Wednesday 16 December 2015

15 Lessons I've Learned this Year

Instead of the usual goal setting blog I’d usually write for the year ahead, I thought I would ponder on the lessons I’ve learned this year.

Lessons from across not just my own life (personal and professional) but also through the training I’ve conducted and the client’s I’ve been lucky enough to work with this year. These lesson’s have helped me and many property managers, BDM’s and business owners alike get through the year, grow and set an incredible platform for a successful year ahead.

Once you’ve read through my lessons, take a moment to think about what lesson’s you’ve learned this year? What has worked well for you? What hasn’t worked well? And what do you need to change?

1. How we treat our existing clients breeds our future business
Self explanatory really, and by client’s I do not just mean the landlords, I have done a lot of work this year in conveying the importance of taking care of our tenants, they are our future customers, they know our future customers and are the ones talking about our business well after their vacate date. In the words of Jim Rohn - “One customer well taken care off could be worth more than $10,000 worth of advertising”

2. There are no mistakes, only lessons we learn
A mistake, a complaint, a royal stuff up is all okay, as long as we learn from it. Sweeping it under the rug or not taking ownership of our errors will not be good for ourselves or our business. Every time something goes wrong think, what can I learn from this, what could I have done differently, what could we change so this doesn’t happen again.

3. Our attitude towards life will determine life’s attitude towards us
If you think every day is unfair, that bad things always happen to you, chances are that life will treat you unfairly, and you will always have many reasons to complain. On the other hand, if you think life is a gift, that wonderful things always happen to you, life will give you all of those things and even more. Just how there is a law of gravity, there is also a law of attraction, and based on this law, you attract in your life that which you think about all day long, you attract that which you are, because you see, like attracts like I like to think of it simply, think about when you get a new car, and then suddenly you notice that car everywhere!

4. Be Kind, Everyone you meet is fighting a battle you know nothing about
We assume we know a person, a client, a colleague – we assume we know they are just a grumpy cow, or why they are angry or stressed, but chances are we know nothing of what is going on beneath the surface in that person’s life. We see one dimension of that human, one side, one face. But take a moment to think what could be causing that reaction, stress so we can have greater empathy and understanding.

5. Stress is the perception that everything has to happen right now
Whenever I am overwhelmed or my client’s feel overwhelmed, I break it down. Whilst it appears that all of the things need to happen right now and it creates a feeling of stress and overwhelm, when you break it down in writing, map out what is urgent, what is not urgent and do some prioritising and planning, you can remove the stress as you’re allowing your mind to see there is a time and a place to deal with it all. When you feel like you do not have time to take 5 minutes to break it down, that is exactly when you NEED to do it.

 

6. Being busy, may actually just be the way life is
In our office this year, we banned the word busy as a response or complaint. In property management we hear this word all the time, however the more I think about it the more it’s apparent that life is just busy, work is busy. We are a generation of busy people who fill our days with work, play and everything in between. If we can accept this it can revolutionise our attitudes. How we prioritise and stay efficient that becomes more important – “working hard doesn’t always mean working smart”. And too important is how we prioritise and schedule in our down time or me time.

7. Fit your own oxygen mask before helping others
If you are not in a fit, happy and healthy space (physical and mind) it will be very hard to help those around you, both in personal and professional life. What do you need to do to ensure you are fit, willing and able to help those around you and your clients? Are you eating well, exercising, and getting enough sleep? What support and help do you need to get you into a better space? A counsellor or mentor? I know number 1 for me when I am getting my cranky pants on is that I haven’t exercised, that is then my first port of call to ensure I can deal with and react whatever client’s throw at me.

8. There is no one size fit’s all approach..... to anything really
Whether it is in the advice I give my coaching clients, or whether it be the way to deal with an angry tenant, or whether it is implementing a system into a business, what works for one person will not necessarily work for another. We need to be constantly learning and adapting to meet the needs of the situation – if you think you know it all, you are wrong. Also when receiving advice in general, be careful to recognise that it may not always be the best and appropriate advice for you.

