Some Commonly Asked

Questions about Property Management

 

Why should I have my property professionally managed?

 

The requirements of the Residential Tenancies Act is very specific and it takes time and experience to master these laws to be able to correctly apply them to a tenancy.  A gamble is also taken when putting new tenants into properties without the resources of the Tenancies Information Services Databases that Real Estate Agents use to check prospective tenants past histories.  At Dytor & Yates Real Estate our Property Manager is highly trained and is constantly updating her knowledge of the relevant legislation taking all these tasks from you to give you worry free management.

 

How do you choose a good tenant?

 

Dytor & Yates Real Estate is a member of the Tenant Information Centre of Australasia (TICA), a massive database centre that provides evidence of tenants’ past history.  Only licensed Real Estate Agents can belong to TICA. Our selection process is very thorough, as under our anti-discrimination policy we have a selection criteria for tenants that we follow, the selection guidelines being:  stability of employment, ability to pay the rent, ability to maintain the property, pets and character.  We judge tenants and prospective tenants on individual merits rather than assumptions due to personal matters such as race, marital status, age etc.

 

How do you find tenants for my property?

 

Because of our location, we have the highest walk in rental enquiry of any agency in the area.  We also have your property displayed on the Internet at www.realestate.com.au and www.goldcoasthomes.com.au  and in our window display.  We work hard to keep vacancy time to a minimum.

 

Do the tenants pay a bond?

 

Yes.  Before a tenant is given keys to a property, they must pay the equivalent of four weeks rent as bond  for properties under $700.00 per week and six weeks rent  as bond for properties over and above $700.00 per week, and the first two weeks rent up front.  The bond is lodged at the RTA on your behalf.  This bond is not refunded to the tenants until the property has passed a final inspection after they vacate and all rent is paid in full. 

 

How much does it cost to have my property managed?

Our charges for full management of properties are:

 

Rent collection and arrears                           5% of gross rent

Management fees                                         3.25% of gross rent incl. GST

Administration Expenses                               $5.00 per month + GST

Attending Tribunal Hearings                         $55.00 per hour

Advertising                                                   At Cost

 

 

A letting fee equal to one weeks rent + GST is charge when a new tenant takes possession.

 

Our services include:

 

•      Acquiring new tenants
•      Preparing the tenancy agreement
•     Documenting the condition of the property (Entry & Exit Reports)
•     Inspecting the property (Every 3 months)
•      Supervising the tenant’s departure and behaviour
•     Dealing with problems including those, that may end up with the RTA or Small Claims Tribunal

 

How do I get Paid?

 

All monies received by Dytor & Yates Real Estate that are credited to your property are banked into a Trust Account. We use the latest in computer systems to control income and expenditure on your property.  At the end of each month the Trust Account is balanced, a statement is produced for you showing all rent received and any repairs deducted and a schedule of our costs.  Your balance is directly deposited into your nominated bank account by electronic transfer to ensure you have access to your funds at the earliest possible opportunity. 

 

Does my property get inspected regularly?

 

Yes.  The law allows a minimum of 3 monthly inspection s and these we do.  We report back to you in writing after noting the care and cleanliness of the property and as far as is practicable to look for any possible maintenance issues that need attention.  We also enclose photos of your property.

 

Can I ask tenants to attend to repairs and maintenance on my property?

 

No.  It is not the responsibility of the tenants to attend to this and it is in your own interests to ensure that repairs are done promptly and in a tradesman-like manner.

 

How do I choose which tradesmen to use?

 

The tradespeople used by Dytor & Yates Real Estate are carefully chosen and have many years experience and proven record in doing a good job at a reasonable price.

 

Can I do the repairs on the property myself?

 

Yes.  All the decisions on repairs and maintenance are up to the owner.  If you want to be contacted before maintenance is carried out, this can be done.  However, by law, tenants have the right to contact tradespeople direct in an emergency situation (but only if they are unable to contact Dytor & Yates first). The proper amount of notice needs to be given to the tenant when you arrive to carry out repairs or maintenance. This must be done through your property manager and under no circumstances should you turn up at your tenants home without these notices in place.

 

Can I access my property whenever I choose?

 

No.  Very clear rules are laid down by the Residential Tenancies Authority with regard to tenant’s rights to quiet enjoyment of the property.  All you have to do is contact us and we will advise you of your access rights.

 

Can I evict a tenant if they have a lease?

 

A tenant can only be evicted during their tenancy if they have broken the terms of that lease.  We will advise on the correct procedures.

 

Can I sell my house while it is rented?

