BRISBANE PROPERTY MANAGEMENT
Did you know that Queensland is the fifth most litigious state in the world behind California (1st) and New South Wales (2nd)?
Poor or incompetent property management can increase your chances of ending up in court fighting a disgruntled tenant.
Property investors should consider the appointment of a professional, experienced and competent property manager as an essential risk management tool.
When you consider what is involved and what Legislation impacts the functions of property management then you start to realize the potential for financial disaster and the ramifications of non compliance.
Legislation that significantly impacts the everyday dealings between property managers, lessors and tenants includes:
| - Residential Tenancies and Rooming Accommodation Act
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| | - Property and Motor Dealers Act
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Non compliance can result in heavy fines for Landlords.
Trouble is that most landlords have no idea about what is required to ensure their rental property complies.
Using a professional property manager will alleviate landlords from the everyday tasks involved with a rental property such as:
| - negotiate rents and leases,
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| | - sign and complete all documentation required by legislation,
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| | - attend to maintenance issues,
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| | - complete routine inspections,
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| | - attend to the payment of maintenance accounts,
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| | - disburse funds to you monthly or twice monthly,
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| | - provide you with a written financial statement of your rental funds,
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| | - complete final inspections when your tenants vacate.
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THE PROPERTY MANAGEMENT PROCESS
RENTAL PROPERTY APPRAISAL
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The process begins with an on site meeting at your rental property.
At this meeting we will be able to provide your property with a professional overview of its current market value and ensure compliance with the many new legislative requirements under the Residential Tenancies and Rooming Accommodations Act 2008.
Additionally we can advise you of any compliance issues for your property such as smoke alarms, safety switches and pool fencing.
We can also offer advice about achieving a higher rent, reducing vacancy periods and reducing maintenance during the tenancy.
We will also discuss our obligations, your obligations and any concerns, particular needs or special requirements you may have.
Within 24 hours of this on site meeting we will send you a comprehensive rental appraisal of your property which includes amongst other features:
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| | - Demographic breakdown of your suburb by age, income etc
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| | - Predominant dwelling structures in your suburb
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| | - Home ownership breakdown for area
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| | - Rent payment breakdown for suburb
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| | - Education breakdown for suburb
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| | - Employment/occupation breakdown for suburb
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| | - Sales statistics for suburb
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| | - Comparable rental properties
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APPOINTMENT TO ACT
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Once you feel comfortable about joining Property Management HQ you will be required to complete a Form 20A -Appointment to Act.
This must be completed before we can perform any property management activities on your property.
It’s a requirement of the Queensland Office of Fair Trading and is designed to protect your rights as well as ours.
We can assist you with this and you can also have your solicitor look over the document before you sign it if you prefer.
You of course receive a copy of this document once it has been signed by all parties.
CHANGING AGENTS
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If your rental property is currently managed by another agency you will need to check Section 4.2 of your Appointment to Act to determine the notice required to terminate your existing appointment.
It will look something like this:
“If the appointment is a continuing appointment, you may revoke the appointment by giving (30-90 days) notice in writing to the agent, unless you and the agent agree to a shorter notice period (but it must not be less than 30 days)”
Vacant Property
If your current agent has been unable to secure a tenant for your vacant property and you would like to move the property across to us then you will need to approach your agent to determine whether they will let you out of your existing appointment.
As a general rule most (but not all) agents will agree to the reduction in notice required, particularly if they have been unable to find a suitable tenant and the property has been vacant for some time.
However, some agents may not agree to the reduction.
This leaves you with two choices.
1. Give your agent notice (in writing) to terminate the agreement immediately and wait out the notice period before moving your property to us.
2. Give your agent notice to terminate the agreement and move your property to us. You will be required to sign an additional appointment to act with us and if we are successful finding a tenant before the expiration of your original agreement with your previous agent you may be obliged to pay fees to them for the balance of the termination period.
Additionally you would technically be liable to us for fees for the same period.
However because we offer a free trial you would only be liable to us for the Let Fee.
Tenanted Property
Assuming your current agent will not 'play ball' and let you out of your appointment to act then you again have two choices.
1. Give your agent notice (in writing) to terminate the agreement immediately and wait out the notice period before moving your property to us.
2. Give your agent notice to terminate the agreement and move your property to us. You will be required to sign an additional appointment to act with us and you may be obliged to pay fees to your existing agent for the balance of the termination period.
