Transcript Property Management Presentation.

Property Management
Presentation.
By Lauren McGlinchey.
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The success and strength of Primeland Real Estate is due to continued open and honest
communication with our clients and the high level of customer service we provide. As well with the
combined experience and commitment we bring to effectively manage your investment.
COMMUNICATION
We keep you informed every step of the way - when your property is
vacant, when your property is let, when your tenants renew their
tenancy, when any action needs to be taken.
ADVERTISING
We advertise through local newspapers, magazines and on
many internet websites. We structure each campaign to suit
our needs.
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LETTING YOUR PROPERTY
Every Tenant enquiry is addressed personally by our Property
Manager, and we tailor a list of properties to suit each tenant's
needs. Every prospective Tenant is personally accompanied through
your property, on appointment, by a Property Manager. This is the
first step in our Tenancy selection process.
TENANT SELECTION
We have created very strict criteria for Tenant selection, which is supported by
reference-checking and database-searching. We take pride in our record of
only selecting Tenants that are suitable for your property.
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APPLICATION PROCESS
Once an application(s) is received on a property we make it our number one priority to only ensure
that the application is processed as soon as possible. To be certain as to the quality of the
information given in order to establish whether or not this tenant is suitable for the property they
are applying for. Several factors are considered when qualifying a tenant for a property.
These are;
Tenancy History: A thorough check on the prospective tenants rental history is performed through
seeking references from previous landlords with an in depth questionnaire regarding their payment
of rent, routine inspections, terms and conditions of lease.
Employment History: Current employers are contacted regarding the prospective tenants
employment history. Whether they are employed on a permanent basis and average earnings per
week/month. The prospective tenant is also required to provide written proof of their earnings to us.
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Black Listed Tenants: Our office is a member of an organization called TICA which allows
us access to an Australia wide database which lists any tenants who have defaulted during
their tenancy. This gives us any information regarding a tenant which may not have been
disclosed to us by them. The database also gives us the opportunity to load any tenants onto
the system who have defaulted through our agency.
Identification: Prospective tenants are required to provide positive identification when
lodging their application for a property. There is a 100 point checklist which must be adhered
to. Each piece of ID is assigned a certain amount of points they must have enough of these
items to add up to 100 points. Copies of all identification are taken and archived in our office.
Along with all applications whether they are accepted or not.
Once all information has been culminated and a prospective tenant is deemed to be suitable;
the owner of the property is contacted to discuss the applicants who have applied and the
final decision is left for the owner to choose.
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PROPERTY INSPECTIONS
We conduct routine inspections on every property on a quartely basis. We give you a
written report on the condition and care of your property. Also forwarding maintenance
advice, to ensure the quality of your property will be maintained.
MAINTENANCE
As a general rule of thumb we contact all landlords to seek
approval for any maintenance or repairs to be carried on the
property. You can choose to allow us to authorize repairs up to
the value of one weeks rent however this is at the landlords
discretion. We have a bank of experienced professional trades
people who can attend to maintenance at your property. All
our Contractors are ABN registered and carry appropriate
public liability cover.
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RENTAL ARREARS
All tenants are required to remain two (2) weeks in advance in their rent at all times. They are required to
pay four (4) weeks rent up front for their BOND which is sent to the RTA for the entire term of their tenancy.
They also then pay two (2) weeks up front to our office for their rent. Then they are then required to
continue either weekly or fortnightly payment from then on out. We find this reduces the risk of rental
arrears and saves our property management team a lot of time from having to chase tenants up who are
behind in their rent.
Should they become behind in their rent we do have a set
procedure in place that we follow to ensure that it is kept under
control. The procedure is followed as below:
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Four (4) days in arrears
Courtesy call, SMS or reminder letter to our tenant.
Eight (8) days in arrears
Notice to Remedy Breach (Form 11) is issued on the
tenant and a copy forwarded to the Lessor.
Expiry of Form 11
Notice to Leave (Form 12) is issued on the tenant to
terminate the lease.
Expiry of Form 12
Tenant is to handover possession of the property to
the Agent. Failure to do so may result in the agent
lodging an urgent small claims tribunal application for
termination/ warrant of possession.
