Issuu on Google+

PROPERTY INVESTORS HANDBOOK


Contents SECTION ONE Commonly Asked Questions The Marketing of my Property

3

Property Presentation

3

Getting the Best Tenant

3

Tenancy Agreements

4

Taking the Bond

4

Pets at My Property (if permitted)

5

Pest Control Services

5

Landlord Insurance

6

Smoke Alarms

6

Receiving My Rent Monies

6

Receiving My Financial Statements

7

Inspecting of My Property

7

Repair and Maintenance of My Property

8

Renewing the Lease with My Tenant

9

Breaches of Tenancy

9

Costs Incurred at My Rental Property

10

Selling or Moving Back Into My Property

10

SECTION TWO A Guide to Getting Your Property Ready for Tenancy

11

SECTION THREE Photography guide & McGrath Property Management Service Warranty

13


section one commonly asked questions The marketing of my Property

What do you do to advertise my property? Once we have a signed Management Agreement authorising us to act on your behalf, we list your property in the following forms of advertising: 1. Rental Listing Brochure- Your property is added to our office listing brochure with details of your property. This is given to anyone that comes in looking for a rental property and is provided at all property open for inspections. 2. Internet- Your property, along with photos is entered onto the following websites, maximising coverage to any prospective tenant using the Internet to locate a rental property.

a) www.mcgrath.com.au

b) www.realestate.com.au

c) www.domain.com.au

d) www.rent.com.au

3. Tenancy database – We track suitable qualified tenants once your property has been listed with McGrath Property Management should it meet their search criteria. Property Presentation

How should the property be presented? We ask that the property be presented in the best manner possible to attract the right tenant for your property. We don’t want a bad first impression to detract the right tenant from renting your property. Please refer to our guide ‘Getting your Property Ready for Tenancy’ in Section Two with tips and a checklist on how to present your property for rent. How clean should the property be when a new tenant moves in? The property should be presented ‘reasonably clean’ in accordance with legislative requirements. Please refer to our guide to ‘Getting your Property Ready for Tenancy’ in Section Two for recommended levels of cleanliness. As a very general rule we ask the tenant to leave the property at the standard they found it. In cases where the property is provided at an extreme level of cleanliness we ask the tenant to leave the property likewise. However in the case of a dispute legally we can only enforce that the tenant return the property in a ‘reasonably clean’ condition, this being their minimum legal obligation. Getting the Best Tenant

How does someone apply for my property? We always ask that the prospective tenant fill in an application form giving us permission to check the information provided. We will never discuss an applicant with you without this application form being completed. How do you check an applicant? With the information provided we confirm the applicants’ payment and tenancy history by calling their current and/ or previous landlord/agent as well as confirming their employment. We then check them against a National Tenancy Internet Database to check if they have been lodged as a bad tenant by a previous agent. 3


In some cases where an applicant may not have a tenancy history we try and confirm other information that may give us insight to show their ability to maintain a tenancy in your rental property, for example a stable employment history. In some cases where this is not possible we may simply reject the application. What reason do you have to give the applicant to reject their application? Legally we do not have to give a reason and by industry practice we never give a reason. Who selects the applicant for my property? You do! We will simply give you the information we have collected and by using our experience give you our recommendation as to the tenancy outcome, but at the end of the day it is always your choice. Do you guarantee the tenant? We can never guarantee any approved tenant for your property. We can only attempt to collect information on their past history and confirm their income arrangements. As payment of rent and maintaining the property is purely voluntary, we cannot guarantee any tenancy outcome. Tenancy Agreements

What do you explain to the tenant when they move into the property? We go through all of the most important expectations. For example, they must pay their rent on time, where to pay their rent, what we do if they do not pay their rent. We discuss our repairs and maintenance policy, what happens in an emergency repair situation, how often inspections occur and what we look for. We also supply them with a copy of the ingoing inspection report, explain how they must check, sign and return a copy of the report to our office within 7 days. We explain and get them to sign the Bond Lodgment Form. We also hand to them a New Tenant Checklist that explains some of their tenancy rights and obligations. We must issue them with this Checklist in accordance with legislative requirements. Taking the Bond

How much bond do you take from the tenant? Bond is set by law at a maximum of four weeks rent. When do you pay back the bond monies? We only refund the bond after the following has occurred:

a) The tenant has fully vacated the property and keys returned

b) The property has been inspected, and is satisfactory when compared with the ingoing inspection report.

