fbpx
All Posts By

OurWalls News

Helping landlords take control

By | News

OurWalls is a state-of-the-art digital property management platform that allows you to run your portfolio from one secure location. Our services are easy-to-use and will save you thousands in property management fees.

We bring to the market a fresh approach to managing your property portfolio and choice for landlords who are looking for a better way to improve their investment. Our step-by-step system guides our members through the property industry, removing the myths and fears that surround it and identifying value-adding opportunities.

Our approach presents opportunities for landlords who look after their tenants as we understand the benefits for landlords who look after the people who rent their properties. A well-treated tenant will take care of a place they feel invested in.

Our method is a victory for common sense as it results in a win-win situation. Over time maintenance costs become lower and returns on the landlords investment increases.

Find out more today at www.ourwalls.com.au

Flipping a good tenant VS making them a keeper!

By | News

Landlords, ever heard this before?

“We’ve conducted a market review & believe that we can easily get you a 10% increase on the monthly rental return for your investment property… Now your existing tenant might resist this increase, but there is strong demand for similar properties to yours in the area & we are very confident that other suitable tenants can be found…”

Before jumping, let’s unpack this further…

Whilst a 10% increase sounds great in theory, the truth is that you are going to be up for a bunch of additional costs also that will quickly eat into the extra returns

Using a $500 p/w rental property with annual revenue of $26,000 per annum as an example, the current fees could be to relet the property with the same tenants:

$1,560 – Property Management Fees (6%)
+ $156 – GST
+ $1,000 – Lease Renewal Fee (2 weeks)
+ $60 – Administration Fees ($5 p/m)
+ $88 – Annual Statement Fee

$2,864 = Total Fees
$23,136 = Total Rent Received by Property Investor

Now if we consider the 10% increase to a $550 p/w rental property with annual revenue of $28,600 per annum as an example, the current fees to replace your current tenant could be:

$1,716 – Property Management Fees (6%)
+ $171 – GST
+ $60 – Administration Fees ($5 p/m)
+ $88 – Annual Statement Fee
+ $1,650 – Re-letting Fee (3 weeks)
+ $390 – Internet Marketing Fee
+ $175 – Professional Photography Fee
+ $110 – Video Walk Through Marketing Fee
+ $55 – Tenancy Database Check Fee

$4,415 = Total Fees
$24,185 = Total Rent Received by Property Investor

On the surface this looks pretty good, you have moved your annual return from $23,136 to $24,185 an increase of $1,050, however, this isn’t right as we need to include the ‘vacancy gap’ (an average of 3 weeks) before the new tenants move in…

So what is the real return once we factor this in?

$24,185 – $1,650 (3 weeks vacancy gap)
$22,535 = Real Total Rent Received by Property Investor

Hang on – you are now $600 WORSE OFF than if you had kept the original tenant without an increase!

At OurWalls we want to shine a spotlight on the hidden costs of flipping good tenants and highlight the real opportunities that exist for landlords who look after their tenants.

Consider your existing tenant who has proven to be a good payer over the last term and now they intended to stay at the property longer-term.

This tenant is a keeper and landlords have the opportunity to remove agent fees seen above and get back in the game as a real investor using the OurWalls tools, guidance and support. Don’t risk losing a great tenant… your new keeper by increasing the rent disproportionately! Many other benefits follow where the keeper tenant invests themselves in the property, their home.

The return factoring our scenario:

$120 = OurWalls DIY Member Fee
$25,880 = Total Rent Received by Property Investor

Where else can you increase your returns by 10% PLUS just by giving your investment better attention?

So next time you are advised to increase your rent and risk FLIPPING a great tenant, make sure that you run the numbers & calculate the REAL costs before pulling the trigger.

OurWalls encourages you to make them a keeper!

There is a better way for you to control of your property investment with www.ourwalls,com.au

Australia’s renters are on the rise

By | News

Did you know that 34% of Australian households are currently renting and this figure is expected to continue to rise in the coming decade?

We believe that an increasing rental population should be embraced as times change and the new population view their lifestyle and investing differently.

Compared to other countries around the world we have a lower percentage of renters:

  • United States = 37%
  • Japan = 40%
  • France = 50%
  • Germany = 61%

So what can we learn about these countries and how they treat the renter population?…

At OurWalls we believe that Australia should be working to improve the status-quo with this growing rental propulation by creating better opportunities for landlords and their tenants; rather than getting stuck in the mire of the (often negative) debate around housing affordability.

We are committed to building a better way for landlords & tenants to connect and thrive!

Please register your details with us if you’d like to find out more…

Introducing OurWalls!

By | News

Born out of passion to improve the traditional property management model, we are very excited  to announce the launch of OurWalls.

The Founding team (Maurice Molan and Myles Tehan) are driven by a mission to disrupt the rental experience by achieving better outcomes by connecting landlords and tenants.

There is a better way; so join us on the journey by registering your interest to find out more and gain early access!

PS. We will keep everyone posted via updates from this blog, so watch this space for further developments as we build out the platform.