Management of Your Property Our step by step guide to successful property management
8264 2223 taylorsrealestate.net.au
Business Profile Taylor’s First National Real Estate is a member of the First National Real Estate group of independent Real Estate agents. The group comprises in excess of 500 offices throughout Australasia, with affiliates in the United States via the prudential referral services. Our prominent character office is centrally located to service the north and north east suburbs of Adelaide. Developers recognized the region as an area with growth potential which has resulted in a number of major developments in recent years such as Mawson Lakes, Walkley Heights, Golden Grove, Gulfview Heights and Hawkesbury Park. These developments have resulted in escalating buyer activity, awareness and a significant increase in property prices. All categories of buyers from the interstate investor right through to the third and fourth home owner now look to purchase throughout the region. We specialize in residential sales and rental management. Our sales department has an exceptional high listing to sales success rate, while our property management department manages one of the largest rental portfolios and can confidently boast one of the lowest vacancy rates in rental management. Our First Priority service provides assistance to prospective buyers and tenants looking for accommodation, while adding an extra benefit for our vendors and landlords. We receive a high number of referrals from past clients who recommend our service which is an indication of their satisfaction in their dealings with our company. We understand the importance of first impressions and the saying “You don’t get a second chance to make a good first impression”. Consequently everything we do is with that in mind. Our office is located in a high visual and traffic area, is tastefully decorated and impeccably presented with banners periodically erected to create continued consumer awareness of our business. Our marketing product is to an extremely high standard in comparison to our immediate competitor agents. We are equipped with the latest forms of technology which allows us to produce most of our marketing material in house. This enables us to adapt very quickly, continually introduce new products and keep costs down to our clients while increasing their properties exposure. The First National Quality System, called “Best Practice” is unique to the industry, and in our area. Our documented procedures leave nothing to chance – everything we do is planned to get the best result for the lowest investment. These documented procedures mean our systems are reliable and we don’t waste time re-inventing the wheel, or covering mistakes. Our dedicated reliable team of real estate professionals undertakes regular personal development and training. They are well groomed, polite and helpful, and believe in the philosophy of “treating people the way you would like to be treated yourself”. If you intend selling or renting your property, you can be assured of receiving the highest standard of service from Taylor’s First National. WE GUARANTEE IT!
Taylor’s First Na onal Gold PROPERTY MANAGEMENT PROCEDURES TAYLOR’S FIRST NATIONAL are recipients of a Award and Best “Best Prac ce Gold award Cer fica on” Prac ce Procedures We can proudly boast as being recognized as one of the few Real Estate offices who have implemented a quality assurance system that is aligned to ISO 9000 interna3onal standards. Generally clients may not be fully aware that they are dealing with a Gold Awarded company. But they do recognize and praise the good service, effec3ve communica3on, correctly organized marke3ng campaigns and careful a8en3on to detail. This might not seem much in itself unless you have previously dealt with other real estate offices who cannot guarantee these service levels. But it is the confidence in knowing that you are dealing with a company with a dedicated customer focus and a system that is driven by con3nuous improvement. If you need a quality property manager to handle your investment property, you can be assured of receiving the highest possible standard from TAYLOR’S FIRST NATIONAL.
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MARKETING YOUR PROPERTY
PRIOR TO RENTING YOUR HOME
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SELECTING A SUITABLE TENANT
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THE TENANCY AGREEMENT
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PROPERTY INSPECTIONS
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RENT CONTROL POLICY
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REPAIRS AND MAINTENANCE
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RENT COLLECTION AND PAYING THE OWNER
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INSURANCE - MANAGING THE RISK
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SELLING YOUR RENTAL PROPERTY
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BEST PRACTICE SERVICE GUARANTEE
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COMPANY POLICIES
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WHAT WE NEED FOR YOUR PROPERTY IS A STRATEGY THAT WILL MAKE IT STAND OUT FROM THE CROWD
MARKETING YOUR PROPERTY The Rental market is no different from any financial market in that it is driven by supply & demand.
