Landlord Information Pack

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Thank you for considering us.

The LJ Hooker Solutions Gold Coast team is dedicated to creating clients for life. We are genuinely passionate in providing the highest standard of service, to always deliver honest and ethical advice to create an enjoyable real estate experience.

LJ Hooker is one of Australia’s most iconic real estate brands that has stood the test of time since it’s inception in 1928. This means we have the advantage of strategic insight, powerful knowledge and new and historic relationships. Combining these elements with 21st century technology, fresh ideas and forward-thinking pathways to ensure we bring you a superior standard in your investment journey.

“Real estate is not just about property. It’s about people” - Sir Leslie Hooker

Together we all look forward to guiding you in every step of your property journey.

The 10 most common questions we hear.

1. What is fair wear and tear?

Wear is what happens during normal use of the property and changes that occur with aging. The property can also deteriorate over time through exposure to the environment.

Dirt, grime, grease and damage is not considered wear and tear. Damages caused by an approved pet are also not considered fair wear and tear.

Evidence such as the entry condition report and the exit report and photos are critical to avoid disputes about the property condition at the end of the tenancy.

Examples of wear and tear may include small scuff marks on the lower walls; carpet pile that has flattened because of furniture or foot traffic; paint or curtains that have faded because of exposure to the environment – e.g sunlight.

2. What do we look for in a tenant application?

Once we receive an application, we conduct a series of checks to determine if the person is a suitable tenant.

These checks include:

TICA - which may hold records of tenant breaches for up to seven years

• Barlcay MIS - the largest and most extensive tenant database in Australia and New Zealand

Serviceability - does the rent amount fall within the applicant’s income range?

• Rental history check - we verifying previous living arrangements (even if the applicant was living with family)

• Confirming employment status - if you’re employed, or proof of regular payments like Centrelink

Checking references - contacting previous real estate agencies or noted personal references

3. How long will it take for my property to rent?

The length of time a rental property is on the market will reflect how it is priced with comparable properties, how it is presented to prospective tenants and the demand from the market for properties such as yours. If your property is vacant it may require a different strategy to that of a property with a tenant already in place in order to minimize vacancy periods.

4. What happens during the lease renewal process?

In Queensland, a tenant is required to be given two months notice prior to the end of their fixed-term tenancy of an offer to renew their lease or a notice to vacate.

Should you decide to offer a lease renewal to your tenant, we will commence the process at least three months prior to the end of the fixed term. Your property manager will first prepare a Comparative Rental Analysis, which identifies how much properties similar to yours are rented for.

Once you are happy with the new lease being offered, your property manager will prepare the necessary legal paperwork along with their new lease terms and present this to your tenant at least two months prior to the end of their fixed-term lease.

Should your tenant accept the lease renewal offer, the paperwork is signed and you will be formally notified of the acceptance.

If your tenant decides to vacate the property at the end of their fixed-term tenancy, these timelines will provide plenty of time to secure a suitable new tenant.

5. Who is responsible for repairs and maintenance?

As an investor you need to be comfortable with the fact things need fixing or replacement, and you will need to budget accordingly. Repairs that are proven to be the fault of the tenant are of course at the tenant’s expense.

There are two types of repairs as described in legislation that are entirely a landlord’s responsibility: urgent repairs and routine repairs. Urgent repairs require immediate action by both the managing agent and the landlord.

Investors should not bury their head in the sand when it comes to repairs and maintenance. Depending on the type of repair, tenants may be permitted under legislation to arrange for repairs to be carried out and the costs to be invoiced back to you as the property owner.

There have also been numerous cases in tribunals where tenants have been awarded considerable compensation for the loss of certain amenities so delaying or neglecting repairs and maintenance at your investment property can be costly.

6. What happens if my tenant doesn’t pay their rent?

We have strict policies in place around rental arrears, including checking rent payments daily and issuing the appropriate notices as permitted by legislation.

Our property managers have a detailed arrears follow-up process and work with the tenant proactively to resolve any rent arrears from day one.

However if the rent remains unpaid, we will work closely with you throughout the breach process and through to agreement termination if necessary.

7. How often will my property be inspected?

We conduct an inspection of your investment property every 4 to 5 months. The inspection’s key purpose is to visually inspect the property and identify repairs and maintenance needed.

A report is prepared and forwarded to you for instructions if repairs or maintenance work is required or recommended.

