I have decided to build a database of Landlord FAQs to help Managed clients & Property Mangers share their tips, ideas, concerns & curiosities. We will launch this on our website in the coming months but for now, here are some of the most common questions I get asked as a Property Manager…
How do you determine the market rent for a property?
Reviewing the market rent for a property is quite complex and will directly the affect the vacancy rate of your property if not approached in a comprehensive manner. We always review:
Current Demand - Our leasing team is the first point of call for this as they deal with potential tenants on a daily basis and have the latest understanding of the current demand. Their opinions would be based on recent enquiry levels, the number of groups through recent inspections and the number of prospective tenants that follow through with applications after viewing a property.
Comparable Listings – Reviewing current comparable listings is probably the most important factor in determining the market rent. We review and compare the price, location and features of current listings to determine our pricing strategy.
Recent Achievements – We always review the recent achievement that we’ve made along with other listings in the area.
A great case study is – 61 Alexander Street, Alexandria. After meeting with the owner at the end of 2017, we completed a rental appraisal and made a plan to list the property and in early Jan, we got the go ahead from the owner, set an availability date and had a marketing campaign ready to start in a few weeks. After noticing that the two most comparable properties had leased from the prior weekend, we brought our marketing schedule forward, listed the property just property and after our first inspection we had received 7 applications with multiple offers and ended up achieving $50 more week.
What is your strategy for attracting and selecting the best tenant for my property?
Our team will devise a creative marketing campaign for your property that will include professional photography, descriptive ad copy as well as a prospective tenant database and social media strategy.
Through our partnerships with Domain & Realestate.com.au your property will appear as a Platinum listing for 30 days. We will hold two inspections per week (mid week and Saturday) plus private appointments if this is an option. All tenants apply through our online application portal and provide 100 points of identification. We check current housing and employment references and ensure the tenant is not blacklist on the Equifax National Tenancy Database which checks ID verification, tenant blacklisting, bankruptcy, court records.
How much bond can I take and what can it be used for?
In NSW, the maximum bond that you can collect is 4 weeks for all properties, furnished and unfurnished.
How many inspection will you complete?
We’re able to complete up to 4 inspections per year and your Relationship Manager will organise these on your behalf. Most landlords prefer to leave these inspections to us however you’re more welcome to join.
If your tenant is vacating we will organise a comprehensive bond inspection once they have vacated and ready to return their keys. This inspection is more detailed as we will review the original ingoing condition report to ensure the tenant has not caused any damage.
What can the bond money be used for?
The tenants bond can be used to cover any damage caused during the tenancy, cleaning, any outstanding rent or invoices such as water.
Do you recommend landlord insurance?
Yes, it’s like driving a car, you just wouldn’t drive it without. Whilst it’s not a requirement for landlords to hold an insurance policy the average policy for apartments is $300 - $400, a minimal expense over a year. Premiums for houses will be higher as they will include building insurance and depend on additional factors such as age, size, building materials etc.
A great example - we recently took on a new management and upon takeover, we discovered the tenant was 40 days in arrears. The previous agent had not issued a termination notice and the owner didn’t know the full extent of the situation. After issuing a termination notice, we immediately applied tribunal and had the tenancy terminated but even after claiming the full bond in full the landlord was substantially out of pocket as there was also damage and cleaning costs to cover. Fortunately the landlord had an insurance policy and we were able to claim the difference.
Can I sell my investment property while it is tenanted?
Yes. You are welcome to sell your investment property during your tenancy.
Keep in mind, unless you disclosed the proposed sale before entering into their tenancy agreement your tenants can terminate a fixed term agreement without compensation or penalty by provide only 14-day’s notice.
Can I increase the rent at any point?
In NSW, you are not able to increase your tenants rent during a fixed term agreement. Our team review the opportunity for rent increases on a regular basis and this can be timed in with the expiry of the lease.
In signing longer leases we always recommend pre-agreed rent increases to be drawn into the tenancy agreement.
Rent reviews must also include a minimum of 60 days-notice..
How much notice do I have to give the tenant if I want to move back in?
The amount of notice you need to give is dependent on the current. Here are the minimum notices periods required:
- 30 days – if the fixed term of the agreement is due to end
- 30 days – if the premises have been sold after the fixed term has ended and vacant possession is required by the buyer under the terms of the sale contract
- 90 days – if the fixed term period has expired and no new agreement has been signed
The Managed team are available to answer any property management or investment questions you may have, regardless of whether you're a client or tenant of ours. Send any queries you may have to [email protected]