Our Comprehensive Property Management Services Choosing a managing agent for your investment property can be daunting. Here at The Property Exchange we are all about making your life easier and stress free, from preparing your property for market, securing an ideal tenant at a premium rent and the continued management of your tenancy and investment. We understand that when it comes to selecting an agent, fees are going to be an important factor but this shouldn’t be the only factor to consider. Keeping this in mind, like most things in life, you get what you pay for. We highly recommend meeting with potential agents and interviewing them to find out exactly what type of service you will receive for your financial investment. Property Management services are all different. Here are some important questions to ask when you are meeting your new potential property manager: 1. How many properties does each property manager care for at your company? 2. How much experience does the property management team have? 3. How do you retain staff so there isn’t a high turnover of property managers? 4. What marketing strategies do you have in place to ensure my property attracts good tenants quickly? 5. What is the screening process for a tenant for my property? The answer to these questions will give you a really good indication of the quality of the property management team you would be dealing with - are they going to be the best people to maximise return and minimise risk on your investment?
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The Leasing The leasing process ensures the securing and placement of a new tenancy for your rental property. The letting amount is based on the amount of rent achieved for the property and is only charged on new tenancies.
THE LETTING PROCESS - WHAT WE DO: • • • • • • •
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Arrange professional photography of the property. Create a marketing script with the property details. Upload the property to property search portals. Contact our prospective tenancy database. Notify relocation agents. Create a property information sheet for prospective tenants. Show properties via private and open inspections with prospective tenants. Answer tenant enquiries and issue application forms. Carefully check tenant rental references and confirm employment details. Collect and check tenant identification for 100 points of value. Check the approved applicants against the tenant internet default database. Communicate with the owner for the final decision on the applicant. Liaise with the prospective tenants and confirm a successful/unsuccessful application. Prepare the new tenancy agreement for electronic signing and receipt first -two weeks rent and bond. Induct and interview the new tenant to sign, issue and explain fully the main tenant obligations, tenancy agreement, electronic bond lodgement, property condition report, compulsory legal information booklet and the photocopy recording and issuing of keys. Lodge the bond with the bond administrator.
2.2 weeks’ rent inclusive of GST
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The Marketing Your property will be placed on major real estate internet sites together with suitable photographs and a marketing script. Offering exceptional value compared to less effective (and far more costly) newspaper advertising, your property is exposed to the market using these internet platforms:
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thepropertyexchange.com.au reiwa.com.au realestate.com.au (Premiere) domain.com.au
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westrealestate.com.au property.com.au rent.com.au realestateview.com.au
WINDOW DISPLAY/BROCHURES Your property will be advertised in our office window and included on our rental list as being available to rent, taking advantage of the foot traffic our office position enjoys.
SOCIAL MEDIA Your property will be showcased across our many social media platforms. This helps maximise exposure.
VIRTUAL TOUR A 3D Virtual Tour will be conducted on your property which in conjunction with the professional photography will entice more potential tenants to inspect.
$198 inclusive of GST
For Lease Sign If possible, a professionally presented for lease sign will be erected on your property. This is an invaluable 24/7 marketing tool for your investment. At cost
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realestatewa.com.au thehomepage.com.au nestoria.com.au homely.com.au
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National Tenancy Database Check
Checking against millions of default tenant records, this fee offers excellent value especially if we are alerted to an unsavoury lodgment as this allows us to avoid a high risk tenancy situation and a potentially messy eviction process. At cost
The Property Condition Report AND SUPPORTING PHOTO EVIDENCE This is a once off, although should be renewed every 5 years or if there are any major refurbishments. A highly detailed Property Condition Report is prepared prior to the commencement of the tenancy. A fully detailed description of both the interior and the exterior of the property are recorded. This report also includes ample photographs of both the interior and exterior of the property. The length of the report will depend upon the size of the property and the extent of wear and tear, however the report covers many pages of comprehensive information. $220-$440 inclusive of GST (based on size of home)
Inventory Report This applies to fully furnished and self-contained properties and consists of the checking of all furniture and equipment items for damage or loss for ingoing and outgoing tenancies. $220 inclusive of GST
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The Management Process Taking care and supervising your rental property is the most important function we perform. The management fee is, expressed as a percentage of all rent collected. Some agencies charge management fee on all income received from the tenant (e.g. water invoice). This covers the day-to-day management and supervision of your property under our professional care.
THE MANAGEMENT PROCESS - WHAT WE DO: •
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Attend to owner correspondence and communication. Attend to daily tenant telephone, email and front office enquiries. Disburse and manage your rental monies through our trust account. Key management and security for all viewings, inspections and tradespeople. Rent collection and rent control early intervention. Correct and prompt serving of all legislative legal forms. Preparing monthly statements for the owner and collating support information. Arrangement of special water readings when required. Paying and recovery of water consumption from tenants. Invoicing and recovery of any other property expense (e.g. strata gas/electricity/water)
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9.35% inclusive of GST 15% inclusive of GST for furnished and/or equipped properties
Coordinating tradespeople quotes and repairs with regular follow-up. Paying of tradespeople accounts. Paying property expenses, on behalf of owners. Conducting regular rent reviews in line with market conditions. Serving rent increase notices on a tenant in line with legislative requirements. Preparation of managing agent’s authority renewals. Processing of notices to vacate and confirmation with tenants. Management of early termination of tenancy if requested by tenants.
