Frequently Asked Questions
“You may still have some questions and that’s understandable. So we have included many of the most frequently asked questions here for you. We trust our answers reassure you and will help you in making the right decision.”
Grant & Christina Penrose
“RE/MAX Profile Real Estate” Property Management
Property Management For High Yielding Rental Returns
CALL 07 3510 5221
From the Desks Of Grant & Christina Penrose Owners of “RE/MAX Profile Real Estate”
1. Who pays for water?
The Lessor is responsible to pay Council / Shire sewerage and drainage rates, Land Tax and all corporate charges. From the date a tenancy commences and if specified on the Tenancy Agreement, tenants are responsible to pay for electricity, telephone, gas plus water charges over and above the average allowance incurred. However, if your property has a pool, you require gardens to be watered regularly, or you have no water saving devices installed at the property, we can provide ideas for you to avoid disputes about water charges, which can arise.
2. Does somebody keep track of rental payments?
Each business day rent arrears are monitored with action taken as the law allows. Before 7 days arrears, we contact the tenant. If rent is in arrears on the 8th day, we issue a formal Notice to Remedy. In this event, a Notice copy will be sent to you for your reference. If rent continues to be unpaid we issue a formal Notice to Leave when the law allows and send a copy to you. Of course we maintain contact with you until the matter is finalised i.e. rent is paid or the eviction process concludes.
3. Are all repairs done properly?
Work arranged by our Agency for your property is carried out by a suitably qualified and licensed tradesperson. If the work required is covered by a warranty, our Agency contacts the supplier, or if the work is claimable under your Landlord or any other insurance policy, we can contact the insurer to claim on your behalf. Our Agency has access to a wide range of trade’s people who have met our Agency’s stringent criteria.
4. How often can I inspect the property other than for maintenance?
The Tenancy Agreement specifies that the Tenant permits the Lessor/Agent to inspect the property during the tenancy provided the tenant is given notice, as required by the Residential Tenancies Act. The Act states that unless the tenant agrees otherwise, entry may not be made less than 3 months after a previous entry by the Lessor/Agent. We generally do 3 routine inspections per year, which you are invited to attend.
5. Can I say I don’t want pets at my property?
Lessors may choose to specify if Pets are, or, are not allowed in Tenancy Agreements for your property. If you elect to allow pets, the Residential Tenancy Act outlines the Tenant’s responsibility with having them at a rental property. Our Agency can provide practical suggestions for your consideration before deciding if you will allow a pet or not.
6. What is the average length of a Tenancy Agreement?
The most common tenancy is a Fixed Term eg 6 or 12 months. We understand the importance of Investor security and endeavour to find you good long-term tenants. We also consider the lease expiry date to aim for peak periods so if you need to re-let at this time you are in a position of strength. Each Agreement may be re-negotiated before the end of each fixed term period. We contact you two months prior to a lease expiry with options and advice about rent. If a Tenant ends a Tenancy Agreement early, the Tenant is responsible to pay for reasonable associated costs as the law allows.
7. Who holds the Bond money?
A maximum amount equal to four weeks rent is to be paid by the Tenant as Bond prior to the Tenant moving into the property unless the rent is greater than $500 per week. In this case, then an agreed amount can be requested to be paid over and above the four weeks rent as Bond. The Bond is lodged with the Residential Tenancies Authority and held there until the Tenant vacates the premises and a thorough Agent Exit property Inspection and report is completed and we are satisfied the Tenant has returned the property as required and all rent has been paid. The Bond is then dispersed appropriately.
8. How and when am I paid the rent from my Tenants?
All monies received on your behalf are held in our regularly audited Trust Account. From these monies we pay all authorized payments relating to your property eg council rates, insurance, repairs and maintenance. Invoices are sent to you with your next statement. The Trust Account period concludes with account processing occurring on the first business day of each month to comply with Trust Account auditor requirements. We electronically transfer your funds into your nominated financial account within the next 2 business days of the 15th and the 1st of each month..
9. What Insurance is needed for an investment property?
Before renting your property it is highly recommended to have appropriate insurance cover such as ‘Landlord Protection Insurance’. We can provide various brochures from Insurance Companies providing this type of policy. In addition, building and contents insurance and public liability cover are vital. Packages are typically available from your preferred Insurer for cost effective and comprehensive protection. All queries about insurance must be directed to Insurance Providers.
10. Do I pay for the telephone connection?
It is recommended that if the property is new or has been vacant for a while and a telephone line is not connected to the property that you pay for a line connection. We recommend the Tenant organises the work and submits the account to us for you to pay. The Tenant is responsible to pay for the service connection to the line and all services used.
We’re looking forward to helping you in any way we can to get the best returns for your property on the rental market today.
Grant & Christina Penrose