c) All monies are paid. This could be any outstanding rent, water or anything owed by the tenant

d) If the tenant is breaking their lease, any re-letting fees and advertising costs (part or full costs)

e) Confirmation with you that the bond will be refunded

If the tenant has a pet, can I ask for an extra bond (a pet bond)? Unfortunately no! We are legally only allowed to take one bond, as specified above. However, we are allowed to specify

4


that the carpets be professionally steam cleaned and that the property be professionally fumigated when the tenant vacates the property. What do they sign? We prepare a Tenancy Agreement in duplicate covering the details of the tenancy, with terms and conditions. This agreement is then explained in full to the tenant before we get them to sign it. We will then send you a copy of the tenancy agreement together with a copy of the ingoing inspection report, for your records. When do they get keys and possession of the property? After all the forms have been explained and signed, all bond monies and first payment of rent received we will then provide them with a full set of keys and possession to the property. Pets at My Property (if permitted)

If I allow pets at my property, what expectations will be given to the tenant? We always sign a lease agreement with a pet clause upon your express approval. This obligates them in 3 ways:

a) No pet or additional pet may occupy the property without your prior permission.

b) The pet must be removed from the property if it becomes disruptive or bothersome to neighbours (after reasonable warning has been given in writing).

c) The tenant must be responsible for any damage caused by their pet.

We also record the details of the pet on the agreement, which is then signed by the tenant. What if I don’t want the pet to come inside the property? We obligate the tenant to commit in writing that they will not bring the pet inside by way of a special condition. However as we are unable to monitor the property all of the time, we cannot guarantee that the pet will not come inside the property. We do look out for any warning signs whilst at the property conducting inspections. However, the only way to ensure that a pet will not come inside the property is to insist ‘No Pets’ right from the start of the tenancy. Pest Control Services

Should I get my property regularly checked for termites? Yes! We strongly recommend all of our clients choose a pest control service and request that they regularly check your property for termite activity at the frequency they recommend. Unfortunately we do not contract them to do this on your behalf, unless you specifically instruct us in writing to do so each time it is required. Please note, it is a general exclusion of all building insurance policies that damage to your property caused by termites is not covered (not insurable). Therefore regular checking is the best way to prevent termite damage, or at least attempt to identify warning signs that termites are creating damage. Without this the damage could be substantial and very costly to rectify.

5


Landlord Insurance

Why do I need landlord insurance if I have an agent? We at no time can guarantee your tenant’s performance during the tenancy. The risk belongs to the owner of the property, and therefore the owner should be insured for any unforeseen risk. Why do I need landlord insurance if I have a good tenant? Even a good tenancy can turn bad. If the tenant’s circumstances change sometimes the tenancy will become unstable. This can result in rent owing. It pays to be properly insured, even with a good tenant. What does landlord insurance cover? Landlord insurance will cover rent loss due to tenant default and malicious/accidental damage to the property caused by the tenant. We can arrange cover for you. It is important for you to know what your landlord insurance policy will and won’t cover. Please consult with your landlord insurer so that you are fully aware of the extent of your cover and also any excess that may be applicable in the event of a claim. Smoke Alarms

What type of smoke alarm should be fitted? We recommend that a Hard-Wired smoke alarm be fitted to all rental properties; due to the high chance of a tenant tampering with a removable battery powered alarm (9-Volt Battery powered alarms) and onerous obligations imposed upon landlords under The Act who install 9 volt battery powered alarms. In the case where a hard-wired smoke alarm cannot be fitted, then it is recommended that a 10 Year Lithium Battery Operated alarm be installed. This type of alarm is easily fitted like a 9-Volt type alarm, but the 10 Year Lithium alarm has a battery sealed inside that cannot be removed. The Environmental Planning and Assessment Amendment (Smoke Alarms) Regulation 2006 specifies the type of alarm to be installed and its location. We can arrange for a specialist Smoke Alarm Company to annually inspect your smoke alarm and check its compliance with legislation and submit a compliance certificate for a small annual fee. They will also check the smoke alarm upon the change of tenancy. Why can’t I just have the cheapest smoke alarm possible? Due to the common problem of tenants removing and not replacing the batteries to these alarms, we believe that these types of alarms have a possible chance of failure if there is a fire. Therefore to provide the highest chance possible that the smoke alarm will work in case of a fire, we recommend that hard-wired alarms be installed. Please let us know if you would like us to arrange for hard-wired smoke alarms to be fitted into your rental property. Receiving my Rent Monies

How do I receive my rent payments? We will deposit all monies collected into your nominated bank account.

