A GUIDE TO BECOMING A SUCCESSFUL LANDLORD€¦ · In the event the landlord/tenant has supplied the...
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5 FITZROY STREET, TAMWORTH NSW 2340 | (02) 6766 6122 | [email protected] PROPERTY MANAGEMENT HANDBOOK A GUIDE TO BECOMING A SUCCESSFUL LANDLORD
Transcript of A GUIDE TO BECOMING A SUCCESSFUL LANDLORD€¦ · In the event the landlord/tenant has supplied the...
5 FITZROY STREET, TAMWORTH NSW 2340 | (02) 6766 6122 | [email protected]
PROPERTY MANAGEMENT HANDBOOK A GUIDE TO BECOMING A SUCCESSFUL LANDLORD
First National Real Estate Tamworth02 6766 6122
Rent ing your investmentRent ing your investment
Table of ContentsYour Business is Our BusinessMarketing ProposalThings To Do Before A New Tenant Moves InProperty Management ExcellenceReasons Why You Should Do Professional Photos10 Mistakes Landlords MakeList of TradespeopleFact SheetsResidential Exclusive Management Agency AgreementProof Of Identity ChecklistResidential Leasing Marketing Assistance FormCouncil Water & Rates Form
First National Real Estate Tamworth02 6766 6122
Rent ing your investmentRent ing your investment
Your Business is Our BusinessWinners of the 2011 Tamworth Chamber of Commerce, Quality business Awards for ‘Excellence in Professional Services’ (small business), and f inalists for ‘Business of the Year’ (smallWinners of the 2011 Tamworth Chamber of Commerce, Quality business Awards for ‘Excellence in Professional Services’ (small business), and f inalists for ‘Business of the Year’ (smallbusiness), we provide ‘individual, professional service…every time’.business), we provide ‘individual, professional service…every time’.
Licensed Auctioneers – Real Estate Agents – Stock & Station Agents – We are Tamworth’s leading boutique agency, specialising in Residential Property Management, Residential Sales & Auctions, and Rural/HobbyFarm Acreage Sales.
Our branding is highly recognised with a strong presence within our market place.
Our office mission statement is quite simple, “We treat your greatest asset as if we own it”.
Our business is independently owned and operated by business partners Margo Taggart (0427 167 282) & David Doherty (0417 288 545) with a combined experience of over 37 years.
10 Reasons why we are an award winning agency…1. We have an agency principal actively involved in all managements
2. We operate & manage our properties with a ‘we own it’ approach
3. We employ a higher staff to property ratio
4. We communicate after every inspection
5. We monitor arrears daily
6. We conduct general inspections every 3-4 months
7. We offer over 18 years property management experience
8. We advertise on all major websites
9. We involve you throughout the whole process
10. We have an ‘all inclusive’ management fee with no hidden extras
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Marketing ProposalFor Rent:For Rent: The asking price always reflects the motivation to find a quality tenant quickly. With an advertised price, it leaves little guess work to how much you want. Having a realistic price to start with in mostcases will always bring a quicker tenant and often at a better rent than one that started too high then reduced over time.
Agency Agreements & Period:Agency Agreements & Period: All listings are exclusive agency agreements with no fixed time frame. Should you wish to terminate our agency agreement we require 30 days written notice.
Professional Presentation Of Your Home Or Property:Professional Presentation Of Your Home Or Property: Whilst our office has the ability to photograph your home, may we suggest for an outlay of approximately $160.00 o have professional photos.
Inspections:Inspections: Week day inspections will always have prior notice. In the event the landlord/tenant has supplied the agency with a key, we will always call firstly and if unanswered we will use our key, knock beforegaining entry and leave a calling card.
Inspection Feedback:Inspection Feedback: Almost without exception, we will report back to you that day, unless otherwise instructed.
Media Advertising:Media Advertising: Our rental advertising includes publishing’s through the Northern Daily Leader at the agent’s discretion.
