Scan the QR Code with your smart phone to watch the video below. Alternatively go to: ..... have a special water reading
The Property Investor’s Guide To
Profitable Property Management 1
Thank You For Requesting This Guide We have constructed this comprehensive property owner’s handbook as a service to our clients to familiarise you with our property management processes and procedures and tenancy management expectations. We hope that you enjoy reading this handbook and ask that you become familiar with its contents. Should you have any further queries please call us on 08 9444 6706 as we are more than happy to assist.
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Scan the QR Code with your smart phone to watch the video below. Alternatively go to: www.youtu.be/ZoHy-eQCAtU
What’s In This Guide? What’s In This Guide
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5. 21 Days Notice On A Non-Fixed Term Tenancy . . 11
Frequently Asked Questions
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6. Inspections . . . . . . . . . . . . . . . . . . . . . . 11
1. Maximising Your Rent . . . . . . . . . . . . . . . . .2
7. Option Fee . . . . . . . . . . . . . . . . . . . . . . . 11
2. Getting The Best Tenant . . . . . . . . . . . . . . . .2
8. Breaking Lease Conditions . . . . . . . . . . . . . 11
3. The Marketing Of My Property. . . . . . . . . . . . .3
9. Tenant’s Right - Quiet Enjoyment Of The Property 11
4. Property Presentation . . . . . . . . . . . . . . . . .3
Managing Your Property
12
5. Pets At My Property . . . . . . . . . . . . . . . . . .3
1. Have Your Mail Redirected. . . . . . . . . . . . . . 12
6. Receiving My Rent Monies. . . . . . . . . . . . . . .4
2. Appliance Manuals . . . . . . . . . . . . . . . . . . 12
7. Inspections Of My Property . . . . . . . . . . . . . .4
3. Keys . . . . . . . . . . . . . . . . . . . . . . . . . . 12
8. Taking A Bond . . . . . . . . . . . . . . . . . . . . . .5
4. Cleaning Guide . . . . . . . . . . . . . . . . . . 12- 13
9. Tenancy Agreements . . . . . . . . . . . . . . . . . .5
Our Service
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10.Repairing And Maintaining My Property. . . . . . .6
1. Marketing Your Property For Lease . . . . . . . . . 14
11.Renewing The Lease. . . . . . . . . . . . . . . . . .6
2. Leasing Your Property . . . . . . . . . . . . . . . . 14
12. Notice Required When My Tenant Is Leaving. . . .7
3. Rent Collection . . . . . . . . . . . . . . . . . . . . 14
13.Breaking A Fixed Term Lease . . . . . . . . . . . . .7
4. Rent Monies . . . . . . . . . . . . . . . . . . . . . . 15
14.Breaches Of Tenancy . . . . . . . . . . . . . . . . .7
5. Repairs And Maintenance . . . . . . . . . . . . . . 15
15.Landlord Insurance . . . . . . . . . . . . . . . . . .7
6. Tenancy Agreement Renewals . . . . . . . . . . . 15
16.Pest Control Services . . . . . . . . . . . . . . . . .7
7. Routine Inspections . . . . . . . . . . . . . . . . . 15
17.Costs Incurred At My Investment Property . . . . .8
8. Vacating Tenant. . . . . . . . . . . . . . . . . . . . 15
18.Receiving My Financial Statements . . . . . . . . .8
9. Property Disbursements And Statements . . . . . 15
19.Moving Back Or Selling My Property . . . . . . . . .9
10. General Communication . . . . . . . . . . . . . . 16
20.Help With Selling My Investment. . . . . . . . . . .9
11. Complaints Handling . . . . . . . . . . . . . . . . 16
Tenancy Legislation
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12. Documentation . . . . . . . . . . . . . . . . . . . 16
1. Rent In Advance. . . . . . . . . . . . . . . . . . . . 10
13. Personal Information . . . . . . . . . . . . . . . . 16
2. Security At The Property . . . . . . . . . . . . . . . 10
14. Professional Standards. . . . . . . . . . . . . . . 16
3. Increasing The Rent . . . . . . . . . . . . . . . . . 10
Our Guarantee
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4. Vacating/Termination Of Contract Notice . . . . . 11
Contact Us
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1
Frequently Asked Questions
2. Getting The Best Tenant
1. Maximising Your Rent
sign an application form, giving permission for us to check the information provided. Tenants can complete an application on-line or via our hard copy application forms which are handed out at the inspections.
How does someone apply for the property? We always ask that the
How do you determine the best rent for the property? We always strive to get you the maximum rent possible.
What if an applicant contacts me?
To do this, we consider the following factors: 1
Demand- Is there a high or low demand for properties at present. This can be seasonal and affected by a number of factors.
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What Is Available Now- We look at properties currently available for rent in the newspaper and on the internet, and consider their location and features for comparison to calculate a maximum rent for your property.
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If in the unlikely chance a prospective Tenant contacts you to discuss their application, or asks questions regarding their rejected application, we insist that you simply request that they contact us (your agent). If they persist we insist that you do not discuss anything further to avoid unnecessary problems and complications.
How do you check an applicant? and tenancy history by calling their current and/or
What We Have Rented Right Now- We compare your property with what we have currently rented, taking into account property location and features. These factors allow us to give you enough information to set the right rent for your property.
employment; checking them against the National Tenancy Database to see if they have been lodged as a bad Tenant by a previous agent. In some cases where an applicant may not have a that may give us insight to show their ability to maintain a tenancy in your rental property, for example a stable employment history, or their real estate agent if they have sold a property.
