The Importance of Total Management Services for your Property

The aim of successful Property Management should be to maintain and increase the value of the asset concerned while obtaining the highest possible return on the capital invested.  In the long term this can only be achieved by paying careful attention to a number of factors.  This is what we call Total Management Service.

In the short term it may appear economically attractive to neglect some of these factors but experience has shown this is invariably a false economy.

There is no substitute for hard work, attention to detail and a thoroughly professional approach.  At HARCOURTS we have assembled a group of experienced experts in our Property Management Department, and with over 430 office network our services are exceptionally good.

Our view of Property Management is a long term relationship, responsibility and dedicated efforts to our clients.  We encourage our clients to consider the same long term approach as cutting corners to save a quick buck will invariably cost you more money.

In developing our Property Management Department, we have chosen the right people for the job.  All staff are skilled experts in their field and continue in training programs to ensure 100% client satisfaction, knowledge of the market conditions, trends and all relevant legislation.

Marketing Rental Properties

In the old days agents waited until properties became vacant prior to handing the keys to anyone who came into their office.  This practice resulted in lost rent due to vacancy and poor choices of tenants.

When marketing rental properties, our aim is to achieve the best possible return under the best possible conditions.  Unfortunately, doing this effectively is not as simple as placing an advertisement in The Age or Herald Sun.  Local knowledge is vital.  What is the market value for rent?  How long is the average property vacant? What percentage returns are available on similar properties to mine?  What is the market value should I choose to sell the property?  We can answer all your questions and give you the best advice.  Our expansive 430 office network provides a broad coverage of the local suburbs and our internal communication system has been designed to maximize the flow of information ensuring your property is exposed to as many potential tenants as possible to give you the opportunity to choose the best of the best.

Cross marketing can be remarkably effective and our rental volume enables us to take full advantage saving you money.  When one property has been leased we will do our utmost to re-direct interest towards other properties under our management.

Completed rental list in our 430 office network and a substantial volume of walk in traffic guarantee a broader coverage than media advertising alone.

We have a great web site at http://www.narrewarrensouth.harcourts.com.au which provides a list of all available sales and rental properties with internal digital photographs to ensure the client has full knowledge of the property prior to contacting the office.  This ensures quality and speeds up the process for our clients in finding the most suitable home.

In addition we have an updated rental list with your property in our rental window display, which looks fabulous at night.

At Harcourts Narre Warren South every prospective tenant is accompanied to the property with one of our Property Manager’s, or we conduct an open house inspection during the week or on a Saturday.

In most cases we advertise the property prior to the end of the lease and Endeavour to find new tenants prior to vacancy.  This procedure alone has saved our landlords thousands of dollars with vacant properties and loss of rent during the tenant change-over.

Choosing Tenants

Your tenants are the custodians of your property and a good tenant will accept the responsibility of caring for your property and treating it with respect and consideration.  Good tenants are found through effective marketing, careful professional screening and meticulous checking of references including a National Tenancy Database check.  All our prospective tenants are required to complete a detailed application form and 100% point check of Identification.

Residential Tenancies Act & Tribunal

The Residential tenancies Act is designed to define the rights and responsibilities of both the Landlord and the Tenant.  By paying careful attention to the requirements of the Act, we can ensure it performs its intended function of protecting the interest of both parties.  The Act requires Condition Reports be prepared before the start of the tenancy, the tenants are made aware of the terms and conditions of their tenancy agreement, and they are fully aware of their rights and responsibilities.

The Victorian Civil and Administrative Tribunal is essentially a body established to arbitrate between landlords and tenants.  At HARCOURTS, as your agents, we will be in a position to act on your behalf and represent you at the tribunal, although, thanks to our meticulous selection procedure, we only do on rare occasions.

The key result to a Tribunal hearing, which favors the landlord, is preparation.  This demands a thorough knowledge of legislation, procedures and precedents.  At HARCOURTS our Property Managers have the experience necessary to represent your interests.

Leases & Legal Requirements

Leases and Legal requirements can be a time consuming business for the inexperienced and risks associated with improper preparation or compliance can be considerable.  At HARCOURTS we can undertake these tasks quickly, economically and responsibly.

Generally we advise offering new tenants a twelve month lease and encourage them to renew at the expiration which maintains a continuance of occupancy for your financial security and the security of the tenants and their residence at the property.

We are not able to insist on a lease renewal as the Residential Tenancies Act states it must not be mandatory.

If the lease is not renewed the tenant continues on a periodic tenancy under the same conditions as the original lease.  This is now a month to month lease.

Regardless of the amount of care taken in selecting tenants, circumstances can arise where rent does fall overdue.  Late and slow rental payments cost you money.  We have established procedures for rental collection which are designed to maintain your cash flow with minimal disruption.

