Managing Your Property

RECEIVING RENTAL INCOME

From the start of the tenancy, we ensure the tenant is setup with easy-to-use payment methods and clear expectations around how the rent is to be paid and our standards around what we expect and what it means to you and them to have the rent paid on time.

When the rent is paid to us, we hold it in your owner account until we release the payment to you at the pre-determined frequency (weekly, fortnightly, monthly) with all payments and expenditure recorded on your monthly statement.

UNDERSTANDING YOUR EOFY STATEMENT

Understanding your Statement

What happens if my tenant stops paying rent?

We maintain a zero tolerance for late rent, however, should the tenant fall behind, we will continuously contact them to ensure they will be making payment.

We will also keep you updated throughout the process.

If the tenant falls behind, we will discuss with them ways to catch up the missed rent if they can make a one-off payment or go onto a payment plan to catch up (if deemed necessary). We have implemented the following procedure to handle late rent in our office.

Legally we are unable to take steps to evict a tenant for non-payment until they are 14 days in arrears. Our procedure is as follows:

• 1 day in arrears – An SMS is sent

• 3 days in arrears – A reminder phone call, SMS message or email sent advising tenants of arrears.

• 7 days in arrears – Letter sent to tenants to advise of breach

• 11 days in arrears – a further email, phone call or personal visit

• 15 days in arrears- A non-payment of rent termination notice with 14 days notice to vacate is served.

If the tenant does not comply with the Termination Notice, we apply to NCAT (NSW Civil & Administrative Tribunal) to have the matter heard and enforced. The termination notice must clarify for tenants that they have three options:

• Pay the arrears amount in full

• Follow a repayment plan that is acceptable to both parties

• Move out by a specified termination date

If a tenant offers to pay the landlord or agent a full repayment of rent arrears at any time, the landlord or agent must accept it.

Landlords and agents are not allowed to refuse the payment to get the tenant evicted. Rent arrears payments must be accepted even if they are offered at the last minute. Tribunal will not make a Termination Order where the rent has been paid.

But what happens when tenants are repeatedly late with their rent?

Landlords and agents can apply to the tribunal for a termination order.

The tribunal will be able to issue an order if the landlord or agent can show that the tenant is frequently late with their rent.

The order can be enforced even if the tenant pays, and the landlord or agents accepts the rent arrears.

ONLINE LANDLORD PORTAL

We want to make it easy for you to find the information you need 24/7, so we have developed an online landlord portal so you can have easy access to your statement and key documentation.

You will be provided with those login details as part of your landlord onboarding process.

We have an online portal for our landlords to have secure 24 hours, 7 days a week access to view & download the following:

Your current & past rental transactions made by your tenants
Monthly statements as well as Yearly Income & Expenditure Reports
Invoices
Inspection Reports
Body Corporate minutes & correspondence
All documentation relating to your property including the lease agreement, rent increase letters & termination notices

Our landlord portal also enables you to email your Property Manager directly to change your personal information and to request information.

MANAGING EXPENDITURE AND RATES

We can manage any or all your expenses and we will pay these from the rent funds that we collect on your behalf. We can pay your landlord insurance, council rates, water rates, strata levies, maintenance invoices and any other invoices related to your property. Just let us know!

What extra outgoing expenses should I expect?

As a landlord there are a few outgoing expenses you should be prepared for and always ensure you have spare funds to cover the following:

Maintenance/repairs to maintain the property standard.
Cleaning between tenants if the property sits vacant for a while, or if a 'top-up' clean is required beyond 'reasonable'.
Lawn maintenance between tenants if the property sits vacant for a while.
Property compliance, for example smoke alarm checks or water efficiency certificates.
Council rates.
Water rates.
Strata Levies (if applicable)
Insurances.

REPAIRS AND MAINTENANCE

Premises must comply with the statutory obligations relating to health & safety of the residential premises.

Your agreement with us will allow us to spend on your behalf an amount for repairs and maintenance on your property, in saying that, our repair policy is to contact you prior to arranging such works.

Major repairs are always discussed with you. Quotes are obtained to ensure the correct work is being carried out, by the best tradesperson, at the best fee.

Not every repair must be attended to by the landlord, however urgent repairs outlined in the Residential Tenancy Agreement, such as burst sewers or hot water services, must be acted upon regardless of whether we have been able to reach you.

You may view our list of the qualified tradespeople we use, or you may nominate your own tradesperson if you have a friend, family member or a regular tradesperson that you have confidence in.

What is the repair process?