The experienced property investor understands that a cost effec3ve but quality marke3ng program will more likely generate a higher level of tenant enquiry, provide a greater selec3on and higher quality of poten3al tenant, and assist in maximizing the rental income by minimizing the vacancy 3me.
Our exper3se in marke3ng investment proper3es enables us to make them stand out from the myriad of other rental proper3es that are available.
Saturday Adver3ser Advert
News Review Messenger
First Priority Tenant Database - Email/SMS Alerts
(Photographic Advert)
Taylor’s First Na3onal Weekly Property Guide
Internet (Including the following websites) www.taylorsrealestate.net.au www.realestate.com.au www.myhome.com.au www.rent.com.au
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Colour Window Display in our High Profile Office
For Lease Sign
PRIOR TO RENTING YOUR HOME Prior to ren3ng your property we suggest you consider a8ending to any minor maintenance issues that may need a8en3on.
HOW YOU PRESENT YOUR PROPERTY PLAYS A LARGE PART IN THE TYPE OF TENANT THAT IT WILL ATTRACT
The be8er your property is presented the easier it will be to rent, and you are more likely to a8ract be8er quality tenants.
As part of our pre leasing procedure our property management department inspect all proper3es and then discuss with landlords any areas of maintenance we feel may need a8en3on prior to ren3ng.
Par3cularly with health and safety issues we believe it to be wise to rec3fy any of these poten3al hazards.
PRE-LEASING MAINTENANCE CHECKLIST
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Are gardens neat & 3dy
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Fix leaking taps & toilets
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Fix s3cking doors
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Floors must be mopped & clean through out
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Have cupboards been cleaned
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Bathroom & kitchen thoroughly clean & free of mould
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Have carpets been professionally cleaned
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Remove & dump all rubbish
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Are their any liEing floor coverings that could be a tripping hazards
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Are the smoke alarms compliant
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Is a safety switch fi8ed
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Are there any other poten3al health & safety issues
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WE ENSURE THAT A SUITABLE TENANT IS CHOSEN FOR YOUR PROPERTY
SELECTING A SUITABLE TENANT Selec3ng a suitable tenant for your property is possibly the most important aspect of property management.
Get it right and you will enjoy the long term benefits that owning investment proper3es can provide. However, selec3ng the wrong tenant can cause hardship, frustra3on and have you ques3oning the validity of owning investment proper3es.
As such we require all poten3al tenants to complete a detailed applica3on form, provide proof of iden3ty along with details of their past and present employment history, current income to debt levels, and previous rental history with contact details for those landlords.
If an applicant doesn’t meet our stringent leasing criteria our recommenda3on is not to enter into a lease agreement with them.
INDICATORS TO HELP SELECT THE RIGHT TENANT
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Check employment history
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Verify employment income level
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Look at debt level (can they afford to pay the rent)
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Check the bad tenant register for previous defaults
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Photocopy of drivers license to verify iden3ty
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Contact previous landlords seeking honest reference
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Note how they are dressed (well groomed or un3dy)
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Is their motor vehicle clean & well maintained
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Are they polite and well mannered
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Google search of applicant and past rental property
THE TENANCY AGREEMENT A wri8en tenancy agreement between the landlord and the tenant is essen3al when leasing a property and specifies the rights and obliga3ons of both par3es.
WE ENSURE TO FULLY EXPLAIN THE TENANCY AGREEMENT AND TERMS & CONDITIONS WITH YOUR TENANT
It is a legally binding document but can be open to interpreta3on and it is therefore vitally important to have a good working knowledge of the “Residen3al Tenancies Act”.
All our property management staff are familiar with the various sec3ons of this act. They regularly prepare lease agreements on behalf of landlords and note all the relevant terms and condi3ons of that rental agreements. These terms and condi3ons along with our other expecta3ons are then discussed in depth with the tenant at the point of signing the agreement.