What if I want a rent amount that is higher? You may place your property on the market at the rental amount you wish. However keep in mind that it is the market demand that sets the rent, and if the market (prospective Tenants looking for a rental property) deem the amount of rent too high, your property may stay vacant longer than necessary.
In some cases where this is not possible we may ask for more information or simply reject the application.
What reason do you have to give the applicant to reject their application?
With this in mind, be aware your gross annual rental return will be reduced by 2% for every week it is vacant!
Legally we do not have to give a reason and by industry practice we never give a reason.
How is the rent reviewed during the time that you manage it?
Who selects the applicant for the property?
When we need to secure you a new Tenant, we will always review the rent against market conditions. This will also be done at least 60 days prior to the expiry of the lease whether the current Tenants intend to stay or go. With new legislation, 60 days notice is required for a rent increase at any time and the rent cannot be increased within 30 days of a new lease commencing.
You do! We will simply give you the information we have collected and by using our experience give you a possible guide as to the tenancy outcome, but at the end of the day it is always your choice!
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Do you guarantee the tenant?
Section Three with tips and a checklist on how to present your property for rent.
We can never guarantee any approved Tenant for your property. We can only attempt to collect information on
How clean should the property be when a new tenant moves in?
As their paying of rent and maintaining the property is purely voluntary we cannot guarantee any tenancy outcome. This is a Landlord risk that comes with allowing someone else to rent your property!
The property should be presented ‘reasonably clean’ in accordance with legislative requirements. Please refer to our guide to ‘Getting the Property Ready for Your Tenant’ in Section Three for recommended levels of cleanliness.
However, we do guarantee that you will never lose rent
As a very general rule we ask the previous Tenant to leave the property at the standard they found it.
year’s Landlord Insurance free of charge.
In cases where the property is provided in an extreme level of cleanliness we ask the previous Tenant to leave the property likewise and suggest they employ professional cleaners where necessary. However in the case of a dispute legally we can only enforce that the Tenant return the property in a ‘reasonably clean’ condition, this being their minimum legal obligation.
3. The Marketing Of The Property What do you do to advertise the property? Once you have a signed Management Agreement authorising us to act on your behalf, we list your property in the following forms of advertising. 1
Newspaper- Should it be necessary, using the West Australian Newspaper, we place the details of your
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Rental Listing Brochure- Your property is added to
5. Pets At The Property If I allow pets at the property, what expectations will be given to the tenant? We always sign pet conditions with your Tenant on their tenancy agreement. This obligates them in 3 ways:
your property. This is given to anyone that comes in looking for a rental property. 3
Database- Our database of recent rental enquiries is contacted with the details of your property.
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Internet- Your property along with photos is entered onto the following websites, maximising coverage to any prospective Tenant using the Internet to locate a rental property. www.TCPM.com.au www.realestate.com.au www.rent.com.au www.domain.com.au others may be used if deemed necessary
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No additional pet may occupy the property without prior permission.
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The pet must be removed from the property if it becomes annoying or bothersome to neighbours (after reasonable warning has been given in writing).
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The Tenant must be responsible for any damage caused by their pet, and remove any rubbish or faeces deposited by the pet.
We also record the details of the pet on the agreement, which is then signed by the Tenant.
How do I ensure the pet will not come inside the property?
Advertising costs are included in the marketing fee.
If this is your instruction we then obligate the Tenant to commit in writing that they will not bring the pet inside. However as we are unable to monitor the property all of the time, we cannot guarantee that the pet will not come inside the property.
4. Property Presentation How should the property be presented? We ask that the property be presented in the best manner possible to attract the right Tenant for your property.
Whilst conducting property inspections we do look out for any warning signs. However, the only way to ensure that a pet will not come inside the property is to insist ‘No Pets’ right from the start of the tenancy.
Tenant from renting your property. Please refer to our guide ‘Getting the Property Ready for Your Tenant’ in
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6. Receiving My Rent Monies
out and lengthy. Unfortunately the bond will never cover the shortfall in rent. With Landlord Insurance there will be a reasonable prospect of covering the rent payment shortfall, in the case of your Tenant defaulting in their rent payments.
When do I get paid my rent? We will deposit all monies collected into your nominated bank account
Without Landlord Insurance, the chance of recovering owed rent monies is minimal. If you have no protection for your rent payments, the problem is further compounded with the fact that the bond will probably be exhausted with owed rent. You will then most likely have cleaning up and re-letting costs, as well as outstanding monies like water consumption owed by the Tenant.
How do you collect the rent? We collect the rent by 4 methods: 1. By BPay direct to our Trust Account;
As you can see, without Landlord Insurance, this process
2. By Credit Card or Direct Debit through the Macquarie Bank DEFT website;
Tenants in arrears is on average less than 2% of Tenants at an average of 2 days late.
3. Cash through Australia Post using the Macquarie Bank DEFT Card; or 4. By
7. Inspections of The Property
or bank cheque through the mail.
Do you inspect the property at the beginning of a tenancy?
What happens if my Tenant does not pay the rent? Paying the rent is always a voluntary action on behalf of the Tenant. We can never force a Tenant to pay their rent. Even a tribunal can only ‘Order’ a Tenant to pay but can never physically force them to pay. If a Tenant does get behind in their rent payments, this is the process we follow.
We conduct a comprehensive inspection of your property when a We inspect your property area by area (lounge room, bedrooms, kitchen, front and rear yards, garage etc) and then all items present in each area (walls, ceiling,
1 Day Behind – The Tenant Is contacted via SMS to remind them they are in arrears 3 Days Behind – The Tenant is issued a written “Breach of Notice for Non-Payment of Rent” - this requires the Tenant to rectify the situation and gives them 14 days to remedy the Breach. This 14 days does not include 2 days for postage which in turn does not include weekends and public holidays.
