Property Management Services

Property Management Services Property Managers Since 1909 LJ Hooker Mount Barker 53 Gawler Street MOUNT BARKER SA 5251 PH: (08) 8398 6300 FAX: (08) ...
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Property Management Services

Property Managers Since 1909

LJ Hooker Mount Barker 53 Gawler Street MOUNT BARKER SA 5251 PH: (08) 8398 6300 FAX: (08) 8398 3035

Julie Runcie

Emily Searby

Rozanne Pahl

Principal

Senior

Assistant

Property

Property

Property

Manager

Manager

Manager

Email: [email protected]

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Managing Your Investment 1. Our Service What We Do For You ............................................................................................................. 05 Finding Your Tenant ................................................................................................................. 05 Checking & Double Checking Your Tenant ....................................................................... 06 Maintaining The Property & Records ................................................................................... 07 Financial Reporting .................................................................................................................... 07 Rewards ....................................................................................................................................... 07

2. Rates & Charges Our Fees ...................................................................................................................................... 10 Letting Fee ................................................................................................................................... 10 Incidental & Extraordinary Charges Outside Management Fee ..................................... 10 Schedule of Service Fees & Charges ..................................................................................... 12

3. All The Answers You Need Inspections ................................................................................................................................... 14 Telephone & Mail ....................................................................................................................... 14 Costs (Water, Rates & Mortgage) ........................................................................................ 16 Property Damage & Maintenance.......................................................................................... 17 Insurance ...................................................................................................................................... 17 Tenancy ........................................................................................................................................ 17

4. Owners Information Advise Authorities ..................................................................................................................... 21 Advise Us ..................................................................................................................................... 21 Taxation Considerations ......................................................................................................... 21

5. Responsibilities Implementation and compliance of the Residential Tenancies Act 1995

23

6. Your Tax Position Income .......................................................................................................................................... 26 Capital Gains ............................................................................................................................... 26 Deductions .................................................................................................................................. 26 Expenses ...................................................................................................................................... 27

7. LJ Hooker Mt Barker Our Promise to You ................................................................................................................. 31 Your Property Management Team ....................................................................................... 32

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ljhooker.com

1. Property Management-Our Service Tel:

08 8398 6300

Fax:

08 8398 3035

RENTALS—CALL THE HOTLINE 8398 6317 More properties available at: www.ljhooker.com MOUNT BARKER

$355 Weekly

4 Bedroom Home—Outdoor Pet by Negotiation Only This family home has 4 bedrooms, main with ensuite and walk-in-robe Bedrooms 2 and 3 have built-in robes. The house has an open-plan kitchen/meals/family area with split-system air conditioner, a separate formal lounge and a small alfresco area under the main roof. Outside there is a double carport with automatic roller doors, low maintenance pebbles in the front yard and bark chips in the rear yard, plus a rainwater tank.

NAIRNE

$340 Weekly

Be the first to ring!

4 bedroom home with ensuite and built in robe open plan living/galley kitchen and meals area. Euro stainless steel appliances in kitchen. Ducted Air Conditioning System. Tiled living areas and carpet in bedrooms, double roller door carport with entertainment area, easy to maintain yard very neat and tidy.

NAIRNE

$320 Weekly

Available Now

Beautifully presented 3 bedroom home with split system airconditioner, built in wardrobes to two bedrooms, 2 way bathroom, modern kitchen with stainless steel appliances, easy living with a double carport/garage and entertainment area with easy to maintain yard. No pets preferred.

MOUNT BARKER

$425 Weekly

Set in Martindale Estate

Located in a quiet street this house has two separate large living areas, Main bedroom with ensuite upstairs and the living area upstairs has a lovely balcony to sit and relax and enjoy the views. Also has r/c air conditioning Downstairs has a large living area with combustion heating and r/c air conditioning, large dining area plus a kitchen that will bring out the entertainer in you, stainless steel appliances including large gas stove, dishwasher, built in pantry. Outdoor spa to relax and enjoy. MOUNT BARKER

$380 Weekly

Viewing Distance to Golf Course

Located in the beautiful Mountain Glen Estate this home consists of three bedrooms with ensuite and walk in robe to main, and built ins to other bedrooms. Good size open plan kitchen/family/meals area. Formal lounge, double garage with remote control and internal access, reverse cycle airconditioner. Easy to maintain yard with pergola area and garden shed. Just a short walk to the golf course or to the wetlands. Pets negotiable.

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1. Our Service What We Do For You LJ Hooker Property Management is not just about collecting rent. We provide you with a comprehensive management service. You will have a professionally trained property manager, someone who: understands the law and obligations of renting your property knows the properties in your area, pays attention to the finer details and continually strives to maximise the return on your investment. Your property manager works with you! Education, ongoing training programs and seminars are important and attended by your property manager to keep abreast of changing legislation and market conditions.

Finding Your Tenant 

Pro-Active Marketing We actively market your property before it becomes vacant. This enables you to maximise your returns on your investment property. We aim to keep your vacancy days to a minimum.