6


How do you collect the rent? We offer tenants many methods to pay rent which may include Direct Debit, Bpay, DEFT and Credit Card. Your Property Manager will consult with you on the methods available for rent payments at your local McGrath office. What happens if my tenant does not pay the rent? Paying the rent is always a voluntary action on behalf of the tenant. We can never force a tenant to pay their rent. Even a tribunal can only ‘order’ a tenant to pay but can never physically force them to pay. If a tenant does get behind in their rent payments we follow a programmed process which includes. - SMS notification to the tenant - Reminder phone calls - Follow-up phone calls and letters advising of impending action if rent remains unpaid - Serve Termination Notice (this obligates the tenant to pay all monies owed within 14 days). We will also lodge application to seek vacant possession and payment of monies due with the relevant regulatory bodies. Sometimes, the bond of four weeks rent will not cover the shortfall in rent, however if you have landlord insurance there will be a reasonable prospect of covering the rent payment shortfall, in the case of your tenant defaulting in their rent payments. Without landlord insurance, the chance of recovering owed rent monies is minimal. If you have no protection for your rent payments, the problem is further compounded with the fact that the bond will probably be exhausted with owed rent. You will then most likely have cleaning and re-letting costs, as well as outstanding monies like water usage owed by the tenant. Therefore without landlord insurance, this process could be quite risky financially. Receiving my Financial Statements

Why do I receive statements? We will issue you both monthly and yearly financial statements, accounting for all monies we have handled and disbursed to you on your behalf in accordance with legislative requirements. You will receive your monthly statements together with any tax invoices from tradespersons or other disbursements paid during that month on your behalf. Your end of year statement accounts for all monthly statements accumulated, for accountancy ease. When do I receive these statements? Your monthly statement will be emailed to you every month, and the end of year statement will come to you in mid July of each year being the month immediately following the end of the financial year. What do I do if I misplace a statement? Contact us and we will reissue another one to you. This may incur a cost. Please refer to your management agreement schedule or addendums for these charges. Inspecting of my Property

Do you inspect the property at the beginning of a tenancy? We conduct a comprehensive inspection of your property when a tenant first moves in.

7


We inspect your property area by area (lounge room, bedrooms, kitchen, front and rear yards, garage etc) and then all items present in each area (walls, ceiling, light fittings, curtains, windows, stove etc). We record the condition and cleanliness item by item, and then a brief description and detail about the item. This involves recording details of any marks, scratches and dents etc. We also take photos of the entire property. How often do you inspect the property during the tenancy? We inspect the property after the first three months and then at regular intervals thereafter (your Property Manager will explain the interval periods with you) . This inspection is not as detailed as the start of tenancy inspection. This inspection is more of a walk through, checking room-by-room the tenant is keeping the property damage-free and reasonably clean. We will also take photos of the property, and any repairs or concerns observed. Please note that due to privacy reasons we are unable to take photos inside involving tenant belongings, and also we are unable to take any photos if the tenant refuses permission- this is in accordance with privacy legislation. We will also note any repairs reported or observed by us and any other recommendations needed to assist you in keeping the property in the best condition possible. You are then sent a copy of the inspection usually with your end of month statement for that month. If there are emergency items we will contact you immediately. What about when the tenant vacates the property? When the tenant lets us know they will be vacating, we send them detailed information on our expectations of how the property needs to be presented. Once the tenant has fully vacated, we compare the property to the ingoing inspection report completed when the tenant moved into the property and the photos taken at the commencement of the tenancy also. We carefully check through the report item-by-item, ensuring it has been left in the same condition as when they moved in, taking into account reasonable wear and tear for the period of time they have been in the property. This is a legislative requirement. We ensure the property has been left reasonably clean. Should you have a battery operated smoke alarm installed, it is a legal requirement that the battery be replaced by the landlord upon the change of each tenancy. To this end we suggest that a hard wired smoke alarm with a 10 year life span battery be installed. We check and also read the water meter (if applicable). Repairing and Maintaining my Property

Who is responsible for maintaining my property? Under legislation it is the responsibility of the landlord to repair any required items in the property. This means it is at the landlord’s expense. Who is responsible for general wear and tear? General wear and tear that occurs from tenants just living in a property is expected and legislation provides that it be allowed. A few extra marks and scuffs on the walls, some chips and scratches to doors and doorways will occur over time, along with the gradual wear of everything that is in the property. The only time a tenant can be held responsible is if wear and tear is considered ‘excessive’ for the time frame that the tenant has been in possession.