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The Routine Inspection Process
The routine inspection is conducted on a quarterly basis, with the first occurring after the first 6 weeks of tenancy. This allows us to monitor the tenant performance and general condition of the property, keeping the condition as well maintained as possible and keeping your asset value maximised.
THE ROUTINE INSPECTION PROCESS - WHAT WE DO: • • • • • •
Issue the tenant with the required legislative notice of inspection. Follow up reminder. Create a room-by-room written and photo report detailing tenant performance, criticisms, repairs, concerns and recommendations for improvement to the condition of the premises. Provide tenant feedback on performance. Follow up with the tenant any unsatisfactory items. Issuing of a Breach of Agreement upon owner’s instruction and include a further inspection, if required. Issue a report and photos to the owner.
$88 inclusive of GST
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This is applied when the lease is extended for a further term with an existing tenant.
The Lease Renewal Process
This is a benefit to you - the main benefits for the continuance of a fixed term lease is that it assures a maximum payout on a landlord insurance policy should the tenant default on rent, and also guarantees the rent to the owner should the tenant wish to break a fixed term lease. Should either of these situations occur on a periodic lease (if the fixed term lease is not renewed) the tenant is not obligated to keep paying rent (only 21 days’ notice is required) and the owner can suffer unforeseen financial loss should market conditions not be so favourable at the time. In this case the owner must fund the vacancy period. Should a default occur by a tenant on a peridoc lease, the owner’s landlord insurance policy will either pay a minimal amount or nothing at all (some bank sourced landlord insurance policies do not pay at all if the default occurs when a tenant is on a periodic lease). Therefore, keeping a tenant on a fixed term lease is in the owner’s best interests.
THE LEASE RENEWAL PROCESS - WHAT WE DO: • • •
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Prepare a comparative market analysis and gather market evidence to review the rent. Consult with the owner for lease renewal suitability before a lease renewal is approved. Approach tenant for their intention to renew the lease, and negotiate the terms and increased rent if applicable. Issue 60 Day Rent Increase notice to tenant in line with legislative requirements as required. Create a new lease agreement. Sign and initial the lease renewal with the tenant. Issue a copy of the lease renewal to the tenant and send to owner. Enter and follow up rent reviews and lodge bond variations.
1.1 weeks’ rent inclusive of GST
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The Final Bond Inspection Process The bond or vacating inspection is conducted as soon as practically possible after the tenant vacates the property and surrenders their keys.
THE FINAL BOND INSPECTION PROCESS - WHAT WE DO: • •
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Check off all items from the ingoing property condition report and update where necessary. Note in writing any tenant neglect, damage and cleanliness issues (allowing for wear and tear on the property). Provide the outgoing tenant with a copy of the Final Bond Inspection Report. Direct the tenant to amend any items that are unsatisfactory on the ingoing property condition report.
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Return to the property to re-inspect any unsatisfactory items to ensure proper rectification. Arrange tradespeople for any items that tenants were unable to rectify. Submit the electronic bond release form to the Bond Administrator for refund of the bond to the outgoing tenant less any owner deductions. Update the property condition report and supporting photo evidence for the next tenancy.
$220 inclusive of GST
Monthly Administration Fee
This is a flat monthly fee paid on a calendar monthly basis. It covers your monthly statement and general expenses such as postage, stationery, phone calls, SMS and emails (postage and petties). The flat monthly fee charge is in lieu of charging per expense incurred, which would fluctuate on a month-by-month basis. $11 inclusive of GST
Annual Financial Summary Report At the end of each financial year, you will be issued with a summary of income and expenses in relation to your investment property. Your accountant is likely to charge $55 inclusive of GST
far more to prepare an equivalent summary for you using your monthly statements. Our annual summary statement offers excellent value, saving you accountancy expenses.
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Court Filing, Preparation and Attendance This is charged when we are required to prepare and file court application forms and appear before the Magistrate on your behalf at the Local Court. We will always seek your permission before requesting court action or attendance on your behalf. This expense may be recovered through landlord insurance if the court filing is due to the tenant defaulting on the payment of their rent. $110 per hour inclusive of GST
Renovation/Insurance Claim The organization and supervision of property improvements (for example recarpeting, repainting, renovations etc) lies outside the scope of the general management of your property, and will therefore be charged accordingly. In the event of an insurance claim it may be necessary to charge for our time. This depends on the nature of the claim and the work required in meeting with insurance assessors, and is at our discretion, but will be discussed with you first. In most cases this expense can be avoided by the owner submitting and monitoring the claim personally. We are happy to arrange for quotes for submission to the insurance company.
$110 per hour inclusive of GST
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Title Search Fee
As required by legislation, we must conduct a title search of the property to ensure all owners are noted on the management agreement. This is a reimbursement of the costs incurred to do a title search only. At cost
Strata Plan Search Fee We conduct a strata plan search to ensure there are no unusual by laws altering the use of the property and to highlight the areas of the property that are available for tenant use. That is; carbays, courtyards, storage, common areas etc. If you are unable to supply a copy of the Strata Plan when the Managing Authority is completed we will order a copy on your behalf. This is a reimbursement of the costs incurred to complete the required searches. At cost
Key Cutting We ask you to provide three sets of keys for your property. Should you be unable to supply our office with three sets of keys, we can arrange key cutting on your behalf. $11 inclusive of GST per key