Property Owners Handbook
A Comprehensive Guide for Property Owners and Property Investors
Contents Maximising Your Rent
4
Getting the Best Tenant The Marketing of My Property
5 6
Property Presentation
7
Accounting for Rent Monies
8
Arrears Management
9
Taking a Bond
10
Inspections of My Property Tenancy Agreements
11 12
Ending a Lease
13
Maintaining the Property & Legislative Requirements
14
Landlord & Public Liability Insurance
16
Costs Incurred at My Rental Property Selling or Moving Back into My Property
17 19
A Guide to Getting Your Property Ready for Tenancy
20
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Exclusive Property Owner’s Handbook
Welcome to Our Agency This comprehensive property owner’s handbook aims to familiarise clients with our property management processes and procedures and tenancy management expectations. We hope that you enjoy reading this handbook and ask that you become familiar with its contents. Should you have a query which you believe is not answered, please call us on 07 4194 2936 or email kristywright@oneagency.com.au and we will be happy to assist you.
What Sets Us Apart? Leaders in Property Management Solutions. One Agency Hervey Bay brings together thriving, experienced agents who are leaders in the market. They are respected property management professionals whose results are groundbreaking and our commitment to service makes us outstanding. Our extensive network and advanced technology ensure unparalleled investor support. This translates to maximised returns and a more rewarding property management experience. The principal of One Agency Hervey Bay is a property management specialist who retains complete control of every facet of the company and has a vested interest in its success. With her years of experience Kristy Wright has a thorough understanding of the demands of the industry and ensures that the support systems and strategies are in place to create a positive work environment which attracts only high- quality staff. It’s this ability to offer a highly personal service and from the owner of the business that makes our agency so unique and effective, with clients enjoying a more handson level of care and expertise.
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Maximising Your Rent How Do You Determine the Best Rent for My Property?
We always strive to get you the maximum rent possible; however, we also must keep in mind setting the correct market rent to get your property rented as soon as possible. Both factors are important to present your property on the market successfully for rent. To do this, we consider these factors: Demand - Is there a high or low demand for properties at present. What Is Available Now - we look at properties currently available for rent in your area What We Have Rented Right Now - We compare your property with what similar properties we have recently rented.
What if I want a rent amount that is higher? You may place your property on the market at the rental amount you wish. However, keep in mind that it is the market demand that sets the rent, and if the market (prospective tenants looking for a rental property) deem the amount of rent too high; your property may stay vacant longer than necessary. How is the rent reviewed during the time that you manage my investment? When we need to secure you a new tenant, we will always review the rent against market conditions. This will also be done at lease renewal time, or at other times when required. We will always contact you for your permission before the rent is increased. We are required to give two (2) month’s notice to increase the rent for periodic tenancies and can only increase the rent every six (6) months.
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Getting the Best Tenant How do you check a potential applicant for my property?
Our agency has a strict tenancy application process. All applicants must complete our best practice application form and provide 100 point identification, proof of income, personal references and proof of previous living arrangements. We verify the applicant’s details as part of application process and will discuss all tenancy application offers with you. What we are seeking on your behalf is sound evidence of the following; • •
The applicant's’ ability to pay the rent for the property; and The applicant's’ ability to care for the property.
What reason do you have to give the applicant to reject their application? Legally we do not have to give a reason and by industry practice we never give a reason.
Who selects the applicant for my property? You do! We will simply give you the information we have collected and by using our experience give you a possible guide as to the tenancy outcome, but at the end of the day it is always your choice! All attempts will be made to contact you for a speedy response however if we receive no communication in our allocated time frame (generally 48 hours) our agents will follow your instructions on the management agreement and act in your best interests.
Do you guarantee the tenant? We can never guarantee any approved tenant for your property. We can only collect information on their history and confirm their income arrangements. Unfortunately, a tenant can choose not to fulfil their legal obligations to the tenancy. In this case our agency will follow the legislation to minimise any potential loss to you as an investor.
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The Marketing of My Property What do you do to advertise my property? Our advertising is first class. Our web presence is highlighted by enhanced subscriptions so that our properties are always prominently displayed. We proudly present our properties, beautifully photographed and placed where they deserve to be – in the top group in their suburb so that prospective tenants will easily find them. Inspect Real Estate is an online booking system for property inspections and tenant database that can tenant match your property to our existing tenant database. They will be notified immediately of your properties availability and will be able to book themselves in to view your property. The booking button can be found on our internet listings that links directly to this system.
Our marketing package is designed to present your property to the market and to ensure maximum exposure, reduce your vacancy, attract quality tenants and gain maximum rental return.