Internet—reaching your tenants in the next street, the next suburb, around the country and across the world. Your property will be uploaded to several websites including ljhooker.com, being Australia’s number one single branded real estate website, realestate.com and homehound.com. These sites will feature an exterior photograph of your property together with various photos of the inside (if available). It will also include a detailed description of style, shape and exclusive features of your property. Additionally when a prospective tenant browses the LJ Hooker website they can register their rental requirements into ’My Property Watch’. Should your property meet their criteria they will receive an email introducing them to your property which will entice them to visit our website for further details about your property. The prospective tenant can email us and we can arrange a date and time for them to inspect your property or attend to any questions they may have.

 Tenant Database To assist with the prompt letting of your property we maintain a tenant database. Many tenants who do not have easy access to the internet leave their personal details with us. We keep in contact with prospective tenants until they have relocated. When your property is ready for marketing they are the first we contact. Often properties are let without the cost of advertising!

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1. Our Service (cont’d) Finding your Tenant (cont’d)  Re-location Service We will register your property (if suitable) with a relocation service agency.

 Newspaper (if required) We will write your advertisement for you and place it in the local papers. These may include The Courier, The Advertiser, The Standard or Rural News.

 Front Window & Rental List LJ Hooker Mount Barker is ideally located on the corner of Gawler Street (main street) and Hutchinson Street Mount Barker. We are in a prime location and easily accessible. Visitors to Mount Barker have no problems locating the LJ Hooker office we attract a strong enquiry from prospective tenants along with visitors seeking directions. Your property will appear on our rental list (see sample) and placed at our reception counter for ease of access by prospective tenants visiting our office.

Checking The Tenant You want a tenant you can trust. A tenant who will not cause malicious damage to one of your biggest assets. Checking the tenants rental history is one of the most important checks that a property manager will do on your behalf. LJ Hooker have a strict application procedure starting with our extensive application form that the tenant is required to complete. We then assess the applicant by:



Rental History Checking with previous owners/managing agents



National Tenant Default Database (TICA) National database where Property Managers / Landlords can record details in regards to tenants.



Employers (Past or Present) Assess the tenant ability to meet rental commitments by ensuring rent payable is not more than 1/3 of their income.



100 Point Check System. This is used for identification and to gain further information to assess their capabilities of fulfilling their obligations under the lease.



You We discuss the applicant with you and you can personally select the tenant you think is most suitable. (For more information on your rights in selecting a tenant see section 3-All The Answers You Need)

You’ll feel better knowing LJ Hooker undertake a strict and thorough research of prospective applicants, thereby reducing your risk of malicious tenants and damage to your investment property.

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1. Our Service (cont’d) Double Checks 

Forms Once a suitable tenant has been identified and you have agreed to their tenancy, we will prepare a Tenancy Agreement and Bond Lodgement Form. An appointment will be made with the applicant/tenant where all documentation is explained to them before they sign. We will collect rent and bond money and process in accordance with the Residential Tenancies Act. Your tenant will receive a copy of the Tenancy Agreement, Tenancy Information Booklet and the Property Condition Report which they will be required to sign and returned within 14 days.



Property Condition Report - Written and Pictorial We will compile the property condition report for each new tenancy. The Property Condition Report is one of the most important documents to be completed for your investment property. It is vitally important that this document is as comprehensive and detailed as possible as it is a record of the condition of your property (both interior and exterior) at the time the tenant takes occupancy. The Property Condition Report is confirmed by the tenant. When the tenant vacates the property the Property Condition Report is used to assess the condition of the property. This report consists of a detailed written report and an internal and external photographic report of your property. This report also includes Instruction Manuals on how to operate any appliances at your property. If no Instruction Manuals are available then written instructions are to be provided by the landlord.



Obligations We will explain all the obligations of looking after your property with your tenant, and have the tenant sign appropriate forms and keep a record of them on file. We will also send a confirmation letter of Tenancy and Property Condition Report to you for your records.



Inspections When a new tenant goes into your property we conduct our first inspection one month after they move in. Thereafter we conduct quarterly inspections. Should we be dissatisfied with the tenants care for your property we will not hesitate to return a tenant to monthly inspections.

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1. Our Service (cont’d) Maintaining The Property and Records As stated we carry out regular inspections of your property. Where required and with your consent, maintenance will be conducted on your behalf, including organising insurance claims and quotes if and as needed. We will not only look after your property but also the files, forms and records involving your property. We will keep you updated, including advising you of the initial rental value and periodic rental reviews. We keep copies of the following:

       

Residential Letting Management Agreement Copies of Insurance documents provided by you Tenant Applications Residential Tenancy Agreement / Copy of Bond Lodgement / Renewal Agreements Property Condition Report & Subsequent Inspections All Correspondence Residential Tenancy Notices such as breach notices, termination notices All Contractor Orders & Invoices Paid

At the termination of tenancy we will check the premises with your tenant and finalise matters relating to the bond, and disburse bond monies in accordance with the Residential Tenancies Act. Where necessary we will attend to Tribunal on your behalf.

Financial Reporting At the commencement of tenancy, the tenant will pay the required bond amount as stipulated by the Residential Tenancy Act into our Trust Account and in accordance with the Act we will arrange lodgement and payment to the Residential Tenancies Tribunal. Bond will be reassessed in compliance with the Act and increased as necessary every two years. When the tenant pays their rent we will hold your money in our Trust Account in a holding ledger. From these monies, we will pay all outgoings pertaining to the maintenance of your property as authorised on the management agreement. We will send you monthly statements, noting all receipts and payments along with copies of invoices attached. Proceeds due to you will be paid via EFT (electronic funds transfer) to your nominated bank account on the 25th or next working day of each month. Additional payments throughout the month can be negotiated. Usually mid month payouts occur on the 15th of the month or closet next working day.

