How To Manage Property At Knight Frank
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1 LEASING AND MANAGING YOUR INVESTMENT PROPERTY Residential Property Management
2 2 RESIDENTIAL PROPERTY MANAGEMENT
3 RESIDENTIAL PROPERTY MANAGEMENT 3 hassle-free investment Purchasing a rental property is still one of the most reliable investments you can make, but the difficulties of tenant selection and the day-to-day management challenges deter many prospective landlords. There are so many time-consuming and complex issues: How do you confidently select tenants? What about rent collection and inspecting the property regularly? How do you set prices to attract good tenants and ensure a fair return? What are your obligations under the Residential Tenancies Act? What are my rights as a landlord? What are my tenant s rights as occupants? How can we maximise exposure and turnaround of a sales result without upsetting the tenant? By entrusting your property in the hands of Knight Frank, you receive a total property management service which will protect your investment, secure your return and free you from the hassle of inspections, maintenance checks and chasing rent. We believe that an investment property should not be regarded as simply a source of rent, but as a valuable and appreciating capital asset.
4 4 RESIDENTIAL PROPERTY MANAGEMENT why choose knight frank We recognise the importance of monitoring and managing your rental property to enhance its ongoing appreciation while maximising your short term returns. We have highly trained and knowledgeable staff to help you select the best tenants and navigate the legalities for you. We ll provide you with regular and comprehensive feed back on your property. We have structured and well defined systems to provide consistency in service and deal with any problems quickly and efficiently. We know your property inside out in most cases we sold it off the plan and guided you through construction. We know and have strong relationships with the builder, the developer, the Owner s Corporation. We manage the property and have a great relationship with your tenant. What we want is what you want: A minimum vacancy period A reliable tenant To deal with people you know you can trust A well maintained property Regular feedback A smooth tenancy A successful sales campaign
5 RESIDENTIAL PROPERTY MANAGEMENT 5
6 6 RESIDENTIAL PROPERTY MANAGEMENT Marketing your property We receive numerous inquiries about potential rental properties from people moving from interstate and overseas. We will list your property on: KnightFrank.com.au realestate.com.au domain.com.au We also deal with a number of corporate and boutique relocation agents who specialise in executive client housing
7 RESIDENTIAL PROPERTY MANAGEMENT 7 two steps ahead ~ development leasing Leasing a one off and leasing a property that is part of a development require two very different approaches and we are experienced in both. Here is a snapshot of recent successes. Ebony 347 Camberwell Road, Camberwell 138 apartments Hudson 81 Riversdale Road, Hawthorn 32 apartments Trenerry 88 Trenerry Crescent, Abbotsford 42 apartments The Lido 2 Willis Lane, Hampton 30 apartments Pearson & Victoria 460 Victoria Street, Brunswick 25 apartments
8 8 RESIDENTIAL PROPERTY MANAGEMENT inspection by prospective tenants By spending time with prospective tenants we are able to understand exactly what their needs are in a rental property. This is why we offer private appointments and Open for Inspections. This ensures that the tenant we recommend for your property is more likely to result in a stable leasing period. Never, under any circumstances, are the keys handed out. All inspections are personally carried out by our Property Management team. This is one of our proud points of difference we treat the property as if it was our own. The security of your property is our highest priority.
9 RESIDENTIAL PROPERTY MANAGEMENT 9 managing the tenancy how we lead you in the right direction References Tenants references are checked thoroughly and documented. Tenants are then subject to a National Tenancy Database and Public Records check (which will search any lodged debts, court orders, bankruptcies and police records). We will give you recommendations and guidance, but the final approval is always the landlord s instruction, so you know and feel comfortable with your chosen tenants. Documentation All leases include standard no smoking and no pet clauses unless instructed. A thorough and accurate condition report including colour photos is done immediately prior to commencement. Key registers are signed to ensure that all keys/fobs/ remotes etc are documented. The rental payment system offered to tenants ensures that paying rent on time is easy for them, giving them the facility to pay via BPay and credit card. The routine inspections on your property are conducted in accordance with the Residential Tenancies Act, first after 3 months and every 6 months thereafter. At this time we report on the general condition of the property, any maintenance that may need to be attended to, how well the property is being maintained and any other relevant information. You will also receive photos of your property for your records. The rent reviews are conducted annually and in accordance with the Act. Our view is to increase your rent in line with market demand at the review date. Lease renewals are followed up in an effort to secure ongoing tenancies and avoid any vacant periods in your property. We have a team of reliable, competent tradespeople who are adept at liaising with tenants and landlords and we have selected them because they provide service in line with our own. The Residential Tenancies Act provides for tenants to spend up to $1,800 on certain urgent repairs without prior approval from either the owner or agent. We will, however, always attempt to forewarn you of any expenditure prior to giving the go ahead for works. We have a zero tolerance on arrears policy - after written and verbal warnings, on the 15th day of arrears, tenants are issued with Notice to Vacate, no questions asked. We transfer funds to our landlords daily - this means the average turnaround from the time we receive your cleared funds until it hits your account is approximately 2 days.
