Considering Rent Reduction for Your Rental Property Investment

Earning profit or steady income is one of the reasons why people start investing in property business. As for rental property investment, there’s various tasks an owner should do in order to make sure that the cash flow will steadily grow. Every property owner may use different strategy in order to keep the income flowing. However, one of the biggest important factors in rental property is tenant. It is important to keep your property tenanted if you want to maintain steady income every month to pay for your mortgage and every expanse in your financial plan. Vacancy is the biggest enemy for rental property investment.

Rent reduction and how to manage possible problems

Every rental property investor and landlord must want to raise their rental return in some ways. However, raising the rent is not always a good idea because you need to consider various factors including your tenants and rental market. There might be a situation where you have to reduce the rent instead.

Vacant property is one of the reasons why you should consider reducing the rent. Before thinking of how to raise the rent, you need to secure tenant first. If you set the rent too high or higher than the average rental market, it is highly possible that no one wants to rent your property. However, letting your property vacant for a long time is not good either. Thus, rent reduction can be the only option if you have done everything to attract tenants. Besides, rent reduction can be caused by the situation in rental market as well that leaves you no choice but lowering the rent.

Rent reduction may sound like a nightmare for landlord and property owner. You have expenses to pay every month and you need to support your life too. Reducing the rent sounds like a bad idea. However, it can’t be that horrible if you know how to manage the situation well. Before reducing the rent, make sure to make proper calculation and estimation. You need to drop the context of all the gains you’ve earned in recent years. Thus, you can set the perfect price for the rent.

Rent reduction can be a good idea to solve problem for a short-term. However, you need to take the big picture out of it. Even though rental income is one of the most important keys for rental property investment, capital growth still hold bigger frame within this business. Rent reduction can sound intimidating. However, there is something worse than earning small income, vacancy. Keep in mind that vacancies can be very expensive.

It is highly recommended to time your leases accordingly because rental market can be seasonal and cyclical. Therefore, rent reduction is not a solution you need to use for a long term. By setting the time of leases accordingly, you will find the time to increase the rent later. To help you deal with this situation better, you may need help from professional property manager. They can help yo setting the right price by weighing every risk and option.

Understanding Tenant Market to Make Better Property Investing

Growing your property business may need you to pull your teeth. It is challenging but worthy. Managing property business requires you to handle lots of things. Some of them hold the key to your success such as tenant market. Of course your property is your asset that you should make the most of it. Thus, purchasing investment grade property is a must from the beginning. However, your investment grade property won’t be a use if it is not tenanted. You can pay your mortgage if your property is far from being vacant. Your tenants play a big role in maintaining your healthy cash flow after all. Thus, it is just reasonable to understand more about tenants market.

Seeing from tenant’s point of view

You should make your property desirable in the eyes of prospective tenants. You should find out what the renters really want of ideal living condition. You also need to figure out what they really want from a prospective according to their lifestyle preference. Here are things you should know about tenant market:

  • Desirability is one of the most important point in tenant market. You should know what your tenants desire for their prospective homes. This will lead you to understand more how to make them happy and content. If your tenants are unhappy, it is easy for them to walk out. In contrast, they will be happily staying longer and prolonging their lease if they have ideal living condition that match their lifestyle preference. Of course it is challenging to find out what the tenants really want because every individual is unique in their own way. It will be easier to create desirability if you have target in the tenant market.
  • Aside from finding out what the tenants really want, it is also important for you to find out things that can piss them off. Tenants find it frustrating to have unresponsive landlords or property manager. They also find it annoying when they are restricted even for doing small changes to the property such as painting their room the color their want. You may also need to know that in the tenant market there are pet owners who are unhappy when they are not allowed to have their pet living with them in the property. By knowing what can make tenants run away, you can make more reasonable lease agreement and tenancy rules.
  • You need to find something you absolutely should have in your rental property. There are some things that you should have no matter what happens if you want to attract tenant market. They include large living space, well-appointed kitchen, air-conditioning and heating, convincing security system, nice out door space, etc.
  • You also need to know that neighborhood or location of the property can help you attracting tenant market. Thus, make sure you choose property located in safe neighborhood with good access to public transport. It is even better if your property offer great proximity to workplace and shopping amenities because that’s what tenants want in general.