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2. Property Management-Rates and Charges Property Management Fees Our Property Management Fee includes rent collection, routine inspections, preparation of statements, payments of accounts, payment and retrieval of tenancy bond, ongoing management, etc. 8% + GST on single properties (Note: For landlords with multiple properties these fees may be negotiated) This fee is fully tax deductible! Or 15% + GST—no other charges all inclusive of Letting, lease Renewal, Documentation Fee etc.

Letting Fee The Letting Fee is charged each time a new lease is entered into on your behalf. The Letting fee incorporates the preparation of all documentation required to secure a tenancy and which is required to be completed under the Residential Tenancy Act including but not limited to the tenancy agreement, property condition report, investigation into the tenants credentials including employment checks, tenancy history and TICA reports, collection and lodgement of security bond and finalisation of bond matters. This fee is based on the weekly rental of your property (2 weeks + GST). This fee is fully tax deductible!

Lease Renewal Fee When a fixed term tenancy agreement is due to expire we will notify you with our recommendations regarding renewing the tenancy. This is an opportunity for you to re-visit your investment strategy and if needed change your methodology of tenancy. We will follow our recommendation up with emails and telephone calls to confirm your requirements. However, if we do not hear from you then we will protect your property by going forward with our recommendations . This will usually mean that we will offer the tenant an extension schedule to ensure the security of your income. If you or the tenant do not wish to continue the tenancy agreement we will search for replacement tenants. A Fee equivalent to 1.1 weeks rent is charged for this service.

Documentation Fee This fee is charged when we take over a management of a property either from another agent or private landlord. The documentation fee incorporates the preparation of all documentation which are required to be completed under the Residential Tenancy Act. This also applies to the yearly documentation that is needed to be provided to Government Authorities for NRAS properties.\ A Fee equivalent to 1.1 weeks rent is charged for this service.

Incidental Fees  Advertising All advertising is payable by the owner we have a flat fee of $75.00 plus GST for internet advertising. Newspaper advertising is at cost.

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2. Property Management-Rates and Charges (Cont’d)

Incidental Fees (cont’d) 

Routine Inspection Routine Inspections are conducted every 13 weeks at a charge of $25.00 plus GST per visit. The initial monthly inspection after a tenant has gone in to the property or when we take over the management of a property is included in the management fee.



Technology & Incidentals Including Postage $10.00 per month.



Repairs The arranging of minor and routine repairs is incorporated within our property management fee.



BAD Tax & GST BAD Tax and GST are the Government charges for credits and debits which are passed on as levied. (See section 6—Your Tax Position)



Residential Tenancy Tribunal Tribunal Charges an application fee which may vary from time to time at a cost per hearing., - owner is responsible for this fee., Our attendance at the Residential Tenancies Tribunal is included in our Management Fee if: 

The tenant has defaulted in payment of rent



The tenant has maliciously damaged your property



We are seeking rent money from bond money



We are seeking payment of water use (separate meter)

In the event attendance is required at the Residential Tenancies Tribunal and such attendance is due to either your negligence and/or at your request then at our discretion such attendance will be charged at $55 per hour or part thereof including travel. In the event the Tribunal rules fully in your favour then this fee shall be waived. Should the Tribunal rule partially in your favour then at our discretion the fee may be fully or partially waived.



Corporation Meetings (Strata and Community) Should you require us to attend Strata or Community meetings then a fee of $55 per hour, or part thereof including travel plus out of pocket expenses is chargeable at our discretion.



Court Attendance Should you require us to attend Court proceedings (excluding Residential Tenancy Tribunal as outlined above) then a fee of $55 per hour, or part thereof including travel plus out of pocket expenses is chargeable at our discretion.

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Schedule of Service Fees and Charges (Option 1) All amounts include GST unless otherwise stated Discount applies for multiple properties Professional Advice

Included in Management Fee

Management Fee

8.8%

Letting Fee

2.2 weeks rent

Re-Letting / Renewal of Current Tenancy / Documentation Fee if applicable

1.1 weeks rent

Advertising Internet

Flat fee of $75.00 plus GST

Courier

At cost plus GST

Advertiser

At cost plus GST (only if required)

Property Guide

No Charge—included in Management Fee

Rental List Brochure

No Charge—included in Management Fee

Other Advertising medium requested by you

At cost plus GST

Printing and Stationary

No Charge—included in Management Fee

Funds disbursement

No Charge—included in Management Fee

Photocopying, Telephone calls, stamps and Misc

$10.00 per month

Property Condition Report & Photographs

No Charge—included in Management Fee

Quarterly Inspections & Written Report

$25 plus GST per inspection

Minor Repairs (also Quotations if necessary)

No Charge—included in Management Fee

Payment of accounts

No Charge—included in Management Fee

Computerised Monthly Statements

No Charge—included in Management Fee

End of financial Year Statement

$25.00 per annum (optional)

Tribunal Application

At Cost (this fee is on charged from the Tribunal)

Tribunal Representation-your request/negligence

$55.00 per hour or part thereof (including travel) plus out of pocket expenses

Preparation Tenancy Agreement & Special Conditions

No Charge—included in Management Fee

Management Agreement Preparation

No Charge—included in Management Fee

Remember, our fees are fully tax deductible.