VIDEO: Premier Listing One Agency Hervey Bay
More Information from Realestate.com
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Property Presentation How should the property be presented? We ask that the property be presented in the best manner possible to attract the right tenant for your property. We expect the tenant to leave the property at the standard they found it. Please refer to our guide to ‘Getting the Property Ready for Your Tenant’ at the end of this document.
In the case of a dispute legally we can only enforce that the tenant returns the property to condition of the entry condition report minus “fair wear and tear”. Our agency defines “fair wear and tear” as a “general” deterioration of the property due to “general” living conditions.
If I allow pets at my property, what expectations will be given to the tenant? The latest statistics show that up to 30% of tenants have pets. By immediately saying no to pets you have already reduced your market by 30%. If you are agreeable to pets we will always ensure that a tenant signs a pet lease agreement. This obligates your tenant in 4 ways: 1. No additional pet may occupy the property without prior permission. 2. The pet may not come inside the property (unless approved by the landlord). 3. The pet must be removed from the property if it becomes annoying or bothersome to neighbours (after reasonable warning has been given in writing). 4. The tenant must be responsible for any damage caused by their pet and remove any rubbish or faeces deposited by the pet. We also record the details of the pet on the agreement, which is then signed by the tenant. How do I ensure the pet will not come inside the property? We obligate the tenant to commit in writing that they will not bring the pet inside. However as we are unable to monitor the property all of the time, we cannot guarantee that the pet will not come inside the property. We do look out for any warning signs whilst at the property conducting inspections and take action accordingly if any evidence is found.
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Accounting for Rent Monies When do I get paid my rent? We will deposit all monies collected into your nominated bank account on the 1st business day after the last day of the month. We also have a mid-month payment option. When do I receive my statements? We will issue you a monthly financial statement, accounting for all monies we have handled and disbursed to you on your behalf in accordance with legislative requirements. You will receive your monthly statements together with any tax invoices from tradespersons or other disbursements paid during that month on your behalf. An End of Financial Year Statement can be supplied at an additional cost. Your End of Financial Year statement accounts for all monthly statements accumulated, for accountancy ease. Your monthly statement will be sent to you approximately on the 1st of every month, and the end of year statement will come to you in July of each year being the month immediately following the end of the financial year. How do you collect the rent? We collect the rent by via direct deposit.
Client Portal
We have online access for our owners to view all their information. Click HERE for an overview of our owner portal.
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Arrears Management What happens if my tenant does not pay the rent? We are a ‘Zero Tolerance’ agency. What this means is that our agency will follow the legislation regardless of the situation (unless otherwise advised by you). This is to ensure that any arrears are minimal and to provide you with the best opportunity for success if in the unfortunate event we need to attend QCAT or submit an insurance claim. If a tenant does get behind in their rent payments, this is the process we follow; •
3 Days behind – SMS Text Message
•
5-7 Days behind – Phone call
•
8 Days in Arrears – Serve Notice to Remedy Breach (Form 11) allowing 7 days to remedy breach.
•
16 Days Behind – If Notice to Remedy not rectified, serve Notice to Leave (Form 12) giving 7 days notice to vacate
•
Approx 3 weeks behind (21-28 days) – if tenant fails to vacate, make Urgent Application to the Small Claims Tribunal for a Warrant of Possession
•
Approx 4-5 weeks behind (28-35 days) - Tribunal Hearing order given to pay and usually Warrant of Possession granted, to be exercised by local police
•
Approx 5-6 weeks behind – Police execute the Warrant of Possession within 2 weeks.
As you can see, the full legal process can be very drawn out and lengthy. Times given above are approximate and rely on prompt hearing and execution times being allowed. Unfortunately, the bond will rarely cover the shortfall in rent. Only if you have landlord insurance will there be a reasonable prospect of covering the rent payment shortfall. Without landlord insurance, the chance of recovering owed rent monies is minimal. If you have no protection for your rent payments, the problem is further compounded with the fact that the bond will probably be exhausted with owed rent. You will then most likely have cleaning up and re-letting costs, as well as outstanding monies like water owed by the tenant. Without landlord insurance, this process can be quite financially damaging.
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Taking a Bond How much bond do you take from the tenant? If the rent is $700 or less per week, we can charge a maximum of 4 weeks rent for the bond. There is no limit to the amount of bond charged when the rent is greater than $700 per week. This is held in trust with the Residential Tenancies Authority.
When do you pay back the bond monies?
1. 2. 3. 4.
We only refund the bond after the following has occurred; The tenant has fully vacated the property and keys returned. The property has been inspected and is satisfactory when compared with the entry condition report. All monies are paid. This could be any outstanding rent, water or anything owed by the tenant. If the tenant is breaking their lease, any re-letting fees and advertising costs (part or full costs) are paid. If the tenant has a pet, can I ask for an extra bond (a pet bond)? Unfortunately, no! Under the current legislation there is no provisions on where we can accept a pet bond.