9. People will disappoint us
Behaviours of clients, silly requests from tenants, actions of those around you, they will disappoint and frustrate you. But it is just part of life, not everyone reacts the same way we do, not everyone knows the same things we do, not everyone wants the same things you do. Acceptance of this will remove the stress of expecting everyone to be the perfect human (i.e. you) and resilience to “let it go” will keep your approach fresh and stress free.

10. Escape the comparison cloud
There will always be someone with more money, a more (perceived) perfect relationship, someone with more listings, a person a flatter stomach, a larger business, a (perceived) less stressed life. Comparing yourself to others however, is a game you will never win; you may be comparing apples with peanuts.  In the words of Oscar Wilde – “Be yourself; everyone else is taken”

11. The importance of self awareness
How are you perceived? Is your confident assertive nature that you feel is one of your strengths, actually perceived as pushy and bossy by others? Creating a greater sense of self awareness and how we are perceived, can not only allow us to adapt our attitudes and actions, but also allow us to see that we may be perceiving a side of someone that they do not realise they are projecting – giving us a greater understanding and improving relationships and communication.

12. Prioritise tasks based on urgency and impact
What tasks can you work on today that will have the biggest impact, which will be the most dollar productive, which will provide the best result to the clients? Prioritising these days rather than letting our day be run by the small and easiest tasks, or the ones we like doing, or what has come into our inbox – will ensure we go home each day satisfied and accomplished.

13. Remove Distractions
Escape the pop-ups, the notifications, the dings, the bings, the flashing and the sounds. This year I turned off all notifications and I can tell you this one has been a massive winner for my stress levels, mindset and productivity. It means I am in control of when I check my emails or face book and I am not letting my day be run by anyone else. Avoid distraction and stay focused on the task at hand, or at your time you’ve dedicated to relaxing. It feels scary but try it.... Things can, surprisingly, wait.

14. Understand the WHY
When the motivation is waning and we are getting tired, we need something to help us regain focus, re-energise us and get us back on track. This is where it is vitally important to understand WHY we are doing what we are doing. What will it mean for you to achieve that goal, what will it feel like to accomplish that task or what does going to work each day allow our lives to look like. When you start to slip of the track, rather than focus on the goal, you focus on the why, it will be much easier to get back on track and keep pushing through. It is also important to understand the WHY of our client’s. Why do they need us, what is important to them and why did they chose to use us, so we are able to sell to and deliver on their needs.

15. We are good at going fast, we need to practice at going slow
      Taking time out, relaxing, unwinding, being offline, is vitally important to our health and         wellbeing, however it is so hard  for so many of us who are always trying to jam one             more thing into our already fully packed days. Without getting too hippy hippy  shake on       you, this is why practices like yoga, mindfulness and meditation are so important, as            they help us slow down and connect to our authentic selves. This is why the most                  successful people in the world start their day with silence, exercise, gratitude and                  planning. How you start your day will set the tone for the rest of your day (week....                  month... year...... years....). 

Happy Pondering........

Hermione Gardiner 
Real+


What are your PM squad goals?

As we are rapidly screaming toward the finish line of 2015, it can be all too easy to start to sit back on our laurels and enjoy the festive cheer that the season brings. This time of year while full of parties and frivolity, also can bring out some of the more challenging personalities that life can throw at us. They don’t call it the silly season for nothing!

While most start to slow down come that Christmas Eve deadline, use this time to power on to the finish line before you take a break (if you are one of the lucky ones to do so over the New Year). This is a great time of year to tidy up loose ends and reflect on the year that was as well as begin to think about what you may like to achieve in the coming year.

With this in mind, have you thought about what you might like you #PMsquadgoals to be in 2016? We spend almost more time in our waking hours with our work comrades than we do with our own partners in family. This is your squad, and thinking about your squad, how ambitious are they and what would you all like to achieve, not just personally but together as a team into the coming year?