8


What if the tenant is at fault? If a tenant has caused damage to an item that is not the result of normal break down or wear and tear, this will be charged to the tenant. Normally, a tradesperson would let us know whether the repair was normal or was influenced or caused by the tenant. Who is responsible for maintaining the lawns and gardens? Unless otherwise agreed, the tenant is responsible to maintain the lawns and gardens to the standard they were given at the start of the tenancy. This only includes general gardening such as lawns, edges and some weeding. We recommend a gardener be employed each quarter for pruning and fertilizing etc. We can organise this on your behalf. If the property is provided with watering systems these need to be working and kept maintained during the tenancy. Renewing the Lease with my Tenant

Who decides if the lease will be renewed? We will contact you 3 months before the lease is due to expire, and seek your instructions if you wish to renew or in fact not renew the lease. Once we have your approval we will then approach the tenant to have the lease renewed. If I do not wish to renew the lease, do I have to give a reason? If you do not wish for the lease to be renewed you are not obligated to give your tenant a reason. How much notice must my tenant give when they want to vacate the property? Once the fixed term of the Tenancy Agreement has expired the tenant is required to give 21 days notice in writing to vacate. If this agreement is a fixed term agreement it may be ended by the tenant by giving written notice of termination. The notice may be given at any time up until the end of the fixed term but cannot take effect until the term ends. The tenant must give at least 14 days notice. If they break their lease, they may do so with little to no notice however, they are subject to some applicable fees which are dependent on the conditions at the time of signing. E.g. by agreement the tenant can be responsible to pay rent until a new tenant is secured, or to the end of the lease (whichever occurs first). They must also contribute to the letting fee and advertising costs (please refer to the next section). The other option under the Act allows for a break lease payment of 6 weeks rent in the first half of the term and 4 weeks rent in the last half of the agreement. This payment incorporates all costs incurred as a result of the break of lease. Unfortunately we have no control over the tenant breaking their lease early. People’s circumstances change and sometimes they move out earlier than expected. In this case, we will need to charge letting fees and advertising again. Breaches of Tenancy

What happens if the tenant breaks one or more of the conditions of tenancy? If the breach is minor approaching the tenant verbally or in writing may be appropriate. If it is something serious we will consult with you first to discuss what action to take. Serious breaches of tenancy may involve using the property for illegal purposes or bringing in pets without prior permission etc. We will let you know whether we should serve a termination notice on the tenant first or use other means to rectify the breach.

9


Costs Incurred at my Rental Property

Who pays for water usage charges? Water usage charges can be charged to the tenant if your property has a separate water meter. The water usage charge will appear on your water rate notice. You will need to have water efficiency measures installed at the commencement of the tenancy. How do you calculate what water usage charges the tenant has to pay? Usage charges appear on and form part of your water rate notice. Should you wish to charge the tenant for water used during the tenancy please send us a copy of the front and back pages of your rate notice and we will charge the tenant for the water used during that rating period. Most Landlords request that we pay Water Rates on their behalf so we can arrange the collection of water usage automatically. What about council and sewerage rates? All these costs must be paid by the landlord as specified by legislation. Charges for excess rubbish, sanitary charges and charges for pumping out a septic system may be able to also be charged to the tenant. Selling or Moving Back into my Property

What happens to the tenancy if I wish to sell my property? You may sell your property at any time. However any fixed term lease in place is guaranteed to your tenant. This means if a person buys your property and they wish to occupy it, they must wait until the tenancy is finished unless the tenant agrees otherwise. What if I want to move in or someone from my family wants to move in? Again any fixed term lease is guaranteed unless the tenant agrees to move out. What if they are on a non-fixed term agreement? If they are on a non-fixed term agreement, you may give them notice. You may give them a minimum 30 days notice (allowing also for postage delivery time) where the property has been sold (contract signed) and the purchaser requires vacant possession. Otherwise 90 days notice (allowing for postage delivery time) is required in all other instances. Can you sell my property on my behalf? Selling your property is part of the service we provide. It is always preferred that we sell your property. It is much easier to coordinate access with the tenant between the sales and leasing departments if you are using the same agency for both services. Your tenant will also be more comfortable to deal with a company they are already familiar with.

