Why Use A Professional Property Manager?
Many property owners don’t have the time and resources to manage a property. A property manager takes care of collecting rent, staying up to date with current legislation, recording and reporting inspections, managing maintenance, as well as finding, screening and communicating with tenants. Master Real Estate property managers will help:
- Market your rental property to minimise vacancies and maximise income (property managers know the rental market, what comparable properties are renting for, and what potential tenants are willing to pay for a rental property. They have the marketing knowledge to reach potential renters, and the experience and resources to eliminate potential bad renters)
- Fill vacancies with the best possible tenants
- Maintain and keep your rental property in good condition
- Track income and expenses to determine profitability
- Negotiate rental agreements
- Collect rent and track tenant deposits
- Comply with federal, state and local laws
- Respond to tenant requests and deal with problem tenants
Being organised is key to staying on top of all your property affairs, but this can take a great deal of your time. Master Real Estate documents all information relevant to your rental property for you. This includes record-keeping, maintaining leasing agreements, postage, handing over keys to tenants, and preparing monthly and annual statements.
What Can I Expect To Pay For Professional Property Management?
The two most common property management fees are:
- A Management Fee (in Sydney this can range anywhere from 5% of the property’s rental income all the way up to 12%)
- A Letting Fee (typically 1-4 week’s rent)
Depending on your agency, other property management fees are such as:
- Internet marketing fee ($200+)
- Lease renewal fee (typically 1-week rent plus GST)
- Monthly administration fee ($20 per month)
- Court or tribunal attendance (billed per hour)
- Photographers fee ($200+)
- Tenancy database check ($10 per person)
- Property condition report ($100+)
- Routine inspection fee ($30)
- Annual statement fee ($50)
- Lease transfer fee ($500+)
At Master Real Estate, the main fees that apply to managing your property are tax deductible:
- A Management Fee of 6.6% of the property’s rental income (includes GST)
- A Letting Fee of 1-week’s rent plus GST. This covers marketing of your property to prospective tenants and includes an extensive online advertising campaign and professional photography
- There are absolutely no other hidden or applicable fees
How Will I Communicate With My Property Manager?
You will hear from Master Real Estate as frequently as you like. If you have a preferred contact method or frequency, please let us know. At a minimum, a property manager will contact you:
- After each Open Home during a vacancy period
- When an application to lease the property has been processed
- Each time a routine inspection is done (every six months)
- If the tenant falls into rental arrears
- When it’s time to review the rent
- When a tenant gives notice of vacating
- Contact will occur via email or phone
How Will Information About My Property Be Collated?
Master Real Estate uses the most current property management software and programs to keep track of rent collection, repairs, communications, inspections and lease renewals.
How Does A Property Manager Find Tenants?
Master Real Estate already has an extensive tenant database and contact list. We also implement a thorough online advertising campaign and conduct regular open inspections to identify prospective tenants quickly and efficiently.
How Does A Property Manager Select Tenants?
Prospective tenants are required to complete a comprehensive Tenancy Application Form via Real Estate, Domain, Ignite, etc. This includes submitting documents in their application such as passport, driving licence, bank statement, pay slips, employment history, references and rental ledgers.
Successful applicants are shortlisted and landlords usually make the final decision that would consider the ability to pay rent, ability to maintain the property in its current condition, lease start date and rental price offer.
After landlords make the final decision, Master Real Estate uses TICA - Australia’s largest tenant database - to confirm the tenant’s rental history and reliability. Master Real Estate will ensure that only the most suitable tenant is selected for your property.
What Is Considered A ‘Good Tenant’?
A good tenant is someone who pays rent on time and maintains your property responsibly. You can expect a smooth and positive experience with most tenants. As many renters go on to own homes, good tenants understand the importance of upholding the terms and conditions of their contract.
How Long Will It Take To Lease My Property?
The average time to lease your property is dependent on market conditions. Master Real Estate will start marketing your property the same day it’s known to be available to rent. Our team of specialised leasing consultants will find you a qualified tenant in the quickest possible time, usually within a week.
What Is A Typical Lease Period?