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Schedule of Service Fees and Charges (Option 2) All amounts include GST unless otherwise stated Discount applies for multiple properties Professional Advice

Included in Management Fee

Management Fee

16.5% (excluding out of pocket expenses)

Letting Fee

No Charge—included in Management Fee

Re-Letting / Renewal of Current Tenancy / Documentation Fee if applicable

No Charge—included in Management Fee

Advertising

At cost

Internet

No Charge—included in Management Fee

Courier

At cost plus GST (only if requested)

Advertiser

At cost plus GST (only if requested)

RentalHotline

No Charge—included in Management Fee

Property Guide

No Charge—included in Management Fee

Rental List Brochure

No Charge—included in Management Fee

Other Advertising medium requested by you

At cost plus GST

Printing and Stationary

No Charge—included in Management Fee

Funds disbursement

No Charge—included in Management Fee

Photocopying, Telephone calls, stamps and Misc

No Charge—included in Management Fee

Property Condition Report & Photographs

No Charge—included in Management Fee

Quarterly Inspections & Written Report

No Charge—included in Management Fee

Minor Repairs (also Quotations if necessary)

No Charge—included in Management Fee

Payment of accounts

No Charge—included in Management Fee

Computerised Monthly Statements

No Charge—included in Management Fee

End of financial Year Statement

No Charge—included in Management Fee

Tribunal Application

At cost (this fee is on charged from the Tribunal)

Tribunal Representation-your request/negligence

$55.00 per hour or part thereof (including travel) plus out of pocket expenses

Preparation Tenancy Agreement & Special Conditions

No Charge—included in Management Fee

Management Agreement Preparation

No Charge—included in Management Fee

Remember, our fees are fully tax deductible. nobody does it better

3. Property Management-All The Answers You Need Inspections There are 3 main forms of inspection—



Property Condition Report or Initial Inspection Prior to the tenant taking possession of your property we compile a comprehensive report, including colour photographs detailing all aspects of the property internally and externally. This is the “Property Condition Report”.





Routine Inspections Undertaken at 3 monthly intervals, your property manager will inspect your property ensuring the tenants fulfil their obligations under the lease and in accordance with the Residential Tenancies Act and report any maintenance items that may need attention thus maintaining the property value. If we are not happy with the condition of the property we will advise the tenant and re-inspect in 28 days depending on the nature of our request. Final Inspection Conducted after a tenant vacates the property comparing the Property Condition Report or Initial Inspection to the present condition of the property. Under the Residential Tenancies Act we are required to allow for “fair wear and tear” and only expect the property to be left in a “reasonable” state of cleanliness. The Residential Tenancies Tribunal and our interpretation of “fair wear and tear” and “reasonable” are different however we will strongly encourage the tenant to leave the property in the highest possible standard, reducing wherever possible the necessity for “upkeep” maintenance by you.

Right of Entry Under the Residential Tenancy Act you / we are restricted from gaining access to the property as and when we want. The tenant is allowed to live in “peace and quiet” however providing we follow the correct protocol we can access the property for inspections:  

No more than every 30 days serve notice to the tenant advising them between 7—14 days of an inspection date and time, or The tenant invites you / us into the property

In the event the property requires maintenance 48 hours notice is all that is required however usually access can be arranged earlier should the tenant agree. (See also Residential Tenancies Act)

Telephone & Mail



Phone The tenant is responsible for obtaining connection (should they decide to connect) and payment thereafter of their telephone accounts.

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RESIDENTIAL PROPERTY INSPECTION SHEET (Form 6) "The Premises" "The Landlord" "The Tenant" "The Agent"

53 Gawler Street Mr Landlord Mr & Mrs Tenant HB Chapman General PO Box 47, 53 Gawler Street, Mount Barker SA 5251.

TO THE TENANT The Residential Tenancies Act 1995 requires that an Inspection Sheet be completed by the Landlord's Agent and that two copies be provided to you at the time that the Residential Tenancy Agreement is entered into. The purpose is to: (a) provide for the premises to be identified, (b) provide comprehensive details of fixtures, furniture and other contents; (c) provide for the condition of the premises and the fixtures, furniture and other contents of the premises to be described by both you and the Landlord's Agent at the commencement and at termination of the Agreement and for signature by or on behalf of the landlord and you; and (d) provide for a comparison check when you vacate the premises. If a dispute arises as to the condition of the premises, fixtures, furniture and other contents, either party may contact the Tenancies Branch of the Office of Consumer & Business Affairs about the matter. You are required to complete and sign both copies of the whole of this Inspection Sheet and return the original to the office of the Agent within fourteen (14) days of the commencement of the tenancy. Retain and keep the duplicate in a secure place. If you do not return the signed Inspection Sheet by that time, it will be assumed that you agree with and accept the condition of the premises etc., as stated by the Agent. If extra space is needed, please use the comments section or attach an extra sheet. CLEANLINESS CODE C = Clean D = Dirty F = Fair PTT = Prior to tenancy Freshly painted throughout? Carpets steam cleaned?