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Inspections of My Property Do you inspect the property at the beginning of a tenancy? We conduct a comprehensive inspection of your property prior to a tenant moving in. We inspect your property area by area (lounge room, bedrooms, kitchen, front and rear yards, garage etc) and then all items present in each area (walls, ceiling, light fittings, curtains, windows, stove etc). We record their condition and cleanliness item by item, and then a brief description and detail about the item. This would involve recording details of any marks, scratches and dents etc. We also take photos throughout the internal and external of the property. How often do you inspect the property during the tenancy? We inspect the property approximately every 3 months. Upon this inspection we walk through, checking roomby-room to assess that tenant is keeping the property in accordance with the tenancy legislation. We will also take photos of your property, and any repairs or concerns observed. We also note any repairs reported or observed by us and any other recommendations needed to assist you in keeping the property in the best condition possible. Please note that this is a general visual inspection only and not as comprehensive as our entry and exit inspections. This report is to give you a general cosmetic overview of your property and does not replace a thorough pest and building inspection. What about when the tenant vacates the property? When the tenant lets us know they will be vacating, we send them detailed information on our expectations of how the property needs to be presented. Once the tenant has fully vacated, we compare the property to the entry condition report completed when the tenant moved into the property. We carefully check through the report item-by-item, ensuring it has been left in the same condition as when they moved in, taking into account reasonable wear and tear for the period of time they have been in the property. This is a legislative requirement. We also read the water meter on water compliant properties to issue the final water invoice (if applicable). Our property managers will be in touch to advise of the outcome of this inspection and to gain your written instructions if there is any discrepancy.
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Tenancy Agreements What do you explain to the tenant when they move into the property? We believe one the most important parts of a successful tenancy, is tenant induction.We arrange a time to sit with them to explain their obligations throughout the tenancy. For example, how they must pay their rent on time, where to pay their rent, what we do if they do not pay their rent. We discuss our repairs and maintenance policy, what happens in an emergency repair situation, how often inspections occur and what we look for. We explain how water will be charged if applicable. We also explain the entry condition report, explain how they must check, sign and return a copy of the form to us within 3 days. We explain and get them to sign the Bond Lodgement Form. We also hand to them a 17a Renting in QLD booklet that explains some of their tenancy rights and obligations. We must issue them with this booklet in accordance with legislative requirements. Can I add any Special Terms to the Tenancy Agreement? The Tenancy Agreement has 44 standard terms which are the law and non-negotiable and is part of every tenancy agreement in Queensland. Special terms are terms that are not standard can be added to an agreement if lawful and do not contract outside legislation. Under the Legal Professional Act of Queensland, a Property Agent cannot write or draft special terms to a tenancy agreement. Only a lawyer OR the lessor can. We do use special terms from our form provider which covers items such as professional carpet cleaning required at end of the tenancy and professional flea spray required if there were pets. An example of contracting outside legislation is a request to insert a special term that an inclusion such as a dishwasher will not be maintained or replaced if it breaks down. This cannot be inserted due to the legislative provision of section 185 of the Residential Tenancies Act- Landlords Obligations.
Who decides if the lease will be renewed? You do! We will contact you by letter around 3 months before the lease is due and seek your instructions if you wish to renew or in fact not renew the lease. Once we have your approval, we will then approach the tenant to have the lease renewed. If you do not wish for the lease to be renewed, you are not obligated to give your tenant a reason.
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Ending a Lease How much notice must my tenant give to vacate? Your tenant must give two weeks’ notice in writing of their intention to vacate the property on or before the expiry of the fixed term lease. They cannot leave at the end of the lease without giving notice. The same amount of notice is required if they are on a periodic tenancy. How much notice must I give my tenants to vacate? You must give your tenants two months’ notice in writing to vacate at the end of the lease. Once the fixed term lease has expired (it automatically becomes a periodic lease if no lease resigned), you need to give them two months’ notice in writing to vacate. If the property is subject to a contract of sale and they are on a periodic lease you can give them 4 weeks’ notice to vacate.
Breaking of a Fixed Term Lease Who pays for the new leasing costs when a tenant breaks their fixed term lease early? Your tenants’ circumstances may change resulting in a need to vacate earlier than expected. In this case, we will charge letting fees and advertising again. The smoke alarm will need to be recleaned and retested 30 days prior to the start of the next tenancy. Under legislation we are entitled to charge a tenant for part or all of these costs, depending on how much of the lease remains when it is broken.