10


section two A Guide to getting your property ready for tenancy For your convenience we wish to provide you with a guide to getting your property ready for your new tenant. It covers common areas overlooked by owners when moving out. We have also structured the guide into a convenient checklist format. Some things to do:

□ Have your mail redirected. Please ensure that all mail is re-directed to your new address. □ Utilities - Electricity, Gas, Phone, etc. Please ensure all accounts are advised and cancelled accordingly. The only services to remain in your name (with your new postal address) are water rates, council rates and strata levies.

□ Appliance Manuals - Please leave them on the kitchen counter so we can photocopy them and leave in the property. □ Keys - Please ensure all locks have keys. Please supply 3 full sets of keys (one for our office, one for each tenant) Cleaning Guide: Inside the Property

□ Walls - please clean off any dirty marks, removable scuff marks, finger or food marks etc. □ Ceilings - Please remove any cobwebs □ Ceiling Mould - please clean off (particularly in wet areas and sometimes in bedrooms). □ Light Fittings – Clean off dust and remove any dead insects inside □ Ceiling Fans – Wipe fan blades and tops of fittings to remove dust build up □ Skirtings – Wipe down with a damp cloth □ Doorways, Doors - Wipe off finger marks and any other removable marks □ Windows – Clean inside and out - (please note - nearly all modern sliding aluminium windows can be lifted and

pulled out for easy cleaning). Also sills and runners (wipe out dust build up and any dead insects. A vacuum cleaner and paint brush can really help here).

□ Flyscreens - brushed and dusted down. (Please be aware, most modern sliding aluminium windows allow for the

flyscreens to be taken off from the inside only, once the sliding part of the window has been moved first. Attempting to take them off from the outside may result in damaging them).

□ Screen Doors - Front and back including frames – wiped clean and screen wire brushed □ Stoves – Clean stove top, control display, knobs, panels around knobs, any pull out or in-built drip trays, griller racks,

trays and any inserts, oven racks, trays and oven bottom, walls and oven roof. A good oven cleaner will clean most ovens - however it is of importance that you read carefully the instructions on the product. Some cleaners can actually hinder oven surfaces (like stainless steel), and also some products have dangerous caustic fumes. Therefore use with extreme caution!

□ Kitchen Rangehood – To clean properly pull out filters and framework. □ Bathroom - Clean sink, mirror, cabinet, vanity unit and drawers, shower recess, glass screen and screen doors, bath and wall tiles. Please ensure that all sinks and baths have a plug available.

□ Toilet - Clean cistern, seat, bowl inside and also outside around the base. Don’t forget the skirting tiles around the toilet. □ Laundry - Clean both the inside and outside of the trough, and underneath. Please ensure a plug is present. 11


□ Tiling - All tiling and grouting to the kitchen, toilet, bathroom and laundry areas are clean. □ Exhaust - Vents and Fan Covers are clean of any dust and dirt. □ Air-conditioners - Front Vents and filters cleaned of built up dirt. Modern systems (Wall Type)- filters easily pull out and can be brushed down with a hand brush. If there is a ducted reverse-cycle air-conditioner unit, the air intake filter should be cleaned. This is usually on the ceiling in the passage area.

□ Air-conditioning Ceiling Duct Vents - please clean down if dusty or dirty. □ Cupboards/Drawers- Please clean/wash inside and out. Also doors and door frames, front and back of doors need to be cleaned.

□ Curtains - wash any washable curtains and netting. If other curtains are visibly dusty or dirty, consider dry cleaning. □ Blinds - If you have venetian blinds, clean off the blind slats. Any other type of blinds should be able to be wiped down. □ Floors - to be mopped/washed if needed - please ensure corners and hard to get areas are also cleaned. □ Carpets - To ensure a greater chance of the carpets being returned by a tenant professionally cleaned, we ask also that the carpets be professionally cleaned. Phone us for details of who we recommend and use.

