Informed
Property Management Guide.
At OBrien Real Estate we provide landlords, investors and tenants with an efficient service conforming to the complexities of today’s tenancy laws. With that in mind we provide the following professional property management services to our clients.
You, us and the tenant. We would suggest that your communication with tenants be through your Managing Agent. In our position as your agent, we provide a buffer between the tenant and you. This places the management of your property on a business basis and allows us to manage the property in knowledge of the total facts. Developing a close relationship with the tenant often limits your ability to charge a market rent.
Advertising. Rental list. Our rental list is updated daily and is a great source of enquiry. Lists are available in all of our local offices.
Internet. Our website is designed to attract tenants to your property. We advertise your property on our home page www.obrienrealestate.com.au and www.realestate.com.au, just to name a few.
For lease board. Once your property has been listed, or when your tenant supplies our office with the required 28 days notice, a For Lease Board will be placed at your property (subject to Body Corporate regulations)
Prospective tenant inspections and selection. We carefully and professionally consider the tenant selection. All property inspections are in the company of a Property Manager. For safety reasons we do not hand out keys to prospective tenants. The prospective tenant is invited to complete an application form, which allows us to check on the tenant’s history. By contacting the tenants’ previous landlord/estate agent, employers, personal references, as well as to access their ability to afford the rent. We will also run a public record search on your prospective tenant to find out any hidden financial problems or bad rental history they may have. All prospective tenants must view your property prior to applying for the property. These opens will be conducted both during the week and on weekends. If the property is tenanted, we can begin to show prospective tenants through during the last two weeks of the current tenancy period. If there is the slightest doubt about the applicant’s suitability, it is our policy to pass over the applicant. We regard this part of our role as Property Managers as the most important. Only after the applicants’ suitability as a prospective tenant has been fully established will we contact the owner to discuss the applications and receive instructions on the leasing of the property. A point to remember is that you, as the landlord, are ultimately the person responsible for making the final decision.
Stipulations on tenant type. (Discrimination act)
The Federal Government has legislation in place (the Discrimination Act) which prevents you, as an owner, from setting down requirements relating to race, religion or gender. While we will take care to select good tenants, we cannot accept instructions based on breaches of the legislation.
Residential tenancies agreement. The lease prepared by us is a legal and binding contract that provides clear written terms for the tenancy. It protects all parties to the lease and clearly outlines the obligations of all parties. Once a tenant has been approved, the tenant is required to pay the first months rent and sign the leases within 24 hours of being approved. Until all paperwork has been signed and rental monies have been paid, the property will remain on the internet and opens will continue to be conducted.
Tenancy length. Rental periods are negotiated by our office with a minimum of six (6) to twelve (12) months. This allows for regular rent reviews. Upon expiration of the fixed term lease, rentals revert to a periodic tenancy whereby a tenant leases the property on a month by month agreement with the same conditions of the original lease. A further fixed period can be requested by either the landlord or tenant. Although, we are not able to insist on a fixed term lease renewal as the Residential Tenancies Act states that it must not be mandatory.
Condition report. It is our policy to compile an inventory of the property at the beginning of each tenancy with as much detail as possible, including digital photographs. We have this verified by the tenant and signed as true and correct. Any damage not caused by fair wear and tear that is recorded at the end of the tenancy, which if not on the initial inventory, is repaired at the expense of the tenant.
Routine property inspections. We inspect your investment property on a regular basis. The first routine inspection will be conducted in the fourth month after the commencement of the tenancy and then every six months thereafter. Once completed, a written report will be emailed to you for your records. When we attend the property, we check the tenant’s care of the premises, identify any items for maintenance and this is also a good time to access the current rental.
Special gardens. We are sometimes appointed to manage a property with special gardens and/or lawns. Tenants may not take the same meticulous care of gardens as the owner would. If you want extra attention for your gardens, we would suggest contracting a mowing and gardening service. We can arrange this if you require. The costs will vary, depending upon the size and nature of the work required. We can arrange for a quotation to be supplied. In these circumstances, we would of course regularly inspect the property to maintain a high standard.
Repairs. We have maintenance staff on call and we can, if authorised, arrange for repairs to be carried out (naturally only at the owner’s request) and pay tradespeople out of monthly rental. For major repairs we would first obtain quotations. Please note that under the terms of the Residential Tenancies Act, urgent repairs MUST be attended to promptly. Under the Residential Tenancies Act, tenants have the right to have urgent repairs up to $1800 carried out. Therefore if we are unable to contact you when an urgent repair occurs (i.e. a burst hot water service, blocked toilet, roof leak, gas leak, electrical fault, etc.) we will have the required maintenance done and advise you as soon as possible.
Rent in advance. We specify that tenants pay rent monthly in advance. This means that the tenant pays in advance for their lease period. For example, they would pay rent now for next month. This allows us to chase any late payments and keep tenant’s up to date. Despite these precautions, we cannot issue a ‘Notice to Vacate’ until a tenant is 15 days overdue, i.e. they have occupied the property for 15 days and paid no rent for that period. When we issue a ‘Notice to Vacate’ to a tenant, we would also apply to the Victorian Civil Authorities Tribunal for a hearing date.
Arrears management. Rental arrears are checked daily and immediately followed up if more than 3 days behind. If the tenant is more than 3 days late we will phone the tenants and remind them that their rent is due. After 5 days they then receive an arrears letter, 10 days they will receive a 2nd notice. If the tenant falls more than 14 days in arrears, on the 15th day, the tenant will be issued with a ‘Notice to Vacate’.
Rental statements. Prompt, accurate monthly computerised rent statements clearly showing tenants paid to date, documents outgoings and monies banked as per instructions are forwarded. Landlord payments are made on a regular basis. All funds will be directly deposit into a nominated bank account for your convenience. South East Water and Council Rates notices can be re-directed to our office and payments for these accounts can be made from your rental. Please contact the relevant authorities to forward the bill either directly to our office or scan and email the bill to our office for payment.
When do I get my rental payment? We are aware that for the majority of our investors, rental payments go towards a mortgage and are anxious to receive payment to avoid possible late fee charges. We suggest that in this situation you have your mortgage payments paid two months in advance, this way you are reducing the chance of late payment fees with the bank should your tenant ever pay their rent a few days late. Please note that no legal action can be taken towards the tenant until they are more than 14 days in arrears.
Financial statement. At the end of the financial year a statement is prepared and forwarded to you free of charge if sent by email.
Insurance. It is part of our responsibility as your agent to advise you of the risks associated with renting your property and the options available to offer protection for your investment. We encourage all of our property owners to seriously consider obtaining public liability insurance and landlord/contents insurance. If you already have legal liability and/or landlord protection insurance we would recommend that you look at the policy, as some do exclude tenanted properties. Please contact your insurance company for clarification. Please be aware that unless you have contents insurance on your property, items such as carpets, light fittings and blinds are generally not covered under general building insurance.
We are available to meet with you anytime during business hours, by appointment. An appointment allows us both to be prepared and ensures you don’t have to wait.
Phone 1 3000 OBrien obrienrealestate.com.au