Breaches of Tenancy What happens if the tenant breaks one or more of the conditions of tenancy? The facts of what has occurred determine largely what action is taken. If the breach is minor than approaching the tenant verbally or in writing maybe appropriate. If it is something serious or significant as defined under the Act, we will consult with you first to discuss what action to take. Significant breaches of tenancy may involve using the property for illegal purposes, having more than the allowed number of occupants, keeping a pet without prior permission or other matters where the reasonable cost of rectifying the matter exceeds 1 week’s rent. In the event of a significant breach our agency recommends to always issue the required breach notice.
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Maintaining the Property & Legislative Requirements Who is responsible for repairing my property? Under section 185 of the legislation it is the responsibility of the landlord to repair the property. This means it is at the landlord’s expense. General wear and tear that occurs from tenants general living in a property is expected and legislation provides that it be allowed. A few extra marks and scuffs on the walls, some chips and scratches to doors and doorways will occur over time, along with the gradual wear of everything that is in the property. The only time a tenant can be held responsible is if wear and tear is considered ‘excessive’ for the time frame that the tenant has been in possession. If a tenant has caused damage to an item that is not the result of normal break down or wear and tear, this will be charged to the tenant. What about light globes? The Act does not specifically refer to the replacement of light globes; however most tenants will replace the light globes themselves if they are working at the start of a tenancy. Specialised globes should be the subject of agreement in the special terms of the tenancy agreement. What about Smoke Alarms? Smoke alarms are now subject to specific provisions under the Act. Lessors must clean, test and replace batteries within 30 days of the start of a new tenancy. They must replace smoke alarms before the end of their service life. If the tenant advises that they are not working, they must be replaced by the lessor. Tenants must replace batteries during the tenancy; they must also clean and test smoke alarms every 12 months during a tenancy of 12 months or longer. What are my obligations to my swimming pool? The Building Act of Queensland sets out the legal requirements for pools and spas. A rental property (house or unit) with a pool cannot be rented without a pool safety certificate. In addition, all pools and spas in Queensland (regardless if they are a rental property) must be registered on the Queensland Government pool register. Shared pools (units generally) are required to also have the pool safety certificate in a conspicuous position at the property or on the pool gate. We recommend that you speak with the body corporate for more information in this regard. Who looks after the swimming pool? It is recommended if you have a swimming pool at your property that a professional contractor service the pool monthly at the landlord's cost with tenants responsible for chemicals. This ensures that the tenant is maintaining the pool and that all equipment is kept in good repair.
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Maintaining the property and legislative requirements (cont)
What happens if a repair is required after hours, or on weekends? Our management agreement provides that all emergency repairs be acted on immediately. The RTRA Act provides provision for the tenant to act on emergency repairs up to the value of 2 weeks rent. In an afterhours emergency the tenant can contact a qualified tradesperson to attend. If the repair is not classified as an emergency the tenant is responsible for the cost. RTRA ACT: 214 Meaning of emergency repairs. Emergency repairs are works needed to repair any of the following: a) a burst water service or a serious water service leak; b) a blocked or broken lavatory system; c) a serious roof leak; d) a gas leak; e) a dangerous electrical fault; f) flooding or serious flood damage; g) serious storm, fire or impact damage; h) a failure or breakdown of the gas, electricity or water supply to premises; i) a failure/breakdown of essential service/appliance on premises for hot water, cooking or heating; j) a fault or damage that makes premises unsafe or insecure; k) a fault/damage likely to cause injury, damage property or unduly inconvenience a tenant; l) a serious fault in a staircase, lift or other common area of premises that unduly inconveniences a tenant in gaining access to, or using, the premise Who is responsible for maintaining the outside? Unless otherwise agreed, the tenant is responsible to maintain the lawns and gardens to the standard they were given at the start of the tenancy. This includes light pruning. Due to public liability issues it is usually the landlord’s responsibility to ensure major pruning and gutters are cleaned. Pest Control Services We strongly recommend our clients choose a pest control service and regularly check the property for termite activity at the frequency they recommend. Please note, it is a general exclusion of all building insurance policies that damage to your property caused by termites is not covered (not insurable). Therefore, regular checking is the best way to prevent termite damage, or at least attempt to identify warning signs that termites are creating damage. Without this the damage could be substantial and very costly to rectify. There is no specific requirement under the Act to have an annual general pest control at your property. It falls generally under the lessor’s obligation to provide and maintain premises which are clean, fit to live in and compliant with health and safety standards. Page 15
Landlord & Public Liability Insurance Why do I need landlord insurance if I have an agent? We at no time can guarantee your tenant’s performance at your property. The risk belongs to the owner of the property, and therefore the owner should strongly consider insurance for such a risk. We as property management providers are here to assist you in minimizing your risk. It is also a contractual requirement under the Management Agreement that our landlords hold and maintain a Public Liability Insurance Policy of no less than $10 million dollars. We cannot begin managing the property on your behalf until the information about the insurance is provided. Public liability insurance is important to protect you and your investment. It is strongly recommended that appropriate insurance is sought in relation to adequate building and contents insurance coverage as well. Please note that some items in your property may fall under contents insurance therefore both building and contents insurance are recommended. Why do I need landlord insurance if I have a good tenant? Even a good tenancy can turn bad. If the tenant’s circumstances change sometimes the tenancy will become unstable. This can result in rent owing and the property not being maintained. It pays to be properly insured, even with a good tenant. What does landlord insurance cover? Landlord insurance will cover rent loss due to tenant default and malicious damage to the property caused by the tenant. It is important for you to know what your landlord insurance policy will and won’t cover. Please consult with your landlord insurer so that you are fully aware of the extent of your cover and also any excesses that may be applicable in the event of a claim.