We record their condition and cleanliness item by item, and then a brief description and detail about the item. This would involve recording details of any major marks, scratches and dents etc. We also take a comprehensive video of the outside, as well as the inside of the property. A link to this video and a written report is given to both yourself and your Tenant as a record of the initial condition of the property.
If after 14 days all of the outstanding rent is not paid, we will issue a “Notice of Termination for Non-Payment of Rent”. This notice seeks to terminate the tenancy and requires the Tenant to vacate the premises within the next 7 days. We will contact you prior to issuing this notice for your authorisation.
How often do you inspect the property during the tenancy?
Approx 3 to 4 weeks behind (21-28 days) - Lodge an application with the Magistrate’s Court for an order of payment subject to your instructions. An application will be made to the court at the expiration of the Termination Notice (7 days) to minimise any possible loss of rent that could occur and to comply with the requirements of all Landlord Protection Insurers.
weeks after the Tenant moves in. Thereafter we inspect the property approximately once every 3 months. These inspections are more of a walk through, checking roomby-room that the Tenant is keeping the property damagefree and reasonably clean. We will also take photos of the property to highlight any repairs or concerns observed, or in some cases to provide a snapshot with the Tenant’s permission.
Approx 6 weeks behind (35-47 days) – Court Hearing order given to pay or be evicted. Approx 7-8 weeks behind- Eviction may occur if payments are not made as per the tribunal order.
We also note any repairs reported or observed by us and any other recommendations needed to assist you in keeping the property in the best condition possible.
As you can see, the full legal process can be very drawn
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We always email you a copy of any inspections. If there are urgent items requiring attention, we will call or email you as a matter of priority.
If the Tenant has a pet, can I ask for an extra bond (a pet bond)?
What about when the Tenant vacates the property?
The maximum allowed as a “Pet Bond” Is $260 – regardless of the number of pets, for fumigation of the property (if necessary) at the end of the tenancy.
When the Tenant lets us know they will be vacating, we send them detailed information of our expectations of how the property needs to be presented.
No animals may be kept on the premises without the owner’s permission.
9. Tenancy Agreements
Once the Tenant has fully vacated, we compare the property to the inspection report and video completed when the Tenant moved into the property.
What do you explain to the Tenant when they move into the property?
We carefully check through the report item-by-item using both the written report and the video on our iPad, ensuring it has been left in the same condition or better as when they moved in. Taking into account reasonable wear and tear for the period of time they have been in the property. This is a legislative requirement.
We go through all of the most important expectations. For example, how they must pay their rent on time, where to pay their rent, what we do if they do not pay their rent. We discuss our repairs and maintenance policy, what happens in an emergency repair situation, how often inspections occur and what we look for. Any special conditions are also brought to their attention, often in an annexure to the lease agreement and can include such things as pool maintenance etc.
We ensure the property has been left reasonably clean, and where necessary arrange to have the property cleaned to a reasonable condition. We will also arrange to have a special water reading performed at your property and bill the Tenant for water usage where applicable.
We supply them with two copies of the ingoing inspection report as well as the video link, and explain how they must check, sign and return one copy of the report within 14 days. We explain and get them to sign the Bond Lodgment Form.
8. Taking a Bond How much bond do you take from the Tenant?
We supply the Tenant with a Consumer Affairs Information Sheet that explains some of their tenancy rights and obligations. This is in accordance with legislative requirements.
In general, you cannot ask for more than the equivalent of 4 week’s rent however if the rent is more than $1200 per week then the bond is negotiable.
What do they sign?
When do you pay back the bond monies?
We prepare a Tenancy Agreement covering the details of the tenancy, with terms and conditions.
We only refund the bond after the following has occurred 1
The Tenant has fully vacated the property and returned keys;
2
The property has been inspected, and is satisfactory when compared with the ingoing inspection report;
3
All monies are paid. This could be any outstanding rent, water or anything owed by the Tenant, such as cleaning or gardening; and
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We explain the main parts of the agreement to the Tenant before we get them to sign it. We will then send you a copy of the Tenancy Agreement together with a copy of the Ingoing Inspection Report, for your records.
When do they get keys and possession of the property?
If the Tenant is breaking their lease, any Landlord expenses including advertising costs are paid (part or full costs as legislation allows).
After all the forms have been explained and signed, all bond received we will then grant them the keys and possession of the property on the day (or the evening of the day before) the tenancy is to commence.
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10. Repairs and Maintenance What happens if a repair is required after hours, or on weekends?
Who is responsible for repairing my property? Under legislation it is the responsibility of the Landlord to repair the property. This means it is at the Landlord’s expense.
If a repair is required after hours or on weekends and is considered an emergency and could not reasonably wait until normal business hours, then the Tenant may engage a tradesperson to see to the repair at the Landlord’s expense. However, if the ‘emergency’ is deemed to be as a result of the Tenant’s actions, negligence or ignorance then the cost will be born by the Tenant.
We also recommend annual pest inspections, air-conditioner services, smoke alarm battery change (in April of each year and compulsory for Landlords), and RCD testing. Although the Tenants are advised to test RCD’s regularly it is still the responsibility of the owner for insurance purposes to test the RCD. Under current legislation smoke alarm and RCD maintenance is ultimately deemed not to be the responsibility of the Tenant.
Who is responsible for maintaining the lawns and gardens?
Who is responsible for general wear and tear?
Unless otherwise agreed, the Tenant is responsible to maintain the lawns and gardens to the standard they were given at the start of the tenancy.