Once the tenant notifies us in writing or at a routine inspection of any repairs required, we will contact you to seek approval for the repairs unless it is an urgent repair. In this case, if we cannot get a hold of you straight away, we will arrange the repair. We ask that you do not complete your own repairs, for legal, license and insurance reasons.

From time to time at routine inspections we may note some pro- active maintenance that may need to be completed, this could include repairing door handles, towel rails or even painting after a tenant has vacated.

If the repair needed is damage caused by the tenant, and if it is a safety issue, we will have the repair completed and can then pass on the cost to the tenant for reimbursement back to you.

If there is an urgent repair outside of business hours, the tenants are instructed to try and contact us first. If they are unable to get in contact with us, the tenants have been provided with an approved list of trades to contact outside of business hours only if it is an urgent repair.

Types of Repairs that are Urgent

Urgent repairs include:

a burst water service or a serious water service leak
a blocked or broken toilet
a serious roof leak
a gas leak
an electrical fault
flooding or serious flood damage
serious storm or fire damage
a failure or breakdown of the gas, electricity or water supply to the property
a failure or breakdown of the hot water service
a failure or breakdown of the stove or oven
a failure or breakdown of a heater or air-conditioner
a fault or damage which makes the property unsafe or insecure.
Smoke alarms must also be repaired urgently to ensure they are working

TENANTS MAKING ALTERATIONS

The laws regarding alterations does not give the tenants the right to make alterations without approval from the landlord. Tenants must still get written permission before doing any alterations to the property.

Under the act, the landlords must not unreasonably refuse requests from a tenant to add a fixture or make a minor change to the property.

For example, installing child safety locks on windows, connecting pay television to the property, or adding picture hooks in rooms which don't have any.

Work is at the tenant's cost unless the landlord agrees otherwise
If tenant removes the fixture, they must repair or pay for any damage caused
A tenant cannot remove the fixture if the landlord paid for it or gave the tenant equivalent financial benefit.

Work Landlords can Refuse

Where the landlord's refusal could be "reasonable"
Work is structural
Work could not be easily rectified, repaired, or remove
Internal or external painting
Work is illegal
Work is not consistent with the nature of the property
If there is a dispute over permission for alterations, either party can take the matter to the Tribunal to have it resolved

How do we collect the tenant's rent?

Using the deft card system tenants can make rental payments by BPAY – via their financial institutions phone or internet banking service.

Both the phone and internet payment options allow them to schedule recurring weekly, fortnightly, monthly, or quarterly rental payments in advance. So that they can 'set and forget' their rental payments.

INSPECTING THE PROPETY

Routine inspections are carried out to ensure the property is well cared for (in accordance with their tenancy agreement) and to check if there are any maintenance, health and safety or compliance issues.

We conduct the first routine inspection within the first 8 weeks of the tenancy and then every 4 months after.

You'll be notified ahead of your inspection in case you wish to attend, but you don't need to be there as we will send a very thorough report with photos and recommendations around the care of the property.

At these inspections we check for the following items:

The property is kept reasonably clean and tidy by the tenant.
There is no visible damage to the property or maintenance required.
Ensuring the tenants are maintaining the interior of the property; and
Lawns and gardens have been maintained.

Once we have inspected the property, we will email you a copy of the routine report which will include photos & videos where possible. Any items that need to be rectified by the tenant are identified.

LEASE RENEWAL AND RENT REVIEWS

Renewing the lease with my tenant - what is the process of lease renewals and rent reviews?

We always like to suggest that keeping your tenants on a fixed term agreement is the best policy for both you and the tenant as it provides both of you with security.

The Residential Tenancy Agreement has a continuation clause, which allows a tenant to continue under the same terms and conditions at the expiry of the fixed term (continuing basis), unless they receive correspondence stating otherwise ie. notification of a rent increase or notice to vacate.

In most cases we will advise you of the impending expiry of the Tenancy Agreement and seek instructions whether a further term is to be offered to the tenants and under what terms we can offer the tenants a new lease.

Rent Increases

If the agreement does not specify a fixed-term or if the fixed-term period of the tenancy agreement has ended and the agreement is on a continuing (periodic) tenancy, then rent can only be increased once in a 12-month period.

The landlord must give the tenant at least 60 days written notice before the increase starts.

This also applies where the tenancy is renewed.

For agreements with a fixed-term of less than 2 years, the landlord or agent can only increase the rent during the fixed-term if the agreement sets out the increased amount or how the increase will be calculated.