Only if you have landlord insurance will there be a reasonable prospect of covering the rent payment shortfall, in the case of your tenant defaulting in their rent payments. Without landlord insurance, the chance of recovering owed rent monies is minimal. If you have no protection for your rent payments, the problem is further compounded with the fact that the bond will probably be exhausted with owed rent. You will then most likely have cleaning up and re-letting costs, as well as outstanding monies like water owed by the tenant. Therefore, without landlord insurance, this process can be quite financially damaging.
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Costs Incurred at7 My Rental Property Who pays for electricity and gas charges? These are a tenant expense. Charges relating to the supply of these services to a property are at a landlord cost. A good example of this is if a property has bottled gas supplied. The tenant pays for the gas in the bottles and the landlord would be responsible for the charges related to the gas bottle rental. Our agency recommends supply at least 1 full gas bottle at the start of the tenancy; this is then added to your entry condition report. Upon vacating we will then request that the tenant supply a full gas bottle. Who pays for the phone line connection? If there is an existing active phone line at the property, the tenant is responsible for the standard line connection. If there is no line connection but available phone points in the property, the landlord is deemed responsible for this one off line connection fee. With the introduction of NBN internet services being provided we expect to see an update and further clarification in the legislation in regard to installation and what will be classed an essential service. What If I have Solar Panels?
1. 2. 3.
4.
When solar panels are installed at a rental property, the account is usually in the lessor’s name in order to receive the rebate provided by the provider. It must be noted that at this point there is currently no clear legislation in relation to this. The lessor will need to advise our agency at the start of the management on how the electricity will be charged when a rental property has solar power. Options include: The tenant has the electricity account in their name. They pay the account directly to the supply authority and receive any rebate/discount. The property lessor/landlord has the electricity account in their name. They pay the account, receive the rebate, and ask the tenant to reimburse them the full amount. The property lessor/landlord has the electricity account in their name. They pay the account and the tenant is asked to reimburse the property lessor/landlord the full amount minus the rebate amount (e.g. $400 account, minus $150 rebate = $250 amount payable by the tenant). The property lessor/landlord has the electricity account in their name. They pay the account and receive the rebate. The cost of the electricity service is absorbed in the rent. Details about electricity charging needs to be included in the advertising and noted on the general tenancy agreement and signed by both parties at the start of the tenancy. Tenancy legislation states that any reimbursements payable by the tenant to the landlord are to be given 30 days to be paid.
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Costs Incurred (cont)
Who pays for water charges? You can only charge the tenant for their water consumption if the property is separately metered, if water saving devices are fitted and if the tenancy agreement provides for it. You can charge for the water consumption (kls used) but not for the water access/service charges. It is strongly recommended that a plumber certificate or sufficient evidence is kept on file in the event the tenant disputes that the property is water efficient in compliance with the relevant legislation. This certificate may be required to be updated from time to time to assist the lessor in providing evidence to tenants who may request evidence that the property is water efficient as per the legislative definition. Where the property is separately metered but water saving devices are not fitted, you can agree at the start of the tenancy on a reasonable amount of water consumption and charge the tenant for excess consumption over and above this amount. How do you calculate what water charges the tenant has to pay? The water meter must be read and recorded on the Entry Condition Report (along with the declaration about water efficient devices). You will need to supply us evidence of water consumption charges (copies of rates notices) in order for us to invoice the tenants quarterly at the rates as advised by the local council authority. It is unlikely that charges for water consumption (i.e. rates notices) will coincide with lease periods so we will need to read water meters at the beginning and end of all applicable tenancies. In the calculation of ‘excess’ water charges, the reasonable amount of water must be deducted from the water consumption charges. The current Target 1000 KL per household is commonly regarded as ‘reasonable’. What about council and sewerage rates, and the emergency services levy? All these costs must be paid by the landlord as specified by legislation.