Cleaning Guide: Outside the Property

□ Lawns - Freshly mowed and edged (best done only a couple of days before the tenant takes possession). □ Gardens – remove any weeds, any rubbish and built up leaves etc. □ Guttering – please ensure that the gutters are freshly cleaned of any dirt/silt and leaves/twigs. □ Rubbish - remove any rubbish that you have placed at the property. Be sure to check behind sheds, under shrubs, under the house and around trees. This includes lawn clippings piled and compost left.

□ Sweep paths and paving areas (this is best done only a couple of days before the tenant takes possession). □ Oil spillage removal – Check and clean carport and garage floors, paths and driveway. If you have used a barbeque, check for any grease spots and spillages etc.

□ Garages and Tool Sheds- please remove any items from inside and behind garages and tool sheds. The only things that perhaps should remain are items directly related to the property (for example spare roof tiles, other spare tiles and paint tins etc)

If you require a cleaner to conduct any of this work we can arrange this for you. If you have a pet:

□ Pet Droppings - please remove from gardens, lawns and any out of the way areas. □ Dog Urine - remove/clean where your pet may habitually urinate (Base of walls, verandah posts etc.) □ Dog stains - to outside walls- check where your dog regularly lies down, there could be ‘tell tale signs’ on walls etc. □ Dog/Cat claw damage - check screen doors, flyscreens and curtains. Please replace the screen wire if required.

12


section three tips for a successful photo shoot For your convenience we wish to provide you with a photo shoot guide to get the best results for your property. Bathroom

• Remove bottles, soap dishes from shower • Remove toys, floats, pillows, everything from the bath • Remove any hair and dental products from the counter and wipe down • Clean the mirrors and shower screens • Floor mats just make it busy; remove them, unless they are very well matched to the bathroom Balcony

Wash off the dust/mud/leaves this will make the balcony look larger and will make it present better. Pools

Please remove the pool cleaner and any leaves. Minor leaves and debris on the floor is not a problem as we will usually agitate the water to get some ripples going and catch the sun light. This has the additional benefit of hiding bottom debris. Gardens and Courtyard

Ensuring that a garden is free of leaves and twigs will lift it a hundred-fold. Also garden hoses are a distraction and are best put away. Props

• A bowl of fruit, flowers, some wine and glasses are usually inexpensive and can add intimacy and colour to the shot • We also use props like these to help lead the viewer’s eye into the shot, so their importance cannot be underestimated

• Small bottles of perfume on vanities and bedsides help soften the image The secret to a successful photo shoot is minimalism. The detritus of daily life, like remotes and tissue boxes may make it more liveable, but in a photograph they add visual clutter, close in space and confuse the viewer. Simple elements strategically placed help guide the viewer through the room and take in the feel, space and light that photography can bring to a property. Living Room

• Remove remote controls • Fluff up seat cushions, arrange scatter cushions • Wipe down surfaces: dust will show on blinds, curtains, windows • Untangle cords, pull blinds up completely, particularly if there’s a view • Clean windows: they let in more natural light and make the property more airy 13


Rugs and Tables

• Less is better. Most properties benefit from showing off the flooring. • Leave tables with just the minimum needed • Ensure table lamps work, they add tremendous feel to a bedroom Kitchen

• Remove knife-blocks and cutting boards • Remove magnets, photos and notes off the fridge • A magazine with a stand or fruit bowl add colour and interest to the kitchen • Too many things on the counter make the space look smaller and cramped so remove all but the most basic appliances; unplug the ones that remain and tuck the cords out of sight. • Wipe down the fridge, oven, microwave and other shiny surfaces to remove fingerprints and other smudges. They will show. • Ensure the light in the range hood is working • Also ensure that counter and effect lights are working

McGrath Property Management Service Warranty We commit to you in writing that we will perform the following duties when managing your property: Marketing your Property for Lease

• We will erect a ‘For Lease’ sign on your property (if signs are permitted). • We will place a listing for your property on all the real estate websites that we subscribe to and each listing will include at least 3 photographic images of the property. • Your property will be accurately described on all promotions. • We will conduct an unlimited number of private viewings of your property and at least one ‘Open for Inspection��� each week until the property is leased (subject to access provided to us by any current occupant). • All property viewings will be carried out by our leasing consultants (we do not give out keys to prospective tenants). • We will update you on the status of your available property at least twice each week until such time as the property is leased. Leasing your Property