Benefits of Choosing Bali Family Villas for your Accommodation Issues

Staying at private villa during your holiday in Bali will prevent you from so much hassle especially when you bring your families along. Bali family villas is Australian owned rental villa agency that has helped over 10.000 families to find the best accommodation in Bali for their family retreat. You see, staying at villa is more convincing because you have the staffs ready to attend to your needs. In addition, the team will help you to make the most of your family retreat in Bali by reducing every potential problems regarding to transport, kid’s safety, etc.

Bali Family Villas

Bali family villas with benefits you can get

Choosing the right rental villa agency is important so that you don’t have to worry if the place you book is family-friendly or not. There are lots of agencies in Bali you can book when it comes to accommodation. However, Bali family villas gives you more benefits you couldn’t get from others:

  • There is always information about the best rates as well as applicable discount that fits your stay. Besides, you will also get the most competitive market rates. Special discounts you can get for example Blue Bird Discount up to 15%, or Last Minute Booking from 10 up to 20%. Whenever discount is available, the team will inform you so you will always get the best offer. There is no shady or hidden fees you need to worry about.
  • You can hold a special events or celebrations at the villa you book through Bali family villas. However, you need to meet with the standard of entertaining and capacity requirements. You need permission if it is beyond the standard requirement. There may be event policies and extra fees in some villas but you can always discuss with the team to get the best deal for this matter.
  • You don’t need to worry about cooking and shopping because most villas featured in Bali family villas have in-house staffs responsible for those matters. You can request any meal you prefer to the private chef stationed in your villa. If you prefer food delivery services, the team will give you advice and information about recommended places. You can even request for pre-arrival shop if you need to have some essentials ready for you such as bread, milk, cheese, etc.
  • Even though you see your supposed booked villa is advertised in other websites, it doesn’t make necessarily change in general sense. One thing for sure is that Bali family villas has the most cost effective payment options for Australians in $AU currency. Besides, there are no hidden fees.
  • Bali family villas is always open for discussion. For example, you can tells from the beginning about your kids’ allergy to certain food. Therefore, the team will help informing the kitchen staffs in advance to make sure that every meal served is safe. If you bring your babies with you, the team will prepare complimentary car seats, high chairs, or baby cots if needed. You and your families are the first priority.

Fashion Business Ideas in 2019

We have to admit that the fashion business is considered as one of the most profitable business yet it is a bit tricky. Why tricky? The reason why the fashion business is considered a tricky business is that you cannot predict which trend will be popular at the time. As you know, the fashion trend will come and go at different seasons. There will be times where yesterday’s or even old fashion will be re-introduced again. However, if you have confidence in making a great clothing line or other fashion items, then you can mark your place in the fashion world. If you want to know what kind of fashion business you can do in 2019, keep on reading this article.

Start Your Own Clothing Line

There is nothing can make you proud other than having your own clothing line. Although there are tons of competitors in the clothing line business, starting your own clothing line can earn you lots of profits. However, do keep in mind that you can expect an instant success because there are so many famous clothing lines out there. Not to mention if your clothing line is a new one. Even though it is hard if you want to start to make your appearance in the fashion world, then you can start by starting your own clothing line.

Shoe Line Business

The dressing is not complete without shoe wear. A dress is not complete without high-heels, a casual outfit is not complete without sneakers, an employee is not complete without wearing formal shoes. Luckily, starting your own shoe line business is not as hard as the clothing line business. If you are targeting high-end customers, then you can maximize the quality of the shoe. However, if you are targeting low and middle customers, you can maximize the quantity.

Belt Business

The next fashion business which you can start is by establishing belt manufacturing. Belts are fashion items which can be used in trousers, jeans, shorts, dress, and gowns. Because belts can be used both by men and women, the material of the belt varies from leather, fabric, rubber, wires, and beads. Although belts sound simple, yet once you can manufacture fashionable belts, you can gain lots of profits.

Handbags Business

Women love handbags. There is even a large market for handbags. Women from teenagers to elder love to buy handbags. Some of them even buy a new handbag every time it outs just to collect them. If you have confidence in designing handbags, you can start this business.

Male Underwear Business

One of your options in opening a fashion business is by manufacturing male underwear. Boxers, shorts, pants, or singlet are items searched by men. The important thing in this business is that you have to produce high-quality underwear so that the wearer can feel comfortable.

Those are the lists of fashion businesses which you can open in 2019. Fashion trends will always change from time to time, so you need to keep an eye and open your mind to every possibility. Choose one of those fashion businesses and good luck!