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Selling or Moving Back into My Property What happens to the tenancy if I wish to sell my property? You may list your property for sale during a tenancy, however legislation does allow for the tenant to be released from their tenancy obligations if you list the property for sale within the first 2 months of their lease (including renewals) being signed. To save yourself any potential loss our agency recommendation is to list the property for sale after the initial two month lease period has expired or list at the beginning of the tenancy and have it included in the advertising. Advertising a property for rent and sale at the same time may have a negative impact on vacancy periods. If the property sells during a fixed term tenancy the tenancy agreement is still guaranteed to your tenant. This means if a person buys your property and they wish to occupy it, they must wait until the tenancy is finished unless the tenant agrees otherwise. What if I want to move in or someone from my family wants to move in? Again, any fixed term lease is guaranteed unless the tenant agrees to move out. As is the case with the property being sold, this usually involves an amount of compensation being paid to the tenant as agreed by both the landlord and the tenant. Otherwise two (2) months’ notice prior to the end of the lease is required to be given to vacate. What if they are on a non-fixed term agreement? If they are on a non-fixed term (periodic) agreement, you may give them notice. You may give them a minimum 4 weeks’ notice (allowing also for postage delivery time) if the property has been sold (contract signed) and the occupier requires vacant possession. Otherwise 2 months’ notice can be given. If you give 2 months’ notice, no legal reason has to be given.
Can you sell my property on my behalf? YES, WE CAN! If you wish to sell your property, we have a dedicated team of sales agents who are committed to providing the same exceptional service as our property management department. We can arrange for them to complete a market appraisal on your behalf.
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A Guide to Getting Your Property Ready for Tenancy For your convenience we wish to provide you with a guide to getting your property ready for your new tenant. It covers common areas overlooked by owners when moving out. To Do List: • Have your mail redirected. Please ensure that all mail is redirected to your new address. • Utilities - Electricity, Gas, Phone, etc. Please ensure all accounts are advised and cancelled accordingly. The only services to remain in your name (with your new postal address) are water and council rates. • Appliance Manuals - Please leave them on the kitchen counter. • Keys - Please ensure all locks have keys. Please supply 3 full sets of keys (one for our office, two for the tenant). Cleaning Guide We can arrange for a reputable cleaning company to arrange a quote on your behalf if required. Inside the Property
Walls
Clean off any dirty marks, removable scuff marks, finger or food marks
Ceilings
Remove any cobwebs and clean off any ceiling mould
Light Fittings
Clean off dust and remove any dead insects inside
Ceiling Fans
Wipe fan blades and tops of fittings to remove dust build up
Skirtings
Wipe down with a damp cloth
Doorways, Doors
Wipe off finger marks and any other removable marks
Windows
Clean inside and out - (please note - nearly all modern sliding aluminium windows can be lifted and pulled out for easy cleaning). Also sills and runners (wipe out dust build up and any dead insects. A vacuum cleaner and paint brush can really help here).
Flyscreens
Brushed and dusted down. (Please be aware, most modern sliding aluminium windows allow for the flyscreens to be taken off from the inside only, once the sliding part of the window has been moved first. Attempting to take them off from the outside may result in damaging them).
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Getting Your Property Ready (cont)
Screen Doors
Front and back including frames – wiped clean and screen wire brushed
Stoves
Clean stove top, control display, knobs, panels around knobs, any pull out or in-built drip trays, griller racks, trays and any inserts, oven racks, trays and oven bottom, walls and oven roof. A good oven cleaner will clean most ovens - however it is of importance that you read carefully the instructions on the product. Some cleaners can actually hinder oven surfaces (like stainless steel), and also some products have dangerous caustic fumes. Use with extreme caution!
Kitchen Range Hood
Clean pull out filters and framework
Bathroom
Clean sink, mirror, cabinet, vanity unit and drawers, shower recess, glass screen and screen doors, bath and wall tiles. Please ensure both the sink and the bath has a plug available
Toilet
Clean cistern, seat, bowl inside and also outside around the base. Don’t forget the skirting tiles around the toilet
Laundry
Clean both the inside and outside of the trough, and underneath. Please ensure a plug is present.
Tiling
All tiling and grouting to the kitchen, toilet, bathroom and laundry areas are clean.
Exhaust
Vents and Fan Covers are clean of any dust and dirt
Air-conditioners
Front vents and filters cleaned of built up dirt. Modern systems (Wall Type). Filters easily pull out and can be brushed down with a hand brush. If there is a ducted reverse-cycle air-conditioner unit, the air intake filter should be cleaned. This is usually on the ceiling in the passage area.
