Legal Obligations of Property Management
Coleman Property’s philosophy is that we will act in the best interests of our clients at all times, from a legal, ethical and a financial standpoint. This means that our agents must be fully aware and 100% compliant with the Residential Tenancies Act, which has a set of complex rules and regulations for property management.
Failure to comply with this Act and other relevant Acts can attract severe penalties. These penalties and legal responsibilities apply to the owner of the rental property or to the nominated management agency.
Owner who manage their own investment properties must have complete working knowledge of this legislation and alone must shoulder all responsibility for non-compliance.
Coleman Property uses both in-house training and online resources to ensure that our experienced Portfolio Managers are always kept up to date with any changes to these Acts. This gives our property investors complete confidence that the management of their properties will always be compliant with all relevant legislation.
With an expectation of complete professionalism and efficiency, Coleman Property conducts monthly performance reviews of our Portfolio Managers, ensuring that all investment properties are managed to very high standards.
Leasing & Management Overview
LEASING
Our leasing services are second to none and as your leasing agent we will lease your property as soon as possible to the best possible tenants. To achieve this outcome, we will take the following steps:
– Photographs of your property (professional photography).
– Your Portfolio Manager will craft an advertisement for your property.
– The property will be advertised online and a lease sign can be erected in front of the property.
– Open for inspections and private appointments will be arranged.
– You will receive a full report of enquiries, open houses, and private viewings with feedback.
– Your Portfolio Manager will receive, review and process all lease applications.
– Suitably qualified applications will be discussed with you.
– Once you have approved and accepted a tenant for your property, the Portfolio Manager will take a holding deposit and arrange a date to sign the lease.
– Your Portfolio Manager will arrange for a property inspection prior to signing the lease.
– Your Portfolio Manager will ensure that the tenant signs the lease, pays the bond and moves into the property.
If you decide to engage Coleman Property as your management agency, as well as leasing your property, your Portfolio Manager will also perform the following management services.
MANAGEMENT
If you select Coleman Property to be both your leasing and management agent, your Portfolio Manager will ensure that all leasing steps outlined above are undertaken.
Your portfolio manager will then perform the following management services for you, during the tenancy:
– Collect the rent throughout the tenancy.
– Manage any instances of rent arrears.
– Perform periodic inspections of the property.
– Arrange for repairs and maintenance of the property.
– Arrange for payment of council rates, repairs, maintenance and insurances from rental money if required.
– Liaise with tenants and strata bodies during the tenancy.
– Arrange for an outgoing inspection when the tenant terminates the rental agreement.
– Releases the bond to the outgoing tenant.
– The property is re-advertised (as soon as possible, usually prior to previous tenant vacating) and leased as outlined in the previous section.
– The value of the property can be appraised annually.
Selecting The Right Tenant & Inspections
We understand that selecting most suitable tenants is of prime importance for property investors. Your Portfolio Manager will do everything possible to make sure that they find the best tenants for your property. In fact, your Portfolio Manager will be extremely particular and critically selective in their choice of tenants and will keep you informed every step of the way.
To guarantee that our property investors enjoy a worry-free investment, your Portfolio Manager will perform the following steps:
– All rental applications from prospective tenants will be collated.
– Each applicant’s previous rental references are checked and confirmed, as well as personal references, along with confirmation of their employment and income.
– All suitable applications are presented to the investor, along with the recommendations of your Portfolio Manager.
The Coleman Property applicant screening process is very detailed, ensuring that a tenant can adequately meet their responsibilities as laid out in the Tenancy Agreement. The selection of a suitable tenant is performed in accordance with Australian laws regarding discrimination, as well as the Residential Tenancies and the Privacy Acts.
PROPERTY INSPECTIONS
Your Portfolio Manager will perform two different types of property inspections: ingoing and outgoing inspections, and periodic inspections.
INGOING INSPECTION REPORT
Prior to tenants moving into your property, your Portfolio Manager will perform a full inspection of the property with a similar inspection at the end of the tenancy. The ingoing report details all aspects of the property’s existing condition and 300 – 600 photos of the property are taken to show its condition to avoid disputes at the end of the tenancy.
The ingoing inspection report is used at the end of the tenancy to ensure that the property has been left in a satisfactory condition, prior to returning the tenant’s rental bond.
PERIODIC INSPECTIONS
Regular inspections of the property are made during the tenancy with timeframes depending on the individual property. The property investor receives a full report following each of these inspections with the following information:
– The general condition of the property.
– Any immediate repairs that are required.
– Preventative maintenance issues, including refurbishments that would be beneficial to the investor and tenant.
Rent Reviews & Increases
Your Portfolio Manager will perform periodic reviews of your property’s rent to ensure that you maximise its potential, as well as making all necessary rental payments and managing any instances of rental arrears.
RENTAL REVIEWS
Your Portfolio Manager will monitor the rental market, paying particular attention to rental prices of comparable properties. A review of your property’s rent may be performed on several occasions, including at the end of a tenancy and on a 12-monthly basis. If an increase in rent is deemed advisable by your Portfolio Manager you will be contacted by letter with their recommendations. This is to ensure that the rental yield from your property achieves its full potential in the existing rental market and that you receive the best possible return on your investment.
RENTAL PAYMENTS
Twice a month, around the beginning & middle of the month, your Portfolio Manager will send you an itemised statement, clarifying all the rental income and payments made on your behalf. All invoices will also be forwarded, for example council and water rates, Body Corporate fees and Landlord Protection Insurance premiums. You will also receive an EOFY statement to assist with your tax returns.
RENTAL ARREARS
Your Portfolio Manager will use a strict 4 step process to ensure we do all we can without walking the fine line of harassment:
- Rent is 3 to 5 days in arrears: Your Portfolio Manager emails a formal letter on day 3 to remind them of their overdue rent and calls them on the phone on day 5 with another arears email sent.
- Rent is 7 to 10 days in arrears: A second call is made on day 7 and a Final Reminder letter is sent to the tenant informing them of their rent arrears on day 10 warning them that if not paid immediately, further action will be taken.
- Rent is 16 days in arrears: Your Portfolio Manager issues the tenant with a termination notice for the non-payment of rent and informs the property investor of the situation. If the tenant pays the rent immediately, this termination notice is withdrawn.
- Rent is still unpaid: If the tenant does not pay the overdue rent and does not vacate the property on the date specified in the termination notice, an application is made to the Residential Tenancies Tribunal on your behalf.
At Coleman Property, we want your property investment to return high yields and a positive return on your investment. This means that your Portfolio Manager will closely monitor your property and the existing rental market, as well as managing any issues that may arise during the tenancy.