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We take a personal interest in all the properties we manage, and we carry our regular inspections to ensure our standards are maintained.
We also use tried and proven trades people, who give us excellent service.
We have always relied on compute technology, and we are increasingly using email to keep in contact with our clients. Properties have been regularly video taped, but digital photography will replace this.
Our office management system operates on a monthly cycle, as is required by the Real Estate Agents Act. On the last working day of each month we close off for the current month, and pay all our landlords by direct credit overnight. We have direct link banking service, which allows us to do this by computer, and a landlord statement will follow by post a few days later (together with a property inspection report and any applicable invoices).
Finally we have instituted a LandLords Protection Scheme (the L.P.G. scheme) whereby we guarantee to cover rent arrears and specified costs, to a given amount. This costs less than $4.00 per week, and has proved to be a very successful way of providing peace of mind.
Download the Property Owners Handbook
Property Improvement
When you become a property owner it is important to ensure the property is not only well maintained, but to ensure that it is up-graded or improved on a regular basis.
As much as we would like the fixtures and fittings within the property to last forever – the reality is they don’t.
An investment property is like a car – you will need to spend money on upkeep and maintenance.
To assist with improving the property, we recommend that you take a little time out to budget for these expenses to avoid unnecessary financial hardship and stress should you need to replace the carpet, paint the walls or install a new dishwasher or hot water system.
Establish a pro-active replacement plan, giving you more control. Plan to renovate or upgrade the property over a period of time. The below table template is an example only to help you determine how much extra you should be saving each week.
Plan to renovate or upgrade the property’s fixtures and fittings every 5-8 years.
Benefits of Property Improvements:
• Ensure that the property is safe and fit for the tenant to reside
• Capital appreciation of the property
• Ability to secure better-quality tenants
• Ability to obtain a higher weekly rent.
Taxation issues
All types of income producing properties have substantial taxation benefits available to be claimed as a tax credit. Many property investors are missing out on literally thousands of dollars in lost tax depreciation deductions.
Both new and old properties will attract some depreciation benefit that the owner is able to claim as a tax credit. A common myth is that older properties will attract no claim. Therefore, it is worth making an enquiry about any property.
When a property owner has not been claiming deductions for tax depreciation, previous financial year’s tax returns can be amended.
The depreciation benefit available depends greatly on the type of building, its age, use and fit out. Based on the diminishing value method of depreciation, the following scenarios are provided as an appropriate guide (refer to table below)
The maximisation of a depreciation claim on any building requires a combination of construction costing skills and an excellent knowledge of tax legislation. This rare combination of skills has resulted in a select number of quantity surveying firms specialising in property depreciation.
Beware though, the IRD may wish to claw back all or some of these deductions when the property is sold. At worst, you will have had an interest free loan.
Quantity surveyors are recognised by the IRD to be appropriately qualified to estimate building costs for the purpose of depreciation. Your accountant should recommend a specialist to complete such a report, to maximise the depreciation benefits from your property.
Bonds
The bond is held in trust by the Dept of Building and Housing and will be released when both parties have signed a Bond Refund form, Bond Transfer Form or from an Order by the Tenancy Tribunal. The amount of bond can be no more than 4 weeks rent.
Pets
Can a tenant change pets during the tenancy?
I gave permission for our tenants to keep their old Golden Retriever in our investment property. The dog came with excellent references and there were no problems. The dog has subsequently died. The tenants now want to replace the dog with a new puppy. Can I say no?
Application to keep a pet at your property should be made with specific criteria. It should be included on the Tenancy Agreement the type of pet, breed, age, maximum weight and any other details required by you. While this gives permission to a specific animal to remain at the property, it is a difficult situation to manage if the tenant wishes to ‘change the pet’.
However, the property can be at risk if the new pet is, for example, not yet ‘house trained’. Another aspect is that this type of information is difficult to store in most office systems, and the fact that a pet has been approved is often all that is recorded. Therefore, any change in the pet may not be detected immediately.
In theory, if a tenant wishes to either replace an animal or add more, they would need to apply for permission from the landlord through the agent to alter the situation. If they don’t the best the owner or agent can do is manage the situation when they become aware of it.
If the tenant has already gone ahead without permission, there may be grounds for claiming a breach of the agreement, and a notice letter to remedy the situation could be issued to the tenant to rectify the situation. This is usually considered in light of how the tenant is managing the situation overall.
If the tenant is not taking care of the property and the new pet is causing a problem, then grounds may exist to ask the tenant to vacate the property or approach the Tenancy Tribunal for mediation or judgement.
Insurance
If your house or investment property was destroyed tomorrow, are you certain your insurance would cover you to rebuild it?
Disaster can strike anywhere, any time, as we have often seen in the news. The devastation of losing your property can be magnified a hundred fold if you do not have the correct insurance cover.
The level of underinsurance is alarmingly high. Underinsurance has been defined as insurance that would provide insufficient proceeds to compensate for the loss of the value of the insured item.
A recent survey conducted by the Australian Securities and Investment Commission (ASIC) on the 7 companies making up 80% of the home building insurance market found that 27.5% of homes were underinsured by 10% or more and 19.5% were underinsured by 30% or more.