TERMS AND CONDITIONS CHECKLIST
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The rental amount & ini3al payment dates
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The lease term
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The bond amount
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Water usage payment arrangements
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Lawn & garden maintenance expecta3ons
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Carpet cleaning requirements
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End of tenancy requirements
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Lost or misplaced keys
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Maintenance request procedure
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Rental payment methods
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Our ZERO tolerance to rent arrears policy
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Inspec3on frequency & access arrangements
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Prior approval is required for keeping of pets
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Considera3on to noise levels for adjoining neighbors
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Home business ac3vi3es are not permi8ed
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Our expecta3ons on how the property is to be maintained
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MAINTAINING THE STANDARD OF YOUR HOME
PROPERTY INSPECTIONS To maintain a level of control over how a tenant keeps the condi3on of a rental property, it is essen3al that regular property inspec3ons are conducted. Our property management department conducts three types of property inspec3ons to help minimize any problems that may arise during the course of the lease. ♦
INITIAL PROPERTY CONDITION REPORT
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ROUTINE/PERIODIC INSPECTION
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FINAL (BOND RELEASE) INSPECTION
INITIAL PROPERTY CONDITION REPORT Our property officers and inspectors complete this report prior to the commencement of the tenancy. It is a legal requirement and a condi3on of all tenancies that this report be conducted. It must be accurate, correctly detail the condi3on of the property at the commencement of the lease, and a copy must be issued to the tenant. Relevant property photos are also taken and a8ached to this report. ROUTINE/PERIODIC INSPECTION These inspec3ons are designed to provide a means of checking that the tenant is maintaining the property to an acceptable standard, to report any maintenance or repairs that may be required, and to be able to provide landlords with regular informa3on on the condi3on of their property. Our property officers and inspectors conduct these inspec3ons every four months on all proper3es, and forward a wri8en report supported by digital photos to the landlord. The tenant must be advised at lease seven days in advance of conduc3ng these inspec3ons. FINAL (BOND RELEASE) INSPECTION Our property officers and inspectors conduct this report once the tenant has vacated the property. The ini3al property condi3on report is taken to the property and the current condi3on of the property is compared to that on the original report. If the tenant has damaged the property, a landlord can charge the tenant a reasonable amount of compensa3on for that damage. Considera3on needs to be given to fair wear and tear, along with the depreciated value of the damaged item when determining the amount of compensa3on being charged.
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ZERO RENT ARREARS POLICY Our property management department takes their responsibility to ensure tenants pay their rent on time very seriously.
WE TAKE THE PAYMENT OF YOUR TENANTS RENT VERY SERIOUSLY
Our ZERO RENT ARREARS POLICY is discussed with all tenants at the time when they sign the lease, and as such we expect that policy to be adhered to.
Legally a property manager or landlord cannot take steps to evict a tenant for non payment of rent until the rent is 15 days in arrears. This means on the 16th day we may issue the tenant with a “FORM 2 - NOTICE TO REMEDY BREACH OF AGREEMENT” which allows them a further 7 days to remedy the rent arrears breach from receipt of the Form 2 notice.
Should the tenant fail to pay the full rent owing by this deadline a “FORM 7 – APPLICATION TO TENANCIES TRIBUNAL” is sent to the Residential Tenancies Tribunal applying for an order to have the tenant evicted from the property and balance of all rent money owing paid in full to the landlord.
Prior to the issue of these notices our property management department will have attempted to contact the tenant on a number of occasions by sending reminder SMS messages along with the posting of a variety of letters in an attempt to try and ascertain why, and how they intend to remedy the breach.