Yes / No Yes / No

CONDITION CODE E = Excellent G = Good A = Average P = Poor B = Broken S = Scratched/Marked

Inspection by Agent Tenancy begins Inspection by Tenant Vacating date Water meter reading Keys Supplied/return

INGOING 11 / 06 / 08 ____ / ____ / ____ ____ / ____ / ____ 01272 kilolitres Refer to Key Receipt

GENERAL COMMENTS Air Conditioner & Exhaust filters must be cleaned on a regular basis Lawns are required to be mowed and trimmed Cobwebs to be removed from internal and external walls, ceilings and crevices. Pets: Gas Bottles: SA Water Meter #: SA Water Meter Location: Located on the Boundary near the letter box. In line with the front door Meter #: 419012 and 416017 Rubbish Bin #: LOUNGE ROOM Comments – Lounge Room

1. Ceiling

CG

2. Lights

CG

3. Walls 4. Windows

CG CG

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White, no marks, air conditioner vent and security sensor Cast iron frame with large frosted glass bowl, slightly coming away from the ceiling. Light blue, some patches Glass, clean, no cracks

OUTGOING ____ / ____ / ____ ____ / ____ / ____ ____ / ____ / ____ __________ kilolitres ________

3. All The Answers You Need (cont’d) Telephone & Mail (cont’d) 

Mail Tenants do not, as often as we may like, bring mail not addressed to them to the office and quite often mail is mislaid. It is recommended that if you have not already done so, advise the post office of your current or forwarding address.

Costs 

Water You are responsible for the payment of SA Water accounts however these charges can be conveyed to the tenant. Prior to the privatisation of SA Water, the first 125 kilolitres of water was free of charge. Now that we are on a “user pays” system, and water is becoming quite expensive it is necessary for an agreement to be in place between you and your tenant as to who will be responsible for the payment of rates and charges for water supply and usage. Under the Residential Tenancy Act, providing there is an agreement in place, and the tenant was notified before making an application for tenancy, the tenant can be charged for both the water rates and charges and their water usage. In the absence of any agreement between you and your tenant, rates and charges for water supply and usage will be at your expense. It is part of our standard tenancy agreement that the tenant is responsible for the payment of their water usage at a daily equitable rate, you may if you so desire give your tenant an allowance such as a set dollar value or percentage of the water consumption in consideration of them watering your garden, however this is no guarantee during these times of water conservation that your garden will fully benefit from this consideration. You also have the option, if so desired, for the tenant to pay the water rates and charges. This is not common at the moment and should this option be desired, we have an obligation to notify the tenant before they submit their application. As you can understand this could be a saving to you of approximately $300.00 per year increasing your return on your investment however it is also a cost to the tenant and one which they take into consideration when calculating the affordability of renting your property.



Rates You are responsible for payment of district council rates and charges, land tax, emergency service levy, strata / community levies, insurance and water rates, charges and usage (depending upon tenancy agreement). However, owners are responsible for the hiring of bottles for gas. The tenants are responsible for their own consumption of electricity, telephone, gas and water (depending upon tenancy agreement) etc, incurred after date of possession.



Mortgage You are responsible for the payment of all mortgage fees. We take no responsibility for these payments as we are unable to guarantee you receiving rent on time if at all should the property be vacant for any length of time. Any rent we receive on your behalf will be paid into any bank or building society account you specify. This account may then be used to pay the mortgage, but you are responsible for ensuring sufficient balance of funds is in that account to prevent you incurring penalty or interest fees.

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3. All The Answers You Need (cont’d) Property Maintenance & Damage 

General Maintenance You and your tenant are responsible for maintenance of the property. You agree to keep the property in good and tenantable condition (taking into consideration all safety and health issues) and your tenant agrees to maintain it to a “fair and reasonable standard”. Manuals or full working details on appliances such as pool filters, air conditioning, hot water systems and reticulation systems should be supplied at commencement of tenancy.



Damage In cases of damage to a property attributable to a tenant and not considered normal wear and tear, the tenancy agreement states that the tenant is liable for maintenance of the property and to make good any damage at his/her own expense. Under normal circumstances the bond will provide sufficient protection to remedy the damages, however if not, you 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 LJ Hooker and is recommended for peace of mind and limitation of liability and expenses.

Insurance You are advised to check with your insurance company to ensure that your home is insured whilst renting. Floor coverings, window treatments and light fittings are NOT usually covered by building contents. There is a clause in the tenancy agreement that requires owners to keep their property adequately insured. We strongly recommend you cover yourself with the following policies:



Public Liability



Building fire insurance including fixtures, fittings and the removal of debris



Landlord protection should include wilful damage, loss of rent and legal costs

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

Tenancy 

Can I Choose The Tenant? Yes. You may also instruct the Agent to secure a tenant with certain characteristics (ie couple with no pets etc) in preference to others, providing such characteristics do not contravene the Discrimination Act. The affect of being too selective, however, may limit the number of prospective tenants suitable for the home thereby delaying the renting process reducing your capital return.

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3. All The Answers You Need (cont’d) Tenancy (cont’d) 

Payment Methods Tenants who lease a property through LJ Hooker Mount Barker are required to pay upon commencement of the tenancy agreement the bond plus two weeks rent in advance. For tenant convenience we accept throughout their tenancy payment by direct debit, EFTPOS and EFT.



