Property Management Client Information

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1 Property Management Client Information

2 Welcome to Lindon Property Management It is our pleasure to manage your property and we look forward to working together. Lindon Property Management is renowned and trusted for its professionalism and diligence when working with clients. With more than 50 years experience combined within our team, we understand the market in Melbourne and have built alliances with numerous key investment companies and developers enabling us to provide you with relevant and sound investment information. We are leaders in property management with strong local knowledge, expertise and exceptional quality of service. Our staff are driven by our company core values, of integrity and transparency, aligned with high ethical standards and exceptional customer service. Lindon Property Management maintain a strong commitment to innovative business strategies utilising state-of-the-art technology and systems, peak industry body training for all staff, all designed to consistently deliver accountable and measured results for clients. Lindon Property Management deliver excellent results with total integrity and transparency. We look forward to speaking with you soon. Thank you. Yours faithfully, Lindon Property Management Pty Ltd Hedley Gaudin General Manager

3 How does Lindon Property Management Benefit You? We review your property details and provide you with an honest and realistic rental appraisal on the current market conditions. We advise you of the best marketing strategy to create the maximum exposure for your property. We arrange and coordinate set inspection times through our registered prospective tenant list. Please note that keys to vacant properties are not handed to prospective tenants. We arrange viewing appointments and inspection times during peak periods of the day to ensure maximum attendance. We provide independent and informed advice on the presentation of your property to minimise vacancy. Each property has a dedicated property manager who will answer any of your queries and is supported by a team of administrative and accounting experts. Initiative technology is utilised to optimise the management process, providing maximum service levels and minimised management costs. With combined property management experience of more than 50 years, our team offers expert advice and servicing and remain current through on-going professional development training with peak industry bodies. Our team provide prompt, regular and informative communication on any property issues to achieve you successful outcomes. Detailed financial reporting is provided whenever funds are transferred to you. Any authorised invoices paid on your behalf are also attached for your records. At the end of each financial year, a full Financial Year Summary is provided, detailing all income and expenditure by line item, for your taxation convenience. Lindon Property Management Process You will speak with one of our qualified property managers to discuss your needs. Our property manager will provide you with a written proposal and landlord pack with information on our services. An authority and written instructions will be generated for you to review and sign. The marketing process commences for your property. Regular open for inspections of your property will be coordinated. We provide you with regular updates and feedback regarding inspection attendance. Applicants are thoroughly screened to find you the most suitable tenant. We secure the lease, relevant payments and legislative requirements. An inspection is completed at month three, before regular six monthly routine inspections are undertaken. At each inspection a written report with photos is provided to you. Regular rental reviews are undertaken to ensure your market value is maintained. Maintenance requirements are managed on your behalf in accordance with your instructions, from routine repairs, to urgent repairs or emergencies after hours. We are affiliated with a suite of qualified contractors and can also utilise your preferred contractors. The tenancy process is managed in its entirety for your peace of mind; from marketing and tenant selection, to occupancy and maintenance, financial reporting, vacating and finalisation.

4 Frequently Asked Questions What is Tax Depreciation? Depreciation is the wear and tear of a property and the plant and equipment items. A Tax Depreciation Schedule is a comprehensive report prepared by a specialist Quantity Surveyor that outlines all depreciation deductions claimable for an income producing property. The Australian Tax Office allows property investors to claim depreciation as a deduction in their annual tax return, meaning you pay less tax. We recommend all clients increase their investment yield by undertaking the preparation of a Depreciation Schedule by an accredited provider. For our clients benefit, Lindon Property Management has an alliance with Australia s premier depreciation schedule provider, BMT Quantity Surveyors (BMT). As a valued Lindon client, you are able to acquire a BMT Depreciation Schedule for your property at a significantly reduced rate. This provides a multitude of benefits to you, including: The cost of the Depreciation Schedule itself is a tax deduction. Maximising annual depreciation claim. The Depreciation Schedule for property managed by Lindon Property Management is obtainable at this significantly discounted price. Ongoing depreciation claim from the purchase date of the property. Available for your other properties, to enable a tax claim from purchase date, even if you have owned it for years. Deprecation can be claimed on your property and your share of Owners Corporation common property. For further information, please contact your property manager on