OUR ZERO TOLERANCE PROCEDURE DAILY - Print all rent arrears report DAY 5 - First reminder letter DAY 10 - Reminder call to tenant advising of their rental status - Post letter if unable to contact them DAY 16 - Prepare and serve FORM 2 Notice on tenant by post DAY 27 - Prepare Form 7 and apply to Residential Tenancies Tribunal seeking eviction and a full payment of rent order - Advise Landlord of status - Send letter to tenant “Eviction Pending” your immediate attention required DAY OF HEARING - Prepare and attend hearing RTT DECISION ADVISE - Advise landlord
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WE CARE FOR YOUR TENANT AND FOR YOUR PROPERTY
REPAIRS AND MAINTENANCE Possibly one of the most difficult aspect of property management is the handling of maintenance issues. Property managers can spend considerable 3me trying to co-ordinate the various types of maintenance and repairs that are required to rental proper3es during the course of a tenancy. They need a clearly defined and structured procedure in place to ensure tasks are a8ended to in a 3mely fashion, and to avoid the possibili3es of a tenant taking legal ac3on against a landlord for breach of agreement.
Firstly they need to be able to determine the nature of maintenance problem. Is it an: ♦
Emergency problem
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General problem
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Health & Safety problem
Next is to determine whether the responsibility to repair lies with: ♦
Landlord
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Tenant
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Strata or Community manager
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Insurance Company
From there it’s contac3ng the relevant party responsible for the repairs and seeking their approval to a8end to the repair work.
Then it is to determine, contact and book for the work to be conducted by a suitable tradesman. Does the job need a: ♦
Licensed tradesman (Electrician, plumber etc)
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Specialist tradesman
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General handyman
Finally it’s contac3ng the tenant to advise the day and 3me that the work will be carried out, or details of the tradesman who will contact them direct to book a suitable 3me.
Here at Taylor’s First Na onal we have developed our systems and procedures over the last fiEeen years. We now employ a designated maintenance officer who a8ends to all repair issues, and have developed our own maintenance division “Combined Home Maintenance Services”.
This has enabled our Property Management Department the ability to quickly a8end to maintenance issues. It also has provide us with more control over the important aspect of minimizing the poten al risk to landlords in rela3on to property maintenance and health and safety issues.
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COLLECTING RENT - PAYING THE OWNER All money received by us in rela3on to managed rental proper3es is paid directly into our trust account. This account has strict guidelines in how it is to be managed, and we have an obliga3on to ensure we distribute those funds in the appropriate way.
CASH FLOW MANAGEMENT AND REPORTING
Our policy is to reconcile our trust account on a daily basis to ensure it balances correctly, and all deposited funds are allocated to the correct landlord ledgers.
HOW DO WE COLLECT THE TENANTS RENT ♦
When the tenant signs the lease they are given four rent payment op3ons:
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They are provided with a “Direct Bank Deposit Book” and can pay their rent at any Bank SA branch
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They can make payment at our office by Money Order or Cheque
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They can have their own bank directly debit their account and make payment directly to our trust account
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They can transfer funds over the internet directly into our trust account
As part of our Best Prac3ce Accredita3on & for security reasons we do not accept or hold cash at our office.
WHEN DO OWNERS RECEIVE THEIR MONEY Funds in our trust account are paid to landlords at the end of each month by “Electronic Funds Transfer” directly into their nominated bank account. If these funds are being paid directly to a mortgage account it is a good idea to have that account paid several months in advance, in case the tenant is late with their payment, or the property becomes vacant.
MONTHLY STATEMENTS Monthly rental summary statements are posted to landlords at the beginning of each month. These detail: ♦
Landlords name and postal address
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Date and 3me the statement was printed
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Details of all monthly income & expense
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Address of the property
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Tenants name
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Weekly rent amount
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Date to where the rent is paid up to
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Date the lease is due to expire
ANNUAL STATEMENTS At the end of June each year, and to assist landlords with their end of financial year taxa3on repor3ng requirements, we provide all landlords with an itemized statement detailing total rent collected and expenses incurred through-out the year. This statement along with each monthly statement should be forwarded to your accountant.