The Lease Renewal Process - why it is important

Benefit to you- the main benefits for the continuance of a fixed term lease is that it assures a maximum payout on a landlord insurance policy should the tenant default in rent, and also guarantees the rent to the landlord should the tenant wish to break a fixed lease (this is dependent on your landlord insurance policy wording).

Should either of these situations occur on a non-fixed term lease (should a fixed term lease not be renewed) the tenant is not obligated to keep paying rent (only 21 days written notice is required) and the landlord can suffer unforeseen financial loss should this occur in a quiet time.

The landlord must fund the vacancy period in this case without a fixed term tenancy in place.

Should a default happen, the landlord insurance policy either pays a minimal amount or nothing at all (some bank sourced landlord insurance policies do not pay at all if the default occurs when a tenant is on a non-fixed term lease).

Therefore, keeping a tenant on a fixed term lease is in everyone's best interests.

The Lease Renewal Process – what we do

Conducting a rent review in-line with market conditions to ensure your property is achieving its highest possible return.
Landlord consultation for lease renewal suitability before a lease renewal is approved.
Tenant approached for their intention to renew lease, and negotiation of terms and increased rent if applicable.
The lease renewal is signed by your tenant.
Copy of lease renewal is issued to the tenant and sent to the landlord

SMOKE ALARMS

Whose responsibility is it to maintain the smoke alarms?

Working smoke alarms are the best way to alert people to fires in their home.

Landlords must ensure that at least 1 smoke alarm is installed in a hallway outside a bedroom or other suitable location in each storey of a rented home. Smoke alarms (including heat alarms) must be working, and they cannot be removed or disabled.

Tenants must notify their landlord or agent if they discover that a smoke alarm is not working, even if it's because the battery needs to be changed.

Landlords must:

check smoke alarms every year to ensure they are working
install or replace removable batteries every year (or for lithium batteries, in the period specified by the smoke alarm manufacturer)
replace smoke alarms within 10 years of manufacture, or earlier if specified by the smoke alarm manufacturer
give the tenant at least 2 business days' notice to inspect or assess the need for a smoke alarm repair or replacement
give the tenant at least 1-hour notice to carry out a repair or replacement of a smoke alarm
use a licensed electrician to repair or replace a hard-wired smoke alarm.

MOULD

Mould has been associated with respiratory illness and can cause serious health problems.

Mould may grow indoors in wet or moist areas lacking adequate ventilation, including walls/ wallpaper, ceilings, bathroom tiles, carpets, insulation material and wood.

If moisture accumulates in a building, mould growth will often occur. Many different types of mould exist, and all have the potential to cause health problems.

Adequate ventilation is one of the minimum standards that properties must meet to be considered fit to live in.

Who is responsible depends on how the mould developed.

For example:

if mould developed from a build-up of moisture because the landlord failed to repair a defective window in a reasonable timeframe, or the property didn't have adequate ventilation – then the landlord is responsible and must fix the problem
if the mould developed during the tenancy because the tenants allowed a build-up of moisture by never opening any windows or not using ventilation fans in the bathroom – then the tenant may be responsible.
Timing is also a factor. If mould develops close to the start of the tenancy, it could be considered pre-existing damage.
The condition report contains a dedicated section on mould, and landlords, agents or tenants should note the mould when they complete the report.
Even if mould is noted on the condition report, landlords must make sure they keep the property in a reasonable state of repairs
Tenants must notify the landlord or agent as soon as possible if they see any signs of mould or damp developing during the tenancy.
If the mould is causing a danger to the health of tenants or other occupants, then this may be considered an urgent repair.

PEST CONTROL

Who is responsible for pest control?

Who is responsible for removing or exterminating pests or vermin during a tenancy depends on whether:

Pests or vermin were already a problem when the tenant moved in.
A problem with the property has allowed the pests to enter or an infestation to develop.
The tenant contributed to the problem
Other factors that could determine who is responsible include the history of the property, what is recorded in the condition report, and if there were factors beyond the tenant's control.

Do I need my property termite checked?

We recommend that you have your property checked for termites annually to ensure the property remains structurally sound and safe for the tenants.

Routine Inspections

These inspections are carried out to ensure the property is well cared for (in accordance with their tenancy agreement) and to check if there are any maintenance, health and safety or compliance issues. We conduct the first routine inspection within the first 3 months of the tenancy and then every 4 months after.

TENANT RESPONSIBILTIES

Tenant's responsibility for the actions of others

The tenant agrees to be responsible to the landlord for any act or omission by any person the tenant allows on the residential premises who breaks any of the terms of the agreement

Sub-Letting

If a tenant wants a new or replacement co-tenant to move in and sign the lease, the tenant first needs to ask the landlord for permission.