8. Do I need a pool safety certificate?

Pool owners must have a pool safety certificate issued by a licensed pool safety inspector. A copy of the certificate should be included with the tenancy agreement.

If a certificate has not been obtained the tenant may consider it a breach of the property owner’s duty to comply with all health and safety laws.

All temporary pools and spas (which can be filled with water to a depth of 300mm) must also comply with the pool safety laws and may require fencing requirements. Tenants should obtain permission from the property owner before installing a temporary pool.

9. What if there is a domestic violence situation?

Domestic and family violence is any form of violence or abuse where the abusive person is a spouse (including de facto), an intimate or dating partner, a family member or an informal carer.

A person who suffers domestic violence in a rental property has rights under tenancy law, even if they are not named on the tenancy agreement. If someone in a rental property is experiencing domestic violence they can apply to QCAT to:

• be listed as the tenant remove the name of the person who has committed an act of domestic violence from the tenancy agreement

• prevent their personal information being listed in a tenancy database where a breach of the agreement is a result of the actions of a person who has committed an act of domestic or family violence

If your tenant believes they can no longer safely continue to occupy the premises due to domestic and family violence, they can vacate immediately but must provide 7 days notice to end the agreement by giving your property a Notice ending residency interest (domestic and family violence (Form R20) supported by relevant evidence (listed on Part B of the form, such as a protection order or a Domestic and family violence report).

10. Do I have to spend money on marketing my investment property?

While we endevour to lease your property as quickly as possible with minimal costs, good marketing can help us find the best quality tenants in the shortest amount of time.

Professional photography can make a huge difference and showcases your investment in it’s best light. Remember - we are property managers, not trained photographers.

Marketing money spent on your investment is also tax deductible.

Getting your home ready to market.

As they say you only get one chance to make a first impression, that’s why we want to get it right - first time, every time.

We have a range of strategies to ensure that your property is seen by the right people.

These include:

• Professional photography

• Virtual tours

• Free and paid portal listings

• Signage

• Photo decluttering and furniture removal

• Virtual staging

• Social media advertising

• Floorplans

• Direct targeting eg IRE Early Bird for off portal marketing

Not only are we able to secure great rates for these products for you, but they are a great investment to achieve the best possible return on your property.

Access everything you need 24/7

The Ailo portal allows our owners and tenants to access their information and documents from anywhere in real time.

Easily access details on all of your investment properties including statements, maintenance jobs, current rental balances, agreement dates, your financial overview and so much more. You can even decide when to draw down your rental income.

Additionally, your tenants can easily log maintenance requests through the chat function.

Our InspectRealEstate portal allows would-be tenants to register for open homes (plus it reminds them when the appointment is coming up) and it keeps them up to date with the status of their application. This helps get your property leased faster and with less stress.

Water Charging

Lessors are able to pass on the full water consumption charges to tenants if:

• the rental premises are individually metered (or water is delivered by vehicle), and

• the rental premises are water efficient, and

• the tenancy agreement states the tenant must pay for water consumption.

Lessors/agents should be able to demonstrate the presence of water efficient devices where it may be unclear, such as by providing copies of:

• plumbing reports

• receipts

• packaging

• warranties or instruction manuals for taps and showerheads, etc.

For any water fixtures produced from 2005 onwards, the easiest way to check if they meet the required efficiency standard is to look for products with a WELS rating of three stars or higher.

WELS is Australia’s water efficiency labeling scheme which rates fixtures including taps, showerheads and toilets according to water efficiency – the more stars the better. To find out more about the scheme or search the registered product database, visit www.waterrating.gov.au.

To learn more about charging your tenants for water, go to bit.ly/ QldWaterFacts or scan the QR code below.

Presentation Sets Expectation

Getting the property ready for tenants to move in is one of the most important steps we can take to ensure the tenancy starts on the right note. Our entry condition reports reflect the state of the property at the beginning of the tenancy, enabling our team to expect the property be returned in that same condition (minus fair wear and tear) at the end of the tenancy.

If there are any property specific notes that you believe the tenants should know about upon moving into the house, please give our team a list of these. These can include items such as solar power boosters, septic or bio-cycle tips and tricks or specific cleaning items for flooring, kitchen benches etc.

Our expectation is the house and grounds will be presented to us to a professional standard.

While you do not have to engage a professional to clean the house/carpets or maintain the grounds (pool where required), we do have high expectations of cleanliness.

