The Property Management Process-
Why Choose A Professional Property Manager?
Did you know that NSW is the third most litigious state in the world behind California (1st)?
Poor or incompetent property management can increase your chances of ending up in the Residential Tenancy Tribunal or court, fighting against a disgruntled tenant.
Property investors should consider the appointment of a professional, experienced and competent property manager as an essential risk management tool.
- Legislation that significantly impacts the everyday dealings between property managers, landlords and tenants includes:
- Your property is uploaded to all major real estate portals allowing immediate advertising and ensuring wide exposure of properties. Some of the sites include shieldsgillman.com.au, domain.com.au, realestate.com.au, rent.com.au, homehound.com.au, real-estate-australia.com.au, homesales.com.au, realestate1.com.au, and thehomepage.com.au.
- Residential Tenancies Act 2010
- Trade Practices Act
- Privacy Act
- Anti Discrimination Act
Property Management should be left to the experts!
RENTAL PROPERTY APPRAISAL
The process begins with an inspection of your rental property.
We provide a professional opinion of current market value and ensure compliance with the many new legislative requirements under the Residential Tenancies Act 2010. 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 also discuss our obligations, your obligations and any concerns, particular needs or special requirements you may have.
Following this we will send you a comprehensive market report which includes amongst other features:
- Property details and marketing recommendations
- Sample Virtual Voice Tour
- Sample Colour brochure for your property
- Comparable rental properties
- Recommendations for improvement of investment return
If your rental property is currently managed by another agency the process is quite simple and Shields Gillman can assist so you don’t have to be involved with what sometimes is awkward.
As a general rule most agents will agree to terminate an agreement, 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.
- Give your agent notice (in writing) to terminate the agreement immediately and wait out the notice period before moving your property to us.
- Give your agent notice to terminate the agreement and move your property to us. You will be required to sign an additional agreement 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. We have not encountered this situation before, however it is a legal right to them.
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.
- Give your agent notice (in writing) to terminate the agreement with the required notice period, usually 30 days and advise that Shields Gillman will collect documentation and keys on that date.
- Give your agent notice to terminate the agreement without providing the required notice and move your property to us. You will be required to sign an agency agreement with us and you may be obliged to pay fees to your existing agent for the balance of the termination period.
Shields Gillman can provide you with the standard letter to terminate an agency and can also handle everything so you don’t even need to speak with your current agents. All you need to do is sign the appropriate letter, return to us, and we’ll do the rest.
MARKETING YOUR PROPERTY
The latest and most comprehensive property management software enabling fast and efficient response to landlord and tenant enquiries.
Your property is uploaded to all major real estate portals allowing immediate advertising and ensuring wide exposure of properties. Some of the sites include shieldsgillman.com.au, domain.com.au, realestate.com.au, rent.com.au, homehound.com.au, real-estate-australia.com.au, homesales.com.au, realestate1.com.au, and thehomepage.com.au.
Advanced internet search engines ensuring even wider exposure for your property.
In-house colour copy and printing services allowing fast and flexible colour brochures for properties.
Tenants are able to pay their rent easily through the bank, internet or credit card.
PREPARING YOUR PROPERTY FOR RENT
Properties that are well presented, clean and in good condition attract the best tenants who are willing to pay premium rentals. An investment of a couple of thousand dollars on items like paint and carpet can generally improve the investment return by $20-$30 or more per week, not bad as it would be showing a 30-40% return on the additional investment. Likewise, new kitchens for say $12,000, can increase the return to you between $60 – $80 per week in most cases, again an excellent return.
- Public Liability-Minimum $10 million
- Building and Contents
- Landlords Insurance-covers for tenant defaults and malicious damage
Viewings are conducted on a “By Appointment” or “Open Home” basis depending on the circumstances.
The tenanting of each property is our priority.
We realise 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.
The process begins when we receive an Application for Residential Tenancy form from a prospective tenant.
This form includes:
- Applicant details
- Current and previous addresses
- Employment details
- Centrelink details (if applicable)
- Student details
- Personal references
- 100 point identification documentation
- Proof of income
- Applicant declarations and acknowledgements
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
Once an applicant is approved they will be required to pay a non-refundable holding deposit equivalent to 1 week”s rent. A Residential Tenancy Agreement which includes the standard terms and any additional special terms is prepared for the tenant to sign. Tenants also receive a copy of the “New Tenant Checklist” as provided by the Office of Fair Trading.
Shields Gillman prepare a detailed Ingoing Condition Report, with photos evidencing the condition at the commencement of the agreement. Tenants are required to pay a bond equal to four weeks rent and rent in advance (usually 1 month) prior to taking possession of the property. The bond is lodged and kept with the Office of Fair Trading 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
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.
Tenants are required by law to keep their rent in advance at all times. Tenants can pay their rent using any of the following methods:
1. Direct Deposit
2. Internet Transfer
3. Bank Cheques
4. Money Order5. Credit Card
Rental proceeds made by tenants are held in our Trust Account and disbursed by EFT to your nominated account on the last day of the month. Additionally there is mid month payment option.
Rental arrears are monitored daily and managed in accordance with the Residential Tenancies Act 2010.
Tribunal and Mediation Hearings
Should the need arise due to a tenancy dispute, Shields Gillman represents the owner and provides you with practical advice regarding the possible outcomes.
Shields Gillman conduct routine property inspections at least once a year, and more if deemed necessary. We prepare a condition report and provide a copy to you complete with photos. Any maintenance issues that require attention are brought to your attention and we will attend to these as per your instructions. At this time we will review your rent and provide you with recommendations in relation to increasing the rent.
Maintenance issues arise when we conduct our routine inspections or when advised by the tenant. If the work is less than half of one week’s rent, we will authorise tradespeople to proceed without quoting. If it will be more than half of one week’s rent, we will obtain quotes for your approval prior to commencement. In any case you will be contacted to advise of issues. 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.
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 or do not care about maintaining 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. Currently there is a legal requirement for pool fencing to be erected around every pool.
ENDING THE TENANCY
A tenancy can end for many reasons but generally occurs when a tenant gives notice to vacate the property. An outgoing condition report is completed by us at the end of the tenancy.
- Ensure the return of all keys and remote controls
- Ensure that the premises are left in the same condition as at the start of the tenancy (fair wear and tear excepted)
- Ensure that the tenant has moved all of their belongings out
- Assess any damage that has occurred to the property during the tenancy
- Discuss any issues that have been raised by the outgoing condition report
- Claim bond for any outstanding unpaid rent or damages
- If the need arises, we manage any insurance claim for unpaid rent and/or damage.
So as you can see property management is more than simply collecting the rent.
For more information and a confidential discussion about how we can manage your investment property please call 9451 8844 or email:email@example.com.