Property Management Procedure

All the answers you need

Can I Choose the Tenant?
Yes you, the owner, may select the tenant of your preference by reviewing the applications.
Bearing in mind, being too selective of prospective tenants, will intern delay the renting of your property.

Inspect the property when i want?
One of the conditions of the tenancy agreement is that the tenant permits the owner to inspect the property a maximum of four times per year during the tenancy. However the owner and or agent have to give the tenant 7 days written notice, in accordance with the Residential Tenancies Act.

What is the length of the Average Tenancy?
It is most common in the rental of residential properties that tenancies are arranged for fixed periods, ie 6 months or 12 months etc., these being negotiated at the expiry of each period. The tenant is responsible for both the property and the rent during that time and cannot break the tenancy agreement without the owner’s consent. Otherwise properties can be tenanted on an expired tenancy agreement and concluded by either the tenant giving 21 days notice or the owner giving 60 days notice.

How can I terminate the tenancy?
Termination depends on the type of tenancy in existence. In the case of an expired lease tenancy, termination is affected by issuing a notice in accordance with the Residential Tenancies Act usually 60 + 4 working days notice. In cases of fixed term tenancies, ie 6 or 12 months, these can only be terminated at the conclusion of the lease.

Who pays for the council and water rates?
The owner is responsible for payment of the Water, Sewerage and Drainage rates, Land Tax and all Body Corporate charges. The tenant is responsible for electricity, gas, telephone, etc. incurred after date of possession.

Who pays for water usage?
If your property has a separate water meter the water usage is paid for by the tenant as per the readings at the commencement and expiry of the tenancy agreement.

Who is responsible for general maintenance?
Under the terms of the Tenancy Agreement both owner and tenant are responsible for the upkeep and maintenance of the property. The owner agrees to keep the property in good and tenantable condition and the tenant agrees to maintain it in that way and in accordance with the original property condition report at the commencement of the occupation. Full working details in appliances such as pool filters, air conditioning, hot water system, etc., should be supplied.

Who pays for damage done by the tenant?
The question of what constitutes damage and what is considered acceptable “wear and tear” is always an issue in property management. However, in cases of damage attributable to a property by a tenant not considered normal wear and tear. The tenancy agreement states the tenant is liable for caring of the property and to make good any damage at their own expense.

Under normal circumstances the bond will provide sufficient protection to remedy the damages, however if not, the owner can take civil action through the Courts for damages against the tenant. An insurance policy covering malicious damage by tenants and rent protection is offered by most leading Insurance Companies and is recommended for peace of mind. (Ask our office for more details)

Who checks my property during tenancy and how often?
One of the prescribed duties of a managing agent is to regularly inspect the property during the term of the tenancy and forward a report on their findings to the owner. An initial check is made three months after occupancy and then every six months during that tenancy unless specified otherwise. Seven (7) days notice of your intention to inspect is required and a maximum of four inspections per year are allowed.

What insurance cover is needed?
There is a clause of the tenancy agreement that requires owners keep their properties adequately insured. We strongly recommend you cover yourself with the following policies:

a) Public Liability
b) Building Fire Insurance including fixtures, fittings and the removal of debris.
c) Landlord Protection which should include willful damage, loss of rent and legal costs.

Our office can recommend insurance companies for you if you wish.

We also recommend you fit deadlocks and window locks both for the protection of your property and the tenant’s ability to insure their possessions.

You are advised to check with your insurance company to ensure that your home is covered when rented. Building contents does NOT usually cover floor coverings, window treatments and light fittings.

Telephone?
Telephone and telephone numbers belong to Telstra. Telstra allows owners to use a telephone numbers on the condition that the number remains the property of Telstra. An owner leaving a house for a period of time can either:

a) Ask Telstra for a final account to date of vacation and on return ask and pay for reconnection.
b) Have the Telephone service temporarily disconnected but the telephone left in place.

This reserves the Telephone number and the Directory entry. Full rental is charged and accounts fall due as usual. Owners must arrange for these to be paid. A small fee is made for disconnection and reconnection.

NOTE: This guarantees retention of number and service. If preferred the instrument for loss of service, number or cost of call.

Will you pay my mortgage on my behalf?
We do not pay mortgage fees because, if the property is vacant for any length of time there is no income and if the mortgage is not paid on time there is usually an overdue penalty rate. However, we will be pleased to pay your monthly cheque into any bank or building society account you specify. This account may then be used to pay the mortgage, but you must ensure sufficient balance of funds in that account.

Advice Authorities
You are advised to notify the following authorities of the rental of your property:

• The Sydney Water Board
• Local City Council
• Insurance Company
• Body Corporate Company (if applicable)

NOTE: Should you wish, we are happy to pay the invoices for the above services from your rental account and need only to change the postal address to c/- our company.

Special Instructions
If you have any special instructions, i.e., no pet’s etc., then these should also be notified to our Property Manager in writing. Further, should you have any specific instruction regarding who should do any maintenance work on your property, again please advise our Property Manager in writing