Repairs & Maintenance

Prompt attention to repairs and maintenance can be the difference between disgruntled and happy tenants.  It is also a vital part of maintaining the value of your property and achieving the best rental return and price when you chose to sell the property.

At HARCOURTS we have established a team of reliable, affordable and competent tradesmen.  These tradesmen are available by a phone call to solve any problems or attend to any maintenance issue.  We are also happy to use any specific trade’s people you may prefer.

We suggest that you authorize an expenditure amount of $200.00 without reference for us to be able to attend to urgent repairs immediately when they occur.

The Residential Tenancies Act provides for tenants to spend up to $1000.00 on certain urgent repairs without prior approval from either the owner or the agent.  This enables the tenant to have urgent items attended to if they are unable to contact us after hours or late on weekends.

Inspections

Regular inspections are an important aspect of Property Management.  They provide information as to the condition of the property, assist in determining new rent levels at rent reviews and alert us to any potential problems or expenses.  In addition they also remind the tenant that someone has continuing interest in the condition of the property and they are more likely to care for and maintain your investment.

The Act States these inspections can only occur every six months.  (These inspections are done by the request of the owner) Upon these inspections we report to our landlords and items of maintenance or interest and a general summary of the condition of the property and the tenant’s effect on the property, if any.  This is particularly relevant as it helps us to ensure the tenants are meeting their obligations under the Residential tenancies Act.

Financial Procedures

As your agents at HARCOURTS, we accept responsibility for collecting rent payments and handling them as per your instructions.  We can forward payments directly into your nominated bank account or send a cheque.

Tenants pay their rent through our ANZ Bpay Card system.  This system allows them to pay directly through internet or telephone or even have the funds directly debited from their account each month. 

This exclusive arrangement allows us to accurately and immediately monitor all rent payments and forward them to you with minimal time delay on a daily basis.  Statements are also issued every week and will be forwarded to you.  In every case an annual expenditure statement will be sent showing full details for taxation purposes.  This is sent at the end of the financial year.

We suggest that you allow us to pay your fees such as Body Corporate, Council and Water Rates by deducting monies from the rent, and attaching an invoice for that particular payment with your statement.

Arrears Procedure

We at MPRE HARCOURTS are fully aware that late payments of tenants rent cost YOU money.  We have implemented the following procedures to deal with rent arrears.  This procedure is in accordance with the Residential Tenancies Act.

·                     Tenant 5 days in arrears:  The tenant is sent a letter or sms message reminding them their rent is overdue and needs to be paid immediately.  This may also be followed up by a phone call if necessary.  This form of action works in most cases and the tenant pay the rent promptly.  The importance of paying rent on time and the consequences of not doing so, that is a bad rental history which may adversely effect future rental applications, is communicated and reinforced to the tenant.

·                     Tenants 7 Days in arrears:  The tenant is sent a second letter that outlines the implications of them not paying the outstanding rent.  It states further action will be taken against them if they do not pay immediately and it mentions an application to the tribunal may be necessary to have them evicted from the property.  At this point the landlord will be contacted by phone, email or by letter.

·                     Tenants 10 days in arrears:  A phone call is made to the tenant to establish their intentions and they are informed an application to the Residential Tenancies Tribunal will be made against them within the next five days.  Permission will then be sought from the landlord to proceed with an application and a 14 days notice will be served on the tenant.  These two steps can only be done once the tenant is 14 days or more in arrears with their rent, as per the Residential Tenancies Act.

·                     Tenants 14 days or more in arrears:  Depending on the owners instructions and application to the Tribunal is made for a hearing to seek vacant possession of the property, and to claim the bond for rent arrears.  The Property Manager attends this hearing on behalf of the owner and reports back with the outcome.

Please ensure that at all stages in this process we inform our landlords with all information at hand advising them of options and likely outcomes.

Our commitment to you as landlords is 100%.

Presenting your Property for rent

At MPRE HARCOURTS we have managed to identify some factors which may assist in achieving a better managed property and may even assist with a higher rent.  We are also aware tenants are more likely to care for a property if the landlord has gone to the trouble of presenting the property at its best prior to tenancy.  Sometimes this just means a clean and tidy house.

We have listed some handy hints that might become useful:

·                     Mow and edge lawns and weed all garden beds

·                     Remove all rubbish

·                     Clean walls, floors and windows

·                     Clean inside cupboards, draws and bench tops

·                     Check that all curtains and blinds are in working order

·                     Dust and remove cobwebs

·                     Steam clean the carpets throughout

·                     Repairs any items such as dripping taps, sticking doors and draws

·                     Ensure all light bulbs are in working order

·                     Ensure that the smoke alarm has new batteries

·                     Clean any items from shed or under the house

·                     No items should be left in the property

Substantial amounts of money are not really necessary.  A clean and tidy home where everything is in working order is all that is required.

Schedule of Fees & Expenses