Property Project Management

Obtaining A House Possession Order

Posted on September 3, 2012

A house possession order is a court order that permits a landlord to evict his or her tenant thereby ending the tenant's legal right to live on the property. The process of obtaining such an order is referred to as applying for possession. The decision to issue a possession order usually depends on the type of tenancy and the circumstances of the case.

Whenever a landlord makes an application for possession to the county court, the judge may take any of the following actions

Issue an Outright Possession Order. When a court issues an outright possession order, the tenant has to leave the property by the date indicated on the order. Usually this date is 14 days from the day when the court order was issued. However, in special cases such as when the tenant is ill or has young children, the judge can delay the eviction by up to six weeks.

Issue a Suspended Possession Order. If the judge decides that the landlord has the right to evict the tenant but it would not be fair to do so at that time, he or she may issue a suspended order. This allows the tenant to remain in the house as long as he or she abides by certain conditions outlined in the court order. For instance, the tenant may be ordered to pay off the rent owed by a certain amount each week.

Adjourn the Case. As far as court orders are concerned, the adjournment of a case occurs when a judge decides to delay the hearing of a case either indefinitely or for a specified period of time. For instance, if the judge needs more information before making a ruling, then he or she can adjourn the case. When a case is adjourned, the court either specifies a date for another hearing or asks the landlord to reapply for possession after a certain period of time.

Dismiss the Case. If the judge decides that there is not enough reason to evict the tenant then he or she may dismiss the case. This may happen where the landlord has no right to apply for possession.

In addition to the above mentioned actions, the judge may order the tenant to pay the rent arrears. Such an order is known as a money judgement. Remember, the decision to issue an outright or suspended house possession order or adjourn or dismiss the case depends on the type of tenancy and the circumstances of the case.

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How to Retain Tenants in Retail Property

Posted on July 9, 2012

In the management of a retail shopping centre or retail mall, the retention of tenants becomes a critical component of property performance. Loss of tenants creates the following pressures on the building or landlord:

  • Loss of rental during the vacancy and any subsequent rent free period
  • Loss of the recovery of building outgoings during the time of vacancy
  • Expenditure in the creation of new leases and associated documentation
  • Expenditure in the provision of a new incentive for a new tenancy
  • Commission costs to the leasing agent when a new tenant has been located

Normally you would not want a vacancy to occur in your managed retail property unless one of the following situations could apply:

  • The tenants are disruptive to the property and the tenant mix
  • The tenants have not been cooperative under the terms of the lease
  • Rental payments have been variable and unstable
  • You require the premises for a better tenancy or a new tenant
  • You are undertaking a property renovation or relocation plan
  • You are about to embark on a new property development

So tenant retention becomes a critical factor in the normal performance and future of the retail shopping centre. The tenant retention plan can feature in the business plan for the property and should be reviewed six monthly as part of the overall leasing strategy. The leasing strategy will also include factors of tenant mix and tenant mix analysis.

Successful Tenant retention programs

The tenant retention plan should be formulated in keeping with the targets set by the landlord for the investment. Most landlords intend to keep the retail property that they purchase for a number of years and on that basis the tenant retention plans should be designed. A comprehensive tenant retention plan should include the following elements:

  1. Regular ongoing contact should occur with each and every tenant in the property to identify any needs of contraction or expansion. If this is not done, you will soon see other leasing agents attracting your tenants to their properties.
  2. Early negotiations of lease renewals or options (as the case may be) should occur in a timely way. This prevents the tenants considering a move to other locations for a better deal or lease. It should be said that relocation costs will always be a deterrent to the tenant in leaving your property.
  3. Assessments of the existing tenant's business performance and its relevance to the overall tenancy mix should be undertaken. In a retail property this will include sales turnover figures in the overall tenancy mix and there comparison to the particular singular tenant. Any weaknesses in the singular tenant and their business levels should be addressed early before the impact carries through to adjacent tenancy premises.
  4. The levels of market rental that are charged to the tenants should be fair and reasonable given the trends of other rentals in other properties. Aggressive levels of rental pushed at the time of market rent review, can destabilise the relationship between the tenant and the landlord as well as escalating the threat of future vacancy.
  5. It is wise to break the tenancy mix into levels of desirable and less than desirable tenancies. On that basis you will know who you really want to keep in the property for the long term.
  6. The strategies regards the anchor tenant occupancy will have an impact on the surrounding specialty tenancies. The expiration of the lease for the anchor tenancy should be carefully monitored to prevent any massive disruption to property occupancy and the other specialties.
  7. All critical levels of discussion and communication with the tenant should be recorded in writing to prevent any later misunderstandings. All ongoing matters should be followed through with the tenant and or the landlord being updated as appropriate.

A successful tenant retention program is really the result of excellent communications and timely response to any matters of property occupancy, lease management, and maintenance. The property manager is at the centre of all of these matters.

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The Four Keys to Being a Successful Landlord

Posted on April 8, 2012

Owning property and renting it out to tenants can be a tremendously profitable venture for those who have a thorough understanding of the real estate field. That's why many are now considering using their additional cash flow to invest in property and becoming a landlord themselves. Before you take on this challenges job, it's important to understand the intricacies involved. Here are five keys to achieving success as a landlord:

1) Remember Your Tenants are Customers

Owning property is just like running any other business - you can't become successful without treating your customers with respect. And in this scenario, your tenants are your customers. You have to react immediately to your tenant's concerns and needs in order to ensure that the relationship remains strong and open at all times. In this regard, the little actions can go a long way.

Consider, for example checking in with your tenants every couple of months to ensure that everything is satisfactory with the property, and remember to send little gifts during the holidays. This will not only enhance your relationships with your current tenants, but increase your reputation with the industry, and provide you with further business opportunities in the future.

2) Get Everything in Writing

You have to protect your interests when it comes to your property. Legal issues can arise when there are problems such as a tenant not paying rent or causing damage to the property. Therefore, in order to protect yourself against future problems, it's imperative that you hire a real estate lawyer and have them draw up documents to provide to each new tenant before they move in. While the initial fee to hire the lawyer might be quite expensive, going through this process could help you thousands of dollars in the long run.

3) Stay Informed of all Legal Responsibilities

As a landlord you're now responsible for the safety of tenants while they're inside your property. This means that you must stay aware of your obligations to tenants in areas such as fire safety, building codes and health codes in your local area. If you're not fully up-to-speed with any recent changes that have taken place within the local real estate industry, ensure that you speak with a specialist who can help provide you with all the information you need to meet your key duties.

4) Always Ask for References from Tenants

If you're a new landlord, you might want to get started bringing in tenants as quickly as possible in order to begin creating income. However, without qualifying your tenants first you may find yourself stuck with a highly unreliable tenant who does not follow the rules of living in your property. Make sure you ask each new tenant for at least two references. Those acting as character references should not be related to the tenant, and they must have known the tenant for at least a year in order to ensure a verified opinion.

While the Money can be Superb, Prepare for Heavy Workloads

There is a tremendous amount of profit to be made from owning and renting out property. However, being a landlord involves more than simply sitting back and collecting rent checks. You must be actively involved in your job in order to make your property a cash cow. Putting in maximum effort to learn the duties of the job will allow you to gain maximum rewards.

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