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RENT REVIEWS
Regular rent reviews are carried out on your investment property, taking into account current
market conditions and other factors, to ensure you maximise rental return.
ACCOUNTING / PAYMENTS
A Statement is prepared for you in the last week of each
month, showing all income and payments for the period,
any maintenance that has been carried out at the property
and our competitive management fees. We then at the
lessor’s discretion, we direct deposit or send a cheque to
your bank account or a postal address that is provided.
We also provide a Yearly Financial Statement summarizing
your annual income and expenditure.
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Schedule of Fees
LETTING FEE
This is charged at one weeks rent + GST as an initial tenancy letting fee.
This fee is only charged when a new tenant is processed and approved
for a new lease term in the property.
MANAGEMENT FEE
This is charged at 7.5 % + GST (8.25%) of the total rent collected and is deducted from the
rent collected at the end of each month.
POSTAGE & HANDLING FEE
This is charged at $3.30 inc GST per month. This fee is also deducted from rent collected at
the end of each month. (This fee covers postage, banking & statement preparation each
Month)There are no other fees than those already stated. We do not charge for re-issuing
leases or re-signing leases nor do we charge for any organization
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WHY SHOULD I PAY PRIMELAND REAL ESTATE TO MANAGE MY INVESTMENT PROPERTY?
In regards to the Tenant selection process, Agents generally are more able to access information on
potential Tenants than private investment property Owners. Private Owners are not able to access
defaulting Tenant databases, which provide rental history and other Tenant information e.g. if a Tenant
caused damage to a property or vacated without attending to the cleaning, when the tenant still owes
money their past Landlord.
Tenants who are listed on a database find it easier to rent through private Owners for this reason.
Also, an Agent approves (or disapproves) many Tenants where an Owner might only get to deal with
one or two. The Agent's experience usually allows them to ask the right questions as well as being able
to "read between the lines" in relation to the answers.
In relation to the ongoing Management of the property, there are many advantages in using an Agent
rather than the Owner managing the property themselves.
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Amongst many others, they include:As an "intermediary" between the Property Owner and the Tenant, the Agent can often prevent
disputes and ill feelings that can sometimes be created, particularly if there are disputes over
repairs or rental arrears.
The ever changing legislative requirements make it difficult for private Owners to keep up to
date with current requirements.
Management fees paid to an Agent are tax deductible.
Does a private Owner have the knowledge required to correctly draw up a lease? Serve notices
if the rent is unpaid? What happens if the Owner has to take action to obtain vacant
possession?
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Agents manage many properties while an Owner probably only has one or two. The
Agent has the infrastructure in place to efficiently manage properties while the average
Owner does not have this computer based assistance.
As mentioned earlier, disputes over late or non payment of rent can be very difficult and
emotional when the communication is directly between the Owner and the Tenant.
Agents can often diffuse these difficult situations leading to a mutually satisfactory
solution.
Professional real estate Agents are usually able to negotiate more attractive rates with
trades people. They also generally have more "influence" with trades people due to the
volume of work they give the tradesperson. This "influence" can be very handy when
something has to be attended to urgently.
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Agents are usually more aware of current market conditions and rental prices, meaning they are
able to negotiate the best rent with a Tenant.
Agents naturally attract a greater number of Tenants due to a brand name, reputation, location,
media advertising, Internet presence and advertising profile. On the other hand, a private Owner
may need to spend substantial funds in advertising in newspapers in order to find a Tenant.
If properties are damaged and it is necessary for an Owner to appear before the Rental Bond
Board (or similar) lack of experience can result in unsatisfactory outcomes and extra expenses if
legal assistance from a Solicitor has to be sought.
Few Owners are experienced in the reference checking of a potential Tenant's past history,
amassing thousands of dollars in damages and lost rent may occur if an unsatisfactory Tenant is
selected.
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INSURANCE
It is vital that your property is well insured i.e.: Building, any contents
fixtures, legal /public liability and my advise to your would also to enquire
about landlord protection insurance.
In addition there are insurance that are available for damage and loss or
rent through default, which will give you, the Landlord a great piece of
mind. These a necessary safeguard for a rental property .
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