Again because we offer a free trial you would not owe us anything for the first 60 days!
At Property Management HQ we realize that many owners feel that they are ‘stuck’ with their current agent until the end of the termination period and get worried because they could end up without rental income for 90 days-severely affecting their cash flow.
That’s why we introduced the 60 day trial period. Even if you are forced to pay your old agent the applicable fees you will not be charged ‘double’ by paying us as well.
So ultimately you get to move your property on for no additional charge (except assuming we find a tenant for you which will mean you will be charged the 1 Weeks rent letting commission plus GST).
We will provide you with all the necessary documents to facilitate the changeover without you even having to speak with your current managers.
All you need to do is let your current manager know in writing of your intention to leave and we’ll do the rest.
PREPARING YOUR PROPERTY FOR RENT
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Landlords need to be aware of how the changing face of Australia is impacting the rental market.
As society changes and tenants perceptions of renting change, landlords need to consider how they are going to present their property to achieve quality tenants and the highest rent.
Landlords can no longer expect to achieve these objectives with properties that are in poor condition.
Properties that are well presented, clean and in good condition attract the best tenants who are willing to pay premium rentals.
Lu can offer lots of tips and advice to help you achieve the best results.
Insurance
Required:
| - Public Liability-Minimum $10 million
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| | - Landlords Insurance-covers for tenant defaults and malicious damage
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ALL new owners MUST provide a copy of their certificate of currency prior to commencing management with Property Management HQ.
MARKETING YOUR PROPERTY
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After receiving your signed Appointment to Act we will visit your property to take a wide selection of photos.
Your property details and description will then be uploaded to www.realestate.com.au and www.propertymanagementhq.com.au
If required we can place an advertisement in the local newspaper (fees apply).
A sign will be located in a prominent position at the front of the property.
New House and Land
For those investors who are having their investment property built there is no need to wait until completion before it is advertised for rent.
The completion date can be inserted into the advertising and a tenant found ready to move in straight away so that there is no vacancy period.
Feedback
During this phase we will keep you updated if and when we receive any rental applications or feedback from prospective tenants.
VIEWINGS
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Viewings are conducted on a ‘By Appointment’ or ‘Open Home’ basis depending on the circumstances.
This can be at anytime that suits the prospective tenant.
The tenanting of each property is our priority.
We realize that a vacant property hinders the cash flow of our owners and we pride ourselves on our ability to find quality tenants in the shortest possible time.
We do not issue keys to ANY prospective tenants-all tenants are accompanied through your property.
TENANT SELECTION
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The process begins when we receive an Application for Residential Tenancy form from a prospective tenant.
This form includes:
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| | - Current and previous addresses
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| | - Centrelink details (if applicable)
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| | - 100 point identification documentation
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| | - Applicant declarations and acknowledgements
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All details are then checked and scrutinized by us as well as cross referenced by us against national tenancy databases.
After all references, referees and employers have been contacted we will make a recommendation based on all available information.
You will of course, make the final decision.
If you decide not to approve the applicant, you are not required to give any reason.
STARTING THE TENANCY
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Once an applicant is approved they will be provided with a General Tenancy Agreement which includes the standard terms and any additional special terms – everyone named in the General Tenancy Agreement must sign this document.
Tenants also receive a copy of - Form 17a ‘Renting a house or unit in Queensland’.
Tenants are required to complete an Entry Condition Report - Form 1a and return it to us within three days of taking possession of the property.
Tenants are required to pay a bond equal to four weeks rent and pay the first two weeks rent prior to taking possession of the property.
The bond is lodged and kept with the Residential Tenancy Authority (RTA) for the term of the tenancy.
A full set of property keys are required for each tenant approved and a full set to remain at our office.
THROUGHOUT THE TENANCY
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Communication
We communicate with you regularly throughout the tenancy. This is done mostly by email.
Phone calls and emails are generally responded to the same day and most certainly within 24 hours.
Rent Collection
We offer tenants flexible payment methods to make their life easier, including phone and online payments 24 hours a day, 7 days a week.
Tenants are required by law to keep their rent in advance at all times.
Tenants can pay their rent using any one of four methods:
| 1. Direct Deposit
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| | 2. Bank Cheques |
| | 3. Money Order |
| | 4. Credit Card |
Landlord Disbursements
Rental proceeds made by tenants are held in our Trust Account with the National Bank and are disbursed to your nominated account every fortnight.