Internet Advertising: Internet Advertising: All listings are posted on the world wide window at www.fntamworth.com.au and through Australia’s largest real estate web site www.realestate.com.au and www.domain.com.au
Weekly Internet Prospective Tenant Activity Report:Weekly Internet Prospective Tenant Activity Report: All landlords who supply an email address will have an automatically generated weekly third party activity report, sent directly to them from Australia’slargest real estate website www.realestate.com.au
In house “TO LET” rental list:In house “TO LET” rental list: Our “To Let List” is available everyday to passing pedestrian traffic.
S ignboards:Signboards: Our “For Rent” signs are erected in the most prominent visual location.
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Things To Do Before A New Tenant Moves In
3 x full sets of keys 3 x full sets of keys to agent (N.B. each person listed on the lease requires a full set of keys, as well as a full set to the agent. A key must be supplied for each lock. If a full set of keys has not been given to theagent we may be required to extra cut)
Complete, sign & return Management Agency Agreement & Marketing Assistance Form to First National Real Estate Tamworth
Organise for the Agent to pay Council Water & Rates as well as trades people account
Make property water efficient – this is a MUST MUST if charging tenants for water – ensure there are no leaking taps at the property
Test smoke alarms at the property – replace batteries
Copies of Pool Register & Pool Compliance Certificate – Only valid for 3 years
Appliance instructions to your agent
Disconnect power & phone
Advise agent of who your preferred gas bottle supplier is (Cylinder rental is a landlords expense)(Cylinder rental is a landlords expense)
Contact your preferred Insurance company for Landlord Insurance
Arrange for professional carpet cleaning
Ensure the properties cleanliness is of a high standard
All fitting & fixtures MUST MUST be working at the beginning of each tenancy
Remove any inoperable fittings or fixtures prior to tenancy
Arrange with your agent if you would like 1 or 2 payments in the month (Mid-Month – 15 of each month & End Of Month – 1 Business day of each month)
Ensure all window & door locks are working
Provide the agent with a list of your own tradespeople (if any)
Copy of Strata By Laws (if applicable)
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First National Real Estate Tamworth02 6766 6122
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Property Management Excellence
The Six Fundamentals To Deliver Property Management ExcellenceFirst National Real Estate Tamworth consistently revise what we do everyday to meet & exceed the needs of property consumers. We believe that getting the process & message right from the start attracts bettertenants & lower vacancy rates.
ONE. M arket ing & Showing prospect ive tenants propert iesONE. M arket ing & Showing prospect ive tenants propert ies
· List property on all media e.g. internet sites, rental list, erect ‘for rent’ signs
· Notify our database of tenants
· Respond immediately to all enquiries by way of email, phone call, text, office face to face
· Report to landlord after every inspection with feedback from prospective tenants
TW O. Processing tenancy app licat ionsTW O. Processing tenancy app licat ions
· Ensure applications are completed in full detail prior to processing
· Conduct application checks e.g. work, rental & personal references
· TICA check
· Check prospective tenants affordability of the property
· Once application is processed the office will forward to Landlord for final approval within a 24-48 hour turnaround
THREE. Signing tenancy agreementsTHREE. Signing tenancy agreements
· Confirm tenancy with new tenant & lock in non-refundable holding deposit
· Prepare lease, lodging of bond form
· Conduct a thorough ingoing condition report with photos
· Sign tenants up and send a copy of signed agreement & ingoing to the Landlord for their records
FOUR. M anagement of Tenant throughout tenancyFOUR. M anagement of Tenant throughout tenancy
· Monitoring arrears daily—activating sms & letters 3 times a week
· Conduct general inspections minimum of 3 per year, maximum of 4 per year. Report to landlord the outcome of these inspections
· Manage daily repair requests & communicate with Landlords regarding each
FIVE. Rent reviews & Lease Agreement renewal/exp iryFIVE. Rent reviews & Lease Agreement renewal/exp iry
· Rent reviews are reviewed on all general inspections
· Notify tenant in writing of their lease expiry, confirm with the Landlord the tenants request regarding their lease, discuss with the landlord their options
· Draw up new lease, make an appointment with the tenants to resign, then update the office software
SIX. End of TenancySIX. End of Tenancy
· Notify landlord of tenants intention to vacate, reactivate the rental listing to start generating new rental enquires
· Conduct a final inspection, cross reference this with the original ingoing report
· Give the landlord option to inspect the property prior to the bond being released
· Finalise the file, confirming rent/water and all accounts are paid, then release the bond
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Reasons Why You Should Do Professional PhotosBy having more people more people , you will most likely have more choice of tenant.