Tenancy Term There are two types of residential tenancy term agreements; fixed or periodic. A fixed term tenancy agreement has a fixed time period clearly identifying the period of the tenancy agreement, during which time the tenant is responsible for both the property and the rent until the end date of the tenancy agreement. Fixed tenancy agreements are usually for a 6 or 12 month period but may be longer if agreed between the parties. A Landlord may not terminate a fixed term tenancy agreement however may entice a tenant to vacate. A tenant, on the other hand may terminate the tenancy agreement however this is not without some compensation to the landlord. The tenant will be responsible for rent until such time as a new tenant is found. The tenant is also required to contribute towards the cost of advertising for a new tenant and such costs are based on a predetermined formula outlined in the Residential Tenancy Act and is subject to the remaining duration of the tenancy. Tenants and Landlords can end a fixed term agreement at the end of the term after giving 28 days written notice. If this notice is not given by either party the agreement will continue as a periodic tenancy. A periodic tenancy agreement has no clearly identified end date and either party may terminate giving the other party the appropriate notice. A tenant is only required to give 21 days notice however a landlord is required to give the tenant 60 or 90 days notice depending upon the landlords reason for giving notice. In some instances a tenant may commence their tenancy agreement with a fixed term tenancy agreement however either due to the tenants or landlords requirements and upon expiration of the fixed term tenancy period the tenancy term may be “rolled over” into a periodic tenancy. Being flexible with your investment property is important. Circumstances change, some planned and some un-expectantly. Whenever a tenancy is due for renewal / expire we will notify you and discuss your plans and intentions in regards to your investment property and devise a tenancy plan that best suits your requirements, giving you the flexibility you may need.



Termination Termination depends on the type of tenancy in existence. In the case of periodic tenancy, termination is affected by issuing a notice in accordance with the residential tenancies act. In cases of fixed term tenancies, (ie 6 or 12 months) these can only be terminated at the conclusion of the period both the landlord and the tenant are required to give 28 days notice, or in case of default by the tenant which is not remedied within 7 days notice of default. If the default is not remedied notice to quit proceedings can commence however termination will only be effected should the tenant not remedy the default.

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4. Property Management- Owners Information Date:

Time:

Key No.:

Landlord: Tenant: (Home) (

Mob)

(Work)

Property: Comments:

Condition Of Property Interior Paintwork

Clean

Floor Coverings

Clean

General Condition

Clean

Smoke alarm:

Test

Lights / powerpoints:

Good Order

    

Undamaged Undamaged Undamaged Operating Needs Attention

    

Marked Marked Tidy

  

General Comments - Interior ______________________________________________________________________________________________________________ ______________________________________________________________________________________________________________ ______________________________________________________________________________________________________________ Exterior Paintwork

Clean

Lawns

Neat

Garden

Neat

Fencing

Good Order

Guttering / Down Pipes

   

Undamaged Mowed Weeded Needs Attention Good Order

    

Attention Req Edged Tidy

 

Mowing Req

Needs Attention

 



General Comments - Exterior ______________________________________________________________________________________________________________ ______________________________________________________________________________________________________________ Maintenance (Landlord) ______________________________________________________________________________________________________________ ______________________________________________________________________________________________________________ We are only doing a visual inspection, we are not qualified building inspectors. “The statements contained in this report are prepared solely for the purposes of the property’s suitability for rental. It is not to be interpreted or utilised in any other manner whatsoever as to soundness or defects of structure. It remains the owner’s sole responsibility to establish and maintain the structural soundness of the property in conformity with all-building regulations and by-laws. No liability will be accepted for any incorrect use or omission in the preparation or use of this report.” E-mail address – [email protected] Phone – 08 8398 6300 Fax - 08 8398 3035

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LJ Hooker Mount Barker is proud to have received recognition from Terri Scheer Insurance for our outstanding risk management procedures. We pride ourselves on placing the best possible tenant in the most suitable property. By diligently screening tenant applications our comprehensive tenant selection process minimizes risk to our Landlords. Good Tenants = Happy Landlords Nobody does it Better

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4. Owners Information (cont’d) Advise Authorities You are advised to notify the following authorities of the rental of your property:



SA Water



Local City Council or shire Council (dependant on area)



Insurance Company (etc)

Advise Us 

Emergency Contact For landlords going interstate or overseas, etc, we suggest that you nominate someone locally to act as your proxy in case of an emergency and that this person is so advised on the extent of their authority. Their names and a point of contact should be noted with your property manager.



Special Instructions Special instructions need to be provided to your property manager in writing. This includes if any special restrictions on tenants (ie no pets etc), or if you have any specific instructions regarding who should do any maintenance work on your property.

Taxation Consideration As you are now renting your home and generating income from it, you can claim some expenses *(ie management expenses, costs of repairs etc) against your taxable income. *We recommend you speak to your accountant regarding your own situation so that you may obtain maximum tax benefits.

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5. Property Management - Responsibilities Under The Residential Tenancies Act 1995

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5. Responsibilities Under The Residential Tenancies Act 1995 (cont’d) The new residential Tenancies Legislation came into affect on 30 November 1995 and is known as the Residential Tenancies Act, 1995. The many changes created by this legislation affect owners, tenants and agents. The act now provides penalties up to $2,000 for breach of the Act by tenants, owners or agents. The Residential Tenancies Act has been amended from March 2014, All of our staff have been trained in these amendments to ensure that we are conversant with this Act. . We have outlined very briefly some areas that effect us all.