Mistakes in Property Investing Driven by Emotional Feeling

Mistakes are humane thing that sometimes cannot be avoided. However, mistakes are there for you to learn. Thus, you know how to avoid making the same mistakes.

In property business, making mistakes sometime is inevitable. However, smart investors always try hard to know more about them and find a way to avoid them. There are technical mistakes, but there are also mistakes caused by emotional feeling.

Several mistakes caused by emotional feeling when investing in property

Some people argue that those kind of mistakes are made mostly female investors. However, that is not true at all. Sure women are more vulnerable when it comes to emotion. However, men can also make the same mistakes.

Several mistakes caused by emotional feeling during your investing

Property investing is all about number and fact. Involving emotion in this business won’t do you any good. It could be worse if your emotion overrule your rational. However, sometimes human is so dependent on intuition and gut feeling. However, it often leads to poor-decision making when it is used in property investing and here are some examples of the mistakes caused by emotional feeling:

– First example of the mistakes is overpay for a property. When you are swayed by the sentiment mixed with too much optimism, it is easier for you to make rash decision and overpay a property you are going to buy. The chance is, you need more money to pay so you borrow more than what you can actually afford. Being in debt is tolerable but if it can be avoided then you should do it not to get it worse. Make sure to plan a strategy before buying any property and evaluate your budget thoroughly. Set a budget you are willing to pay for a property.

– Another common mistakes caused by emotional state is fear. There are various types of fear. Some people are fear of missing out opportunity in the market, others are fear of making mistakes itself. Fear is a good thing to some extent because then you are willing to count the risk and consider the weight of the investment. However, too much fear will only cause poor-decision making resulted in being impatience. Remember that there will always be another opportunity even if you missed one.

– Another example of mistake driven by emotional feeling is overbidding at auction. One of the most common places for investors to gather around is auction. It is where you will be in a prime environment with other desperate buyers. It is easy to get riled up and emotional resulted in overbidding. To avoid this mistake, make sure to set your limit beforehand.

– Another mistake in property investing driven by emotional feeling is attachment. When you are emotionally attach to something, it can cloud your judgment. If you think you are incapable of doing your task detachedly, you can seek independent advice. Thus, you will be able to plan objective strategy from unbiased point of view. This seems like a hassle to do but it is better than making costly mistakes.

Adding Value through Property Renovation

One of the reason property owners doing renovation is to add value to their investment. However, not all renovation can add value in reality.

It is often that investor making rash decision to do renovation just because they saw an ads on TV. This kind of behaviour won’t do you any good. In fact, it can cost you a lot and you will suffer from financial loss. Renovating sounds easy but it is not in reality. There are many factors should take into consideration before renovating your investment.

Remember that property business is about game number. Your action should calculated and estimated.

So, how to add value to your investment property by renovating?

How to renovating the investment property so it can add the extra values to it.

Renovating is good idea to add value to your investment property. However, there are many factors that can put your renovation into misery instead. Therefore, renovation doesn’t always bring you more money. So you need to know which things you need to do to renovate properly so it adds value to it.

It is highly recommended to not buy in a stagnant market or buy property when the market is falling. If you do renovation in this situation, it won’t add value to your investment property. Renovation is already hard to do during rising market.

If you do it in stagnant market, it could be worse and harder. Important point about doing renovation is the tenants. You should know renovation should fit what the tenant’s needs to add value.

It is also recommended to not over-capitalise.

Over-capitalising your property won’t add any value. Sure, you may add some functional features to the property. However, it won’t just automatically add the value if the improvements are not highly sought after.

For example, adding a pool to the property located in a neighbourhood where pool is not necessary or often used won’t add the value. Sure it adds new features to the property but it just means you should ask for premium rent which is hard to afford for them.

Another one recommendation is to do renovation to visible things.

If you renovate plumbing, electrical works, or wiring and internal infrastructure, don’t expect to add value to your property. They are part of necessity for your tenants. If they need a fix then you should fix it. For example, it is common to have leaky pipes in your property.

You need to fix them immediately and replace if necessary. However, it doesn’t you can obtain higher rental from doing it. Those kinds of renovations are part of service that tenants and potential buyers expect for.

Doing renovation should be planned thoroughly by clear estimation. Structural renovations like adding some extensions to the property may add significant value. However, big renovation project like this requires more time and money.