The most common lease terms are six or 12 months. However, there is no restriction on the lease term you can offer. A 12-month lease allows you to build a more stable relationship with your tenants, which may encourage them to extend the lease.
What Rental Income Can I Expect From My Property?
A rent estimate can be made after we give a free appraisal of your property. Factors that affect a property’s rental value include location, space, amenities, property condition, landscaping, washing and drying facilities, provision for pets, etc.
How Do You Get The Best Rent For My Property?
Master Real Estate always strives to get you the maximum rent possible. To do this, we consider:
Demand - is there currently a high or low demand for rental properties? This can be seasonal and affected by a number of factors.
What’s available - analysing location and comparable features.
What If I Want A Higher Rent For My Property?
You can set whatever rental amount you like, but it’s market demand that really drives the rent price. If prospective tenants looking for a property think the asking rent is too high, your property may stay vacant longer than necessary, meaning you will miss out on rental income until someone takes the property at the higher rental price.
Can I Increase Rent In The Middle Of A Lease Period?
The rental rate set in the contract will hold throughout the lease term unless there is a special provision allowing for any increase in your tenancy agreement. If not, at the end of the lease term, you must provide tenants written notice of any intended increase.
When Will Rent Be Transferred To My Account?
Rent will be transferred to your nominated bank account monthly.
What If A Tenant Falls Behind In Paying Their Rent?
The tenant selection process and method rent collection will minimise any potential arrears. In the event your tenant falls behind with the rent, Master Real Estate sends a reminder email two days after the due date, and then daily reminders following that. Master Real Estate will also contact the tenant to discuss the situation and gain a commitment as to when a payment will be made. Where this happens, we’ll always keep you informed.
In the event a tenant becomes more than 14 days in arrears, we will contact you to discuss your options and agree on a way forward. Your options include:
- If your tenants are facing temporary financial hardship, but have been otherwise reliable, you may be open to establishing a written agreement for them to pay off the rental arrears over time.
- Issue a Notice of Termination requiring the tenants to vacate within 14 days of the notice being received, and submit a concurrent application to the Residential Tenancy Tribunal for eviction and recovery of any unpaid rent from the tenant’s bond.
Where there is a situation relating to unpaid rent, Master Real Estate will provide you with expert guidance for the best possible outcome.
What Happens If A Tenant Stops Paying Rent?
Should a tenant fall behind in their rental payments they are issued with a notice of breach advising them of the amount they are behind and a request to rectify the problem. If this is not done within the stipulated time period, a termination notice is issued requiring them to vacate the premises.
Who Pays For Damage Done By The Tenant?
The question of what constitutes damage and what’s considered acceptable ‘wear and tear’ is always an issue in property management. In cases where damage is not considered normal wear and tear, usually the bond provides sufficient protection. If not, the owner can take legal action against the tenant. Landlord protection insurance can also cover this type of situation.
Does A Property Manager Pay Other Bills On My Behalf?
Master Real Estate takes care of everything for you. Rates and other costs can be paid from the rent received on your behalf into our trust account. This includes water rates, council rates, strata levies, landlord insurance and maintenance invoices.
Can I Charge A Tenant For Water Consumption?
You can charge your tenant for water providing the property is separately metered and water efficient. Master Real Estate can arrange for the bill to be issued to us and we will pay your water consumption account from your rental funds and invoice the tenant for reimbursement.
How Do Property Managers Manage Payments?
Rent payments will be held in the Master Real Estate Trust Account and landlords paid at the end of every month via electronic funds transfer to your nominated bank account. We are happy to manage any of your property related expenses - strata, water, rates and trades. Creditor invoices are paid from your rental income prior to disbursement.
A financial statement detailing all ingoing and outgoing monies is emailed to you at the end of every month. Statements are uploaded to your Master Real Estate Landlord Portal for you to access 24/7. You will also be provided with a free End Of Financial Year statement. To allow Master Real Estate to manage your property related expenses, contact your relevant service providers and request all invoices be sent directly to us.
Who Maintains The Property?
A property management team will identify, investigate, quote and follow up on any maintenance issues brought forward at a routine inspection or by the tenants. Master Real Estate has access to reliable electricians, plumbers, handymen and gardeners who quote and complete work for us on a daily basis. We can also help obtain quotes for any renovations or instalments you might like done.