Exclusive Authority to Act as Managing Agent An Exclusive Authority Form must be filled out by you in order for us to be able to manage your property. The Exclusive Authority to Act is between the Licensee of your real estate company and you, as the owner/s of the property.

Application At the commencement of every tenancy the Tenant must be given an information brochure “The information in this brochure is a summary of the Residential Tenancies Act 1995 and does not replace it”. The act applies to all residential tenancy agreements, whether verbal or written and whether administered by real estate agents or private agents. The Residential Tenancies Act will take precedence over any agreement entered into by the parties.

Security Bonds All security bonds are to be paid to the Commissioner for Customer Affairs using the Bond Lodgement Form and within the time specified in the Act.

Tenants Charges At the commencement of a tenancy agreement, tenants may only be charged:-

 

Advance rent total of 2 weeks Security bond equal to 4 or 6 weeks rent according to the act.

Notice By Tenant/Owner In a periodic tenancy agreement, the tenant may terminate the agreement without specifying any reason, by giving a minimum 21 days notice, where an owner (you) must give 90 days notice, or 60 days if the property is required for you or your family to occupy. Both must be in writing.

Remedies Should a tenant fail to vacate a rental property on the day specified in the Notice of Termination, you (as the owner) or we (as your agent) may make application to the tribunal for an Order of Possession.

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5. Responsibilities Under The Residential Tenancies Act 1995 (cont’d) Fixed Term Tenancy Should a tenant vacate the rental premises prior to the termination date set in the agreement, they will be charged in accordance with the Residential Tenancies Act, a % cost of the re-letting fees.

General Provisions Owners Responsibility: Damage & Cleanliness. Owners are responsible for providing the premises in a reasonable state of cleanliness at the time of the agreement and for maintaining them in a reasonable state of repair.

Repairs Where a Tenant has undertaken repairs to damage, which has been caused through no fault of his/her own, which is likely to cause undue inconvenience or injury, and where he/she has made a reasonable attempt to notify the agents in advance, he/she is to be compensated for any expenses incurred. A Tenant however, must use only properly licensed contractors to effect any such repairs, and must provide you (as the owner) or us (as your agent) with a report by the contractor on the apparent cause of the damage.

Locks Owners shall provide and maintain whatever locks or other devices might be necessary to ensure the rental premises are reasonably secure. Neither tenants nor owners may remove, alter or add any locks or devices without the consent of the other.

Right of Entry You (as the owner) or we (as your agent) may enter your rented premises only under the following circumstances:

 

In the case of emergency For the purpose of inspection, at a reasonable hour, with not less than seven and no more than fourteen days written notice and only once every 30 days.



For the purpose of showing the premises to prospective purchasers/tenants with reasonable notice.



With the consent of the tenant immediately before the time of entry.

Costs If you (as the owner) require an executed written document you shall bear the costs thereof.

Children: Discrimination A tenancy agreement may not be refused on the ground that children would be occupying the premises.

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6. Your Tax Position Notify Your Accountant We recommend that you notify your accountant that you are leasing a property, and they should advise you of your deductions and expenses. Some points you may wish to be aware of are:

Income The gross rental received by you as the owner of the premises which are let to tenants, forms part of your assessable income. Non-capital expenses are allowable as tax deductions incurred in the obtaining of the gross rental income. In the case of jointly owned properties, all rental income and deductions are to be apportioned between the owners in the same ration as their share in the property. All documentation relating to rental income and expenses should be kept for a minimum of 5 years and preferably longer.

Capital Gains Tax If the property was acquired after 19th September 1985, capital gains tax will apply on disposal of the property. Certain expenses directly incurred in acquiring the property are capital expenses and are not allowable deductions against rental income. Those expenses will be taken into account in determining the capital gains or losses on disposal of the property. For further information, please refer to the booklet “Income Tax and Capital Gains” available from the taxation office.

Deductions 

Selling Fees The agent commission (fee charged by your agent for the sale of the property) is not tax deductible. The stamp duty is also a non-deductible capital expense, except in the ACT where land is leased and not owned.



Property Management

The following expenses are fully deductible in the financial year in which they are incurred          

Advertising Agents Commission Depreciation Gardening / Maintenance Insurance Loan Interest Rates Repairs Travel Property Management Fees

If the property was not available for rental for the full year, some of the expenses may need to be apportioned. A brief description of some expense items are on the following page.

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6. Your Tax Position (cont’d) Expenses 

Legal Expenses Legal costs are generally of a capital nature and therefore are not deductible except to the extent of $50. Examples of non-allowable expenses are:    

Costs relating to recovery of damages Costs relating to the purchase or sale of property Costs of defining your title to the property. Some expenses, however, may be fully allowable. Examples are:

 



Costs regarding a fair rent court hearing Costs relating to the eviction of a non-paying tenant

Building Write Off A deduction may be allowable of the construction cost of income producing buildings. The amount will depend on the date that construction of the building began and whether it was for residential or non-residential use. Non-residential buildings can be written off at the rate of 2.5% per annum if construction began after 19th July 1982, and before 22nd August 1984. Both non-residential and residential buildings can also be written off at 2.5% if construction began after 15th September 1987. Four percent (4%) of construction cost is deductible if construction began after 21st August 1987. However, no deduction is allowable for residential buildings where construction began 18th July 1985.