The process is also longer because you need to handle development approval, etc. it is highly suggested to do cosmetic renovation instead of structural ones if you expect for value to increase visibly.

Renovation is good move if you do it at the right property in the right location within the right market.

The Importance of Money to Start Property Investing

Investing in property is both promising and challenging. It is often that young people come and try investing in property just because they see how other can do it successfully. However, the success in property investing cannot be achieved in a day or two. It takes years before someone is successful in their property investing. However, it pays off once you reach your success in this business. One of the most influential factors in property investing is money. It cannot be denied that money is important for every type of business. To start investing in property, budget is essential. It is not only about the amount but also the flow.

The Importance of Money to Start Property Investing

How to treat your money in property investing

Property prices in most prices are skyrocketing. It means you need more money to start investing. It also means you need to be creative with your money. Setting up budget will be very helpful so that you can decide based on accurate estimation. The money you spend should be worth it and paid off. Here are things about money and property investing:

       If you try to save money by buying cheap properties then you need to reevaluate your plan. Buying cheap properties sound tempting and promising. However, it is not always good decision. Most of them are inferior products which need further repairs and touches. It means you will still spend your money to make it more valuable and increase the price. This type of property has less demand as well. On the other hand, you need to buy investment grade properties to invest in. it costs more but worth it.

       Starting property investment means you need proper fund. Where to get it and how much you need it are things you should consider. Money can be your weapon to start property investing. However, it can backfire if you don’t get and use it properly. Setting up your budget is essential so that you can choose the flow. You need to set how much you are willing to spend for a property. Remember that investment grade property is what you should buy if you want to invest properly.

       There are many unexpected things can happen when you start investing or during. Thus, you need to form steady financial setting with the right system. It is not always about how to spend money but also how to get more. If you choose rental property to invest in, it means you need to calculate properly of how much rent you are going to charge your tenants. You need to make thorough calculation for accurate estimation.

       Aside from setting the budget, you also need to synchronize your spending with the timing. Sometimes, it is best to wait and sometimes it is best not to. You need to synchronize your spending with the right timing. Therefore, the money you spend will be worth it. For example, it is better to wait a little longer until you can afford a superior property than hurriedly buy a secondary property.

 

The Importance of Action in Property Investing Business

In property investing business, there are many things to do before you achieve your success. It cannot be done in only a year or two before you succeed. Patience and self-discipline are important habit you should adapt during your days in managing your property investment. In addition, you need to take action instead of just busy planning here and there. Of course, planning and researching are important factor in property investing so that you won’t make wrong decision for your business. However, losing track of time in planning without taking action equals to failure.

How action affect your property investing

It is true that action speaks louder. Therefore, only affirmation won’t get you anywhere in property investing business. You will be left behind if you don’t take action and only rely on affirmation. Through action, you will get reaction. This is not just theory but fact. The type of action you do affect the type of reaction that sparks. Generally, action is needed in almost every aspect of life. You won’t fee full if you don’t eat. Just saying you are hungry won’t make foods appear in front of you. You need to go cooking or eat out at restaurant. Only then your hunger is satisfied. This is how action works and cause reaction.

Best action in property investing business

The right action to do in property investing is not the hurried one or unplanned one. Action is important but you still need to plan what kind of action you need to take. The key is, you need to stick with positive action. This type of action parallels to positive reaction. Taking positive action doesn’t guarantee you positive result. However, it has higher chance to cause positive reaction. Therefore, make sure to know what you are getting into before jump into any action in investing. For example, you cannot just buy a property just because your friend telling you it is cheap. The best action to do in this situation is not buying the property but taking your time researching about the property. After earning all needed information, you can decide whether or not the property is good to invest in.

Positive thoughts behind action

In taking your action, you need positive thoughts to help keep you motivated. This way, you have purpose of the action you are going to take. You have clean goal of what you want to achieve as the result of the action. For example, you need to know the reason why you choose to invest in residential property instead of commercial one. If you have more knowledge and better financial situation to invest in residential property, you should act upon it. If your aim is for comfortable retire and stable monthly, long term income, residential property rental is good for you. After finding out your own reason behind your decision, you have to take action. Only action drove by positive thought, enough knowledge, and strong will can cause positive reaction. So, what action you are going to take now to build your property business?