Some areas when looking at this goal setting may include:
  • Systems – are they up to the challenge to help you achieve your goals? If not, what needs to happen to ensure that they are ship shape?
  • Technology – there is a myriad of technology at our fingertips. Is the technology in your office working for you or is there something out there that may help to achieve less stress and give you back more time.
  • Training – maybe you would like to step up the training for your team for the year. It’s a good time to set out the training calendar for the year and find a solution that works for your team.
  • Growth – do you want to grow this year? Silly question I know, but what steps do you need to put in place to achieve real growth.
  • Reporting – are your team reporting on all areas that they need to so that the department is ticking along efficiently and profitably?

On a personal level you might like to look at the areas of relationships, health, financial, learning, travel and career which can help you in evaluating if you are on track to be where you want to be. Or, it may be that you need to make a few changes to reach that goal.
If you are a little stuck with where to start, the team at Real+ can help with coaching, consulting and are running a few webinars in January to get you goal ready. Click here and we can help you get started.


Whatever your #PMsquadgoals may be procrastination won’t assist in making those goals become reality. Use this time wisely so that you can kick into 2016 fresh, energised and ready to hit the ground running and be the head of the pack with achieving success, whatever it may look like in your world.

Heidi Walkinshaw
Real+

Tuesday 8 December 2015

Are your tenants who they say they are?

We’ve all heard or experienced the horror stories, tenants starting their own DIY drug labs, visa holders skipping town two months into a one year lease or tenants who just simply can’t afford their rent – but how can you be sure that your applicant is who they say they are without verifying the documents they’ve provided?

How is identity fraud & identity theft impacting real estate agents?
In today’s ever-changing world, technology advances are making it even easier for criminals to commit identity theft (taking over someone’s identity) or identity fraud (creating a fake identity). In fact, one in four Australians claim to have been the victim of identity theft![i]
This poses significant issues in the real estate space as criminals attempt to lease properties to fabricate their fake identity and allow them to do either of two things:
  •          Use the property for illegal purposes (e.g. start a drug lab) or
  •          Use the property as their main address to commit other crimes (e.g. apply for a mortgage, car loan, credit cards etc)

The only real way to make sure you’re avoiding these applicants is to make sure you screen them correctly.

Already screen your tenants with a tenancy database?
Tenancy screening databases are great, however not all of them are made equal and may give you misleading information. This occurs because most tenancy screening databases will only search their own records to see if anyone has checked on that applicant previously.
What this means is that if an applicant gives you a fake name (even by just ONE letter) or purchases a fake identity (fakies.com.au for example), most tenancy databases will lead you to believe the identity is real as they can’t find a previous record in their own system.

This is when it gets interesting! Recent changes to Residential Tenancy Acts across Australia mean that all blacklisted or lodged tenants in a database must be notified prior to lodgement – so if an applicant knows they’ve been listed, why would they provide their real identity when applying for their next property? And even more worrying, who is going to use their real identity if their intentions are to commit a serious crime?

So what can you do to help ensure you’re getting the right tenants?
  1. Screen your applicants using a tenancy database that includes free identity and document verification so you can be sure of who you are dealing with. 
  2. Take care when looking over photo identification as this can be easily manipulated
  3. Always check references carefully ( these can be falsified!)
  4. If still unsure - ask the tenant for additional information.

Part of the Veda Group, the National Tenancy Database has been working with real estate agents across Australia for years, to deliver reliable tenant checking and connection services with real time identity and document verification across more than 22 different databases.





[i] Identity Theft in Australia and Australia’s View of Personal Information Security. Veda Group. Online Survey by The Leading Edge. n = 1,047 Australians aged 18+. September 2015

How to make sure tenants don’t over indulge and underpay rent this Christmas!

Christmas should be a fun time, and it is no fun suffering the stress and worry that comes with mounting arrears over the Christmas period.

For tenants there can be serious pressure to buy gifts and entertain friends and family over the holiday season. Given these pressures, it is an unfortunate reality that some households choose not to pay their rent so they can prioritise other spending. Research from Shelter UK shows that one in 12 tenants are prepared to forgo their rent payments over Christmas, there is a significant risk that your arrears figures could grow.

Everyone takes a different approach to arrears, some taking a harder no tolerance line, some taking proactive steps to help ensure their tenants get their rent paid to avoid eviction. Either way at the end of the day if we can avoid eviction it is better for all parties involved. Whilst the majority of your portfolio may be good rent payers, this is the time that some of them will slip, and this is also a time that a repeat offender is more than likely to re-offend.

