Property Managment Guide
Residential Sales and Auctions Your biggest and strongest asset
Real estate is the linchpin of every investment portfolio.
Its value underwrites:
• capital gain
• future borrowing leverage and
• hedging against inflation.
Real estate represents security and stability. However, these fundamentals don’t just happen for you.
Successful real estate is only as good as the quality of its management
When you invest in shares or bonds, you are investing in the future growth and earnings of a business enterprise. Your investment is entrusted to the professional management of the company. When you invest in real estate, the capital growth and income you will receive will depend upon the skill of those who manage it. Their skill decides the future capital gain and income of your investment. And just as you entrust your other investments to the day to day management of professionals so it is with real estate.
Capital growth and income through real estate doesn’t just happen!
Real estate management involves dealing with people who use, rent or occupy your investment. People have to be managed just as much as variations in relative property values, maintenance and legal matters.
“Tenants cause day to day problems,
not bricks and mortar.
Successful, hassle free property investment
successful management of tenants.”
What we will do for you!
Appraise the rental value of your property.
Put up a For Lease sign. (If required)
Advertise your property.
Show the property personally to prospective tenants. We do not hand out keys!
Conduct thorough reference checks on tenants.
Inspect your property prior to occupancy, taking inventory of furniture, fittings and accurately record the condition of your property.
Arrange execution of the tenancy agreement.
Lodge bond monies according to statutory requirements.
Regularly inspect your property during the tenancy and forward written reports.
Keep you informed of maintenance required and arrange repairs on your behalf.
Closely supervise rent payments and collect arrears.
Arrange payment of rates, insurance and other expenses relating to your property.
Pay rent proceeds monthly and/or mid monthly to you directly or deposited into your designated bank account.
Provide a monthly Property Management Statement itemising income and expenditure.
Provide a full Financial Year Summary itemising and summarising income and expenditure for the entire year.
Review the rent rate regularly, recommending increases where possible to keep pace with the market.
Insurance can be organised through our competitive insurance brokers.
Provide the right professional advice regarding property investment and management, free of charge.
Recommend the best time to make improvements to your property to maintain earnings.
“Your investment is our investment.
We will look after your property as though it were our own.”
23 Ways we add value to our landlords
1. Full service agency
First National Kuranda is one of the few real estate agencies in the Kuranda /Mareeba District providing an extensive range of services in the real estate industry.
Our services include:
Rentals and Property Management
Commercial & Industrial Sales & Leasing
2. Successful marketing
The First National Kuranda have a very successful team highly trained in the latest marketing and advertising techniques.
Our marketing team members are spending 95% of their time preparing ads, brochures, etc. They can expose your property to the widest possible number of prospective tenants by using:
Our office is located on the main road into Kuranda is well positioned for all traffic. This area is becoming one of the most sought-after suburbs in Tablelands from all walks of life.
Once a property has been listed with us, a quality For Lease sign is erected in a prominent position allowing passers-by to see that the property is on the rental market. (if required)
We have developed our own web site with corporate information and a large number of properties available. We are also advertising our vacant properties on all major property web sites in Australia. This service is free of charge.
Check out a few of our current web sites and properties at:
3. First class service to prospective tenants
First National Kuranda adopted a policy many years ago of approaching prospective tenants in a superior manner. Without tenants, landlords and agents don’t receive any income. We do not hand out keys to a prospective tenant to view the property. One of our Property Management team will meet the tenants at the property and show them through.
This has many advantages for all parties involved:
For the tenant:
Chance to meet the agent
Agent knows the property and can point out features
Tenants can ask questions on the spot
Receive an application
For the landlord:
Security and safety check of the property
A regular inspection by the agent during vacancy
Improvement of signage
Emptying the mailbox
For the agent:
First impression of the tenant
Show and “sell” the property
Place signage on property
Check security of the property
Possibility to show another property with tenants if not suitable
Our office has also adopted a system to take down phone numbers of all prospective tenants to enable follow up. We have forms available for tenants who would like to leave their details and the property they are looking for. We contact the tenants when a suitable property is becoming available.
The extra service has required extra staff but has more importantly resulted in a better success rate to rent vacant properties and reduce vacancy rates.
4. Careful tenant selection – The most crucial factor!
We have developed our own application forms to collect the most comprehensive credit, reference and employment history possible on prospective tenants. Ask us for a copy.
We insist on references from past and present agents/landlords and wherever possible will confirm details personally.