Depreciation Depreciation is not allowed for blankets, crockery, cooking utensils or linen. A deduction may be claimed for the replacement of these items. Some of the common diminishing depreciation rates are: Air conditioning (Central) - 20% Air conditioning (room)

- 25%

Carpets & Lino

- 25%

Curtains & Drapes

- 30%

Light fittings

- 20%

Hot water & Stove

- 20%

Motor Mowers

- 30%

Radios, TV, Vacuum cleaners - 25% Refrigerators

- 20%

Washing Machines

- 30%

(Please check these rates with your accountant as they may vary from time to time)

 

Lease The cost of preparation, registration and stamping of a lease are deductible. Rates and Taxes Council Rates, Water / Sewer Rates, Land Tax and all other levies and charges relating to rental properties are deductible.

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6.

Your Tax Position (cont’d)

Expenses (cont’d) 

Repairs Repairs usually incurred as a result of normal wear and tear or tenant damage are allowable deductions provided they do not represent alteration, addition or improvements of the cost to rectify existing faults.



Travel Travel or car expenses incurred in connection with rental property may be deductible. A full deduction will be allowed only if this is the sole purpose of the trip, otherwise a part deduction may be allowed.



Insurance Insurance on building/equipment and/or its contents including public liability are deductible.,



Interest Interest is deductible where a loan was used to purchase, repair or renovate the income producing property. If the deductible expenses (including interest) exceed the rental income the property is said to be negatively geared.



Borrowing Expenses Any borrowing expenses directly incurred in acquiring a loan for the purpose of purchasing income producing property, are deductible over five years or the period of the loan, whichever is lesser. These expenses include application fees, valuation, stamp duty and legal expenses incurred in acquiring the loan.

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Notes/Questions to ask: __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________

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Notes/Questions to ask: __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________

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Notes/Questions to ask: __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________

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LJ Hooker Mount Barker L.J. Hooker Mount Barker is a family oriented business, and part of the HB Chapman Business Centre which has been in operation since 1908. The business is staffed by experienced and loyal employees, committed to building stable relationships with our clients. We offer impeccable service, honesty and care, with a reputation for reliability, trustworthiness and professional conduct.

L.J. Hooker Mount Barker offers clients a full range of real estate services. Other facets of the H B Chapman Business Centre are land conveyancing, valuations, real estate sales, accounting, taxation consultations, secure document storage and estate administration.

Our Promise To You Our prime task is to serve you, our Landlord and we are committed to protect your interests. Your property is your most valuable asset, we understand this and guarantee you the standard of service you deserve. Each member of our rental team is REI trained and Accredited and are affiliated with the LJ Hooker PIMs (Property Investment Managers) Chapter and fully understand the complexities of current legislation relating to renting of homes in today’s market. Years of proven performance in LJ Hooker coupled with extensive local market knowledge is reinforced by the most up to date computer and communication systems. Our property management consultants can be contacted 24 hours a day on 0411 511 233 or by email at [email protected] .

53 Gawler Street, PO Box 47 MOUNT BARKER SA 5251 Phone:- 8398 6300 Fax:- 8398 3035 Email: [email protected]

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Your Property Management Team Julie Runcie - Principle Property Manager Julie is part of the fourth generation of the Chapman family and our Property Management Director. Julie has a Bachelor of Business (Property) from University of SA where she was awarded the Jones Lang LaSalle Award for most outstanding student and is a Gold Key member for being in the top 10% of graduates. Julie is both a Registered Conveyancer and Registered Land Agent. She embraces today’s Business technology and is very keen to ensure our procedures are efficient and leading within the industry. She encourages good old fashioned customer service using her mediation skills to ensure a win-win outcome for all concerned. Her ambition is to make LJ Hooker Mount Barker the number one Adelaide Hills Property Management team whilst ensuring the age old principles of reliability, integrity & honesty are not compromised.

Emily Searby - Senior Property Manager Emily is our Senior Property Manager, has worked in her profession for a number of years both in Sydney and Adelaide and now resides in the Hills area. Emily is meticulous, organised and has a professional approach to managing, maintaining, and leasing your hard earned investment property or beloved home. She loves being a part of a dynamic team, and thrives on delivering superior service to her clients and achieving outstanding results for all her landlords. “L. J. Hooker Mount Barker has a great team environment” says Emily, “being surrounded by so many successful professionals, I am constantly challenged to grow and be a better real estate agent and property manager”. Emily is committed to delivering the best results in a stress free manner in order to facilitate a good outcome for both landlords and tenants when matching people with properties. Having been both a landlord and tenant, Emily’s experience paves the way to happiness for all concerned.

Rozanne Pahl - Assistant Property Manager Rozanne’s energy and enthusiasm continues to move her along in leaps and bounds in her career as Assistant Property Manager with L. J. Hooker. Rozanne has extensive experience in the customer service sector, and has a positive, can-do attitude toward her clients. She has a genuine passion for real estate and being a local Hills resident Rozanne has a thorough knowledge of Mt Barker and the surrounding areas and offers true local customer service to her clients. Her down to earth nature, along with a friendly outlook shouldn’t fool you though, she is absolutely professional and carries out the management of her client’s properties with precision!

For the very best Property Management Team call LJ Hooker Mount Barker—Phone 8398 6300 nobody does it better

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