While you’re not obligated to use our tradesman, you can rest assured our network of licensed professionals are fully insured and competitively priced. Should you have a preferred tradesman you wish to use for any maintenance repairs, please inform us at the
start of your management agreement, or as soon as this becomes your preference.
How Are Maintenance Issues Handled?
If a maintenance issue arises at your property during the tenancy, the tenants are required to issue a maintenance request via email or through the Master Real Estate online tenant portal. This will include photos and a description of the maintenance request. Master Real Estate will then contact you to discuss the matter further, provide quotes and arrange repairs as per your instructions.
What Happens In An Emergency?
In the event of an emergency, Master Real Estate will use a commonsense approach to handle the matter on your behalf if you are not immediately contactable. Once any work to rectify maintenance issues has been completed, the invoice will be sent to our office by the relevant contractor and the amount deducted from your rental account. A copy of the invoice will be included with your next statement for tax purposes. Owners can track maintenance progress online via their Owner Portal.
What Is A Condition Report?
Prior to the commencement of any new tenancy, Master Real Estate will conduct a thorough inspection of your property and complete a detailed Condition Report. This report will include extensive photography of your property and detailed commentary as to the condition of each room.
Your new tenant will be provided with a copy of the condition report and must return it within seven days highlighting any discrepancies. At this point, we may need to raise with you as the landlord of any maintenance items highlighted.
Master Real Estate also conducts an ‘end of tenancy’ inspection and compares the outgoing inspection report to the original condition report completed at the commencement of the tenancy. Any costs associated with damage caused by the tenants (with the exception of ‘fair wear and tear’) and/or cleaning costs can be recovered from the tenants by way of bank transfer or deduction of bond monies prior to the bond being released.
How Often Is My Property Inspected?
During our regular routine inspections, we assess how well your tenant is looking after your property and determine if there are any maintenance issues or repairs that require attention. We conduct inspections at the following intervals:
- An initial inspection prior to the tenant moving in
- Every six months
- A closing inspection on completion of the tenancy
Can I Inspect The Property Whenever I Like?
Yes, but the tenant must be given 7 days notice. Owners and Property Managers are limited to a maximum of 4 inspections in any 12-month period.
What Keys Are 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. Master Real Estate retains a full master set of keys at the office.
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 deadlocks be fitted to all external doors and windows.
What If The Tenant Wants The Locks Changed?
If the tenant wants to alter existing locks or add other security devices to make the property more secure, they must obtain the owner’s prior consent and pay all costs. The tenant must provide the owner and property manager with a copy of any new keys.
What About Smoke Alarms, Light Globes & Tap Washers?
It is the landlord’s legal responsibility in NSW to provide working smoke alarms and light globes, and fix any leaking taps prior to the commencement of the tenancy. The tenant is responsible for replacing any light globes. The landlord is required to maintain smoke alarms and Master Real Estate recommends the use of qualified professionals for that purpose.
Do I Need Landlords Insurance?
While it is optional, Master Real Estate recommends you take up Landlords Insurance if you own or are about to own an investment property. Landlord Insurance protects you in the event of a tenant not paying rent, departing the property early or damaging the property.
Like any investment, your rental property needs to be protected. If tenants damage the
property or leave without paying their rent, you can be left out of pocket. Landlord
Insurance gives you the peace of mind for cover against malicious damage, loss of
earnings, as well as storms, flooding and fire. The types of things a good landlords
insurance policy covers you for include:
- Coverage for a wide range of natural disasters and other events
- Theft or malicious damage to your property and its contents
- Cover for impact damage (like a fallen tree or car crashing into your property)
- Cover for contents outside the insured building (eg, barbecue or outdoor furniture)
- Cover for damage caused by bursting, leaking or overflowing water
- Optional Motor Burnout cover (eg, appliances like dishwashers, garage doors)
- Rent Default and Legal Expenses to cover you if your tenant does not pay rent
Master Real Estate understands that insurance can be complex and overwhelming. That’s why we’ve partnered with one of Australia’s largest insurers to offer you comprehensive cover.