At First National Kuranda our outcome is to get the best possible tenant for your investment property by following these general guidelines:
a) Stability in employment.
b) Satisfaction that the tenants are financially capable of paying the required rent.
c) Verifying that the tenants will maintain your property to the standard required.
Credit checks will be carried out on the information available. As a member of the Tenancy Information Centre of Australia we will ensure applicants have no recorded debts outstanding, or history of arrears concerning previous known tenancies.
Finally, we will contact you personally to inform you of the applicant and ask for your final approval. Our primary concern at this stage is to ensure that your rights as an investor and landlord are fully protected.
5. The tenancy agreement and bond
All approved tenants must sign a General Tenancy Agreement from the Residential Tenancies Authority. They also receive a copy of The Essential Terms and Conditions to the Agreement, along with the Residential Tenancies Authority Information Booklet (in accordance with the Residential Tenancies Act 1994). All documentation is carefully checked for accuracy to ensure the owner’s legal rights are protected. As your agent, we shall sign the Tenancy Agreement on your behalf and forward a copy to you for your records.
The maximum bond we are permitted to charge, which is the equivalent of four weeks rent, will be collected from the tenants along with two weeks rent in advance. If the rent is more than $700 a week there is no limit on the bond that can be taken. The bond will be lodged with The Residential Tenancies Authority within the stipulated time limits.
6. Inspections and condition reports
We shall inspect the property prior to occupancy by the new tenants and complete a comprehensive Condition Report. We take photos of the property and these are given to tenants to sign to ensure they agree with the condition of the property when they take it on. When they leave photos are taken again as proof. We take on average two hours to conduct this report. The new tenant has 3 days from occupation to add any comments and return a signed copy to our office. Copies of the Condition Report will be kept on file together with photos, the lease agreement and bond lodgement form.
7. Routine inspections
Regular inspections are carried out during the tenancy, after which a full inspection report will be sent to you, detailing the condition of the property, tenant evaluation and any maintenance required. Digital photos are taken at each inspection. The routine inspections are at no extra cost to you and are included in our standard management fee.
8. Final inspections and exit report
When the tenant has given us notice in writing of vacating the property you will be contacted to advise you of the tenant vacating. We will start advertising the property and arrange suitable access times with the outgoing tenant to show the property.
Once the tenant has vacated, a thorough inspection is carried out. Again, on average a two hour inspection will be undertaken to ensure that the tenant returns the property in the pre-occupancy condition. Monies will be taken from the bond if necessary to do extra cleaning or repair any damage by the tenant.
9. Prompt rent collection
We are a cashless office. The payment of rent is made very easy for all tenants. At the start of the tenancy they are given a laminated card with bank details on it. They take this to the Bendigo Bank (who are open longer banking hours then other banks) and they simply and safely deposit rent into the nominate account.
All rent is deposited directly into our trust bank account when their rent is received. Any interest paid on this account goes to the Government.
10. Strict rent arrears control
This does not occur often, but when it does, do you know the strict laws relating to tenant eviction?
We review rental arrears every working day to ensure that the tenants who fail to pay rent on time, for whatever reason, are contacted on a timely basis. Those who do not respond to the reminders are served with a warning letter, explaining that if they fail to pay rent, or do not contact us to make arrangements to pay, they will be served with a “Notice to Leave” that gives them ten days to vacate. The RTA has certain steps we need to follow.
This is usually a sufficient incentive to encourage most tenants to pay their rent. However, should this warning letter fail to bring results, the Property Management Team will contact you to discuss the matter as whether to proceed with the termination of the tenancy or whether to allow the tenant additional time to pay outstanding rent, depending on the tenant’s circumstances.
We work at all times in your best interest to protect your income and to keep your investment safe.
11. Maintenance and renovations
We monitor repairs very closely. We will act on repairs according to your instructions in the Property Management Agreement. You can elect to be consulted on all necessary repairs prior to any work being carried out or you can give us your authority to carry out routine maintenance and repairs up to an amount specified by you. You may also choose your own preferred trades people or take advantage of ours. Minor and major renovations can be quoted on and supervised by us, with as much or as little involvement by you as you wish.
Should any repair of more urgent nature be reported, such as no hot water, we will attend to this as soon as possible, as this is considered an essential service. We maintain complete records of maintenance carried out to your property for future reference. Repairs called out on your behalf are paid from the rent monies held in Trust. All copies of relevant invoices are attached to your monthly statement for your reference and tax return.