5 What is Landlords Insurance? When protecting your investment property, Landlords Insurance provides comprehensive cover against unforeseeable events, ranging from property damage, to accidental or deliberate acts by tenants, or default and loss of rent. Landlords Insurance provides you with peace of mind and confidence that your property will be looked after should something go wrong. We recommend our clients protect their property and investment yield by insuring their property, noting that a Landlord Insurance policy is a legitimate tax deductible expensive for property investors. For our clients benefit and protection, Lindon Insurance offers an exclusive tailored Landlord Insurance Policy. As a valued Lindon Property Management client, a Lindon Insurance Landlord Policy will offer you a variety of benefits including: Cover Note from lodgement of application. Public Liability Cover of $20,000,000. Up to $50,000 Contents Cover is included in the standard Landlords Insurance coverage. Contents Damage Cover; accidental or malicious, or by a pet. Theft of Contents Cover. Loss of Rent Cover; due to default, tenant absconding or accidental or malicious damage. Discounts in the event you have two or more policies managed by Lindon Insurance. Please contact your property manager for more information, including further benefits, Product Disclosure Statement and complete terms and conditions. Lindon Insurance Pty Ltd is a corporate authorised representative (no ) of G.W.S. Pty Ltd, Australia Financial Services License No ABN ACN Marketing Your Property We use extensive online and e-marketing for your property. Our marketing package includes the market leading websites with a full property description, multiple photos and floor plan, if provided. We will provide you with weekly updates on the inspections conducted at your property and will provide you with an overview of viewings by registered prospective tenants from our sites, to show you the amount of traffic we are attracting. We will be advertising on the following sites:

6 What is the Inspection and Application Process? Lindon Property Management utilise a number of resources to ensure we provide your property with maximum exposure during the leasing period. Open for Inspections Lindon Property Management, advertises open for inspections on weekends and mid-week, ensuring convenient property viewing times for prospective tenants. All tenants are encouraged to register on our prospective tenancy register for the open for inspection times. By managing this register, we have the ability to contact these prospective tenants and verify who attends the inspection and follow up any tenants that were unable to attend. We ensure to always be pro-active in our dealings and uphold our professionalism through this process. We have a leasing consultant accompany all prospective tenants during inspections. Our leasing consultants can answer any queries immediately and ensure that we promote facilities, such as pools, gyms, car parks, and security. Our Office Network Our office is conveniently located in the CBD. Our professional leasing consultants are available at each open for inspection coordinating all prospective tenants through the properties and detailing all relevant feedback and attendances. This will be communicated to you regularly to ensure you are kept up-to-date on the leasing process. Our Client Database Lindon Property Management maintains an extensive database of potential tenants who receive and SMS details of properties that meet their search criteria. This includes relocation agencies and major corporate companies. Company Branding Lindon Property Management have strong company advertising strategies, providing optimum exposure to people searching for properties for rent. We are affiliated with a number of entities and major corporate companies that we are able to market to, on a permanent basis. Following an inspection of the property and receipt of an application, within hours our team will process the application and discuss it with you, subject to verification of the references. Application Process To ensure tenants of a high calibre are selected, Lindon Property Management complete an extensive background check on each applicant, including: An identity check we require all applicants confirm their identity and current address through a 100 points system. Previous tenancy All applicants are required to provide references from their past and current tenancies. Verification of employment Along with any previous tenancy checks, Lindon Property Management confirms an applicant s current employment details, income and history. Tenancy database checks We will complete a tenancy search on all relevant applicants to ensure there are no past or current rental payment discrepancies, property damages, court judgements or bankruptcies against their name. On completion of the relevant checks, your property manager will detail the application for your approval and instructions.

7 What is a Property Condition Report? The Property Condition Report is compiled at the commencement of a tenancy, prior to a tenant moving into your property. It outlines the condition of the property at the commencement of the tenancy and is used when the tenant vacates, after keys have been returned, to ensure that the property is left in the same condition. After vacation of your property, the report is referenced and each item is checked off to make certain that the property is in the same condition as when the tenant initially took possession. It is at this inspection that any items that need to be rectified by the tenant are identified and addressed. Is there a Security Deposit / Bond? Tenancy Security Deposits, also called Bonds, are managed and administered by the Residential Tenancies Bond Authority (RTBA). Bonds are not held by estate agents and must be forwarded to the RTBA within days of receipt. Interest from Security Deposits is collected by the government, to fund the Victorian Property Fund and Victorian Civil & Administrative Tribunal (VCAT). The only way bonds can be claimed or recovered from the RTBA is either: a claim form signed by both the tenant and the landlord (or their agent); or an order from VCAT. The bond will only be refunded after Lindon Property Management has carried out a final inspection and we are satisfied with the condition of the property. This bond claim form will be completed and submitted to the RTBA for a bond refund. In the most cases, tenants receive a full bond refund, as most tenants fully meet their obligations. However, there may be delays experienced in some refunds where the tenant has vacated without notice, owes funds, will not agree to claimed deductions, or the signature on their claim form mismatches. What is a Routine Inspection? Routine inspections are conducted after a tenant has commenced occupation. The initial routine inspection is conducted after three months and then every six months. These inspections are essential to ensure that your property is being maintained to an acceptable standard and to identify any maintenance that may be required. A copy of the routine inspection report is forwarded to you after each inspection, accompanied with internal photos of the property for your review. Regular property inspections ensure the property is appropriately maintained, protecting your asset.