What Are The Landlord’s Main Responsibilities?
Your major responsibility as a landlord is to offer and maintain a dwelling that meets basic habitability requirements, such as structural safety, heat, water and electricity, sufficient water-proofing, and a sanitary indoor environment. You are also responsible for ensuring the safety requirements set out in the Building Code of Australia.
Can I Give You Special Instructions?
You may stipulate some special instructions in relation to the property and the way it is managed, provided the instructions are lawful. These instructions need to be either specified in the Management Agency Agreement or provided to us in writing.
What Are The Property Manager’s Main Responsibilities?
- Sourcing the right tenants
- Ensuring the tenancy agreement is completed and signed
- Collecting rent and ensuring you receive this
- Lodging the rental bond
- Liaising with tenants and coordinating repairs to the property
- Conducting regular property inspections
- Handling disputes with tenants, including attending court and tribunals
- Paying rates and bills on your behalf
What Happens At The End Of The Lease?
At the end of the lease, you have the option to renew the lease or request the tenant to vacate. Landlords typically tend to extend the lease if they have good experiences and relationships with the tenants.
What Happens When The Tenancy Agreement Expires?
The agreement continues on a continuation (or holding over) basis. Each party is required to give the following notice period to terminate the agreement:
- Tenant: 21 days
- Owner: 90 days
It’s not necessary to renew a Tenancy Agreement when the fixed term period ends. Most landlords and tenants choose not to enter into a renewal agreement once the initial fixed term expires. While we can ask a tenant to renew their Tenancy Agreement for a further fixed term, we can’t insist they do so. Any renewal must be mutually agreed upon by both parties.
How Can I Terminate A Tenancy?
There are three main ways to terminate a tenancy:
- To end the tenancy at the end of the fixed term, either party can give at least 30 days notice of when the fixed term of the agreement is due to expire.
- To end a tenancy after the fixed term has expired (ie, a continuing tenancy), a tenant is required to give at least 21 days notice and the owner at least 90 days notice.
- To end a tenancy due to a breach, a 14-day termination notice may be given at any time should either party breach a term of the agreement, or if the tenant is more than 14 days in arrears of rent.
Can A Tenant Break The Tenancy Agreement?
Residential Tenancy Agreements are legally binding contracts. However, if a tenant wants to break the Agreement and vacate the property before the fixed term expires, the tenant is responsible for the following:
- 4 weeks rent if less than 25% of the fixed term has expired
- 3 weeks rent if 25% or more but less than 50% of the fixed term has expired
- 2 weeks rent if 50% or more but less than 75% of the fixed term has expired
- 1 week’s rent if 75% or more of the fixed term has expired
What Happens If A Tenant Takes A Matter To The Tribunal?
A property manager can represent you at the NSW Civil and Administrative Tribunal (NCAT) if there are disputes with tenants that can’t be resolved with non-legal mediation. Master Real Estate will support your case with evidence such as records of late payments, photographs of any damages to property, receipts, and copies of letters and any other correspondence. This will help you present a better case at the tribunal hearings.
A professional property manager will know the current laws and regulations related to rental property, in case either party outsteps the legal boundaries expected from a landlord-tenant relationship.
What Happens To Mail Addressed To Me That Is Sent To My Property?
We ask tenants to forward to us any mail addressed to you, but it’s strongly recommended you request Australia Post to redirect your mail to you.
What If I Change My Address, Bank Account, Phone Numbers, Email Address, Etc?
Please notify us in writing as soon as possible.
How Do I Transfer My Property To Master Real Estate?
- Complete the Termination Letter that Master Real Estate will provide to you
- Email the complete letter to your current managing agency
- Master Real Estate will agree on an effective date of transfer with your current property manager
Can I Refer Other Property Owners To You?
If you think Master Real Estate is doing a great job, please refer us to others that could benefit from our services. To say ‘Thank You’, we’ll reward you with 3 Months Free property management for every new property leased.
What If I Want To Sell My Property?
Master Real Estate can take care of this too. We have our own real estate sales team to service the needs of our property management client, and access to thousands of potential buyers. For information on how we can help you sell your property or assist you in buying another property, contact your personal senior property manager.