Property Management
Norm Honey, Director of Property Management
The first quarter of the financial year completed with our vacancy rate showing a very low 0.80%. Indications are that in the short term there will be no easing of the rate, especially with the busy summer period upon us. The low vacancy rate has put pressure on the average weekly rent, with rents increasing by between 8% and 10% and in some areas, a little higher.
During November we are expecting to bring onto the market quality 1,2 and 3 bedroom units in the outstanding ‘Belle’ development in Bruce. These upmarket units will help ease the shortage in the Bruce precinct. If you are one of the fortunate investors to have secured one of these units, I suggest that you call our New Business Manager, Jessica Lawless on 0404 786 372 to arrange an appointment to sign up for our property management services. During October we received steady enquiry from prospective tenants interested in securing units in the ‘Belle’ development.
Below I list another 6 questions received from owners throughout the year. I hope that the previous 10 questions, along with these 6, have helped you. If you have any other questions that may be concerning you in regards to your investment property, please do not hesitate to contact your Property Manager.
WHICH KEYS MUST BE SUPPLIED TO THE TENANT?
All tenants listed on the Tenancy Agreement must be given a full set of keys. This includes keys to all external doors, windows, garage or letterbox locks. We retain a full master set of keys at the office. This may necessitate having keys cut at your expense.
HOW SECURE MUST THE PROPERTY BE?
The law requires that an owner must provide and maintain locks and other security devices to the property in order for the property to be “reasonably secure”. It is recommended that key operated dead locks be fitted to all external doors and windows.
WHO PAYS FOR WATER CONSUMPTION?
If there is no individual meter for the rented premises, as in the case of most blocks of older units, a tenant cannot be changed for water usage. However, the tenant is responsible for any cost of water used during the tenancy if the property has an individual water meter.
It should be noted though that ACTEW requires that water availability and usage accounts must be paid in full by the owner of the property. We then request reimbursement from the tenant for the water usage component of the account.
WHAT IS THE DIFFERENCE BETWEEN THE COMMISSION CHARGED AND THE ADMIN FEE?
Commission is charged for the service we provide as a managing entity for the property (or properties for some lessors), it includes our knowledge and experience in real estate matters, guidelines and laws. The ability to ensure that all guidelines and laws are followed in the tenancies applicable to an investment rental property – i.e., rent increases, arrears notices, notice to vacate, lease renewals, maintenance, etc - are done in accordance with the laws under the Residential Tenancies Act. It also includes the service provided for the time saving aspect of lessors not having to be involved in rent arrears, correspondence and communications with tenants, and so on.
The Admin Fee is charged for postage, emails, calls, stationery, etc. As we do a lot of the paperwork side of things and only keep the details on file - meaning that copies are not duplicated again for lessors records - lessors do not often see the admin side of things as it is all in office. Also, mobile phone calls are a very common form of workplace communications these days, but many businesses with phone numbers for individual staff members not only have to pay per minute for mobiles but also for land line calls, which is another huge factor to our admin fee. Whilst there may be a few months where the communication with lessors is limited, we could have several communications with the tenants of the property, be that calls, emails and/or letters, so the admin fee certainly goes towards the monthly costs of administration on the property that are not part of the commission.
IF I WANT TO SELL MY PROPERTY, CAN INDEPENDENT PROPERTY GROUP HELP?
Yes, we have referral arrangements in place that ensure our clients receive first class service at highly competitive rates. For information on how we can help sell your property, call your personal property manager.
HOW OFTEN SHOULD ITEMS IN THE PROPERTY BE MAINTAINED OR REPLACED?
LIFE SPAN OF COMMON ITEMS
| Internal Painting | 5 years | Microwave oven | 8 years |
| External Painting | 5-10 years | Garbage disposal | 11 years |
| Hot Water System | 7-10 Years | Trash compactor | 11 years |
| Oven | 10 Years | Smoke detector | 10 years |
| Carpets | 10 years | Refrigerator, standard | 14 years |
| Lino | 7 years | Refrigerator, compact | 8 years |
| Curtains/Blinds | Varying | Washing machine | 12 years |
| Kitchen renovation | 10-15 years | Dryer | 13 years |
| Bathroom Renovation | 20 years | Dishwasher | 12 years |
| Gutter Cleaning | Yearly | Air Conditioner | 10 years |
| Pruning | Yearly | Electrical Wiring | checked every 2-3 years |
| Tap washers | Yearly | Swimming Pool Filtration | Yearly |
Until next month,
Norm Honey
Director Property Management
norm.honey@independent.com.au