A guide to leasing your investment property
Owning an investment property should not be a stressful experience, if you are a first time investor it is important to know what to expect when leasing out your property. We have covered off on some key points to know before renting out your investment below.
Marketing your property
Our research has shown that over 95% of applicants find our properties on the internet. At GB Rentals we advertise all available properties through many web sites including
Through internet advertising, we have the ability to provide a detailed description of the property and quality images of the property, including a floor plan if available. There is also an option to include a Google map to show prospective applicants not only how to find the property but services and schools in the area.
Prospective applicants can contact our office directly through a link on the advertised property or can book an inspection directly at a time that suits them.
All available properties are also placed on our Rental List which is emailed to our large database of prospective tenants in the GB group. Rental Lists are also available for people who come into the office.
Tenant Selection
When conducting our showings of the properties we observe and interview interested parties and ask them to complete an application form. This form asks a number of vital questions including the following:-
- Personal details
- Current and previous rental history
- Employment details
- Personal references
- Emergency contact details
- 100 point identification check
These details are then thoroughly checked; initially by contacting the references and then by checking them against the TICA national tenancy database.
The importance of comprehensive application checks cannot be underestimated; this is, without doubt, one of the most critical parts of the whole process.
Once these checks have been completed we will contact you to discuss the applications and to obtain your approval. Once an application has been accepted we will contact the applicant immediately to advise them of their acceptance and request that they pay a deposit on the property within 24 hours.
Ingoing Inspection
Prior to the commencement of the tenancy, a detailed Ingoing Inspection Report will be conducted. This report details the condition of the property prior to the tenant moving in and is used as a reference for when they vacate the property for this reason it is imperative that the report is detailed and accurate.
All further inspections during a tenancy are compared to this first report. The ability to demand cleaning and recover costs for damages at the end of the tenancy are non-existent if the initial inspection was not done, was lost or sloppy. Clear written comments are recorded, not just ticks in the boxes. Photographs are taken to establish proof of condition and inclusions. Soft and hard copies of this report are saved and filed. The tenant is given the opportunity to check the report for accuracy and add comments and corrections. This updated version must be returned to our office within 7 days to have weight in a future dispute.
Tenancy Inspections
Regular physical inspections of your property are essential in protecting your investment. A physical inspection is carried out after 3 months of the initial lease, then every 6 months (earlier if the condition is below par), with each visit the condition of the property is compared to the ingoing inspection.
Tenants are advised in writing of their pending inspections and are supplied with an inspection guide to help ensure that their property is presented at a high standard.
We pride ourselves on providing thorough tenancy inspection reports which include details of:
- The general condition of your property.
- The manner in which your tenants are maintaining your investment.
- Any maintenance reported by the tenant.
- Any maintenance issues are noted.
- Photos are taken of the property, grounds and any maintenance issues where possible.
Tenants are advised if there is anything they can do to improve the presentation of the property. Should the tenant be required to attend to a number of items, a follow-up inspection will take place to ensure that they are completed.
Landlords are welcome to attend tenancy inspections. If you wish to attend, please notify your Property Manager so that a time can be arranged.
Rental Payments Methods
We believe in early intervention when it comes to rent arrears. As part of the tenant induction process, our tenants are made aware of our policy relating to rental payments, their obligations under their lease agreement and the consequences if they should fall behind.
Our preferred method of payment of rent is by direct debit, One Rent or Centrepay. Direct debit is our own system with which we can take payments directly out of the tenant’s account and there is no cost to the tenant. We also use a company called One Rent; this company will accept payment in a number of ways including credit card, BPay, POST billpay, BPhone and internet transfer, but they do charge the tenant a small amount for this service. Centrepay is for tenants who receive Centrelink benefits. Whilst this is not a guaranteed method of payment, in our experience, it cuts down on the instances of tenants on Centrelink payments paying late or defaulting on their rental payments. Centrelink pay us the rent before they put the social security benefits into the tenant’s bank account.
Rent Arrears
Our approach to protecting your income goes beyond simply collecting rent on your behalf. At George Brand we understand that our landlord clients are often relying on the timely receipt of rent for other financial commitments and that late payment or default on the part of a tenant could create significant inconvenience or consequences. For this reason, we treat rental arrears with a high degree of importance and urgency.
A key strategy in minimising the incidence of arrears is the use of direct debit as our preferred method of collecting rent. This automated process collects rent directly from the tenant’s bank account in a regular, systemised manner and also allows us to quickly identify any failure in payment.
We follow a strict procedure in the event of a tenant falling behind in rent, a procedure designed to be both professional and pro-active so as to resolve the issue as swiftly as possible in a firm but courteous fashion. In the event of tenant falling behind in rent, we will:
After 3 days - Contact the tenant via telephone to provide a reminder that their rent is overdue and request immediate payment.
After 10 days - Contact the tenant via telephone to follow up, making the tenant aware that they may face termination of their lease after 14 days should they fail to rectify the arrears.
After 14 days - Contact you, the owner, for permission to issue a termination notice to the tenant. With your permission, we will issue a termination notice.
Lease renewal/rent reviews
Most fixed-term leases are for a period of twelve months; the procedure with lease renewals and rent reviews is as follows.
Approximately three months prior to lease expiry our office will contact you by mail with our suggestions regarding the lease renewal and rent review. If it is our recommendation that the lease is renewed we would state this in our correspondence and we would also indicate what we consider the rent is for similar properties in the same area. In this correspondence we would then ask you for your instructions regarding the lease renewal and if you wish us to increase the rent at this stage.
When this paperwork is returned to our office the renewal paperwork is then sent to your tenant; advising them of the rent increase and the new term of the lease. We ask that the tenant returns this renewal to us at least four weeks before the expiration of the lease. We ask for this four weeks before the lease expires in case the tenant has decided not to renew the lease and we need to begin advertising for a new tenant. Once the paperwork is returned by the tenant it is photocopied and copies are sent to both landlord and tenant.
Should it be that we suggest that the tenancy is not renewed, for whatever reason, we generally try to give the tenant four to six weeks notice to enable them to look for alternative accommodation.
When making our suggestion regarding rent increases to market rent. This recommendation is based on two things: firstly our expert knowledge of the current market right across the state; and secondly our research to ascertain the rental amount similar properties have achieved recently in the same area.
Monthly Statements
We understand that a steady and timely flow of rental income for investors is important. For this reason we offer weekly, fortnightly or monthly payments, which are accompanied by a statement. Funds are paid quickly and easily by direct transfer to your nominated account. We believe in making your life easier, so we provide an easy-to-read monthly statement outlining your income and expenses for the period, directly to your email inbox.
At the end of each financial year you will receive an easy-to-read annual statement summarising your income and expenses for the financial year.
End of tenancy
Upon receiving notification from your tenant that they will not be renewing their lease we will contact you to seek your instructions regarding the re-letting of your property. Should you wish to re-let your property we will:
- Confirm the end of the tenancy in writing
- Commence advertising on the internet and rental list
- Allocate a Final Inspection time and date
Once the Final Inspection has been conducted we will contact you and advise if there are any items that require attention and gain your approval for the Bond to be released.
Should you have any queries in regards to property management, please
contact us.