 

Yes, but unless the tenant and the purchaser agree in writing to shorten the term, a fixed tenancy must run its full term.  If a tenant is on a periodic (month by month) lease, one month’s notice to vacate must be given provided there is a contract of sale on the property.

 

Can tenants be made to pay for their water use?

 

Please refer to the attached Residential Tenancies Authority Fact Sheet.

 

Is the condition of my property documented?

 

Yes.  A thorough check of the property is completed prior to a tenant taking possession and the information recorded on an Entry Condition Report.  At completion of the tenancy, the property is inspected against the original Condition Report.  Basically the property must be in the same condition as when the tenants moved in except for normal wear and tear.

 

If my property is vacant, do you give prospective tenants the keys to my house?

 

No, prospective tenants are shown through the property personally with a staff member.

 

Can I insure myself against loss of rent and damage to the property?

 

Yes.  We recommend you check with your current insurer regarding building, contents (fixtures & fittings), public liability and landlord insurances. 

 

Do tenants pay GST on rent?

 

No.  Rents are GST free.

 

Do I pay GST on management fees?

 

Yes.  The tax reform legislation that took effect on 1^st July, 2000 requires us to remit 10% of all fees to the Australian Tax Office.

 

Do I pay GST on any tradesperson’s accounts?

 

Yes.  GST is payable on the supply of labour and materials.

 

If there is no GST on rent, how do I compensate for the costs of GST?

 

By setting the rent at a level that provides a fair return on your investment, but is realistic in terms of what the market will pay.  Our Property Manager is continually monitoring   rents to ensure Landlords are receiving the highest rents possible.

 

 

 

GENERAL INFORMATION

 

LANDLORDS RESPONSIBILITIES

 

Sections 101 and 103 of the Residential Tenancies Act states that the property for rental must:

 

•      Have no legal impediments to occupation.
•      Be in good repair and continue to maintain the premises in good repair.
•      Be clean and fit to live in with no health and safety issues.
•      And have vacant possession on the  date agreed to on the Tenancy Agreement.

 

And that the landlord and/or Agent should ensure the tenant has:

 

•      Quiet enjoyment of the premises with no interference to the reasonable peace, comfort and privacy of the tenant.
•      Maintenance responsibilities on your property include anything that is a permanent fixture of the building, ie. Light bulbs, tap washers,    door knobs, screens etc. and the cause for maintenance is not due to the neglect of the tenant.
•      Other responsibilities include annual pest control and gutter cleaning.

 

 

TENANTS RESPONSIBILITIES

 

Section 106 of the Residential Tenancies Act states that the tenant must:

 

•      Maintain the premises in the same condition as it was given to them at the beginning of the tenancy, fair wear and tear excepted.
•      On vacation, hand the property back in the same condition as indicated on the ingoing condition report.
•      Respect the peace, comfort and privacy of neighbours.
•      Abide by all conditions set out in the lease contract.

 

 

TIPS FOR PREPARING YOUR PROPERTY FOR RENTAL

 

 

•      Paintwork both inside and out should present well.
•     Floor coverings should be in good condition.  Low pile, hard wearing neutral coloured carpet is recommended with quality underlay.  Avoid soft vinyl floor coverings as they tend to tear and ceramic tiles as they can crack.
•     Lawns and gardens should be neat and tidy, gutters clean and overhanging vegetation cleared.
•      Window coverings must be presentable and provide privacy.
•      Fittings and appliances should be clean, tidy and in sound working order.
•      Carpets should be professionally cleaned.
•      Appliance instruction booklets should be provided.
•      Concrete and paved areas clean and free of oil or stains.
•      Provide exhaust fans in kitchen and bathrooms.
•      Ensure all doors have adequate door stops.
•      A telephone line and antenna outlet is provided.
•      Deadlocks and window locks an asset.
•      Provide two sets of keys for your Real Estate.
•      Sign Management Agreement to give Real Estate legal authority to proceed on your behalf.
•      Ensure you have included on your Management Agreement, details of your building, contents and professional liability cover and consider taking out specialised landlord cover.
•      Freshen grout in bathrooms and kitchens and tile sufficient wall areas around stoves and bathrooms to prevent damage.

 
 
 
CYCLIC MAINTENANCE
 
 

•      External painting, 5 – 7 years, internal 4 – 5 years.
•      Cleaning of guttering and downpipes.
•      Maintenance of fences and outdoor improvements.
•      Replacement of floor coverings,  7 – 8 years.
•      Replacement of curtains and blinds, 5 – 6 years.

 

 

 

A GUIDE FOR PROPERTY OWNERS

ON ANTI-DISCRIMINATION LAWS