It was found some consumers are underinsured due to a number of reasons:
1) They choose to nominate a low sum insured to reduce their premium,
2) They had difficulty in estimating rebuilding costs without seeking technical advice, and
3) They did not increase the sum insured to keep up with changes in general rebuilding costs.
Property owners need to research their present cover, use leading market tools to estimate the correct sum insured, shop around to find comparative pricing information and involve third parties to assist in estimates, including builders and surveyors.
Property Management
Day to day property management which includes:
- Tenant selection
- Completion of tenancy agreement
- Inspection of property prior to occupation
- Periodic inspections
- Repairs and maintenance
- Rent collections
- Final property inspection and bond disbursement.
- Tenancy Tribunal matters
- Landlords are direct credited at the end of every month by desk top banking
Property Finding
We have a broad selection of properties either available or becoming available, please enter our Rentals page, or you can enter your requirements on the Application Form page.
Tenant Selection
We have extensive local knowledge, use a defaulting tenant database and a credit agency to ensure that we select the best possible tenant for your property. As a result, we have very few evictions.
Landlord Protection and Guarantee Scheme
For a small fee, we can include landlords in this protection scheme which will pay out on rent arrears, damage, cleaning and lock replacement. A must for all landlords.
Accounting
We have the latest property management software that interfaces with our banking software. Tenant's automatic payments are downloaded the morning after payment. Landlords are direct credited on the last working day of the month through the desktop banking software.
Our trust accounts are audited by an independent auditor 4 times a year pursuant to the Real Estate Audit Regulations 1977.
Below are articles that may be useful for both Tennants and Landloords. May of these items are downloadable PDF documents and acrobat realed will be required to view them.
Property Owners Handbook
Description to go here. [ DOWNLOAD ]
Bonds
General information on Bonds, how much you shouyld pay and who holds the money. [ DOWNLOAD ]
Broken Windows
Publication by James Wilson and George Kelling. [ DOWNLOAD ]
Buying Rental Property
General information on Bonds, how much you should pay and who holds the money. [ DOWNLOAD ]
Changing Tenants
The tenant must give to the landlord 21 days notice to vacate ... [ DOWNLOAD ]
Emergency Repairs
What is deemed to be emergency repairs?. [ DOWNLOAD ]
Fighting Mould and Mildew
Fighting Mould and Mildew in your home. [ DOWNLOAD ]
Maximising Property Depreciation
Property depreciation information. [ DOWNLOAD ]
Notice
Notice to vacate a rental property. [ DOWNLOAD ]
Rent Increases
Information in rental increases. [ DOWNLOAD ]
Residential Tenancies Act 1986
This act relates to residential tenancies. [ DOWNLOAD ]
How long does it take to rent my property?
Our average time to rent your home depends on market conditions. We begin marketing your home the moment we know it’s availability date, and would hope to have no more than two weeks gap between tenants.
How do you qualify new tenants?
We strive to provide you with the calibre of tenants that you want in your rental property. This includes:
- A national credit check
- Follow up of landlord references
- A check with Tenancy Tribunal Orders
- Our own experience
When do you account to us and deposit our money into our bank?
We pay our landlords on the first working day of the following month. As we have desktop banking, we deposit into your account that night and send you our statement that day via email or a few days later via the post.
How often and how are properties inspected?
We conduct ingoing and outgoing property inspections at no cost. Ongoing property inspections are conducted 4 times per annum at a cost of $20 per inspection. The initial inspection is done using a digital camera and these photos are stored for later use. A company vehicle is available for the team to conduct these inspections.
What happens if we want to sell our property?
There is a legal requirement for you to inform your tenant when the property goes on the market. We can do this for you. When the property has been sold (an unconditional sale and purchase agreement) the tenant must be given 42 days notice to vacate. Again we can do this for you. As we are a specialised property management company and choose not to do sales, we can a refer you to a sales person who will market your property for you.
What happens if we wish to come back and live in our property?
You must give the tenants 42 days notice if you require the property for your own use or for the use of a family member. We can do this for you.
How are rental collections handled?
We take rent arrears seriously and we expect tenants to pay rent by automatic payment when it is due. We also have eftpos and can accommodate cash and cheques. When a tenant misses a rent payment, a friendly phone call and/or a reminder letter is sent. A 10-day warning letter could follow this. An application to the Tenancy Tribunal for the eviction of the tenant is done when the tenant is more than 21 days in rent arrears as eviction is only considered when the tenant is more than 21 days in arrears.
Do you guarantee the tenants that you place into our home?
Yes we do by providing you with an invitation to join our in-house Landlords Protection and Guarantee Scheme. Under this scheme, we guarantee to pay you rent and costs (as detailed in our brochure) that the Tenancy Tribunal orders.
Are you the cheapest company in town?
Probably not. Our fees are very competitive for the services provided.
Note that as a specialised property management company, we have full time career property managers and we are contactable 24/7. We have some of the most qualified property managers in the country.
Who handles problems after hours?
Our property managers are rostered to be “on call” to handle after hours calls. Many times we are able to solve problems over the phone, thus avoiding what might have been an additional maintenance expense.
How do you conduct rent increases?
Rents are reviewed between tenancies and again when market conditions indicate that rents could be increased. Rent reviews for existing tenants take into account a number of factors including your wishes. Rent reviews for existing tenants can only be done every 6 months.