Ownerâ€™s Property Management Ebook
OWNERSâ€™ PROPERTY MANAGEMENT Property ownership can be a profitable activity, or it can be a nightmare, depending on who your property manager is. Below, we set forth how Asset Agents ensures that your properties are run smoothly and profitably.
Setting your rent
To maximize returns, it’s important to set the right rent. We will help you find the right number, so that you don’t set the rent on your property too high and suffer unnecessarily long vacancies. If you stay competitive and realistic, you’ll be in good shape. And each time a tenant’s lease expires, we will review the rent with you to ensure it is still appropriate.
Everything you need to know is found in a tenant’s REIQapproved application form, including rental history, employment information, personal details (including children and pets), personal and business references, and emergency contact details. Each application we receive will be handled using TICA (the Tenancy Default Database of Australia and New Zealand). While this process doesn’t necessarily assure excellent tenants, it helps you avoid bad ones. After processing, a batch of applicants will be submitted to you for your approval. Once you select a tenant, they will be required to pay a deposit of one week’s rent to secure the property.
Promoting your property Properties are loaded to our online customer management system and potential tenants in our database are immediately e-mailed. Plus our system loads the property onto realestate.com.au and a bunch of other onine real estate portals. In addition, a colourful â€œFor Rentâ€? sign is placed at the front of your property, and we will conduct inspections with potential tenants as they appear.
Presentation Simply put, a well-presented property attracts better tenants. An ideal rental property is: Clean (carpets professionally cleaned, surfaces free of debris, etc.)
Secure (with lockable doors)
Safe (electrical safety switch and smoke alarms functional)
Well-maintained (including appliances)
We will provide a full checklist regarding these matters to ensure that your property commands the best rent possible.
Pets Allowing pets is up to you. You can select which types of pets are permitted, and set other limitations. (Please note that allowing dogs on your premises requires adequate fencing.) Our application form requires that tenantsâ€™ pets be listed, including their breed, and if they are registered with the local council. Our Tenancy Agreement form also stipulates that pets must be kept outdoors, and that any damage is the tenantâ€™s responsibility to address.
Payment of rent Payment of rent occurs weekly, and we disburse these funds to you either at the middle or end of the month, whichever suits your best. There is no fee, and statements can be sent via email or post. If maintenance is undertaken, the cost is deducted from rental funds and shown on your Statement.
Bonds Each tenant provides the equivalent of four weeksâ€™ rent as a bond prior to taking possession of the property. The bond must be paid to Asset Agents Trust Account in cash, bank cheque or money order. The bond is disbursed to and held at the Residential Tenancies Authority until the final inspection is done when tenants vacate. An Exit Condition Report is provided to the tenant for completion on vacating and is compared to the Entry Condition Report which is done by the property manager, complete with photos, just prior to the tenant moving in. If the condition of the premises is satisfactory, the bond is returned to the tenant.
Inspecting the property Inspections occur before, during, and after a tenancy. At the start of a tenancy, an Entry Condition Report is completed by the property manager, itemizing all fittings, fixtures and describing the general condition of the property. Photos are taken at the same time as a back up record. This report is given to the Tenant on the start date of the lease for them to add any of their own notes and to be returned to the property manager within three days. This report is then kept on file. Routine Inspections are also conducted during the tenancy. The first one is done within six weeks of the tenant moving into the property. This gives us an early indication as to how the tenants are maintaining the property. Subsequent Routine Inspections are undertaken at threemonth intervals throughout the tenancy. This gives us the opportunity to check the condition of the property, including required maintenance, recommendations for future improvements, and if there have been any changes in the way the tenant is maintaining the home. Inspection Reports with accompanying photos are provided to the property owner.
General Tenancy Agreements
Maintaining your property
General Tenancy Agreements are entered into by all tenants. We generally suggest a 6-month lease with a new tenant, as it gives us an opportunity to ensure the tenants are maintaining the property and paying the rent on time. It also allows for a rent review at the end of the term. Approximately 2 Â˝ months prior to the lease ending, you will be contacted for your instructions regarding continuation of tenancy and our recommendations regarding the rental amount.