1. By having more choicemore choice , you lower your risk of getting a ‘bad’ tenant who isn’t going to meet their obligations of paying rent or maintain the property as you, the owner would expect
2. You could achieve a high price based on your marketing strategymarketing strategy. Who doesn’t want more rent? If the property presents better than the rest of the market and attracts more inspections you can push for a higherprice and most likely achieve this.
3. Your days on the marketdays on the market will drop as the above reasons will lead to more commitment and more applicants and a quicker turn around with leasing. Less days on the market = more money for everyone.
PROVEN RESULTSPROVEN RESULTS
COMPARING 2 HOMES ON THE RENTAL MARKET AT THE SAME TIME COMPARING 2 HOMES ON THE RENTAL MARKET AT THE SAME TIME
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10 Mistakes Landlords Make
1. Under rent the property… 1. Under rent the property… and fail to keep pace with the increasing market. When interest rates, strata levies and land tax rise, the landlord is left to carry the extra burden. It is only fair and sensible to ensure thatthe income the property generates is at the market rate and not significantly below.
2. Fail to spend money on minor maintenance… 2. Fail to spend money on minor maintenance… that ultimately avoids major works. When it comes to repairs, a little expenditure today can save a lot tomorrow. Good quality properties attract good quality tenantsand vice versa.
3. Attempt to lease a vacant property for a prolonged period at above market price… 3. Attempt to lease a vacant property for a prolonged period at above market price… for every week the property sits vacant, you as the landlord is losing a full week rent, however if you were to reduce therent by e.g. $10 per week and rent it immediately. You are well in front financially then to have the property vacant for long periods of time, in a hope to achieve a dream price, verse achieving fair market value rent.
4. Increase the rent on an existing tenant so high that the tenants move out…4. Increase the rent on an existing tenant so high that the tenants move out… leaving the landlord to pay re-leasing costs to the agent. Paying an agent to re-lease a property can cost anywhere between 1and 2 weeks rent. Too many landlords overlook this point when renegotiating rents with existing tenants.
5. Don’t personally inspect their own property…5. Don’t personally inspect their own property… Investment properties usually hold a great deal of the landlord’s net worth. It can be complacent to accept a condition report from the agent every 12 months as tothe true condition of the property. It is always best to check it out yourself, with your own eyes if possible.
6. Don’t have enough respect for good paying tenants…6. Don’t have enough respect for good paying tenants… a stable tenant that looks after the property as if it were their own and pays on time is far more valuable than a sloppy non-payer.
7. Assume the property manager is paying close attention to the property…7. Assume the property manager is paying close attention to the property… many landlords are shocked and disappointed to learn that the agent has not inspected the property or maintained its condition foryears. Why? In most cases, the property manager is managing too many properties. Always ask the agent what is their staff ratio the number of properties managed. Also, check the property manager’s history ofexperience in property management.
8. Get emotional about the property and overlook the fact it is an investment…8. Get emotional about the property and overlook the fact it is an investment… an investment property should be treated as such. Some landlords treat it as though someone else is living in their home andbecome too emotional about the property.
9. Overlook or ignore issues and requests the tenants may have…9. Overlook or ignore issues and requests the tenants may have… a happy tenant is more likely to be a good payer. If the landlord does not look after the property, why should the tenant? Both the landlord andtenant have a mutual interest in maintain the standard of the property.
10. Don’t check the prospective tenant’s references and history…10. Don’t check the prospective tenant’s references and history… People don’t become non-payers overnight, they usually have a history. In the rush to get someone into the property, the prospective tenant’sreferences and history can be overlooked. It is better to have a vacant property than a non-payer that abuses the property.