General wear and tear that occurs from Tenants just living in a property is expected and legislation provides that it be allowed. A few extra marks and scuffs on the walls, some chips and scratches to doors and doorways will occur over time, along with the gradual wear of everything that is in the property.
If the property is provided with watering systems these need to be working and kept maintained during the tenancy.
The only time a Tenant can be held responsible is if wear and tear is considered ‘excessive’ for the time frame that the Tenant has been in possession. For example, a newly painted property with walls severely marked after 2 years resulting in the walls having to be painted again may not be allowed as ‘reasonable’ wear and tear. In a court hearing this type of situation, if proved, could result with the Tenant paying for the painting to be done, minus any depreciation for the age of the paintwork at that point in time when it was repainted again.
What about cleaning the roof gutters and pruning? According to legislation it is the Landlord’s responsibility to ensure these are done. Of course, we can arrange gardeners on your behalf to do these for you.
11. Renewing The Lease With My Tenant Who decides if the lease will be renewed?
What if the Tenant is at fault?
You do! We will contact you by email, phone or letter at least 60 days before the lease is due, and seek your instructions if you wish to renew or not renew the lease. Once we have your approval we will then approach the Tenant to have the lease renewed.
If a Tenant has caused damage to an item that is not the result of normal break down or wear and tear, this will be charged to the Tenant. Normally, a tradesperson would let us know that the repair
If I do not wish to renew the lease, do I have to give a reason?
caused by the Tenant.
If you do not wish for the lease to be renewed you are not obligated to give your Tenant a reason, Should you wish the Tenant to vacate at the end of their current lease you must let them know at least 30 days beforehand. The lease will only expire after the 30 days notice period or the end of the lease, whichever is the later.
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12. Notice Required When The Tenant Is Leaving.
15. Landlords Insurance Why do I need Landlord Insurance if I have an agent?
How much notice must my Tenant give when they want to vacate the property?
We can at no time guarantee your Tenant’s performance at your property. This is a risk all owners of investment properties take, and therefore the owner should be insured for such a risk.
This depends on the type of lease they have signed. If they wish to vacate the property on a Non-Fixed Term Lease (“periodic lease”), they are only required to give 21 days notice in writing.
Why do I need Landlord Insurance if I have a good Tenant? Even a good tenancy can turn bad. If the Tenant’s circumstances change sometimes the tenancy will become unstable. This can result in rent owing and the property not being maintained.
tenancy laws they also now have to give 30 days notice. Of course it is up to us to approach the Tenant to seek their intention to either renew the lease or vacate the property well beforehand. If they break their lease, they may do so with little to no notice, however they are subject to paying rent until a new Tenant is secured, or to the end of the lease (whichever
It pays to be properly insured, even with a good Tenant. In fact year’s premium with Terri Scheer Insurance.*
Tenant such as advertising costs (please refer to the next section).
What does Landlord Insurance cover? Landlord Insurance will usually cover rent loss due to Tenant default, accidental and malicious damage to the property caused by the Tenant. Most policies do not cover the costs to bring a property back to a state where it can be put back on the rental market, or the Landlords reletting expenses.
13. Breaking A Fixed Term Lease Who pays for the letting fee and advertising costs when a Tenant breaks their Fixed Term Lease early? Unfortunately we have no control over the Tenant breaking their lease early. People’s circumstances change and sometimes they move out earlier than expected.
It is important for you to know what your Landlord Insurance policy will and won’t cover. Please consult with your Landlord insurer so that you are fully aware of the extent of your cover and also any excesses that may be applicable in the event of a claim.
However, under new legislation the agent and/or the Landlord are not entitled to include in the lease provision to charge a Tenant a penalty to compensate for the fees
* Total Care Property Management receives a small commission on LPP insurance from Terri Scheer.
Tenant.
16. Pest Control Services 14. Breaches Of Tenancy
Should I get my property regularly checked for termites?
What happens if the Tenant breaks one or more of the conditions of tenancy?
Yes! We strongly recommend all of our clients choose a pest control service and request that they regularly check your property for termite activity at the frequency they recommend.
Depending on what has occurred depends largely on what action is taken. If the breach is minor, approaching the Tenant verbally or in writing maybe appropriate. If discuss what action to take.
Unfortunately we are not able to contract them to do this on your
Serious breaches of tenancy may involve using the property for illegal purposes or bringing in pets without prior permission etc.
so each time it is required.
We will let you know whether we should serve a
It is a general exclusion of all building insurance policies that damage to your property caused by termites is not
diplomatic means to rectify the breach.
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18. Receiving My Financial Statements
covered (not insurable). Therefore regular checking is the best way to prevent termite damage, or at least attempt to identify warning signs that termites are creating damage.
When do I receive statements?
Without this the damage could be substantial and very costly to rectify.
statements (on request), accounting for all monies we have handled and disbursed on your behalf in accordance with legislative requirements.
17. Costs Incurred At The Rental Property
You will receive monthly statements together with any tax invoices from tradespersons or other disbursements paid during that month on your behalf. Statements are emailed to you with invoices attached to the email address stated on the Managing Agents Authority. The statement may also be posted if you have requested this option on the Managing Agents Authority.
Who pays for electricity and gas charges? These are a Tenant expense. However if there are charges relating to the supply of these services to a property, then the supply charges are at a Landlord cost. A good example of this is if a property has bottled gas supplied. The Tenant pays for the gas in the bottles; however the Landlord would be responsible for the charges related to the gas bottle rental. This is a charge associated with the supply of the gas.
Your End of Year Statement accounts for all monthly statements accumulated for accountancy ease and can save you valuable dollars at the accountants. End of Year Statements do incur a fee.