8 Rent Payments? Tenants are provided with a multitude of payment options, to ensure rent is paid on; or before, the due date, as per the terms of the lease agreement. Rent is paid monthly in advance, on the anniversary date of the lease commencement date. Our Rental Rewards program even offers tenants frequent flyer points and other bonuses for rental payments, above any other benefit programs from their financial institution! Methods available to tenants for rental payments Direct Debit Credit Card Debit B-Pay (credit card or bank account) Electronic Funds Transfer (EFT) Bank cheque or Money order automatic debit each month, or manually automatic debit each month, or manually automatic transfer each month, or manually automatic transfer each month, or manually Rental Reviews? Rental reviews are undertaken by your Lindon Property Manager. They have the experience and knowledge of the local market and national trends to be able to provide the best possible market value for your property. Rental reviews are undertaken at each routine inspection (prior to any leasing campaign and subject to the tenancy lease agreement terms and in consultation with the owner). Rental Arrears Management? Whilst the majority of tenants pay their rent on time and without incident, there are circumstances when payments do not occur on schedule. In such instances, the following procedures generally apply: 3 days overdue - A reminder is automatically forwarded to the tenant (text and/or ). 7 days overdue - An urgent arrears reminder is sent to the tenant, in various forms (phone, , text and letter). 10 days overdue - The tenant is telephoned and advised that if payment in full is not received within 5 days, a 14 day Notice to Vacate the property will be served for rent arrears and an Application will be made to VCAT for a Hearing, for an Order to remove the tenant and commence debt recovery. 15 days overdue - The 14 day Notice to Vacate is served for rent arrears. An application is made to VCAT for a Hearing, for an Order to remove the tenant and commence debt recovery. Upon receiving the Order, a Warrant of Possession for the property is arranged. This process is standard operating practice and undertaken to minimise any possible loss to the owner. The owner will be kept informed throughout this process.

9 Rental Management - Monthly Statements? Once rental income is transferred into your bank account, a detailed statement is produced and transferred to you at the same time via . Alternatively, you can opt to have your statement sent by post. Statements are generally monthly. We can pay all, or selected, outgoings or expenses incurred for the property on your behalf, thus allowing you the benefit of a clear account history of both income and expenditure. All outgoings or expenses paid on your behalf will be detailed in a breakdown and listed on the monthly Landlord Statement we send to you, along with the copies of the invoices. We will also provide you with an end of Financial Year Summary for taxation purposes. What is the Financial Year Summary? A Financial Year Summary is an end of financial year statement, to summarise the entire financial year. Following the end of the financial year, you will receive the summary of the property s income and expenditure over the last 12 months, for taxation purposes. This will assist your accountant when completing your tax return. Tenants Vacating & Releasing We will endeavour to secure a further fixed term tenancy with the existing tenant prior to the expiry of the original fixed term agreement. At this time we will preview the rental and provide a recommendation in accordance with the current market value. In the event that your tenant does not accept the offer of a further fixed term lease (under the residential tenancies legislation) the tenant has the right to stay and continue as a periodic or monthly tenancy. However, if your tenants do provide a 28 day notice to vacate prior to their lease ending, you will be advised immediately and we will commence the re-leasing process for you. Prior to the tenants vacating the premises, we will ensure the following have been dealt with in accordance to the Residential Tenancy Act Outstanding account Rent is paid promptly. Any other outstanding accounts such as damages, compensation amounts and break lease fees are paid (if required). Property re-leasing inspections Inspections will be arranged and coordinated with the tenant(s) within the last 14 days of their vacation date. Property vacated property is cleaned, carpets professionally steam cleaned with receipt as proof, final inspection is conducted. Keys all keys, swipes, remotes etc. have been returned to the office. Bond finalisation We undertake the vacate inspection and subject to any deductions, the bond finalisation is processed.

10 Lease Break Process? If your tenants have signed a fixed term tenancy agreement and wish to end the lease early, there will be associated costs involved for the tenant to pay. Tenants are advised to provide as much notice as possible, if they wish to vacate the premises earlier than the expiry of their lease agreement. This gives us the best chance of finding a replacement tenant and can reduce the cost the tenant may have to pay. The tenant(s) are liable for rental costs until a new tenant is found or the fixed term agreement expires, advertising costs and pro rata re-leasing fees. Schedule of Services Leasing marketing co-ordination. Application processing and negotiation. Rental collection and disbursement. End of financial year summary. Prepare cases and attend VCAT hearings, if required. Routine inspections. Tenancy renewal negotiation. Conducting prospective tenant inspections. Residential Tenancies Act compliance. Monthly statement to owner. Maintenance management. Insurance claims, where insured through Lindon Insurance Pty Ltd. Market appraisals. Vacate inspections and tenancy finalisation.

11 Other Services Lindon provide Lindon Property Management is a division of Lindon Financial Group. Our extensive range of products offered are tailored solutions for your personal and business needs, merging your financial portfolio to be managed by one trusted provider. Our high level of industry knowledge and expertise paired with our exceptional customer service is carried across our other entities, which include: Lindon Accounting; Lindon Financial Planning Services; Lindon Insurance; Lindon Mortgage Broking; and Lindon Owners Corporation. Lindon Property Management Pty Ltd Level 10, 452 Flinders Street Melbourne Vic 3000 P: E: lindonfg.com.au

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