Under the legislation, a landlord cannot unreasonably refuse a tenant's request to bring in a new co-tenant or sub-let part of the premises, such as the granny flat downstairs, the spare room or the parking space.

The law says it is reasonable for a landlord to refuse a sub-letting or co-tenancy request under a number of circumstances.

These include:

If it would result in overcrowding
If the person was listed on a bad tenant database
If the number of occupants permitted under the lease would be exceeded
If the tenant believes the landlord's refusal is unreasonable, they can take the matter to the Tribunal to have it resolved.
Landlords have complete discretion to refuse a request from a tenant to sub-let the whole premises.

What happens if my tenant breaches their lease?

If your tenant breaches their lease, we will issue them with a notice to remedy the breach. This means we identify to the tenants how they have breached their lease, how they are to rectify the breach and when they are to have it done by. We will then confirm with the tenants in writing or via inspection the rectifications have been completed.

Termination

The tenant agrees upon termination of the agreement to deliver up vacant possession of the premises promptly and peacefully, which shall include the handing over of all keys, and to notify the landlord or landlord's agent of the tenant's forwarding address.

Notwithstanding any termination of the agreement, the tenant acknowledges that they may be liable to pay rent until such time as all the keys are returned to the landlord or landlord's agent.

BREAK OF LEASE

What happens if my tenant breaks their lease?

When a tenant signs a fixed term agreement, they are committing to stay for the full term. If a tenant wants to move out before the end of the fixed term, there could be costs involved.

A tenant should give the landlord as much notice as they can if they need to end the agreement early
A tenant should also make it as easy as possible for the landlord or agent to show the property to potential new tenants
Mandatory break fees may apply which is payable based on the stage of the agreement
A break fee is a penalty a tenant agrees to pay if they move out before the end of the fixed term
The set fee payable is:
Four weeks rent if less than 25 percent of the agreement has expired
Three weeks rent if between 25 – 50 percent of the agreement has expired
Two weeks rent if between 50 – 75 percent of the agreement has expired
One week rent if more than 75 percent of the agreement has expired

Breaking A Fixed Term Agreement without Penalty

In some circumstances, a tenant can break a fixed-term agreement early without penalty.

A tenant can give 14 days' written notice to end an agreement early without penalty if:

they have accepted an offer of social housing (e.g. from DCJ Housing)
they need to move into an aged care facility or nursing home (not a retirement village)
a landlord has put the property on the market for sale during the fixed-term, and the tenant was not told before signing the agreement that the property would be sold
the property becomes listed on the Loose Fill Asbestos Insulation register during the tenancy or was previously listed without the landlord or agent disclosing that information to the tenant.

A tenant still needs to pay the rent until they hand back possession of the property.

VACATING

What is the process when my tenant vacates?

Once your tenant has given notice to vacate, we start advertising the property immediately to secure new tenants. We then book in the vacate inspection to occur as soon as possible after the tenant returns their keys.

Once we have conducted the final inspection, we can give the tenant a chance to rectify any issues, however, we are under no obligation to do so. We will then also charge the tenant their final water usage (if applicable). If need be, we will then organise the necessary trades to attend the property and bring it back to its original condition less fair wear and tear.

If the tenant has returned the property in satisfactory condition and paid the final water usage, and outstanding rent etc. then we will authorise the release of the bond. If there were outstanding items once we have received all the invoices and have a final amount outstanding, we will then claim the amount needed from the bond.

What is Legal Wear and Tear?

Fair wear and tear describes the normal deterioration of a property from ordinary, everyday use. It's impossible to live in a property without causing some form of minor damage & scuff marks on the walls, worn carpet in high-traffic areas, and so on.

Final Inspection

This is the last inspection carried out as soon as possible after the end of a tenancy once the tenants have returned their keys. The Ingoing Condition Report is used at this inspection and each item is checked off to make certain that the property is in the same condition as when the tenant took possession (less fair wear and tear). It is at this inspection that any items that need to be rectified by the tenant are identified.

Final Inspection Guide

Here is a bond refund guide we use to check the cleaning when we conduct the vacating inspection

Vacating Tenants: 3 Day Turn Around

At the time when a tenant is due to vacate there are many risks:

The tenant leaves the property in a poor condition
Work is required to the property to relet; however, it is not discovered until the tenant vacates

Therefore, it is essential that we have a period of at least 3 working days between tenancies, this allows us to arrange for any additional cleaning that may be required, carpet cleaning, minor repairs such as replacing smoke alarm batteries and light globes as well as allowing us sufficient time to complete our Comprehensive Ingoing Condition Report.