• All information and references provided by tenancy applicants will be verified by us within 1 working day of receipt. • All tenancy applicants will be screened on a tenancy database that we subscribe to. • Unless you instruct otherwise, all potentially suitable tenancy applications will be referred to you for a decision. • We will lease your property for the best market rental and the property will not be leased for a lower amount without your prior approval. 14


• Subject to the tenancy commencement date and the tenant’s availability, we will prepare the tenancy documentation within 2 working days of tenancy approval. Rent Collection

• We will follow up all rent payments in accordance with: - our fully documented arrears process, and - the requirements of the relevant legislation • Should your tenant get to 15 days in arrears, we will issue the tenant with a termination notice unless otherwise instructed by you. • Should termination of the tenancy be necessary, we will keep you informed throughout the legal process. • You will be advised once the rent arrears have been paid by the tenant. Rent Monies

• All monies received by us will be electronically transferred into your nominated bank account. Repairs and Maintenance

• We will arrange repairs and maintenance in accordance with your instructions as per your Management Agency Agreement. (Unless the repair is defined as “urgent” under the Residential Tenancies Act). • We will attend to any “urgent” repair requests within 4 hours of receipt. • All reasonable steps will be taken to obtain the best pricing for your repairs and maintenance. • We will only use appropriately licensed and insured tradespeople for any repairs or maintenance work to your property. • We will provide you with a copy of invoices for all work arranged on your behalf for the property. Tenancy Agreement Renewals

• We will review the tenancy agreement for your property 90 days prior to its expiry. • We will contact you to discuss the renewal of the tenancy agreement. • You will be advised if the tenant does not want to renew their tenancy agreement. Periodic Inspections

• We will carry out periodic inspections of your property each year and provide you with a detailed report each time. We also invite you to attend property inspections. Tenant Vacating

• On receipt of a tenant vacating notice we will: - advise you by phone and letter - confirm the details in writing to both you and the tenant - list the property on our website and put the agreed promotion plan into effect within 1 working day 15


- prepare all necessary vacating documentation - arrange access for viewings by prospective tenants • After the tenant vacates the property: - process the tenant’s rental bond refund within seven working days - If deductions from the rental bond are considered necessary, full details will be provided to both you and the tenant. Property Disbursements and Statements

• All agreed property disbursements will be paid on your behalf prior to the due date (subject to the availability of funds). • Your Rent Statement will be personally checked by your Property Manager prior to being forwarded to you. • We will provide you with an accurate Annual Income and Expenditure Statement within 30 days of the end of the Financial Year. Documentation

• We will ensure that all documentation is accurate and complete. • All property condition reports will be comprehensively and accurately completed. Personal Information

• All personal information will be held in the strictest confidence and will not be released to a third party without written authorisation. • All updates and corrections advised to us will be recorded in our system within one working day.

16


DISCLAIMER This handbook has been prepared by McGrath Property Management as a guide for property owners and investors. Our offices, employees, agents and associates believe that the information and material contained in this handbook is correct at the time of printing but do not guarantee or warrant the accuracy or currency of that information and material. To the maximum extent permitted by law, our offices, employees, agents and associates disclaim all responsibility for any loss or damage which any person may suffer from reliance on the information and material contained in this handbook or any opinion, conclusion or recommendation in the information and material whether the loss or damage is caused by any fault or negligence on the part of our offices, employees, agents and associates or otherwise. The information relating to the law in this handbook is intended only as a summary and general overview on matters of interest. It is not intended to be comprehensive nor does it constitute legal advice. Whilst our offices, employees, agents and associates believe that such information is correct and current at the time of printing, we do not guarantee its accuracy or currency. Many factors unknown to us may affect the applicability of any statement or comment that we make to your particular circumstances and consequently you should seek appropriate legal advice from a qualified legal practitioner before acting or relying on any of the information contained in this handbook. The information contained in the handbook is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any of the information you should consider its appropriateness, having regard to your own objectives, financial situation and needs.

17


Sutherland Shire T (02) 8536 3444


Property Investor Handbook - Sutherland Shire