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Discover the secrets of successful property management and investing on "The Property Investors Handbook" podcast. Join Colleen Sutherland as she shares expert insights and strategies for acquiring, managing, and maximising returns on real estate investments. Whether you're a beginner or seasoned investor, this podcast is your essential guide to navigating the world of property investment. Tune in and unlock the keys to financial success in real estate.
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 This podcast is brought to you by Podpro Australia. Hello and welcome to the Property Investors Handbook Podcast. I'm your host Adam Bell, joined once again by Colleen Sutherland from Sutherland's Property Management Group. Now today we're diving into a heartwarming aspect of property management, tenants who transform their rental into a cherished home.
Colleen,
it's fascinating how property becomes more than just a building for long term tenants, isn't it?
It is, thanks Adam.
Okay, so Do you see this often where tenants really, you know, take, take on their rental property as their home and do things and, you know, that many others don't?
They do. They enhance the home.
So when you've got a rental property, you know how a lot of people say, Oh, you drive past this house and you go, Oh, I know that's a rental property. I have a lot of tenants who, you would drive past and wouldn't even know it was not an owner occupier. Yes, they do.
Okay, what's the sort of common things that you see, tenants do that, you know, are making into a home where others don't.
The most common one is the gardens.
Yep.
So what happens is the garden is very basic, mainly basic, unless an owner has lived there, but with a property, most of the gardens are just basic and low maintenance so that the tenant, because it's in the tenancy that they have to look after it. What I find is there are a lot of tenants who can make that garden, still low maintenance, but you know, they've planted flowers or they've planted nice little bushes or something like that, or they've been able to revive the grass.
Sure. And then they mow, they weed, they whip a snip, they do all the things that you would
Do if you own the home. Own the home,
yes. But also, you know, bring a little bit of life to the gardens. So that's the main one is the gardens.
Sure. Do you ever get any scenarios where tenants want to do, you know, things that are a little bit more than just aesthetic and, you know, because they are, do plan to be a long term tenant, they do make it their home, that they then ask the, you know, maybe the landlord whether they could go half, you know, in, in, in the cost of doing something like, you know, maybe putting in a, a really good veggie garden or, you know, something, a little bit of infrastructure into something that, isn't necessarily required, but again, makes it more of a home.
It
does. Yeah. We do have, tenants like that. So there was one that was in a property for 16 years. And right at the start, they knew that they were long term tenants. And so they offered to the landlord that if he put in security screens, they would go halves with him for the security screens for themselves.
So, it makes the property more secure. They also went halves with him in installing some, lights that, What are they? Sensor lights. Right. So that, you know. Security. Yeah, it lights up the backyard and things like that. So that's, to them, making the property a home. For sure. So making a house a home. So see, I even call it a property because I'm removed from it.
Sure. But yeah, making the house a home and they will now feel a lot more secure. Ordinarily, I would recommend that a landlord have security screens, have, you know, a lot more security than just a standard one, the standard property. But with that, they feel a lot more secure. They are likely to stay longer because they feel so secure and they've made it their home.
Sure. But we should be clear here. And I'm going to take a stab that obviously then becomes the landlord's property. Those types of things that, even though they've shared the cost, they're fixed and they become part of the property. Yeah.
So then, owner will go, Oh no, I'll just pay for those because he knows he can claim it on his, tax depreciation.
It, enhances his property that he owns and the tenant can't take it with them. So, it becomes a fixture of the house.
Sure. Have you ever seen where a tenant has requested an improvement to a place, you know, not, you Signaling that they want to go, you know, share the cost or anything where a landlord has just said no and they end up doing it themselves anyway.
Yes, I have, but we do, and while it's nice and, and, comforting to say they're making it their home, I also have to stick to legislation. Of course. So, that always sort of puts a dampener on things and they go, oh, that property manager, she's a bitch. But it's not necessarily as easy as they think.
unless I have the landlord's approval for install, but you pay for it or install and I'll pay for it. Or there has to be an agreement for that to happen.
Sure. Is there paperwork for that?
Always paperwork. The paperwork's a killer.
Yeah. Yep. Sure. Okay, so what guidelines should landlords set for tenants who, who wish to, to make significant changes to a property?
So again, that comes under legislation. So legislation has recently been changed. There's legislation for everything. I know. And sometimes legislation gets in the way of a good time. But yes, there is legislation and it covers just about everything. And if it doesn't cover it, they'll make it up. The government will make it up.
So, we do have to go by legislation of, a tenant can and can't do, but a tenant needs to seek approval. So, one of the pieces of legislation that's changed is that putting up picture hooks and, securing furniture to the wall was two of the big things. Now, we've always been of the mindset that if you, Mr.