Value and returns are determined in large part by your dedication to maintenance activities. As your managing agent, we will inspect the property before a tenant moves in and will advise if any maintenance is required. As a tenancy proceeds, we will always contact you to discuss routine maintenance before going ahead with repairs. If there is an emergency at the property and we are unable to contact you, however, we will need to complete emergency repairs to protect your investment. Rest assured that we only use licensed, insured and trusted tradesmen with competitive pricing.
Notice of tenant vacation
“Breaking” a lease
Tenants are required to give a minimum of 14 days written On occasion and usually due to extenuating circumstances, Tenants may wish to “break” or terminate notice prior to vacating at the end of a lease. a fixed term lease. In this event, the Tenant is asked Should an Investment owner not wish to renew a tenancy to sign an ‘Agreement to Terminte a Fixed Term Lease’ for any reason, a minimum of 60 days written notice to Form. This ensures that they are aware and agree to the tenant is required. These timeframes also apply to remain responsible for the rent until the end of the lease periodic tenancies. We encourage tenants to give us term, or until the start date of a suitable replacement as much notice as possible when vacating properties so Tenant. Rent cannot be increased during the term of that we have maximum amount of time to find another the existing lease. The Agreement also ensures that the tenant breaking the lease is responsible for all resuitable tenant. letting costs, including the Agency’s Letting Fee.
Breaches If tenants fail to pay rent or violate other conditions of the General Tenancy Agreement, a Form 11, Notice to Remedy Breach, is issued to the tenant. There are different remedy time frames for each type of breach. If the breach is not remedied within the time frame given, a Form 12 Notice to Leave can be served to the tenant, giving the tenant 7 days to vacate (in the case of nonpayment of rent) or 14 days (in the case of general breaches). If a Form 11 is issued more than twice in a 2-year period, when a subsequent breach occurs, a Form 12, Notice to Leave, can be issued immediately to the Tenant.
Sale or re-habitation of property Tenants are entitled by law to occupy the property until the end of the lease term. Under exceptional circumstances and only if all parties agree, is it possible for an Owner to move back into the property. If you wish to place the property on the market for sale, you must inform the tenant by issue of a Form 10 - Notice of Lessorâ€™s Intention To Sell Premises, including details of how you intend to sell the premises. If you are selling through an Agent, they will complete this form on your behalf. A Form 9 Entry Notice must be supplied to the Tenant at least 24 hours before each sales inspection. When the property sells, the purchaser may want the tenant to leave. If the tenant is on a fixed term agreement, this can only be done by mutual agreement. If the tenant is on a periodic agreement, 30 daysâ€™ written notice must be given to the tenant if vacant possession is a condition of the sales contract.
Having landlordâ€™s insurance is just as important as having the building itself covered. There are a number of different insurers available, including banks and specialized Landlord Insurance Agents. Even good tenants can lose their job or get sick, which can cause them to get behind on rent or abandon the property. Insurance pays the rent when your tenant doesnâ€™t.
All homes in Queensland must have smoke alarms installed. In addition, your property must comply with the Building Code of Australia. This includes installing the proper number of smoke alarms; putting them in the required locations; ensuring that they are working and unexpired; and regularly testing and cleaning them. If a tenant is in possession of the premises, the tenant is required to test and clean alarms each year, and replace the batteries if they are flat. In order to ensure compliance, we work with Budget Smoke Alarms. Upon changes in tenancy or renewals, they fully inspect and maintain smoke alarms. After completing work, they issue a certificate confirming compliance. Their annual fee is tax-deductible. (In a related matter, please note that all rental properties need to be fitted with an electrical safety switch.)
