Why Use a Professional Property Manager?
Ask yourself - When dealing with Property Management do I have a thorough understanding of the RESIDENTIAL TENANCIES ACT 1994. This is a highly specialised aspect of Real Estate. It is fraught with the danger of litigation in almost every function you complete.
A competent Property Manager not only possesses a strong understanding of their role, they continually increase their knowledge of insurance requirements, changes to legislation and industry trends to ensure all clients achieve the highest level of service at all times.
Agents are often engaged to pick up the pieces of poorly self managed properties after it has cost the owner countless hours in trying to resolve conflicts with their tenant, not to mention the monetary cost. If you are at all considering managing your own investment property then you may like to consider some of the following points:
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Do you know the right procedure when dealing with rental payment arrears? Have the correct notices been issued & have enough days been allowed in the calculation of dates? If not, your notices may be totally invalid and you will have to start the procedure all over and risk you’re your landlord insurance policy being deemed null and void.
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All good things must come to an end. Could you successfully terminate your tenancy and recover possession of your property without the need to go to Court? Do you know the correct procedure, the right notices to issue and the correct time frames? Are your people skills effective in getting what you want?
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Would you be able to recover any outstanding debts? At what point do you go to the Small Claims Tribunal, how do you get the Bailiff involved, do you have Landlords Special Risk Insurance, will the national tenancy database assist in your debt recovery?
Click here to download a copy of the Terms & Conditions
How Do You Select the Right Property Manager for You?
Naturally, when dealing with any person on a regular basis you need to select someone with whom you feel at ease. It is of no value having a Property Manager you cannot discuss your needs for management with if you are frightened of them or cannot communicate on a similar level.
Some points you may like to consider in your selection process:
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How long have they been in the industry and more importantly, how long have they been a Property Manager?
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What is their understanding of the Residential Tenancies Act?
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How many properties have they managed in the past and what did the portfolio consist of? Do they specialise in Residential Management, or perhaps Strata, Commercial & Industrial.
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What are their people skills like? Are they strong in taking control of various situations, are they effective communicators, are they firm but fair?
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Is negotiation a strong point? If they have settled for a discounted fee from you what sort of negotiation or representation do you think they will provide on your behalf?
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Do they possess great problem solving ability? Can situations be resolved swiftly to protect your interests without compromise. Are they really working for or against you?
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What is their success rate like for Court attendances? Do they avoid Court or are they forthright in protecting your interests?
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How do they conduct their tenant selection process?
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How many ‘bad’ tenancies have they dealt with? What was the worst and how did they resolve the situation?
Documentation
APPOINTMENT of AGENT – LETTING & PROPERTY MANAGEMENT (PAMD form 20a) AUTHORITY
This document clearly states the agreed limits between you as owner and the Managing Agent acting on your behalf, and is a constant reference point for the duration of the management of the property.
A copy of this document will be given to you for your own reference.
APPLICATION FOR A RESIDENTIAL TENANCY
Securing the right tenant for your property is as important to us as it is to you. All prospective tenants are required to complete this detailed application. Selecting a tenant for your property is based on the information supplied, and is thoroughly checked and cross-referenced. All prospective tenants are also processed through the national tenancy database for clearance prior to acceptance.
THE RESIDENTIAL TENANCY AGREEMENT
This is the legally binding contract that is prepared between the successful applicant (the tenant) and you the owner, through your Agent. The document is very comprehensive and must be completed properly and fully to enable both the owner and tenant to enforce the terms and conditions.
INFORMATION FOR TENANTS DOCUMENT
Under the Residential Tenancies Act 1994 a copy of this document must be supplied to the tenant at the time of signing their lease. It covers all the main provisions of the Act and reinforces the legal provisions relating to both owners and tenants.
ENTRY CONDITION REPORT
An Entry Condition Report must be completed prior to the commencement of the tenancy, before the tenant takes occupation of the premises. This is an accurate record of the condition and state of the property, both internally and externally, as well as including all fixtures and fittings.
This form is vital in ensuring your property will be maintained to the same condition as at the beginning of the lease, so when the tenant vacates the premises the final bond inspection will be carried out and checked against this report.
LODGEMENT OF BOND MONEY
This form is used to lodge the Bond together with all details of the bond holders. Bond moneys are then lodged with the Residential Tenancies Authority. The Residential Tenancies Authority (RTA) has very strict rules concerning the handling and deposit of bond moneys, which is closely followed by this office.
JOINT APPLICATION FOR REFUND OF BOND
Once the tenant has vacated, and the final bond inspection has been carried out, agreement is made between the Property Manager (on behalf of the owner) and the tenant on the amount of Bond to be refunded. Once agreement has been reached, both parties sign the form and the Bond moneys are disbursed accordingly.
Occasionally, Bond refunds are disputed by the tenant and/or owner. When this occurs, application is made to the Residential Tenancies Authority requesting a dispute resolution so that agreement can be reached on the refund of the bond. Should agreement not be reached through mediation an application is made for a Small Claims Hearing.
NOTICE TO REMEDY BREACH FOR OVERDUE RENT
Should a tenant fail to pay their rent on time, a Notice to Remedy Breach (Form 11) is issued on the eighth day after the rent is due, allowing the tenant seven (7) days to pay the overdue rent and remedy the breach. Should the rent still remain in arrears, a Notice to Leave (Form 12) can be issued allowing the tenants seven (7) days to vacate the property. If the tenants do not pay the rental arrears or vacate the property, an application is made to the Small Claims Tribunal for a terminations order and a warrant of possession within fourteen (14) days of the Notice to Leave expiring.