Some strata complexes have two components for electricity, one for the usage by the resident which may be billed by the strata or by Synergy and another for the supply of electricity to the common areas of the complex. The second is usually incorporated into the Strata Levies and is a Landlord cost.
When do I receive these statements? Your monthly statement will be sent to you by the 1st day of every month (or the next business day should the 1st occur on a weekend or public holiday), and the End of Year Statement will be available for you in the second week of July of each year. End of Year Statements are available upon request and incur a fee.
Who pays for water charges? Water consumption charges are agreed between the Landlord and Tenant. In Western Australia, metropolitan and most regional townships have water supplied by the Water Corporation of
How do I understand these statements? Your monthly statement consists of three columns of and a running Balance. The payout to you appears in the property then the Money In and Money Out is listed under each property heading. The totals are at the bottom listed as “Totals at end of period”. Any item with a * is an item where GST has been applied by our computer system. Please check your invoices to determine other GST supplies.
125 kilolitres used in a yearly period. Water used over and above this is charged at a higher rate. In some cases where gardens and lawns are involved, the is sometimes ‘allocated’ for usage on the garden. Water used above this at the higher rate would then be charged as a Tenant expense.
What do I do if I misplace a statement? Call us and we will reissue another one to you. Alternatively you can go on-line at anytime to www.onlineagent.com.au and using your unique ID view and print any past statements, as well as current maintenance activity for your properties.
Some Landlords wish to charge the Tenant all water costs. This is optional. We do believe that an incentive should be given to the Tenant to ensure the garden remains healthy, where the garden maintenance may be extensive.
What about council and sewerage rates?
This is a free service we provide to you. If you do not have
All these costs must be paid by the Landlord. These payments can be arranged to be paid from rent on instruction from the Landlord.
issue you with one.
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19. Moving Back Or Selling My Property What happens to the tenancy if I wish to sell my property? You may sell your property at any time. However, any Fixed Term Lease in place is guaranteed to your Tenant. Unless the Tenant agrees otherwise, if a person buys your property and wish to occupy it, they must wait until notice requiring vacant possession at the end of the lease).
20. Selling My Property Can you help sell my property? Of course! Selling your property is part of the service we provide, through Bernie Kroczek Real Estate. It is always preferred that we sell your property through our Sales company. It is much easier to coordinate access with the Tenant between the sales and rental departments if you are using the same people for both services.
What if I want to move in or someone from my family wants to move in?
Your Tenant will also feel more comfortable dealing with people they are already familiar with.
Again any Fixed Term Lease is guaranteed unless the Tenant agrees to move out, and is mutually agreed to by both parties in writing, or by an order from a court. The Fixed Term Tenancy usually cannot be ended before the date stated in the Agreement. The owner also needs to give 30 days notice of their intention to move back in at the end of the lease.
Just let us know if you want to sell, even if you are just thinking about it. We have a special package outlining all the things you need to know when selling a home, so please feel free to request our package at any time.
As is the case with the property being sold, a request to break a Fixed Term Lease usually involves an amount of compensation being paid to the Tenant as agreed by both the Landlord and the Tenant.
We can also arrange a free appraisal for you, even if you are not selling but would just like to know the market value of your investment. Bernie would be delighted to do so at no cost to you.
What if they are on a Non-Fixed Term Agreement?
Please give us a call on 9444 4099 to receive your Free ‘Home Sellers Guide’ which is a must read before you put your home on the market.
You can end a periodic tenancy by giving the proper notice in writing for any of the reasons below: 1
2
No particular reason – you can (without giving them a reason), give written notice to the Tenant ending the tenancy not sooner than 60 full days from the date you give them notice; or
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(b) that any lock or other means of securing the residential premises must not be altered or removed or added by a lessor or tenant without the consent of the other given at, or immediately before, the time that the alteration, removal or addition is carried out; and
Tenancy Legislation July 2013 marked major changes to the Tenancy Legislation in Western Australia. In this section we will list some of the changes, which will directly effect how your investment property and the tenant are to be managed.
(c) that the lessor or the tenant must not unreasonably withhold the consent referred to in paragraph (b)
Changes include the use of a prescribed lease agreement, which cannot be altered, obligations for a written property condition report, more stringent security measures, along with changes to how rents may be increased and others.
The regulations referred to in 1(a) require an owner to provide as a minimum the following: Main entry door - a deadbolt/deadlock (if there is lockable screen compliant with the Australian
We have detailed some important sections of the Act here for you, however the complete Residential Tenancies Act can be found at the Department of Commerce Website.
Other timber entry doors - a deadbolt/deadlock, or a
1. Rent In Advance
Glass external doors - a patio bolt (if there is a deadbolt handle set or a lockable security screen
2 weeks of the tenancy under a residential tenancy agreement as rent under the agreement an amount exceeding 2 weeks’ rent. A person cannot be required to provide more than two weeks rent in advance at any time under a tenancy agreement. This does not prohibit a tenant from offering to pay more than two weeks rent in advance if they wish to do so. Penalty: $5 000.
bolt). Windows - lockable from the inside (this does not mean keyed window locks, but that window latches, reduce the risk of a window being forced open from the outside).
A person shall not require any payment of rent (other than
External lighting - a light at the main entry that can be operated from the inside. The requirements for locks to entry doors and lockable windows do not apply where the door or window is situated on the second story or above in apartments and multi-story homes.
until the period of the tenancy in respect of which any previous payment has been made has elapsed. Penalty: $1 000.
