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Our first self manged property how to calculate inital rent and bond payment

Discussion in 'Property Management' started by warek, 28th Apr, 2016.

  1. warek

    warek Member

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    3rd Apr, 2016
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    Location:
    melbourne
    Hi there

    We are buying a very basic rental property, 65 years old and 59 sq metres in size, on a good site in a good location Our plan is to demolish the house in 3 year’s time and build on the site. Settlement is on May 16th.

    The house has an existing tenant, a single mother, looking for work, who is on a periodic lease after her previous 4* 6 month leases, managed by a local real estate agent, expired.

    Currently she has paid a bond of 955 and is paying 220 a weekly, payable weekly, 2 weeks in advance.

    We would like to self manage this property. This will be our first self managed property.

    She and we, are happy to commit to a 12 month lease and she would like to keep the same payment arrangements.

    I am a little unsure of how much she should pay on May 16th. Is this correct, she pays the bond of 955 and 440 for 2 weeks. Or does she pay 955 bond and 660?

    Then on May 23rd, May 30 etc. she will pay 220 per week?

    Thanks for any replies

    Warek
     
  2. thatbum

    thatbum Well-Known Member

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    I'm not sure either on the information provided. Have you arranged with the outgoing owner regarding transfer of the bond and rent payments on settlement?
     
  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    Hi Warek,

    Zero bond. The tenant has already paid it. Its just a matter of transferring it from previous owner to new owner. Similar story with rent in advance, they keep their existing "Paid To" date and continue paying to new owner.

    If there's a fixed lease in place, you don't get a new 12 months either. You adopt the existing lease as is.

    Based on the presented information I'd advise against self managing.
     
  4. thatbum

    thatbum Well-Known Member

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    Although to be fair, that is a potential option too if all parties are agreeable to it.
     
  5. warek

    warek Member

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    The most recent lease was for 6 months starting 16th day of July 2015 and ended 15th day of January 2016. From then on the agreement continued as a periodic tenancy.

    I need to spend more time understanding what is required and will be reading the consumer affairs Victoria website over the next few days

    Thanks
     
  6. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Location:
    Sydney
    Congratulations on your investment! Exciting times!
    You may like to look at VCAT, also for guidance.
    Do you have a copy of
    1.Original signed ingoing inspection report
    2.Bond lodgement Number
    3.Application for tenancy
    I think the Vic Govt hold information sessions for Self Managing Landlords which may be worth attending.
    I hope this helps
     
  7. D.T.

    D.T. Adelaide Property Manager Business Member

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    Adelaide, SA
    If its periodic, you can keep it like that or offer a new fixed term lease with whatever price & conditions you like. They may or may not agree to it, potentially opting to stay as they are.

    If they do go on a fixed term lease with you, the part discussed about bond and rent in advance stays the same :)
     
  8. Lil Skater

    Lil Skater Well-Known Member Business Member

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    Location:
    Melbourne
    There's also an adjustment on settlement, just because it settles on the 16th doesn't mean that's when the rent is due.

    Ie. Tenants rent is due on a Tuesday, settlement takes place on Friday, rent still not due until the next Tuesday.