NOTICE TO REMEDY BREACH FOR BRACH OF AGREEMENT
If the tenant has breached the terms and conditions of the Residential Tenancy Agreement for any reason other than rental arrears, a Notice to Remedy Breach (Form 11) will be served on the tenant, giving them seven (7) days to remedy the Breach.
NOTICE TO LEAVE FOR UNREMEDIED BREACHES
If the tenant fails to remedy a Breach (for breaches other than unpaid rent), the Property Manager can serve A Notice to Leave (Form 12) on the tenant to vacate the premises within fourteen (14) days or request a Dispute Resolution with the Residential tenancies Authority to assist in solving the problem. A strict process must be followed at all times to ensure resolution or termination will be successful. Your professional Property Manager is well versed in this process and will make the application on your behalf.
Additionally, when the time comes for you to regain possession of your property, fourteen (14) days notice must be given to the tenant prior to the expiry of the lease agreement for a fixed term lease. However this does not apply where the tenant remains on a periodic tenancy in which case two (2) months notice (without grounds) must be given to the tenant. If your tenant is on a fixed term tenancy, then they have the right of possession or occupancy until that term expires.
Should your property be marketed for sale, once a contract of sale has become unconditional then the tenant can be issued with at least four (4) weeks notice to vacate. This only applies to periodic tenancies (that is, not for a fixed term). If the tenants are on a fixed lease they are to remain in the property until the lease expires.
Harcourts Whitsunday Airlie Beach
Property Management
Fees for Service
PROPERTY MANAGEMENT FEES
A standard fee which covers receiving the rent, arranging routine maintenance, preparation of statements, payment of accounts, lodgement of bond and arranging advertising, etc;
8.8 % inclusive of GST for one property under management
8.25 % inclusive of GST for two properties under management
7.7% inclusive of GST for three or more properties under management
LETTING FEE
The Letting fee is charged to the owner whenever a change of tenancy occurs. The Letting fee is an amount equal to one weeks rent plus GST.
The Letting fee covers documentation and preparation of Lease Agreements, furnishing a copy to the tenant, full tenant credential checks, and lodgement of Bond in accordance with Residential Tenancies Authority requirements.
Incidental Charges & Fees
ADVERTISING
Whilst any direct advertising is payable by the owner, we attempt to keep this to a minimum by using our extremely successful Internet presence through www.harcourts.com.au , www.realestate.com.au and www.domain.com.au,, regular enquiries and extensive national and international Harcourts network.
We will act in accordance with your choice of a Marketing Program to ensure the property is let as quickly as possible to the right tenant.
ENTRY CONDITION REPORTS
A detailed entry condition report is completed at the time of taking over a new management. The cost of this in included in your management fee.
This covers all interior and exterior areas of the property and is a complete record of the condition of the property when the tenant takes occupancy. This condition of the property is confirmed by the tenant, and the vacate inspection is carried out according to this report when the tenant eventually terminate their lease.
The report is updated at each tenancy change following the bond inspection.
PROPERTY CONDITION UP-DATE
Full detailed report to up-date Entry Condition Report is completed when each tenant vacates – There is no charge for this report as the inspection is included in your management fee.
ROUTINE INSPECTION
Routine inspections are carried out at 6 weeks and four monthly thereafter. There is no charge for these inspections as they are included in your management fee. If extra inspections are requested a fee of $ 66.00 inclusive of GST is payable.
Inspections are conducted to ensure the upkeep of the property by the tenant and that maintenance is carried out in order to preserve the standard of the property. Owners will be issued with a detailed and comprehensive report following the completion of the routine inspection.
REPAIRS
The arranging of minor and routine repairs is covered under the Management fee however arranging for and supervision of extraordinary repairs (in excess of $1000) charges are on an hourly basis (currently $66.00 inclusive of GST per hour).
GOODS AND SERVICES TAX
Goods and Services Tax or “GST” is a tax imposed under A New Tax System (Goods and Services) Act 1999 (“the GST Act”) and its transitional and amending acts and regulations. GST is levied or assessed in connection with the supply of the agents services or other services on behalf of the agent and is payable by the owner. All fees negotiated on your Appointment of Agent – Letting & Management Agreement (PAMD Form 20a) attract GST and is payable by the owner. GST is calculated at 10%.
GST paid in relation to Agents fees generally can not be claimed in a residential tenancy situation. We recommend you consult your accountant or financial advisor for further information on this matter.
FEES AND OTHER COSTS
In agreeing on a fee for service you should firstly establish what the service actually is, and will it meet your requirements and expectations. You will often find Agents discounting their fees, but very rarely advise you will receive a discounted service to match the fee. The bottom line is you get what you pay for. HARCOURTS remains highly competitive in their fee structure whilst delivering a level of service second to none.
MEETING AND/OR COURT ATTENDANCE
If an owner requests representation at meetings (i.e. Strata Company, Residential Tenancies Tribunal) or attendance at court proceedings, a fee of $50.00 inclusive of GST per hour is chargeable, plus court costs and expenses.