Ceiling ducts/vents
Clean down if dusty or dirty
Cupboards/drawers
Clean /wash inside and out. Also doors and door frames, front and back of doors need to be cleaned
Curtains
Wash any washable curtains and netting. If other curtains are visibly dusty or dirty, consider dry cleaning
Blinds
Clean off venetian blinds slats or other types should be wiped down
Floors
Mopped/washed if needed - please ensure corners and hard to get areas are also cleaned
Carpets
Professionally cleaned. This is the expectation of tenants on entry and exit from the property. We can arrange for a reputable company to contact you to arrange a quote .
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Getting Your Property Ready (cont)
Outside the Property
Lawns
Mowed and edged (best done a couple of days before the tenant takes possession)
Gardens
Remove any weeds, any rubbish and built up leaves etc
Guttering
Freshly cleaned of any dirt/silt and leaves/twigs
Rubbish
Remove any rubbish, check behind sheds, under shrubs and trees. This includes lawn clippings piled and compost left.
Paving/Paths
Sweep paths and paving areas (this is best done before a tenant takes possession)
Oil spillage
Clean carport and garage floors, paths and driveway. If you have used a barbeque, check for any grease spots and spillages etc
Garage/sheds
Remove any items from inside and behind garages and tool sheds. The only things that perhaps should remain are items directly related to the property (for example spare roof tiles, other spare tiles and paint tins etc)
If You Have a Pet
Pet droppings
Remove from gardens, lawns and any out of the way areas. Please dispose of in the bin – please do not bury them
Urine
Remove/clean where your pet may habitually urinate (Base of walls, veranda posts etc.)
Pet stains
To outside walls- check where your dog regularly lies down, there may be ‘tell-tale signs’ on walls etc.
Claw Damage
Check screen doors, flyscreens and curtains. Replace if required
Chew Damage
Check watering systems are free of dog chew damage and are repaired
Pet Hair
Ensure any visible pet hair inside is removed.
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Our Fee Schedule and Written Service Standards
The Advantage Service Package Management Fee 1 Property: 9.35% GST Inclusive
Letting Fee 1 weeks rent + GST (1.1 week inclusive)
Services Included in the Advantage Package • • • • • • • • • • • • • • • • •
Conducting open for inspection appointments at your property Conducting an unlimited number of inspection appointments with prospective tenants The development of descriptive copy for marketing your property for lease Thorough screening of prospective tenants Preparation of a highly detailed Ingoing Property Condition Report (with photos) The supervision of the signing of all tenancy documentation by the tenants The lodgement of the Rental Bond with the Residential Tenancies Authority Rent Collection, Receipting and Banking Rent Arrears Control (if your tenant does not comply with our zero tolerance rent arrears policy) Electronic banking of the rent collected into your nominated bank account (monthly) Payment of your property outgoings Yearly rent reviews (subject to market conditions) Organising repairs and maintenance to your property Detailed Routine Inspection Reports with photos Preparation of a highly detailed Outgoing Property Condition Report Arranging any necessary repair or cleaning after the tenant has vacated the property The processing of the tenant’s Rental Bond after vacating
Additional Services Available- GST inclusive End of Financial Year Statement
$22.00
Other Charges – GST Inclusive Monthly Administration Charge Mediation and Court Appearance Court Lodgement Advertising Charge Title Search
$ 5.50 $ 75.00 per hour At Cost $135.00 At cost
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Written Service Standards
We commit to you in writing that we will perform the following duties when managing your property. Marketing Your Property for Lease ➢ We will place a listing for your property on all the real estate websites that we subscribe to and each listing will include at least 3 photographic images of the property. ➢ We will conduct an unlimited number of viewings of your property until the property is leased. ➢ All property viewings will be carried out by one of our representatives (we do not give out keys to prospective tenants). ➢ We will update you on the status of your available property each week and provide you with a potential applicant’s feedback (if received) until such time as the property is leased. Leasing Your Property ➢ All information and references provided by tenancy applicants will be verified by us within 1 working day of receipt. ➢ All tenancy applicants will be screened on the national tenancy databases that we subscribe. ➢ Unless you instruct otherwise, all potential tenancy applications will be referred to you for a decision. ➢ We will lease your property for the rental amount nominated in the Management Agreement. ➢ or higher if the market justifies it and the property will not be leased for a lower amount without your prior approval. ➢ Subject to the tenancy commencement date and the tenant’s availability, we will prepare the tenancy documentation within 2 working days of tenancy approval. Rent Collection We have a zero tolerance rent arrears policy. We will follow up all rent payments in accordance with: ➢ our fully documented arrears process, and ➢ the requirements of the relevant legislation Should your tenant get to 13 days in arrears, we will contact you to seek your instructions regarding possible termination of the tenancy. Should termination of the tenancy be necessary, we will keep you informed throughout the legal process. You will be advised once the rent arrears have been paid by the tenant.