Things You Should Know before Renting to Family or Friends

Having someone familiar beside you is comforting and make you feel more secured. However, it is great idea to involve your family or friends in your business like property investing? The answer is it has bad and good points you need to take into consideration before making rash decision. One of the biggest hurdles is that drawing line between professional and business relationship. It is hard to maintain business relationship with someone you already know because you know them and familiar with them. However, it will be difficult to stick with familiarity based on personal acquaintance because then your business can go wrong. Your bias may backfire you.

Things You Should Know before Renting to Family or Friends

Good and bad sides of renting to family or friends

Renting out your property to tenants is how you make the business works. You cannot just let your property vacant in long period because you won’t get any income from that. However, there is also low season when tenants are hard to find. Just then, a family and friend are in need of home rental. Should you rent your property to them or is it bad decision?

  • Renting to friend or family means you already know and understand them of who they are, where they work, and their habit. Thus, it benefits you from deeper research about unknown tenants. It saves your time. It is even better when your family or friend also understand you, can pay rent on time every month, and take care of your property well just like their own home because they know how hard you work on it. However, the things can go wrong if your friend or family has bad habits such as late in payment or never clean the house. Thus, you still need to select which family or friend you can trust to rent to or else you will ruin your relationship, business, or both.
  • Next thing to consider is tenancy agreement under legal contract. Business is business. You need to do it legally or else you will face bigger and unresolved problem in the future. In case of renting to friend or family, it is easy to confirm and agree anything through handshake or casual talking. When problem arises in the future, your effort to talk out can result in ruined relationship or failed business. Thus, it is safer to stick to tenancy agreement before sealing the deal to rent to your family or friend, no matter how close you are to each other.
  • Things about renting to a family or friend is, it can give win-win solution to both parties. For example, when your property is vacant and your friend or family need a place to stay in then you can just rent it to them. They can take care of your property well. However, it is often that emotional connections affect the dynamic of your personal and professional relationship which can end badly. Thus, make sure to set out rules of engagement under legal premise for the sake of both parties.

 

Possible Mistakes Happen during Property Renovation

There is always risk when it comes to business included property investing. Most investors aim for higher profit and rental return by investing in property whether residential or commercial one. Renovation is one of ways you can increase the value of your property.

Getting to know the mistakes in property renovation you should avoid

You can do minor or major renovation according to your liking. However, renovation is a big deal. If you make mistake, especially to major renovation then you may suffer from huge lost. As the result, your property renovation ends up in disaster. The value of your property will be likely to decrease when your renovation project fails.

Mistakes in property renovation you should avoid

Mistakes happen anytime to anything. However, there are chances to avoid mistakes once you know more about them. In property renovation, there are also mistakes possibly happen even if you have planned everything perfectly. To avoid costly damage and disastrous damage, here are common mistakes you need to know in property renovation:

  • Rely more on DIY job instead of trusted contractor. Small renovation like minor fixtures here and there is possible for DIY. However, you need reliable and trusted contractor and professional if you have major renovation to your property. One of the reasons is limited budget. However, the cost you need to pay will be much bigger if you make mistakes during your major renovation. Paying a little bit extra to hire professional will be worth it. This can prevent you from losing much money.
  • Forget to set out plan and budgeting. This mistake is common and you can learn from it. Remember that planning is essential in any type of business. Without it, you cannot estimate your project well. By planning everything such as budget, labor, and materials, you have more precise estimation to your property renovation project. This can avoid you form failure costly damage.
  • Always include pool to renovation checklist. Most investors believe that adding pool to the property will automatically add the value. However, pool is hard to maintain which leads to excessive expense to your maintenance budget. Besides, it doesn’t always add the value to your property. Besides, you need to consider the neighborhood before adding pool because it is supposed to suit.
  • Blindly copy the ads. There are many ads of renovation that look interesting. However, not all of them are suitable with your property. Copying the trend of interior design is fine. However, make sure to choose point that will enhance your property and add its value. If you stubbornly do what the ads show without consideration, it might end up disastrously.
  • Too focus on choosing cheap appliances. Setting your budget is important in property renovation. However, doing everything on the cheap won’t get you anywhere either. Even if you are on budget, make sure to choose quality appliances. They are more durable for long term use. Thus, they are more appealing to tenants. You don’t have to buy the most expensive appliances. However, make sure to avoid nasty and cheap ones.