
5 minute read
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 pro-actively 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.