PROPERTY M A N AG E M E N T
PROPERTY MANAGEMENT WITH CENTURY 21 With over 7000 offices worldwide and more than 240 offices in Australia and New Zealand, Century 21 is the world’s largest real estate group. Since its Australian launch in 1983, Century 21 has been overseen by its Chairman and owner Charles Tarbey with all operations based on his principles and training methods. The Property Management Department of Century 21 operates on a strict portfolio management system and currently manages properties for more than 20,000 residential and commercial investors. Each investor has their own Portfolio Manager who is directly accountable for the management of each property in the investor’s portfolio within a defined area.
Each Portfolio Manager oversees multiple investments within a particular area, rather than managing individual properties scattered over a wide area. This portfolio management system not only gives each investor one point of contact for their entire portfolio in one geographic area, but also gives investors access to an ‘area specialist’ who has intimate and up to date knowledge of all market conditions.
OUR STRUCTURE
L E GA L O B L I GAT I O N S O F P RO P E RT Y M A N AG E M E N T Century 21’s philosophy is that we will act in the best interests of our clients at all times, from a legal, ethical and a financial standpoint. This means that our agents must be fully aware and 100% compliant with the Residential Tenancies Act, which has a set of complex rules and regulations for property management.
Century 21 conducts monthly performance reviews of our Portfolio Managers, ensuring that all investment properties are managed to very high standards. Failure to comply with this Act and other relevant Acts can attract severe penalties. These penalties and legal responsibilities apply to the owner of the rental property or to the nominated management agency. Owners who manage their own investment properties
must have a complete working knowledge of this legislation and alone must shoulder all responsibility for non-compliance. Century 21 uses both in-house corporate training and online resources to ensure that our experienced Portfolio Managers are always kept up to date with any changes to these Acts. This gives our property investors complete confidence that the management of their properties will always be compliant with all relevant legislation. With an expectation of complete professionalism and efficiency, Century 21 conducts monthly performance reviews of our Portfolio Managers, ensuring that all investment properties are managed to very high standards.
LEASING & MANAGEMENT OVERVIEW LEASING
M A N AG E M E N T
Our leasing services are second to none and as your leasing agent we will lease your property as soon as possible to the best possible tenants. To achieve this outcome, we will take the following steps:
If you select Century 21 to be both your leasing and management agent, your Portfolio Manager will ensure that all leasing steps outlined above are undertaken. He or she will then perform the following management services for you, during the tenancy:
―― Photographs of your property (professional photography). ―― Your Portfolio Manager will craft an advertisement for your property. ―― The property will be advertised online and a lease sign can be erected in front of the property. ―― Open for inspections and private appointments will be arranged. ―― You will receive a full report of enquiries, open houses, and private viewings with feedback. ―― Your Portfolio Manager will receive, review and process all lease applications. ―― Suitably qualified applications will be discussed with you. ―― Once you have approved and accepted a tenant for your property, the Portfolio Manager will take a holding deposit and arrange a date to sign the lease. ―― Your Portfolio Manager will arrange for a property inspection prior to signing the lease. ―― Your Portfolio Manager will ensure that the tenant signs the lease, pays the bond and moves into the property. If you decide to engage Century 21 as your management agency, as well as leasing your property, your Portfolio Manager will also perform the following management services.
―― Collect the rent throughout the tenancy. ―― Manage any instances of rent arrears. ―― Perform periodic inspections of the property. ―― Arrange for repairs and maintenance of the property. ―― Arrange for payment of council rates, repairs, maintenance and insurances from rental money if required. ―― Liaise with tenants and strata bodies during the tenancy. ―― Arrange for an outgoing inspection when the tenant terminates the rental agreement. ―― Releases the bond to the outgoing tenant. ―― Once vacated, the property is re-advertised and leased as outlined in the previous section. ―― The value of the property can be appraised annually (optional).
Your Portfolio Manager will advertise your property and ensure that it is leased as soon as possible.
CENTURY 21 OPENS FIRST OFFICE IN AUSTRALASIA
ANNUAL UNIQUE VISITORS TO THE CENTURY 21 WEBSITE
1995
1.5million
CENTURY 21 OFFICES IN AUSTRALASIA
NUMBER OF COUNTRIES IN THE GLOBAL NETWORK
250+
80+
N U M B E R O F S TA F F I N O U R AUSTRALASIAN NETWORK
A N N UA L T U R N OV E R O F PROPERTIES IN AUSTRALASIA
2200
$22billion
M O N T H LY P R O P E R T Y P A G E VIEWS OF THE CENTURY 21 WEBSITE
N U M B E R O F R E N TA L P RO P E RT I E S M A N AG E D I N THE LOCAL NETWORK
325,000
20,000+
CENTURY 21 OFFICES G L O B A L LY
CENTURY 21 FINANCIAL SERVICES SOURCED A P P ROV E D H O M E LOA N S
7,600+
3.8billion
PROMOTING YOUR PROPERTY
The longer a property is vacant, the more money an investor loses. So, when your current tenants give written notice that they intend to terminate their rental agreement, your Portfolio Manager will initiate the following six step marketing plan.
FOUR STEP MARKETING PLAN 1. Online promotions: Photographs and a detailed description of your property are compiled and advertised online at three of the most popular real estate rental sites: domain.com.au, realestate.com.au and century21.com.au, as well as on many more industry portals. These online platforms can be monitored daily and the number of daily visits can be accessed, ensuring that your advertisement is continually optimised for the best results.