Some strategies to combat arrears at this time to minimise our stress include:
  • Sending the standard letters to remind tenants to pay rent on time
  • Running a marketing campaign in the build up to Christmas that aims to deter from tenants falling behind, to see some examples of some unique Christmas arrears marketing campaigns click here.
  • Offer a financial support and advice service through assistance with budgeting plans. Some company’s provide a flyer with budgeting advice, some will go so far as offering a financial planning helpline to call.
  • Implement Rewards/Incentives to ensure all payments are on time:
    • Running a competition for all who keep their rent up to date
    • Offering movie tickets for all who are two weeks in advance over the period
  • Providing special personal warnings to repeat offenders, almost to let them know that we’re going to be watching their arrears very closely over the period to make sure they stay on time.
  • Some agencies even offer the tenants an option to pay extra throughout the year to help them get a bit ahead for these tighter times.
  • Reminding tenants of importance of maintaining positive ledger, instead of threatening termination, let them know you want to help them maintain a positive rental ledger to assist with future rentals (and even mortgage repayments as these days some lenders are requesting this information)
  • Utilise your blog, newsletters and social media to educate and share the message
  • Printing the arrears list in advance to predict problem offenders, issuing them reminders or getting them to come in for a meeting.
  • Setting up some automated reminders to go out to tenants a few days before their rent is due, perhaps utilising something like “delay send” out outlook

There are many strategies, be sure to choose what works for your agency and your brand. Don’t forget to score some brownie points with the owners and communicate what you’re doing to ensure they don’t have missing payments over Christmas! What other ideas do you have for keeping your arrears low at Christmas time? Please share them below!

For our Real+
members be sure to check out our Christmas Letter template on your portal and stay tuned for more Christmas tips in your Daily Training Tips.

Hermione Gardiner
Real+

Wednesday 2 December 2015

Could your client be smiling too?

Imagine how one of your investor clients would react if you could tell them how to receive $3,536 in extra cash flow with little to no effort. With property depreciation this is no longer just an idle fantasy.
Amy’s Property Manager found this out herself when she recommended her client contact BMT Tax Depreciation to find out what depreciation deductions were available for her investment property.
Amy purchased a nine year old three bedroom house in an outer suburb of Sydney for $610,000 just over one year ago. Prior to making her depreciation claim Amy’s investment property was earning a rental income of $495 per week with a total income of $25,740 per annum, while her yearly expenses totalled $41,028. Towards the end of her first year owning the property Amy’s annual after tax outlay amounted to $9,631 or $185 per week.
Amy mentioned to her Property Manager that she was concerned about her cash flow. That’s when her Property Manager suggested she speak with BMT Tax Depreciation to find out what depreciation deductions she could claim for the building structure and the plant and equipment assets contained within the property.
BMT Tax Depreciation was able to complete a thorough site inspection and provided a detailed tax depreciation schedule showing the deductions available for her property for the next forty years, including $9,585 in the first year. The following table provides a summary of Amy’s scenario, both before and after depreciation was claimed.

The depreciation deductions in this case study have been calculated using the diminishing value method of depreciation.

A BMT Tax Depreciation schedule reduced Amy’s annual outlay for the property to $6,085 per annum or $117 per week, a difference of $68 per week or $3,536 per year.
“By claiming depreciation, I was able to significantly reduce the amount of tax paid on my investment property. I can’t thank my Property Manager enough for recommending BMT Tax Depreciation to me,” Amy said.
Recommend an expert
With just a few words you have the power to completely transform your investor clients’ cash flow situation.
BMT also offer a range of additional services and information to help Property Managers add value to their existing service such as face to face or webinar training sessions for your staff and clients, educational brochures and material that you can send on to your clients.  To find out more visit BMT Tax Depreciation’s Property Professionals page by clicking here.
If you feel you have a client who we can make smile, please do not hesitate to contact one of our friendly staff on 1300 728 726 or visit www.bmtqs.com.au.
Article provided by BMT Tax Depreciation.