Managing Northern Beaches Rental Properties
Property Asset Management - More Than Just Collecting Rents
A modern Northern Beaches Property Management department and experienced Property Managers know all too well the importance of managing an investment property efficiently. It is much more than just collecting rents:
Marketing a Northern Beaches Rental Property
Good quality photographs of the property should be taken by either the agent or a professional photographer. There are numerous methods to market the property: internet, print media (newspaper), window displays, signboards. An efficient agency will have a genuine database of prospective tenants to contact either via phone or email as soon as a property is listed for lease. This method mitigates sometimes unnecessary expenses and can reduce vacancy periods.
Find prospective tenants
After finding a tenant, your agent should thoroughly screen them before recommending them to you. This means checking their references and employment history and talking with their employer. They should also check with their current agent or landlord ensuring they pay their rent promptly and keep the property in good condition.
Prepare the lease documentation
Your agent will need to prepare a Residential Tenancy Agreement that protects both you and the tenant. There is a standard Tenancy Agreement that is used by most agents. A good property manager will add some special conditions/clauses required to further protect you.
Organise bond documentation
The tenant should pay a bond equivalent to 4 weeks rent for unfurnished and 6 weeks for furnished. The bond is to be placed with the Rental Bond Board of the Department of Fair Trading. Your property manager will handle the documentation for this and any disputes regarding the bond arising at the end of the tenancy.
If, at the end of their tenancy, the tenant is up to date with their rent and has left the property in the same condition as when they moved in, except for what is called "fair wear and tear," they get their whole bond returned to them.
Unfortunately many disputes arise as to what is property damage that should be rectified by the tenant and what is "fair wear and tear."
Misunderstandings can be minimised by having a well documented Residential Tenancy Agreement, condition report and photos of each room of the property at both the commencement and the end of the tenancy. A good property manager will also give the tenants a document outlining their obligations when vacating the property which should help minimise disagreements.
Give you up to date advice on the Northern Beaches Property Rental Market
A good property manager knows the rental market and should be in a good position to advise you of the market rent for your property. If there is an oversupply of rental properties on the market, a slightly lower rent, should attract a number of tenants to your property. It would be a case of supply and demand.
Administer rent reviews
At the end of the lease or every 12 months you will need to consider whether the rental being paid is still appropriate or whether you should ask for an increased rent. Your property manager will be in a good position to advise you when it is appropriate to increase the rent.
Pass on the rent payments to you promptly
An efficient property manager will promptly credit the rents received directly into your bank account, rather than waiting for the first of the month as occurs in many agencies. They will also notify you by email so that you have access to your money as soon as it is available.
Provide Regular Statements
By furnishing you with a fully itemised monthly statement and a comprehensive statement at the end of the financial year, your property manager can save you time and trouble keeping track of your accounts. A good property manager will email your monthly statements to you.
Regularly inspect the property
Your property manager can minimise disputes with tenants when they vacate by conducting a full internal and external inspection at the commencement and at the end of each tenancy. They should send you a written report, countersigned by the tenant to show that they accurately reflect the condition of your property.
During the tenancy regular inspections followed by a written report should also be carried out. You are permitted 4 inspections annually. This lets the tenant know that you take the proper care and maintenance of your property seriously and should pinpoint problems early, minimising the risk of having a "tenant from hell" damaging your property without you being aware.
Handle arrears
Your property manager will shield you from the unpleasant tasks of handling rental arrears and will know the correct action required if the tenant is in default. They will issue the relevant notices and should follow through until the rent is up to date.
Maintenance
A good property manager will have a team of qualified tradespeople who do a good job at a reasonable cost - often saving you money in the process. Usually you would advise your agent how you want them to deal with maintenance and they can attend to this on your behalf.
Pay authorised account and statutory charges
At your request your property manager can pay bills on your behalf out of the rent that they receive. These could include maintenance costs, strata levies, common lighting, insurance premiums, and water and council rates.