This allows us to expect the tenants to return the property in this state.

Start With The End In Mind

Other things to consider

• All windows and doors including cupboards and wardrobes open and close easily

• All locks are secure and operate effectively with keys provided

• Full sets of keys to be provided to our office plus one tenant. Any additional tenants will need access keys only

• The property provides adequate security to enable tenants to obtain contents insurance and personal items

• Property meets current smoke alarms requirements

• Any operating instructions or manuals for appliances or other items which tenants require instructions to use

• Provide agent with any warranty details for any applicable items or building works, if applicable

• Ensure all lights and fittings are in working condition and spares left if required

• Pre-place or leave picture hooks on walls in best locations –this helps control placement and number of picture hooks allowed

• Where applicable ensure pool safety certificate is current. These expire after two years

• If pets have been in the house, consider a flea treatment throughout

• If you notice any pests, consider a pest control to treat those prior to tenants moving in

• Basic utilities to the house are functional and ready for tenants to arrange their own connections including but not limited to electricity, gas, internet and phone

Remember teething issues can occur when tenants move into the property. Each individual has different expectations of cleanliness, presentation and matters requiring maintenance. If you’ve been putting up with something, have it fixed to prevent any angst around the matter for tenants.

Property Compliance and Safety

Every state and region has specific legislation around how a rental property is to be offered and maintained during a tenancy.

Property Owner obligations

• Provide the property in a reasonable state of cleanliness

• Provide the property in reasonable state of repair at tenancy start

• Allow for “Wear and Tear”

Tenant obligations

• Keep the property in a reasonable state of cleanliness

• Not intentionally damage premises

• Notify the landlord ‘as soon as practicable’ of any damage

• Not use premises for illegal purposes

• Not add or remove fixtures or make any renovation, alteration or addition to the premises

Agent obligation

• Act in the best interest of all parties

• Abide by legislative guidelines

• Minimize risk and avoid liability claims for all parties

Ask your LJ Hooker Property Investment Manager for information about how you can ensure your investment property is compliant. If you are unsure about a particular item, please contact your insurance company to ascertain what the ramifications are should you not address this item.

It’s important to remember the tenant wants to build a secure home environment in your investment property. It’s a great idea to take a step back and review your property, asking yourself “Would I live here?” if your property needs a little spruce up, your LJ Hooker Property Investment Manager can assist with this too.

Minimum Housing Standards

Use this checklist to help ensure your property is compliant with the 2023 Minimum Housing Standards.

WEATHERPROOF & STRUCTURALLY SOUND

☐ The premises appears to be visually weatherproof and structurally sound

☐ Windows and roof do not leak in the rain

☐ Visually the floors, walls, ceiling and roof are in good repair and do not appear to be affected by significant dampness

☐ Decks and stairs do not visually appear to show signs of significant/dangerous wood rot

☐ Upon visual inspection of the premises, it appears that it is not likely to cause damage to a person’s safety

FIXTURES & FITTINGS

☐ All fixtures and fittings in the property appear in good repair according to the current tenant

☐ Any air conditioners, ceiling fans, security cameras, ovens and other electrical appliances or inclusions are all working and in good repair. If not, they must be removed from the premises or repaired.

☐ All windows and doors appear to have working locks or latches

☐ All windows above 1.6m in height appear to have security screens and/or not open more then 125mm.

VERMIN, DAMP & MOULD

☐ Premises appears to be free of vermin or traps/bait have been set to eradicate vermin

☐ Premises appears to be free from mould or damp or treatment has been organized

☐ Where possible, premises appears to have has satisfactory ventilation in the bathroom to reduce mould and damp. Tenant has been informed of how to mitigate the risk of mould.

PRIVACY

☐ All windows in bedrooms and other rooms where people outside, can see inside, have coverings –Blinds, curtains, frosting or tinting

PLUMBING & DRAINAGE

☐ Hot water system appears to be a suitable size for the number of occupants in the property

☐ Property appears to have hot and cold water suitable for drinking

BATHROOMS & TOILETS

☐ All toilets have doors for privacy

☐ Toilets all appear to be working correctly including refilling, flushing & connected to sewerage system

KITCHEN

☐ Functioning cooktop in good order

LAUNDRY

☐ Sink and taps in good order

To learn more, go to https://bit.ly/HousingStandards or scan the QR code.