2. Security At The Property 3. Increasing The Rent
It is a term of every agreement — (a) that the lessor must provide and maintain such means to ensure that the residential premises are reasonably secure as are prescribed in the regulations; and
agreement if the amount of the increase or the method for calculating the increase is set out in the tenancy agreement. The prescribed tenancy agreement contains space to include this information.
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7. Option Fee
agree to enter into a new lease at a higher rent it is now a requirement that the higher rent cannot be charged for
An option fee is money paid by prospective tenants to the lessor or property manager when lodging a rental application.
4. Vacating/Termination of Contract Notice Period
This fee is now restricted (in the Perth Metropolitan Area) by the Act to a maximum of $50.00 if the weekly rent for the premises less than $500 per week, and $100.00 for properties over $500 per week.
The legislation now has the requirement to notify a tenant 30 days from the end of the lease in writing whether they will be offered a new lease or whether the owner requires vacant possession at the end of the lease. There is also an obligation on the part of the Tenant to do the same.
8. Breaking Lease Conditions – If a Tenant Breaks Their Fixed Term Tenancy.
This means that we will be contacting you well in advance of this notice period prior to the end of a lease to get your instructions on both rent increases and lease renewals, to ensure that your wishes can be implemented without undue delay within the constraints of the new legislation.
‘Breaking a Lease’ in the Act is referred to a ‘abandoning the property’. This simply means that the tenant term tenancy). So where a tenant under an agreement abandons the premises, the owner shall be entitled to compensation from the tenant for any loss (including loss of rent) caused thereby, but shall take all reasonable steps to mitigate such loss and shall not be entitled to compensation in respect of any loss that could have been avoided.
5. 21 Days Notice On A Non-Fixed Term Tenancy A tenant may give notice of termination of an agreement to the owner without specifying any ground for the notice.
9. The Tenants Right To Quiet Enjoyment Of The Property
Where a tenant gives notice of termination under this section, the period of notice must be not less than 21 days. This section does not apply in relation to an
It is a term of every agreement:
the currency of that term.
6. Inspections
(a) that the tenant shall have quiet enjoyment of the premises without interruption by the owner or any person claiming by, through or under the owner or having superior title to that of the owner;
The Act says tenants are entitled to ‘quiet enjoyment of the property’. Therefore when you enter the premises, you must provide appropriate notice and be careful not to interfere with the tenant/s privacy or use of the premises.
(b) that the owner shall not cause or permit any interference with the reasonable peace, comfort or privacy of the tenant in the use by the tenant of the premises; and
No more than four routine inspections are allowed in any 12 month period. Routine inspections allow us to note any maintenance required, monitoring fair wear and tear and ensure your tenants are looking after the property.
(c) that the owner shall take all reasonable steps to enforce the obligation of any other tenant of the owner in occupation of adjacent premises not to cause or permit any interference with the reasonable peace, comfort or privacy of the tenant in the use by the tenant of the premises.
Before giving notice of entry to the tenant, we must make a reasonable effort to negotiate with the tenant a suitable time and day.
In this section “premises” includes chattels provided with the premises (whether under the agreement or not) for use by the tenant.
the Act as being between 8am and 6pm on a weekday, 9am and 5pm on a Saturday or any other time agreed between us and the tenant. The notice must stipulate if the inspection will be before or after noon. Inspections for carrying out necessary repairs and maintenance require a minimum of 72 hours written notice.
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Managing Your Property
4. Cleaning Guide Inside the property
This section lists some of the many things you can do to get your property ready for the rental market, and also to make your own move to your new home as easy and stress free as possible.
Walls - please clean off any dirty marks, removable scuff marks, Ceilings - Please remove any cobwebs.
Many of the things listed here are simple and cost effective. We hope that this checklist of things to do will be useful.
Ceiling Mould - please clean off (particularly in wet areas and sometimes in bedrooms).
1. Have Your Mail Redirected.
Light Fittings – Clean off dust and remove any dead insects inside.
Please ensure that all mail is re-directed to your new address. Include the following utilities - Electricity, Gas, Phone, etc. Please ensure all accounts are advised and/ or cancelled accordingly. The only services to remain in your name (with your new postal address) are water and council rates.
Ceiling Fans remove dust build up. Skirtings – Wipe down with a damp cloth doorways, marks. Windows – Clean inside and out - (please note - nearly all modern sliding aluminium windows can be lifted and pulled out for easy cleaning). Also sills and runners (wipe out dust build up and any dead insects. A vacuum cleaner and paint brush can really help here).
2. Appliance Manuals These should be left for your Property Manager either photocopied for the tenant and the originals kept in our
Flyscreens - brushed and dusted down. (Please be aware, most modern sliding aluminium windows allow for the
3. Keys
Attempting to take them off from the outside may result in damaging them).
Ensure all locks have keys and all locks are in working order. Under new legislation deadlocks are now required to front doors and patio locks to all glass sliding door. Windows are also required to have working locks. Please
Screen Doors - Front and Back including frames – wiped clean and screen wire brushed. Stoves – Clean stove top, control display, knobs, panels around knobs, any pull out or in-built drip trays, griller racks, trays and any inserts, oven racks, trays and oven bottom, walls and oven roof. A good oven cleaner will
tenant)
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clean most ovens - however it is of importance that you read carefully the instructions on the product. Some cleaners can actually hinder oven surfaces (like stainless steel), and also some products have dangerous caustic fumes. Therefore use with extreme caution!
Outside the property
Kitchen Rangehood framework.
Gardens – remove any weeds, any rubbish and built up leaves etc.
Bathroom - Clean sink, mirror, cabinet, vanity unit and drawers, shower recess, glass screen and screen doors, bath and wall tiles. Please ensure both the sink and the bath have a plug available.