Tenant, seeks approval to put those picture hooks up, then you don't have to take them down, meaning you don't have to remove them, make good the little tiny hole or those 3M hooks, and they've ripped the paint off or whichever. So if you seek approval before you do it, nine times out of ten, you just leave it there and go on your merry way when you move out.
If not, and we have to make you remove them, you have to make good, meaning if you've taken them off the wall and it's damaged the wall, you have to. fix the wall. The other thing is securing furniture to the wall.
So Which is a big safety thing these days. It's a safety
thing. Yeah. So a landlord can't say no to that.
Yes, it has to be done professionally, and you can't just sort of tack it up there, because that'll do. There is legislation and paperwork around that, but as long as you've sought that, and you've been able to secure that bookshelf to the wall, so that when little baby Johnny and tries to climb up the bookshelf and can't pull it onto himself.
It makes sense, it's just that they've made it so convoluted that I can't just say to you, yes, do that to protect your baby. I have to, yeah, go through a procedure. That
is a can of worms. Yeah. Because then you've got other legal requirements. These things have to be attached to the wall. So, oh my goodness me.
And
it's the same as a lean to. So, say you want to put a carport outside because you've got nowhere to garage your house. Ah, sorry. Your cars. Your cars. There is so much legislation, not only by tenancy legislation, but council legislation. And then sometimes it's just not worth it. Or, if you want to persevere and do the right thing, Then we'll, we're happy to help you.
Sure. Yeah. Okay, so what about this one? So, where you get to the point where a tenant wants to do an improvement, the landlord says, yes, let's call it new lights.
You know, brighter lights or LED lights or something like that. What are the, what's the framework, what's the situation about who gets to pick the contractor?
So when it's lights will be a landlord responsibility regardless of you thinking you're improving the home. That is a landlord responsibility.
What if you, what if, The scenario I'm looking at here is, and we'll use lights unless there's a better example, but you know, that the tenant says, no, these lights in here, they're not good enough at all.
And I'd really like to get new lights and I'm happy to pay for them. And the landlord says, well, look, I, if you want to, you can, I think the lights are fine. I'm actually not paying for them, but he agrees and says, yes, you can make that improvement. You're paying. Who then gets to choose the contractor?
The tenant.
Right.
because it's the tenants request, and the tenant needs to engage a electrician. I can recommend the one that we would be using if it was a, if it was the landlord, but, yeah, the tenant needs to engage a electrician. Right. You can't just, you know, Oh, I get that, but do
you need to see who that is and have them checked out before they can go ahead, i.
e. that they're, so, because, because this is interesting because having done many of these podcasts with you before and we've talked about contractors and you make sure, A, they're licensed, etc., etc., qualified, now, if this is handballed over to the tenant because they're paying, how can you be assured that, that all of those, you know, I Ticks are in place for the contractor they get.
We then would let them know that we would need a copy of the invoice so that we know that if anything goes wrong, it goes back to that, contractor. Sure. We would let them know it needs to be an electrician. It can't just be a handyman who knows how to wire them up. Yep. But yeah, it'd be the electrician.
But having said that with the lights, it's ceiling fans that we get the most request for. Right. Yeah. So, If the landlord is adamant that no, I'm not putting in ceiling fans, which again is another section of the legislation, which it's another day. But the tenant says I'll pay for the ceiling fan to be installed.
It's those sort of improvements that, it's not just as easy to put a ceiling fan in either. It's got to be wired in. It's got to do this, that and the other, but, the tenant still needs to provide the electrical contractor who is going to install that ceiling fan. Sure. So it's more ceiling fans than lights.
Yep. If you know what I mean. Yep. But at the end of the day, the tenant has to know you can't take that ceiling fan with you. It becomes a fixture of the property and it becomes a benefit to the landlord. Yep. Gotcha. Yeah. So it's a bit of a trick.
Fantastic. Well, look, it's, it's pretty clear to me that when tenants and landlords, you know, work together respectfully, it leads to well maintained properties and satisfied long term tenancies on both sides.
So for landlords looking to foster such coteries. Positive relationships. Remember the importance of clear communication and written agreements. Always. Absolutely. Always. So visit, spmg. com. au for more insights on effective property management and reach out to Colleen and her team at any time that, you have any issues or want to know anything more at all.
Thanks again, Colleen, for coming into the studio, our new look studio now for those watching on YouTube in our nice comfy chairs. And look, join us next time as we continue to explore the dynamics of property investment and management.
Thanks so much, Adam.