12. Outgoings and expenses
From the rent collected on your behalf, we can arrange payments of all the standard property outgoings as you instruct in the Management Agency Agreement. Such accounts could include:
Repairs & Maintenance
Council Rates, Excess Water Rates (as per agreement)
Body Corporate Levies
13. Rental increases
We ensure you enjoy full market rental for your property. We regularly assess the rental on your property taking into account factors such as current market rents of similar properties, the vacancy factor in the area, the general condition of the property, the quality of the tenant and the length of the tenancy. Whenever the rent could be increased, we will advise you and seek specific instructions to ensure we are acting in your best interests at all times. Most rent increases take place upon lease renewals. A two month notice is required during a period tenancy agreement.
14. Tenancy renewals
Our Property Management Team keeps close track on tenancy expiries. We realise the importance of keeping tenants on a lease and the stability and security it gives you in regards to your rental income. We will keep in contact with you on all matters relating to a lease renewal.
15. Managing the tenant
It is our duty as your Managing Agent to ensure that the tenants are well informed as to what is expected of them under the Tenancy Agreement. From the regular mowing of lawns, to the payment of rent in advance, to the behaviour of visitors to the property or the control of noise. We manage the tenant for you, ensuring, as much as possible, that the terms of the Tenancy Agreement are complied with.
16. Monthly property management statements to you
Each month we prepare and forward to you a detailed monthly Rent Statement for your property via email. The Statement details the rent period, the rent collected and any disbursements made on your behalf. Any copies of invoices or receipts for expenditure will be attached.
Your options for rent proceeds are:
electronically deposited into a nominated bank account as “cleared funds”
paid monthly and/or mid-month.
We close our books off on the 15th and on the last day of each month. In case of a weekend or public holiday it would be the next business day. All rent will be sent to you on closing day and would take on average 1 – 2 days.
17. Disputes with tenants
Disputes between landlords and tenants are not uncommon, but if handled with professionalism and diplomacy, most can be solved expediently.
Most disputes arise over rent increases, repairs and rental bond matters. The Property Manager will act as mediator in discussions between the landlord and the tenant. If all avenues are exhausted, and the parties have been unable to agree, it may be necessary to apply for a Residential Tribunal hearing. The Tribunal is an independent third party that will hear the dispute and make a decision on the matter.
We, as your agent can represent you at the hearing, preparing the case from start to finish. Preparation may include obtaining quotes and taking photos of the property (in case of bond disputes) or researching rental market comparisons in the case of disputes over rent increases. The findings of the Residential Tribunal are final, and may not always be to your satisfaction, so it is almost always beneficial to try and solve the problem in its early stages.
18. Annual financial statement
At the completion of each financial year (end of June), you will receive a Property Management Statement for the full twelve month period, itemising all income and expenditure and summarising all transactions. It is produced during the month of July and will increase convenience in preparing your annual tax return.
19. Regular communication and information
As an effective service organisation we are always available when you need to talk to us.
Our office is open Monday to Thursday from 8:30am to 5:00pm, Friday 8.30 to 4.00 and Saturday and Sundays by appointment. An after-hours answering service and a 24hour emergency phone number are also available.
20. Property sales and auctions
If you are considering selling your investment property, First National Kuranda has one of the most professional and up to date team of active sales agents. Our Sales Team has received many awards and years of experience and are equip to sell your investment at the best possible market price.
21. Legal requirements
It is our duty to ensure that Government legislation relevant to property investment is complied with. The Residential Tenancy Agreement, prepared by us, contains several additional clauses that are allowable by law to provide additional protection of your interests. We will also advise you on the legal aspects of property insurance, if required.
22. Real estate industry affiliation and training
Everyone in our Property Management Team is regularly updated with the latest legal and market information from the Real Estate Institute Queensland and with statistics from the Rental Bond Authority as well as updates from the Residential Tribunal. All members of our Property Management Team participate in an ongoing professional development program to ensure that their knowledge and skills are at the peak of the industry.
We have a mission to provide excellent service to all our customers. Our objectives to our landlords are threefold:
Skilled owner representation
Capital preservation and
First National Kuranda is a well-established Office. Most of our landlords have been with us for many happy years.
Because we are a local office, we have a wealth of knowledge and experience in the local area. We know the types of tenants we want to attract to your property and we have the experience in doing that in this area. Because we have been in the same industry for a long time, everyone knows we are here, and we get enormous “walk-in” traffic, which means we can rent your property quickly without spending a lot of money on advertising.
Our Property Management department has three team members working hard to provide you with the most efficient, effective and supportive property management service available.
Our team conducts all the viewings with prospective tenants and is 100% committed to finding the right tenant for your property.
Our property management department has been the recipient of a number of Awards for Excellence for service over the past years.