Guttering – please ensure that the gutters are freshly cleaned of any dirt/silt and leaves/twigs.
Lawns - Freshly mowed and edged (best done a couple of days before the tenant takes possession).
Rubbish - remove any rubbish that you have placed at the property. Be sure to check behind sheds, under shrubs and trees. This includes lawn clippings piled and compost left.
Toilets - Clean cistern, seat, bowl inside and also outside around the base. Don’t forget the skirting tiles around the toilet.
Sweep paths and paving areas (this is best done before a tenant takes possession).
Laundry - Clean both the inside and outside of the trough, and underneath. Please ensure a plug is present.
Oil spillage removal – Check and clean carport and barbeque, check for any grease spots and spillages etc.
Tiling - All tiling and grouting to the kitchen, toilet, bathroom and laundry areas are clean.
Cigarette Butts - If there are cigarette butts lying around please pick up and remove.
Exhaust - Vents and fan covers are clean of any dust and dirt.
Garages and Tool Sheds - please remove any items from inside and behind garages and tool sheds. The only things that perhaps should remain are items directly related to the property (for example spare roof tiles, other spare tiles and paint tins etc)
Air-conditioners and can be brushed down with a hand brush. If there is a ducted reverse-cycle airconditioner unit, the air intake
If you have a pet
the passage area.
Pet Droppings - please remove from gardens, lawns and any out of the way areas. Please dispose of in the bin – please do not bury them.
Air-conditioning Ceiling Duct Vents - please clean down if dusty or dirty. Cupboards/Drawers - Please clean/wash inside and out. Also doors and door frames, front and back of doors need to be cleaned.
Dog Urine - remove/clean where your pet may habitually urinate (base of walls, verandah posts etc.)
Curtains - wash any washable curtains and netting. If other curtains are visibly dusty or dirty, consider dry cleaning. Blinds - If you have Venetian or Holland blinds, clean off the blind slats. Any other type of blinds should be able to be wiped down. Ensure all wands, chains and cords are in working order.
Dog stains - to outside walls- check where your dog regularly lies down, there maybe ‘tell tale signs’ on walls etc.
Floors - to be mopped/washed if needed - please ensure corners and hard to get areas are also cleaned.
Dog chew damage - please ensure watering systems are free of dog chew damage and are repaired accordingly.
Dog/Cat claw damage and curtains. Please replace the screen wire if required.
Pet Hair - Please ensure any visible pet hair inside is removed.
Carpets - To ensure a greater chance of the carpets being returned by a tenant professionally cleaned, we ask also that the carpets be professionally cleaned. Phone us for details of who we recommend and use.
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The Total Care Property Management Service
2. Leasing Your Property All information and references provided by tenancy of receipt. All tenancy applicants will be screened on the national tenancy databases that we subscribe to.
1. Marketing Your Property For Lease
Unless you instruct otherwise, all potentially suitable tenancy applications will be referred to you for a decision.
We will erect a ‘For Lease’ sign on your property, if required, within 4 working days of listing (if signs are permitted).
We will lease your property for the rental amount nominated in the Management Agency Agreement
We will place a listing for your property on all the real estate websites that we subscribe to and each listing will include at least 3 photographic images of the property and where the property is vacant a link to a video walk through tour.
property will not be leased for a lower amount without your prior approval. Should we not achieve the rent in the range we have quoted you, we will make up the difference between the rent achieved and the lower quoted rent, for the term of the lease.
We will place a listing (including video for vacant properties and photos) on our own website and contact prospective tenants from our database of recent rental enquiries.
Subject to the tenancy commencement date and the tenant’s availability, we will prepare the tenancy documentation at least 2 working days prior to the tenancy commencement date.
Your property will be accurately described and advertised in the media (as mutually agreed between us). We will conduct an unlimited number of private viewings of your property and at least one ‘Open for Inspection’ each week until the property is leased (subject to access provided to us by any current occupant).
3. Rent Collection We have a zero tolerance rent arrears policy.
All property viewings will be carried out by one of our representatives (we do not give out keys to prospective tenants).
We will follow up all rent payments in accordance with:
We will update you on the status of your available property at least twice each week.
-
our fully documented arrears process, and
-
the requirements of the relevant legislation
Should your tenant get to 16 days in arrears, we will contact you to seek your instructions regarding possible termination of the tenancy.
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7. Routine Inspections
Should termination of the tenancy be necessary, we will keep you informed throughout the legal process.
We will carry out at least 4 routine inspection of your property each year and provide you with a detailed report each time.
You will be advised once the rent arrears have been paid by the tenant. We guarantee you will not lose rent with any tenant we select, provided you have adequate landlord protection insurance.
All issues with the property an/or the tenant will be noted on this report along with any action taken. Please read it and if you require any further action to be taken you must let us know. We will
4. Rent Monies All monies received by us will be banked into your nominated bank account, within 2 working days of our Rent Statement close off date.
instructions on the issues itemised in this report.
8. Vacating Tenant
5. Repairs And Maintenance
On receipt of a tenant vacating notice we will:
All non urgent repair requests from tenants will be work ordered within 2 working days of receipt.
advise you by phone, letter, fax or email;
We will not arrange any repairs to your property without your knowledge and approval (unless the
tenant;
Tenancies Act, if this is the case work will be ordered within 24 hours).
list the property on our website and put the agreed advertising plan into effect within 1 working day;
We will attend to any “urgent” repair requests within 4 hours of receipt.
prepare all necessary vacating documentation;
All reasonable steps will be taken to obtain the best pricing for your repairs and maintenance.
after the tenant vacates the property;
arrange access for viewings by prospective tenants;
we will process the tenant’s rental bond refund within
We will only use appropriately licensed and insured tradespeople for any repairs or maintenance work to your property.
if deductions from the rental bond are considered necessary, full details will be provided to both you and the tenant; and
We will provide you with a copy of invoices for all work arranged on your behalf for the property.
rental bond within a further 2 working days of receipt of the Bond Disbursement Form signed by all parties.
property maintenance issues on your copy of the routine inspection report and we not only urge you to read these reports but also to act on any maintenance issues noted there, as this will ensure the value of your property is maintained over time.