First National Real Estate Tamworth02 6766 6122
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List of Tradespeople
PlumbingPlumbingHawkins PlumbingHawkins Plumbing
PO Box 3497
TAMWORTH NSW 2340
M: 0408 667 676 Fax: 6766 8312
Email: [email protected]
ElectricalElectricalJason Jeffery ElectricalJason Jeffery Electrical
PO Box 5239
SOUTH TAMWORTH NSW 2340
Ph: 6765 5041 Fax: 6762 5546
M: 0409 659 043
Email: [email protected]
General MaintenanceGeneral MaintenanceDavid Staples - Tamworth Property Maintenance David Staples - Tamworth Property Maintenance
General Maintenance Repairs
M: 0429 676 526
Air-ConditioningAir-ConditioningSub Zero AirSub Zero Air
M: 0447 743 912
Email: [email protected]
Ashford Air Pty L imitedAshford Air Pty L imited
M: 0474 565 628
Email: [email protected]
Carpet CleaningCarpet CleaningStainbusters Stainbusters
PO BOX 3257
West Tamworth NSW 2340
Ph: 6761 8022 Fax: 6761 8200
Email: [email protected]
CleaningCleaningKeen Eye CleaningKeen Eye Cleaning
M: 0401 216 689
Email: [email protected]
Happy House KeepersHappy House Keepers
M: 0428 408 678
Email: [email protected]
PaintersPainters A & J Townsend – Painting A & J Townsend – Painting
M: 0410 660 475
Email: [email protected]
FlooringFlooringCarpet OneCarpet One
Shop 12, 1A Wirraway Street
Tamworth NSW 2340
Ph: 6762 4644 Fax: 6762 4644
Email: [email protected]
A1 Carpet WarehouseA1 Carpet Warehouse
184 Peel Street
TAMWORTH NSW 2340
Ph: 6766 1344 Fax: 6761 3444
Lawn MaintenanceLawn MaintenanceBondy's Lawnmowing Bondy's Lawnmowing
M: 0414 444 041
Email: [email protected]
Kev's Mowing Services Kev's Mowing Services
Ph: 6766 3629 Fax: 6766 3629
Email: [email protected]
Pest ControlPest ControlSullivan's Pest Management
M: 0422 440 500 Ph: 6760 8335 Fax: 6760 8352
Email: [email protected]
John Burton Pest Control
M: 0407 323 633 Ph: 6760 3084 Fax: 6760 3089
Email: [email protected]
Pool MaintenancePool MaintenanceGardenia Pools
Ph: 6765 6581 Fax: 6765 3586
Email: [email protected]
Poolwerx Tamworth
M: 0408 794 722 Ph: 6766 2345
Email: [email protected]
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Fact Sheets
Swimming Pools
Swimming Pool Fact Sheet
Pool Fencing Requirements
Loose-Fill Asbestos Insulation In Residential Properties
Asbestos Fact Sheet
Safety And SecuritySafety And Security Fact Sheet
Smoke Alarm Testing Service Form (SATS)
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Residential Exclusive Management Agency AgreementResidential Exclusive Management Agency Agreement
First National Real Estate Tamworth02 6766 6122
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Proof Of Identity ChecklistProof Of Identity Checklist
First National Real Estate Tamworth02 6766 6122
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Residential Leasing Marketing Assistance FormThe information requested in this form is information concerning your property and its condition for the purpose of satisfying disclosure obligations under the Residential Tenancies Act 2010 (the Act) and ResidentialTenancies Regulation 2010 (the Regulation), to assist the Agent in satisfying inquiries from prospective tenants and to enable the agent to perform their duties pursuant to your agency agreement and the law.
Note: If you answer “No”, you are stating that you have no actual knowledge of any problem. If you answer “No” and you know there is a problem, you may be liable for making an intentional misstatement.
Residential Leasing Marketing Assistance Form
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Council Water & Rates FormWould you like First National Real Estate Tamworth to pay your water & property rates? If so, please sign the attachment below and return to our office.
Water And Rate Notices For Council