2. Office promotions: Your property is added to our rental list and to our window displays, which always catch the eye of passers-by and people looking for local rental properties. 3. Road signage: With the owner’s agreement, we can place a ‘For Lease’ sign outside the property where it will easily be seen by traffic and pedestrians. 4. Email marketing: Your Portfolio Manager will email a description of your vacant property to all the major relocation agencies in Australia, on a weekly basis. The growth in the online rental market is huge with more than 2 million Australians searching online for the right property every month. In fact, online promotions for rental properties are one of our most successful strategies to date.
SELECTING THE RIGHT TENANT We understand that selecting most suitable tenants is of prime importance for property investors. Your Portfolio Manager will do everything possible to make sure that they find the best tenants for your property. In fact, your Portfolio Manager will be extremely particular and critically selective in their choice of tenants and will keep you informed every step of the way. To guarantee that our property investors enjoy a worry-free investment, your Portfolio Manager will perform the following steps: ―― All rental applications from prospective tenants will be collated. ―― Each applicant’s previous rental references are checked and confirmed, as well as personal references, along with confirmation of their employment and income.
―― All suitable applications are presented to the investor, along with the recommendations of your Portfolio Manager. ―― The Century 21 applicant screening process is very detailed, ensuring that a tenant can adequately meet their responsibilities as laid out in the Tenancy Agreement. The selection of a suitable tenant is performed in accordance with Australian laws regarding discrimination, as well as the Residential Tenancies and the Privacy Acts.
PROPERTY MANAGEMENT SERVICES
PROPERTY INSPECTIONS
PERIODIC INSPECTIONS
Your Portfolio Manager will perform two different types of property inspections: ingoing and outgoing inspections, and periodic inspections.
Regular inspections of the property are made during the tenancy with timeframes depending on the individual property. The property investor receives a full report following each of these inspections with the following information:
INGOING INSPECTION REPORT Prior to tenants moving into your property, your Portfolio Manager will perform a full inspection of the property with a similar inspection at the end of the tenancy. The ingoing report details all aspects of the property’s existing condition. The ingoing inspection report is used at the end of the tenancy to ensure that the property has been left in a satisfactory condition, prior to returning the tenant’s rental bond.
―― The general condition of the property. ―― Any immediate repairs that are required. ―― Preventative maintenance issues, including refurbishments that would be beneficial to the investor and tenant.
RENT REVIEWS & INCREASES Your Portfolio Manager will perform periodic reviews of your property’s rent to ensure that you maximise its potential, as well as making all necessary rental payments and managing any instances of rental arrears.
R E N TA L R E V I E W S Your Portfolio Manager will monitor the rental market, paying particular attention to rental prices of comparable properties. A review of your property’s rent may be performed on a number of occasions, including at the end of a tenancy, during periodic inspections and on a 6-monthly basis. If an increase in rent is deemed advisable by your Portfolio Manager you will be contacted by letter with their recommendations. This is to ensure that the rental yield from your property achieves its full potential in the existing rental market and that you receive the best possible return on your investment.
R E N TA L PAY M E N T S Once a month, usually around the 31st of the month, your Portfolio Manager will send you an itemised statement, clarifying all the rental income and payments made on your behalf. All invoices will also be forwarded, for example council and water rates, Body Corporate fees and Landlord Protection Insurance premiums. You will also receive an EOFY statement to assist with your tax returns.
R E N TA L A R R E A R S Most renters pay their rent on time, usually on the second of every month. Your Portfolio Manager will use a strict 4 step process: 1. Rent is 3 to 5 days in arrears: Your Portfolio Manager sends the tenant a text message or calls them on the phone (along with a formal letter) to remind them of their overdue rent. 2. Rent is 6 to 10 days in arrears: A second text, call or formal letter is sent to the tenant informing them of their rent arrears and warning them that if not paid immediately, further action will be taken. 3. Rent is 16 days in arrears: Your Portfolio Manager issues the tenant with a termination notice for the non-payment of rent and informs the property investor of the situation. If the tenant pays the rent immediately, this termination notice is withdrawn. 4. Rent is still unpaid: If the tenant does not pay the overdue rent and does not vacate the property on the date specified in the termination notice, an application is made to the Residential Tenancies Tribunal on your behalf. At Century 21, we want your property investment to return high yields and a positive return on your investment. This means that your Portfolio Manager will closely monitor your property and the existing rental market, as well as managing any issues that may arise during the tenancy.
CONCLUDING THOUGHTS
This is simply an overview of our residential property management services and is certainly not an exhaustive accounting. The purpose of this brochure is to clarify the complexity of the rental market and the responsibilities of the person who manages these properties. Century 21 wishes to emphasise the importance of engaging an experienced and reputable rental management agency to manage your investment properties - an agency with the experience, the resources and the in-situ processes to deal with any eventuality that may arise. Selecting the right management agency is a vital part of growing your property portfolio and doing it alone can be both time consuming and stressful. When you select Century 21 to manage your investment properties, we do our very best to make sure that you receive the highest return on your investments.
Please Note: As an astute investor and a valued client of Century 21, you will be added to our mailing list, receiving a quarterly newsletter that will keep you up to date with trends in the rental market. We also offer property valuation services to our investors and of course, the services of our experienced sales team, if you decide to sell your property in the future.
C21.com.au