia also explains why she no longer makes a move without the help of a buyer’s agent, why working with a strong team of specialists is extremely important and discloses her long-term property ambitions.

If you like this episode, show your support by rating us or leaving a review on iTunes (The Smart Property Investment Show) and by following Smart Property Investment on social media: FacebookTwitter and LinkedIn.

If you have any questions about what you heard today, any topics of interest you have in mind, or if you’d like to lend your voice to the show, email [email protected] for more insights!

RELATED AREAS OF INTEREST:

Why is Australian property so unaffordable?
Brisbane infrastructure attracts international interest
Going global
Australia desirable to foreign investors

AREAS MENTIONED:

Eagleby
Charters Towers
Townsville
Brisbane
Paddington
Sydney
Orange
Melbourne 
Glen Iris
Bondi

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How a move to Hong Kong impacted Julia’s Australian property goals

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