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Written Service Standards (cont) Repairs and Maintenance ➢ All non urgent repair requests from tenants will be actioned to within 2 working days of receipt of approval. ➢ We will not arrange any repairs to your property without your knowledge and approval (unless the repair is defined as “Emergency” under the Residential Tenancies and Rooming Accommodation Act). ➢ We will action any “emergency” repair requests within 4 hours of receipt. ➢ All reasonable steps will be taken to obtain the best pricing for your repairs and maintenance. ➢ We only use appropriately licensed and insured tradespeople for repairs or maintenance work. ➢ We will provide you with a copy of invoices for all work arranged on your behalf for the property. Tenancy Agreement Renewals ➢ We will review the tenancy agreement for your property 90 days prior to its expiry. ➢ Unless you instruct otherwise, we will offer the tenant a renewal of tenancy agreement for the same period as the initial agreement at the same rent (or a higher rent if the market justifies it). ➢ You will be advised if the tenant does not want to renew their tenancy agreement. Periodic Inspections ➢ We carry out at least 4 periodic inspections of the property each year. ➢ We provide you with a detailed report with photos each time. Tenant Vacating On receipt of a tenant vacating notice we will: ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢
Advise you by phone or email. Confirm the details in writing to both you and the tenant. List the property on our website and put the agreed advertising plan into effect. Prepare all necessary vacating documentation. Arrange access for viewings by prospective tenants. After the tenant vacates the property. Conduct the vacate inspection within 3 business days of the tenant vacating. Process the tenant’s rental bond refund within four working days. If deductions from the rental bond are necessary, full details are provided to you and the tenant. ➢ Complete all necessary documentation to finalise the rental bond within a further 7 working days.
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Written Service Standards (cont)
Property Disbursements and Statements ➢ All agreed property disbursements will be paid on your behalf (subject to the availability of funds). ➢ Your Rent Statement will be emailed to you within 2 working days of our monthly close off date. ➢ If required we will provide you with an accurate Annual Income and Expenditure Statement within 30 days of the end of the Financial Year. General Communication Our office hours are 8.30am – 5:00pm Monday to Friday. We will respond to: ➢ telephone messages within 24 hours ➢ email within 24 hours ➢ We will promptly advise you of any pertinent matters affecting your property or the tenancy Complaints Handling ➢ Complaints received in writing (i.e.letter, email) will be acknowledged within one working day. ➢ All complaints will be formally recorded and responded to within two working days. Documentation ➢ We will ensure that all documentation is accurate and complete. ➢ All property condition reports will be comprehensively and accurately completed. ➢ Copies of all documents that we sign on your behalf as agent will be forwarded to you (unless you instruct otherwise). Personal Information ➢ All personal information will be held in the strictest confidence and will not be released to a third party without written authorisation. ➢ All updates and corrections advised to us will be recorded in our system within one working day. Professional Standards ➢ The highest standards of honesty, integrity and professional practice will be conducted in compliance with the Code of Conduct of Property Occupations Act. We are also proud members of the Real Estate Institute of Queensland (REIQ)
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Disclaimer
This handbook has been prepared by ONE Agency Hervey Bay as a guide for property owners and investors. Our officers, employees, agents and associates believe that the information and material contained in this handbook is correct at the time of printing but do not guarantee or warrant the accuracy or currency of that information and material. To the maximum extent permitted by law, our officers, employees, agents and associates disclaim all responsibility for any loss or damage which any person may suffer from reliance on the information and material contained in this handbook or any opinion, conclusion or recommendation in the information and material whether the loss or damage is caused by any fault or negligence on the part of our officers, employees, agents and associates or otherwise. The information relating to the law in this handbook is intended only as a summary and general overview on matters of interest. It is not intended to be comprehensive nor does it constitute legal advice. Whilst our officers, employees, agents and associates believe that such information is correct and current at the time of printing, we do not guarantee its accuracy or currency. Many factors unknown to us may affect the applicability of any statement or comment that we make to your particular circumstances and consequently you should seek appropriate legal advice from a qualified legal practitioner before acting or relying on any of the information contained in this handbook. The information contained in the handbook is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any of the information you should consider its appropriateness, having regard to your own objectives, financial situation and needs.
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Contact One Agency
Phone: 07 4194 52936 Email: herveybay@oneagency.com.au 6/6-8 Liuzzi Street, Pialba Qld 4655
Oneagencyherveybay.com.au
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