PROPERTY MANAGEMENT NEWSLETTER REAPING THE BENFITS OF RENEWING YOUR TENANT’S LEASE Ensuring a continued tenancy is paramount in order for you to budget for regular and ongoing rental income. Not only this, but a tenant on a fixed term lease on an ongoing basis mean more income as the property will not become vacant or suffer additional wear and tear through the tenant vacating and a new tenant moving in. We understand this and will, with your consent, approach your tenant prior to the lease expiring in order for them to renew the lease. Prevailing legislation dictates that the option is with the tenant if they would like to sign a new lease. Should you wish to enter into a new lease with your current tenant, we will use all avenues to ensure that the lease is signed. We will inform your tenant that by entering into a fixed term lease we can guarantee them security of tenure for that term, where if they remain on a continuing tenancy we cannot give that guarantee. In some instances the offer of a moderate rent increase as against a higher one is another inducement that can be made to ensure that your tenant signs a lease and you have peace of mind. Colin Rodgers
June 2016
2016 & THE NEW FINANCIAL YEAR AHEAD The financial year ending 30 June 2016 has seen a number of legislative changes affecting the management of investment properties in NSW. The year also saw modest increases in rents with a vacancy rate hovering around 1.9% which is higher than in previous years. During 2015/16 Swimming Pool and Spa compliance was introduced which required the registration of Swimming Pools and Spas throughout the state. The Act also requires that as a property becomes available for Sale or Lease the pool or spa must be certified which requires an inspection by a qualified certifier, usually local council, and any remediation work undertaken to enable the pool to be certified as compliant. Interestingly, upon inspection, it has been found that 95% of pools have found to be non compliant. This means that the property cannot be sold or leased until the work is completed and the pool certified as compliant. As a proactive Best Practice measure all properties under our management control, where the owner has given consent, we have arranged for the pool inspection and certification. Such inspections are to be undertaken every three years. Recently the introduction of mandatory blind cord compliance in rental properties became effective. This is as a result of the number of child deaths by blind cord strangulation. We are arranging for the blind cord compliance inspection, rectification and compliance to be bundled with the smoke alarm compliance inspection. You will soon receive notification from us seeking your instructions to arrange this compliance certification together with mains safety switch compliance. The presence of loose fill asbestos in homes built before 1980 in 53 council areas across the state. This does not affect Sutherland Shire properties in the council area. We will be in contact with you to should your investment home fall in the pre 1980 build category with information regarding property owner requirements to comply with legislation. The Residential Tenancies Act is presently under review with final submissions to be made to state parliament later this year. Although we do not foresee any dramatic changes to The Act, we have put forward our proposal that the rental bond payable increase from four weeks to six weeks, that the government resist other proposals to change notice required periods and the fixing of the rate of rent increases. We will keep you informed during the coming months as to likely changes to The Act. We take this opportunity to remind you that you can access all your rental financial information on line on our secure 24/7 portal. To access this please contact your property manager who will arrange for your user name and pass word access code to be provided to you. Should the Tenancy Agreement on your property be in a continuing term, your property manager will be in contact with you to discuss the renewal of the agreement to ensure consistency of tenure and income from your investment property. We view this as paramount in the coming year.
THE IMPORTANCE OF READING YOUR STRATA NOTICES Although the notices of your strata meetings may contain a number of agenda items over several pages it is imperative that you invest the time to read the document. The notices of your strata meeting contain not only the financial aspects of your strata plan including budgets and future levy contributions that you pay but it also contains information as to the building’s insurances and any building repairs that are required. It pays to invest the time to read the agenda as failure to be aware could cost you in additional levy contributions that you haven’t budgeted for.