9. Property Disbursements And Statements All agreed property disbursements will be paid on your behalf prior to the due date (subject to the availability of funds).
6. Tenancy Agreement Renewals
Your Rent Statement will be sent to you within 2 working days of our monthly close off date.
We will review the tenancy agreement for your property 30-60 days prior to its expiry.
Your Rent Statement will be personally checked by your Property Manager prior to being forwarded to you.
Unless you instruct otherwise, we will offer the tenant a renewal of tenancy agreement for the same period as the initial agreement at the same rent (or a higher
We will provide you with an accurate Annual Income and Expenditure Statement upon request, at the of the end of the Financial Year. A charge is incurred for this service.
You will be advised if the tenant does not want to renew their tenancy agreement.
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11. Complaints Handling
14. Professional Standards
Tenant’s complaints received in writing (i.e. fax, letter, email) will be acknowledged within one working day
The highest standards of honesty, integrity and professional practice will be conducted in compliance with the Code of Conduct of the Real Estate Institute of Australia.
All complaints will be formally recorded and responded to within two working days.
Our Guarantee To You
12. Documentation We will provide all documentation in clear and concise English.
We guarantee you will not lose rent with any tenant we select, provided you have adequate landlord protection insurance. We feel so strongly about this that we will pay
We will ensure that all documentation is accurate and complete. All property condition reports will be comprehensively and accurately completed.
We guarantee that if we do not achieve the rent in the range we quote, we will make up the difference between the actual rent achieved and the lower end of the range quoted, for the term of the lease.
Copies of all documents that we sign on your behalf as agent will be forwarded to you (unless you instruct otherwise).
refund your management fees, no questions asked.
13. Personal Information All personal information will be held in the strictest
we will respond to:
without written authorisation.
telephone messages - within 2 hours
All updates and corrections advised to us will be recorded in our system within one working day.
email - within 6 hours fax - within 24 hours mail - within 48 hours
Contact Us Business Development and Sales Manager:
Senior Property Manager:
Financial Controller:
Bernie Kroczek
Victoria Lamond
Gai Kroczek
T: 08 9444 6706 F: 08 9444 4799 M: 0419 932 244 E:
[email protected] W: www.tcpm.com.au
T: 08 9444 6706 F: 08 9444 4799 E:
[email protected] W: www.tcpm.com.au
T: 08 9444 6706 F: 08 9444 4799 M: 0413 433 062 E:
[email protected] W: www.tcpm.com.au
Assistant Property Manager:
Assistant to the
Vicki Bowra
Cherise Trovato
T: 08 9444 6706 F: 08 9444 4799 E:
[email protected] W: www.tcpm.com.au
T: 08 9444 6706 F: 08 9444 4799 E:
[email protected] W: www.tcpm.com.au
Our Contact Details General: T: 08 9444 6706 F: 08 9444 4799 E:
[email protected] W: www.tcpm.com.au
Site Address: 376c Oxford Street Mount Hawthorn WA 6016
Postal Address: PO Box 46 Mt Hawthorn WA 6915
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Bernie’s property management team is top notch. My family and I can rest easy knowing that the pulse of any issues arising in our properties. Having been through many property managers over two decades, we can categorically say that “Bernie’s Angels” beats them all. I wholeheartedly recommend them to anyone wanting peace of mind in handling one of the biggest investments of your life.
Their Service, Commitment, Sincerity And Knowledge Are Refreshing From buying my unit and choosing to have Bernie and his team manage it as a rental for me, I’ve always been pleased and surprised by the level of service and commitment they all have. Victoria has consistently worked hard to have my unit rented for me with quality tenants, with the outcome being that it has been rented 100% of the time I’ve owned it (3 and a half years). Bernie is always there should a question arise about property in general, and I’ve found his sincerity and knowledge refreshing. I feel very secure having he and his team look after my investment, so much so I have recommended Total Care Property Management to family and friends looking for honesty,
Always Disappointed Until I Found Total Care Property Management Bernie, Gai, and of course Victoria, when I purchased my unit. I have never had a problem in the four years my property has been managed by them. I am kept well updated about the condition of the unit and the concerns of my tenant, very professional! Good job Guys!
We purchased our investment home through Bernie Kroczek and followed his advice and engaged whole experience. Their professionalism, sound advice and personable approach all makes for a stress free journey. Perfect.
Peace Of Mind With A Dedicated And Reliable Team I have been using Total Care Property Management for over 3 years now and have been delighted with the service provided. Its great to have such a reliable and dedicated team available, gives you the piece of mind that you need to get on with other important things in life!
The Utmost Professionalism And Courtesy To Both Myself And My Tenants I have had the pleasure of knowing Bernie for near on 20 years. During this time Bernie and his team have managed my investment property with the utmost professionalism and courtesy to both myself and my tenants. I appreciate all Bernie has done and look forward to Bernie managing my future investment properties.
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T: 08 9444 6706 F: 08 9444 4799 E:
[email protected] 376c Oxford Street, Mount Hawthorn WA 6016 PO Box 46, Mt Hawthorn WA 6915
www tcpm com au 18