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RISK MANAGEMENT STRATEGY SHOULD ALWAYS BE CONSIDERED
INSURANCE - MANAGING THE RISK With most investments there is always a level of risk – the greater the return the greater the risk. Owning investment property is no different.
More than ever, landlords are at the risk of financial loss attributable to the actions of tenants, even when the property is professionally managed.
As such we strongly recommend all landlords take out both building and a landlord protection policy in order to manage this risk.
As we do not hold a Australian Financial Services License we are not able to provide you with advice on insurance, however we are able to provide you with general brochure information about the service available to you.
If you would like to receive a brochure about these types of insurance please contact our office.
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SELLING YOUR RENTAL PROPERTY Unfortunately selling and ren3ng your property at the same 3me is not always a happy marriage. The fact is we are all protec3ve of our individual rights and quite oEen unsure of exactly what they are.
MANAGING THE SALES PROCESS OF RENTED PROPERTIES
Basically, you are en3tled to have prospec3ve purchasers view the premises at a reasonable 3me of the day and on a reasonable number of occasions upon supplying the tenant reasonable no3ce. The tenants also en3tled to reasonable peace, comfort and privacy or the quite enjoyment of the premises. Of course the ques3on arises just “what is reasonable”.
TAYLOR’S FIRST NATIONAL are experts when it comes to selling and ren3ng your home. So, what could make more sense than have us look aEer both for you.
The fine balance between the rights of both par3es will be thoroughly observed and at the end of the day you’ll have achieved the highest sale price possible in the shortest possible 3me whilst enjoying the benefits of a total property management package.
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TAYLORS FIRST NATIONAL BEST PRACTICE GUARANTEE
SERVICE GUARANTEE Everyone gives guarantees, but what do they really mean? In some cases very little.
That’s where TAYLOR’S FIRST NATIONAL is different. Being a Best Practice accredited office means we can guarantee our service to a predetermined and written standard for every part of our real estate business.
Only by establishing Best Practice standards can we guarantee to meet and exceed your expectations in the leasing and management of your investment property.
Should a problem arise, it will be corrected quickly and to your satisfaction.
Few real estate companies can genuinely guarantee this level of service. However you can be confident in knowing that you are dealing with a company that not only has a proven commitment to customer service, but a system that is driven by continuous improvement.
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COMPANY POLICIES It is Policy of Taylor’s First Na onal Real Estate that:
We treat people the way we would like to be treated ourselves
We constantly strive to achieve expecta3ons.
We always act in the best interests of our clients
We maintain our Quality Systems to First Na3onal Gold standard.
We recruit, develop and endeavor to retain the best people.
We expect everyone to strive for improvement.
We incorporate quality into everything we do.
We constantly review and update all of our systems.
We meet all statutory, legal and industry requirements.
We record and analyze all non conformance to drive improvement.
The privacy of clients and customers is of paramount importance, informa3on is only provided to those par3es involved in or poten3ally involved in a transac3on with our company. Our privacy statement and individual client and customer data is available to the individual upon request.
Paul Taylor Managing Director
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THE TAYLOR’S FIRST NATIONAL TEAM MANAGING DIRECTOR
OUR DEDICATED AND RELIABLE TEAM OF REAL ESTATE PROFESSIONALS
Paul Taylor Principal
SALES DEPARTMENT
Jakub Ratajczak
Tim Schwarz
Ken LoE
Gavin ArmStrong
Sales Consultant
Sales Consultant
Sales Consultant
Sales Consultant
PROPERTY MANAGEMENT DEPARTMENT
Rhonda O’Callaghan
Tamika Roper
Tammy Taylor
Kylie Po8er
Senior Property Manager
Property Inspector
Maintenance Coordinator
Rental Administrator
ADMINISTRATION
Debbie O’Bryan
Sarah-Jane O’Bryan
Renee Goulding
Accounts/Office Manager
Recep3onist/Marke3ng Coordinator
Administra3on
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Dave Pavy Maintenance Tradesperson