Removal of pests
Tenant payment of water costs Water consumption costs may be passed on to tenants, providing the following criteria are met: The property must be individually metered The tenancy agreement must state that the tenant is responsible for water
Annual pest control treatment of spiders, cockroaches, silverfish, and other vermin is required. In addition, tenants are required to have the property treated internally and externally for fleas, if they have had a pet at the property.
The property must be “water efficient,” and have a certificate stating so. (If you wish, we can make your property compliant.) If your property is not water ef ficient, tenants can still be charged for “excess” wa ter, but this charge must be in a reasonable amount and must be documented in the Tenancy Agreement.
Legal rights Tenant Rights The premises are fair to live in and in a good state of repair The premises comply with any law that deals with health and safety The premises are available for occupation as agreed to in the tenancy agreement. The premises are reasonably secure, each tenant listed on the tenancy agreement gets a key for each lock, and all other tenants named on the agreement get the keys required for entry to the premises. The Agent/Lessor pays all charges levies, premiums, rates, and taxes payable for the premises The Agent/Lessor does not interfere with reasonable peace, comfort, and privacy The Agent/Lessor allows the tenant to live in the premises as the tenantâ€™s own The Agent/Lessor maintains inclusions in good repair
The tenant pays the rent on time in the way outlined in the tenancy agreement The tenant does not use the premises for any illegal purposes. The tenant does not cause a nuisance or interfere with the reasonable peace, comfort, or privacy of their neighbours The tenants keep the premises and inclusions clean. The tenants do not intentionally, maliciously, or neg ligently damage or allow someone else to damage the premises or inclusions. The tenant notifies the Agent/Lessor of any damage to the premises as soon as he/she becomes aware of it. The tenants abide by the terms and conditions of the tenancy agreement and body corporate laws. The tenants are responsible for their guestsâ€™ behaviour The tenants use the premises mainly for residential purposes unless otherwise agreed.
service guarantee Asset Agents guarantees your satisfaction, and will: Ensure that the highest return is maintained, by constantly monitoring the rental market and re viewing the rent at the expiration of each lease Keep you informed at all times Employ efficient, well trained staff to manage the property Thoroughly screen all tenancy applicants Complete all tenancy documentation in accordance with law, including a thorough condition report on your property prior to each tenancy Collect and lodge a bond equivalent to 4 weeksâ€™ rent for each property Undertake regular property inspections, the first one within 6 weeks of commencement of tenancy. Provide you with a comprehensive written/photo graphic report after each inspection Regularly monitor and promptly collect all rents due Keep you informed of rent arrears that exceed 7 days, and issue required notices pursuant to law
Credit the bank account of your choice at the end of each month, and provide you with an accurate financial statement and invoices for taxation pur poses Carry out any maintenance required on the prop erty Promptly inspect your property after your tenants vacate and refund the Bond, with only wear and tear accepted. Offer the best available loss of rent and malicious damage insurance for your protection Provide a free market property appraisal
Our fees Our fees are very competitive: 8% plus GST. There is a let fee payable at the beginning of each new lease, equivalent to one weekâ€™ rent plus gst. Lastly, there is a $5 per month Administration Fee. There are no other fees involved in the management of your property.
And last, but not least, that we will remember your name!
In addition, we pledge: To provide you with peace of mind To provide exemplary personal service at all times That the same property manager will manage your property from start to finish That you will receive the best possible tenants in your property, based on the information provided to us That we will return your calls or messages promptly That you will remain in ultimate control of your prop erty, and we will not make inappropriate decisions on your behalf That we will manage your property as if it were our own That we will provide you with the most up-to-date advice regarding laws and regulations That you are welcome to accompany your property manager on routine inspections
07 3103 5616
07 5315 5411
07 5551 0168
02 8004 3083
07 3041 0376
Published on Aug 26, 2013
Asset Agents ensures that your properties are run smoothly and profitably. Contact us to get your free ebook. Brisbane 07 3103 5616 Sunsh...