Maintenance: Life Span Guidelines

These guidelines are provided by QCAT to assist property owners to assess the expected life spans of certain maintenance items in a rental property.

Please note that these are guidelines only and can vary based on the area, the type of construction and the turnover of tenants and may require a certified professional to check, maintain and replace.

• Painting (internal): Every 5 years

• Bathroom renovation: Every 20 years

• Painting (exterior): Varying

• Hot water system: Every 7 years

• Oven: Every 10 years

• Kitchen renovation: Every 10–15 years

• Clean gutters: Check annually

• Pest inspections: Check annually

• Electrical wiring: Check every 2–3 years

• Swimming pool: Check filtration equipment — annually

• Replacing floor coverings including carpets: Every 7–10 years

• Smoke alarms: In most states across Australia smoke alarms complying with Australian Standards must be fitted in all rental properties and in accordance with the Building Code of Australia — check alarm and replace batteries annually.

• Houses: Structural checks including safety of balconies, verandahs and roofs — check annually

Renting To Tenants With Pets

Tenants are required to seek the lessor’s consent to keep a pet at the rental property. Lessors can provide approval subject to reasonable conditions as agreed with the tenant, or refuse the request only based on specific reasons under the legislation, council regulations and body corporate bylaws.

Reasons to consider renting to a pet owner

1. Pet owning tenants are generally willing to pay more rent.

2. Pet friendly properties rent faster.

3. Responsible pet owners can make excellent tenants.

4. Tenants with pets want to hold onto longer leases.

5. No more problems with “hidden” pets.

6. Most Australians feel their pet is part of the family and care for them as such.

7. “Considering pets” will not lock you into a pet-particular outcome.

8. Pet application and agreements forms are available.

MYTH BUSTING

MYTH: Pets create damage to properties FACT: Data showed that there was little, if any difference in damage between tenants with or without pets.

Interestingly, the cost of damage from pets was much smaller than the costs associated with tenants with children.

MYTH: A second pet is double trouble

FACT: Tenants with more than one pet need not be seen as a problem. Most pets, including dogs and cats, are social creatures, and companionship is important for their well-being.

Keeping two pets can help alleviate issues associated with boredom and loneliness.

MYTH: Strata properties are not suitable for pets FACT: Dogs and cats can be kept successfully in small spaces and cats, in particular, can adapt well to an indoor or high-rise environment.

Not all strata schemes permit pets, so it is important for landlords and managing agents to check that the by-laws allow pets and whether any particular approvals are required before agreeing to rent the property to a pet owning tenant.

MYTH: Bigger pets mean bigger problems FACT: The size of a pet is not related to how well it will be suited to a particular living environment.

Experts emphasise that it is the owner/pet relationship which results in socially responsible behaviour and activities i.e. toilet training, manners, exercise, care etc.

Experts also look to the temperament and degree of socialisation of the pet.

Some landlords and agents stipulate that a dog has to weigh less than 10kg or be ‘small’.

However this is very subjective and many larger dogs tend to be very quiet and docile.

Important: If a lessor does not respond to the request within 14 days, or if their written response does not comply with the legislative requirements of providing approved reasons for the refusal or reasons for the conditions of approval, the request will be taken as approved.

To learn more about renting to tenants with pets, go to bit.ly/PetsFactSheet or scan the QR code below.

Smoke Alarm Compliance

Smoke alarms save lives. Reports have found that the risk of death in a house fire is reduced by more than half if properly maintained smoke alarms are installed.

With interconnected smoke alarms, when one goes off, they all go off, giving everyone extra time to escape.

From January 2022, smoke alarms in all dwellings must:

• be photoelectric (AS 3786-2014); and

• not also contain an ionisation sensor; and

• be less than 10 years old; and

• operate when tested; and

• be interconnected with every other smoke alarm in the dwelling so all activate together; and

• be either hardwired or powered by a non-removable 10-year battery.

In addition to the above, property managers/owners are currently required to test and clean smoke alarms and replace any flat or nearly flat batteries within 30 days before the start of a tenancy. This also includes a renewal tenancy.

Tenants must:

• test and clean (by vacuuming or dusting) smoke alarms at least once every 12 months

• replace any flat or nearly flat batteries

• advise the property owner/manager if there is any issue with the alarm (apart from batteries)

• allow the property owner/manager right of entry to install smoke alarms

• not remove a smoke alarm or the battery (other than to replace it), or do anything to reduce the effectiveness of the alarm e.g. paint or cover it

You do not need to be qualified or licensed to clean or test a domestic smoke alarm. LJ Hooker Solutions Gold Coast outsource smoke alarm maintenance to trusted companies as part of our processes.