10 10 RESIDENTIAL PROPERTY MANAGEMENT important elements to consider Through our years in the industry and in networking with various companies, we have compiled a list of recommended providers for other services essential to properly maintaining an investment portfolio. Recommended Landlord s Insurance Website: No excesses on loss of rent claims Cover for Accidental Damage $20,0000 public liability insurance $60,000 contents cover for extras not covered by standard building insurance Option to upgrade to a building/landlord policy and receive a 10% discount. We strongly recommend having landlord s insurance. Recommended Depreciation Schedules Washington Brown Save thousands on your tax Phone: Website:
11 RESIDENTIAL PROPERTY MANAGEMENT 11 PLATINUM SERVICE GUARANTEE To provide an accurate estimate of rental value based on available and comparative data and in the relevant market climate To ensure continued market exposure through a planned marketing campaign To photograph in colour and advertise the property across our multiple Knight Frank office network via & KnightFrank.com.au To conduct an unlimited number of inspections with prospective tenants including private viewings as required To provide you with guidance as to maintenance and/or improvements required to enable the best return possible To receive, process and thoroughly check all applications from prospective tenants for your consideration - ultimately you will make the final selection To undertake a National Tenancy Database and Public Record search for all approved applicants. To arrange for preparation and execution of all relevant documentation including leases and condition reports with photos To conduct a detailed routine inspection of the property after 3 months of commencement and every 6 months thereafter and provide you with a report and photos of same To enforce the Residential Tenancies Act and monitor lease conditions and ensure they are adhered to at all times To enforce our zero tolerance arrears policy stringently and without prejudice To ensure efficient, cost effective maintenance of the property is carried out as required by appropriately licensed and experienced tradespeople To prepare statements in accordance with rental payments and ensure they are communicated to you effectively To ensure any rental funds are banked and processed to you within 2 business days of receipt of cleared funds To complete a final inspection (with photos for evidence where necessary) once a tenant vacates the property and follow up any discrepancies as required Complete annual rent and lease reviews and issue rent increases where appropriate To lodge bond monies with the Residential Tenancies Bond Authority
12 12 RESIDENTIAL PROPERTY MANAGEMENT schedule of fees At Knight Frank we make every endeavour to give you platinum standard service that is also value for money. All of the fees you may encounter during a tenancy are listed below, so unlike many other agents, there are no hidden costs and there are no out of pocket expenses. Nothing is paid until the property is leased. Management Fee 7% (of monthly rent) + GST Letting Fee 4% (of annual rent) + GST (one off which covers all applications, OFIs, lease agreement, condition report and photos, bond lodgement) Other Fees - (all charges are only charged as incurred, are subject to change and are plus GST) $2.00 Per statement sent via $10.00 Registered Post $20.00 NTD/ Public Record Checks $25.00 EOFY Reports $ Lease renewal fee $ Marketing Expenses (all website and print materials) 5% insurance claims (from alternative providers) There are no additional charges for: Rent reviews/increases Routine Inspections Coordinating renovations/ major repairs Recurring payments such as council/ water rates Handling Insurance Claims (through Property Insurance Plus) Access to our online landlord login system VCAT Charges (These are costs from the Courts, subject to increase but only charged as incurred. We are proud to say that our properties are very rarely at VCAT. There is no GST charged on VCAT) Application Fee $75.00 (includes cost of registered post) Warrant Fee for an Eviction $ Preparation and Representation $150.00
13 RESIDENTIAL PROPERTY MANAGEMENT 13 we work as a team to give you the best results Our Property Management team is dedicated to providing the best service for all our clients, both tenants and landlords. Every Property Manager is trained to our strict guidelines and undergoes regular development. We don t just offer our clients a promise of great service, but a guarantee of great service, a name you can trust and most of all, peace of mind. Jennelle Marden e: jennelle.marden@au.knightfrank.com p:
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