One of our property managers from the property management department will inspect the property to estimate the rental value and make suggestions on possible improvements to ensure the property is leased as soon as possible.
The standard marketing process to lease properties will include:
- Listing the property on the rental market
- Organising a detailed report about the property
- Advertising the property on the web
The optional extra marketing strategies include:
- To Let” sign boards placed at the front of the property
- Print media – Newspaper advertising in the local papers and “The Age” if necessary.
Further, we receive a large number of phone enquires and emails in response to our advertising.
Selecting a tenant, suitable to your property is a very delicate procedure. Once a tenant has viewed your property, they are requested to fill in a detailed application form. This form covers details of current and previous residences, employment history, personal references, and the number of people occupying the property, in addition to personal identification like driver’s licence, passports or utility bills issued in their name. Each adult who will be occupying the property then fills out an application. The property management team then conducts reference checks, and personal details are verified. The property owner has the option to request our office to carry out a name check on the National Tenancy Database. The tenant check provides a detailed history of the tenant regardless of the state in which they previously resided – Australia wide. The application is discussed with the property owner. Once the property owner is completely satisfied that the tenant recommended is the right one for their property, then the tenant is notified that they have been successful. As the final stage, an appointment is made with the tenant to commence the signing procedures.
Tenancy Agreement PreparationAs part of the tenanting process, one or our property team contacts the successful tenants to make an appointment to complete regulatory paperwork, which will be a fixed term lease agreement for a minimum period of 6 or 12 months. The tenants are then advised of the commitments and agreements they have made by signing the lease agreement, the regular inspections that will be conducted by the property management team, and the handling of any maintenance issues they may have. The tenants are also advised to bring to this appointment one calendar month’s rent, and the bond money equivalent to one calendar month’s rental. They are then advised of the various methods available for the payment of rent.
The vast majority of tenants pay their rent on or before the due date. However, there are occasions when this does not occur and our actions at this time are as follows:
- 5 days overdue – a reminder notice is automatically forwarded to the tenant.
- 10 days overdue – the tenant is advised that if payment is not received within 5 days, a 14-day notice to vacate the property will be served and an application will be made to the Residential Tenancies Tribunal for a hearing.
- 15 days overdue – the above actions are carried out and a Warrant of Possession for the property is obtained at the tribunal hearing.
These actions are carried out automatically to minimise the possibility of a loss of rent that could eventuate. No formal action for recovery of outstanding rent can be undertaken until the tenant is 14 days overdue with a rental payment.
If a property is well positioned in the rental market in relation to the right rental amount, a property will achieve the right tenants. The vacancy rate of our office ranges between 2% - 3% per month. 12 month fixed term leases are preferred at all times except in cases where the property owner or tenant requests a shorter term. This enables our clients to gain stability in their rental income. A weekly update is provided to our clients by our Property Managers as to the number of inspections and enquiries the property has attracted.
Apart from the obvious building insurance, every property owner commonly takes out; our office strongly recommends that Landlord insurance be taken out on the property prior to a tenant moving in. There are many companies, which provide this service. Property owner’s insurance covers items such as loss of rent, loss or damage to property, loss or damage to building and legal liability. The limits on each of the items may differ from policy to policy so it is best to research and find the appropriate cover for your property. Our office could arrange landlord insurance for any of our clients, once we receive a request in writing.
Advertising & Promoting the Property
- All properties listed with Priority Asset Management Pty Ltd are advertised on
- realestate.com.au and
- priorityassetmanagement.com websites
- An update rental list is forwarded to relocation companies requesting a list of properties for their clients.
- Prospective tenants who have registered their interest with the company are contacted and a rental list is made available to them.
- A “For Lease” board is erected at the front of the property and the property is advertised in the local newspapers and the mainstream print media.
At Priority Asset Management, we personally carry out inspections with all potential tenants. We are one of the few real estate companies who boast of having a Property Manager available to conduct inspections within 24 hours of a tenant making an enquiry on a property and sometimes within a few hours on the very same day.
Our office also highlights the importance of carrying out routine six monthly inspections on properties along with our clients if requested. This is done on a regular basis to ensure that the property is well maintained at all times. A detailed report of the inspection is supplied to our clients upon completion of the inspection keeping them well informed.
At Priority Asset Management, we have a well-structured maintenance department that works in accordance with our Property Management division to enable efficient handling of maintenance problems arising from properties under management. All trades people are highly qualified and have the required insurances under their specific areas of operation.
Payment of Accounts
All rents collected during the week are paid out at the end of the week on a Friday. This enables our clients to have improved cash flow in relation to their properties. This scenario of course is subject to the tenant paying on time using the DEFT system, which is a very flexible option for tenants. The DEFT system enables tenants to pay online using BPAY or pay at any AUSPOST outlet.
In addition to this service, Priority Asset Management Pty Ltd is in a position to pay any outstanding invoices in reference to the property on behalf of our clients from the rent collected against the property. This could only be initiated on instruction of our clients to the utility supplier. This gives our clients peace of mind in reference to having these outstanding bills paid without having to take care of the same on a regular basis.
Priority Asset Management encourages rental increases on properties every 12 months; however, under the Residential Tenancies Act the tenant has to be given 60 days’ notice in order for the rent to be increased.
We make our clients aware that rental increases are subject to the tenant accepting the increase or making an enquiry to consumer affairs for an independent rental appraisal. Should the independent rental appraisal warrant an increase the tenant has a choice to accept the increase or move out of the property if the property owner continues to seek a higher rental return?
All rental increases advised out by Priority Asset Management Pty Ltd consider the current market conditions.
Management Fee Structure
The Management fee structure is always negotiated on an individual basis with our clients. Property Management services encompasses various processes that need to be controlled on a daily basis to ensure that our client’s investment is well managed at all times.
Given the opportunity, we at Priority Asset Management will ensure that your investment is efficiently managed.