Additionally there is an end of month payment on the last working day of the month.
Rental Arrears
Rental arrears are monitored daily and managed in accordance with the Residential Tenancies and Rooming Accommodation Act.
Tenants are advised by either email or text message if their rent is behind after 4 days.
Should their arrears not be corrected, a remedy breach notice is issued to the tenant after 7 days.
Failure to pay after a further 7 days will result in a notice to leave being issued.
Landlords will be notified after the remedy breach notice for rental arrears is issued at 7 days.
Tribunal and Mediation Hearings
Our owners are represented at all Queensland Civil and Administrative Tribunals (QCAT) by our General Manager Lu Bracher-should the need arise due to a tenancy dispute.
Rent Review
We will review your rent and tenant prior to the expiry of the lease. We will provide you with recommendations on rent increases and tenancy options for your tenants at this point.
Rents are reviewed bi-annually to ensure alignment with the market.
Routine Inspections
We will carry out the first routine inspection after 13 weeks from the commencement of the tenancy.
Further inspections then follow every 13 weeks thereafter.
You will be provided with photos and a copy of the report.
We will highlight any maintenance issues that require attention and we will attend to these as per your instructions.
Maintenance
Maintenance issues are notified to us by the tenant or arise when we conduct our routine inspections.
You will be contacted prior to the issue of any work orders.
If you cannot be contacted within a reasonable time work orders will be issued up to the value of two weeks rent.
Emergency repairs are carried out immediately.
We have a network of fully qualified and fully insured trades people to carry out any jobs required. We constantly assess our tradesmen for quality workmanship and value for money.
All trades people must be fully licensed/qualified and insured.
Trees
The tenant is responsible for the maintenance of the lawns and garden.
The owner is responsible for the pruning of trees and other plants and we will notify the owner when this is required.
You should be aware that old trees and overhanging branches can present potential safety issues and our advice is always to remove them.
Swimming Pools and Pool Fencing
Many tenants seek properties with pools-particularly in the summer months.
However it is a fact of life that many tenants do not know how to maintain a pool.
We recommend that pools be maintained by a qualified pool technician.
This will ensure that the equipment is fully functional and problems are attended to if and when required.
This expense to the owner is tax deductible and can quite often be offset by a higher rental.
The chemicals are generally paid for by the tenant.
Should you decide to have the tenant maintain the pool, a letter must be signed by both parties agreeing to do so.
Currently there is a legal requirement for pool fencing to be erected around every pool.
ALL new owners MUST provide a certificate of approved certified pool fencing prior to commencing management with Property Management HQ.
A CPR sign must be visible within the pool area and the pool gate must open outwards and be self closing.
Lease Negotiation and Renewals
Where a tenant’s lease is expiring and they decide to remain in the property a new fixed term lease agreement may be desired.
Owners are then contacted to seek instructions re market rent and length of tenure.
We will handle all the negotiations with the existing tenant and prepare the new lease documentation.
Owners will receive a copy of all new documentation.
ENDING THE TENANCY
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A tenancy can end for many reasons but generally occurs when a tenant gives notice to vacate the property.
An exit condition report will be completed by us and the tenant at the end of the tenancy.
We will:
| - Ensure the return of all keys and remote controls
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| | - Ensure that the premises are left in the same condition as at the start of the tenancy (fair wear and tear excepted)
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| | - Ensure that the tenant has moved all of their belongings out
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| | - Assess any damage that has occurred to the property during the tenancy
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| | - Discuss any issues that have been raised by the exit condition report
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| | - Claim bond for any outstanding unpaid rent or damages
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| | - Ensure the return of any bond refund to the tenant
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So as you can see property management is simply more than collecting the rent.
For more information and a confidential discussion with Lu about how we can manage your rental property investment please call her on 0425 22 5678 or email lu@propertymanagementhq.com.au
Lu Bracher - GENERAL MANAGER
B. Economics (Sydney)
J.P. (Qual)Licensed Real Estate Agent (Lic No. 3055945)
REIQ Practising Member (No. 30973MF)
Cert IV Assessment and Workplace Training
Interior Design - CATC
Mobile: 0425 22 5678
Email:lu@propertymanagementhq.com.au