Find out more about the new smoke alarm legislation from Queensland Fire and Emergency Services by going to fes.qld.gov.au/prepare/fire/smoke-alarms or scanning the QR code.

Insurance

Landlord insurance is specifically designed to protect those who own investment properties from the risks that come with renting it out. It generally covers events that cause a loss of rental income, theft or damage to your property.

There are generally three components of landlord insurance:

• The part that covers loss of rental income

• ‘Building insurance’ which covers damage to the property’s structure

• ‘Contents insurance’ for protection against damage to what’s inside the property (e.g. carpet, appliances)

• ‘Public liability insurance’ or legal liability cover, which insures the landlord for death or bodily injury to other people or damage to other people’s property.

Landlord insurance can apply to all sorts of investment properties, whether it’s a house, unit, apartment or townhouse.

Additionally, Landlord insurance costs can be tax deductible

What’s the difference between landlord insurance and building insurance?

Landlord insurance covers you for unforeseen circumstances relating to your tenants, such as if they damage or destroy your property, or in some cases where they leave without making their rental payment.

Building insurance (often called home insurance) on the other hand covers the cost of building repairs or replacement - for example, if your house burns down in a fire. You’ll need to organise building insurance for your property, unless you buy a unit, in which case the building insurance may be paid from your strata levies.

While you don’t have to take out this type of insurance, it’s an important consideration, as it will cover you for potential financial losses which could be costly if you don’t have insurance in place. These losses may result from a range of scenarios, from damage to the building caused by your tenants, to a loss of rental income should tenants leave without paying.

Many LJ Hooker Solutions Gold Coast clients choose to use EBM Insurance or Terri Sheer Insurance. Our longstanding relationship means they understand our landlords better than any other company. They work closely with us to maximise our claims and we know that you will be in the best of hands with them.

Additional Protection

Barclay MIS Protect and Collect works in addition to your landlord insurance, proving an additional layer of protection for your investment.

In the unfortunate event that you suffer losses due to the non-payment of rent or damage to property from a defaulting tenant, Barclay MIS Protect and Collect offers the most successful debt recovery product in the real estate industry.

The Barclay MIS Protect & Collect Plan effectively works to prevent the problem occurring in the first place, as it gives us the ability to search an applicant’s rental history through a defaulting tenant database ‘Tenant/ Property Track’ together with the ability to monitor rental property histories.

During the tenancy, we are able to use BarclayMIS for rental arrears, as early as 4 days as well as assisting with enforcing payment plans during the tenancy.

If your tenant vacates your property leaving an outstanding debt over and above the bond and your agent obtains a tribunal/court order Barclay MIS Protect & Collect will locate your tenant and recover any outstanding monies owed to you. These monies will be paid to you free of any commissions or legal fees.

They also assist with the eviction of tenants from your property, together with the removal and storage of tenants goods, as per legislation.

Property Inspections

LJ Hooker Solutions Gold Coast have invested in new technology for entry, exit and routine reports so we can let you know the condition of your property like never before.

This groundbreaking new tech allows Property Managers to provide the highest level of service, transparency and accountability for each and every property, improved efficiency and drastically reduced, time-consuming inspections and reporting.

We compile a detailed entry reports tailored to your property using a 360 degree camera in every room so we can ensure that no detail is missed and minimising end of tenancy disputes.

Our reports are completed faster and with less tenant disruption than traditional inspections.

LJ Hooker Nerang 07 5581 4422

2-4 New Street, Nerang 4211 nerang@ljhgc.com.au

LJ Hooker Coomera 07 5585 7888

The Hub, 90 Days Road, Upper Coomera 4209 coomera@ljh.com.au

Solutions Gold Coast

LJ Hooker Ormeau 07 5549 4500

Norfolk Village Shopping Centre, 170-174 Pascoe Road, Ormeau 4208 ormeau@ljhgc.com.au

LJ Hooker Tamborine Mountain 07 5545 1500

Shop 1D/17-27 Main Western Rd, Tamborine Mountain QLD 4272 tamborinemountain@ljhgc.com.au

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Landlord Information Pack by LJ Hooker Solutions Gold Coast - Issuu