Hopefully that little bit of care and attention to detail at the commencement of the tenancy will guarantee that we never have to hear the words:

"It's cleaner now than when I moved in!"

Termination

If a termination notice has been issued to the tenants and they do not vacate by the specified date, we will apply to NCAT Tribunal. When we attend Tribunal if the termination notice is valid and Tribunal believes you have a valid reason for terminating the tenancy the tenants will be given a specific date to vacate the property. If they do not vacate by this date the next step will be to get the Sheriff involved.

ESCLATION AND TRIBUNAL

What is the Tribunal process?

There are several reasons why you may need to take your tenant to tribunal/court, however, the most common reasons are for rent arrears or to get the tenant to vacate the property. We can help during this process and attend the tribunal/court on your behalf.

Rent Arrears - Once the tenant falls 14 days in arrears, we issue the tenants a breach notice which will give them 14 days to vacate/ remedy the problem. If they do not vacate the property, we then make an application to NCAT Tribunal and attend the hearing.

At this point one of two things will happen, one – Tribunal will put the tenant on a payment plan to catch up the arrears with an option to attend Tribunal again if they do not stick to the payment plan or fall behind again. Two - the tenants will be given a date to vacate the property.

We are required to prepare for and appear before NCAT. We will always seek your permission and let you know before appearing at Tribunal on your behalf.

This process involves preparation & organisation of all documentation, travel to and from and attendance at any Tribunal hearings as required.

STRATA

Each strata scheme has its own by-laws, which are a set of rules that owners, tenants and, in some cases, visitors must follow. By-laws cover the behaviour of residents and the use of common property.

By-laws can cover issues such as the keeping of pets in the building, how smoking is regulated, the operation of short-term rental accommodation, parking, and noise.

The by-laws can vary significantly from scheme to scheme, and it is important to understand which by-laws apply to your scheme.

Owners Corporations can determine the by-laws that suit the preferred lifestyle of the strata scheme. However, there are restrictions on the types of by-laws that can be made.

They include:

A by-law must not be harsh, unconscionable, or oppressive.
No by-law is capable of restricting dealing in a lot, except in relation to using a lot for short-term rental where it is not the host's principal place of residence.
A by-law cannot restrict children occupying a lot.
By-laws cannot prohibit or restrict the keeping of an assistance animal on a lot.
How much notice does my tenant need to give if they are vacating?
There are a few different scenarios when a tenant is vacating a property, depending on how and when they are vacating depends on the notice period.
If they are choosing to vacate at the end of their lease, they will need to give at least 14 days notice.
If they are choosing to vacate after their lease has expired, they will need to give at least 21 days notice.

FAQ

When can I go to the property?

Your tenant has the right to reasonable peace, comfort and 'quiet enjoyment' when renting your property. For this reason, the tenancy laws restrict when and how often you, your agent or any other authorised representative of the landlord can enter the property.

You, your agent, or other authorised person can only enter the rented property without the tenant's consent in certain circumstances, and if proper notice (if applicable) has been given.

For example:

In an emergency
If the tribunal/court orders that access is allowed
To carry out, or assess the need for, necessary repairs or maintenance of the property
To carry out urgent repairs
To carry out repairs or replacement of a smoke alarm
To inspect or assess the need for repair or replacement of a smoke alarm
To carry out a general inspection of the property

What happens if I want to move back into my property?

If you would like to move back into your property, we will either need to give the tenant 30 days notice to vacate the property at the end of their lease. If the tenant is outside of their lease (on a non-fixed term lease) we will need to give them 90 days notice to vacate the property. Once served "No Grounds Termination" the tenants can leave at any time without having to give their own notice. In addition, the tenant is only liable to pay rent until they return vacant possession to the landlord, and by that we mean they have moved out and handed keys back.

If the tenant is locked into a fixed term agreement, then the lease is guaranteed to them and you cannot move back in, unless they agree otherwise. Usually, compensation is required and negotiated with you and the tenant should this occur.

What happens if I want to sell my property?

If you would like to sell your property, we will need to give the tenants 14 days notice before it goes on the market. If your tenant is still in the lease, they will only have to give 14 days notice to vacate unless they were told about the sale prior to signing their lease. If you need some advice about selling your property or need a market appraisal, please contact us and we will have a salesperson contact to assist you.