The tenants are all ready to move into your first investment rental property. Your next decision is whether to work with a property management team to manage your house or do it yourself.
What is Property Management?
Property management is a service to help maximise the profit from your investment property. Property managers can take care of any repairs or maintenance issues that might arise, as well as collect rent and process tenant complaints if necessary. Your team may also manage other aspects of the rental process like screening potential tenants and showing units to people who want to move in.
They will be experienced and will know the risks that may occur and will have processes in place to handle them. Your property manager’s task list will include:
Your property manager will collect rent from your tenants on the date it is due. They will then deposit the money in the bank for you. They may also collect other fees like late charges, which can vary depending on your property type and the state in which it’s located.
Rent collection is one of the most important services carried out by a property manager. This is your investment income, make certain you understand how their service works before you sign up with them. Ask how often the rent is collected and when it is passed to you. A professional manager will use Direct debits for rent collection, to help with tenant reliability.
Maintenance and repairs
Property managers handle any repairs or maintenance issues arising in the home such as repairing a leaky tap or repairing air conditioning. They will often have agreements with general contractors and subcontractors for these services so they can complete them quickly and efficiently. An emergency can occur at any time and your property managers will have a 24-hour hotline or may provide the tenant with a list of contractors to contact when urgency is key.
It’s important to consider what types of complaints you expect your rental to generate. Your tenant may complain about the property or fixtures and fitting. Neighbours may have complaints about your tenant. It may be that your tenant is not paying rent promptly. Property managers should be prepared for complaints. Experienced property managers will have dispute resolution policies in place which can help resolve issues and prevent problems from escalating.
Your property managers may do a walk-through with the tenant at the beginning of the tenancy, during which they provide any guidance needed for the tenant about use of appliances or waste disposal times and processes, and then document everything discussed so it is clear what has been agreed to. Property managers will also make sure the place is cleaned before a new tenant moves in. They may take photographs to confirm the location and condition of any furniture or fittings, such as carpets or curtains.
Regular Property inspections are a critical part of Property management. Property managers should inspect the property to identify any repairs or maintenance required (e.g., leaky taps, air conditioning not working).
Your team should also inspect the property when the tenant vacates to check for any damage.
Let’s Rent – innovative property management
Let’s Rent care about the business and our clients. There’s no better confirmation of this than the fact that nearly 88% of our business is from referrals from delighted clients.
Many of our property management team at Let’s Rent are investors themselves. This provides us with a great knowledge base and combined with our years of experience makes us a safe pair of hands for your valuable property.
Our friendly and professional team tick all the boxes:
- Most of our tenants pay their rent by direct debit. This means the tenant never forgets to pay the rent on time. We pair this with our zero tolerance for arrears, as contracted with the tenant so we can pass on your investment income promptly.
- Property maintenance is handled by our dedicated specialist team. The relationships we’ve built with trades contractors enable us to keep prices competitive and ensure prompt service.
- Property inspections are routine for us. We ask the tenants to pre-warn us of any issues and we conduct repeat visits to ensure actions are complete.
Our company goals are care, diligence, expertise and professionalism. We build great relationships with our clients. We believe open communications are vital. With us, your phone messages will be replied to and your emails read and acted upon.
Contact Let’s Rent today to place your investment with the property management experts.
For more information
With the End of Financial Year (EOFY) fast approaching it is a good time to review whether you are doing all you can to be tax-compliant but also whether there are any opportunities to increase investment property returns. While many of us don’t particularly enjoy tax time and look to outsource everything we can to an accountant, taking a proactive approach to your rental’s financials can make a big difference to your tax return.
Check out our tips below to help you to ensure you’re getting the most from your investment.
Invest in depreciation schedule!
Many landlords avoid learning about depreciation and their investment property however, investing in a depreciation schedule is an absolute no brainer. Depreciation is a key element of your investment property strategy. While depreciation tax breaks are higher on newer properties, they’re also available for older/existing properties.
As a property investor, you’re able to deduct the cost of the depreciation of your rental from your overall taxable income, incredibly, around 80% of investors don’t claim the depreciation of their investment property at tax time – which is crazy when it’s so simple to arrange and annual deductions are typically in the thousands of dollars every year, for up to 40 years. If you don’t have one for your rental property, contact your Let’s Rent property manager today and we will work with you to obtain one prior to the EOFY.
Invest in your investment… you heard me!
Savvy landlords understand that having an investment property isn’t a set-and-forget proposition. Investing in your investment property goes beyond addressing repairs and maintenance issues, it’s means identifying improvements that will appeal to a broad range of potential tenants, increase the weekly rent, and improve the overall value of your property. If you’re willing to invest but not sure how to maximise your “bang for buck”, our experienced property managers will be able to identify aspects of your property ripe for improvement, offering your asset wider tenant appeal and the potential to yield higher rental returns. Coinciding these investment property upgrades with tax time can add to your potential deductions for the tax year.
Pre-pay your interest
Subject to the conditions of your loan pre-paying interest for the year ahead may be an option for some landlords that can result in substantial savings, in particular if you have a fixed rate loan. The benefit of pre-paying the interest means you can push next financial year’s interest payments into this year and then claim it back as a deduction on your tax return for this year.
You will need to have the funds upfront, however this could potentially lead to a reduction in your taxable income. This is particularly beneficial if you are on a high income and have a large loan.
Review your rental property’s insurance
EOFY is a sensible time to review both your personal insurance and the insurance you hold for your investment property. The right insurance for your rental will depend on a number of factors, including whether your property is a standalone home or part of an owners corporation. If you’re part of an owners corporation, they’ll generally arrange for insurance to cover the building and common property – but you’ll need to take out your own insurance policy for items like floor coverings, appliances, window coverings, etc. When comparing insurers ensure you compare what the policy does and does not cover, a small saving now could cost you further down the road. Speak to your property manager to confirm your best approach regarding insurance.
Make sure your accountant knows property!
Property investment is a niche accounting category, and in order for you as a landlord to enjoy all the benefits investment offers, you need an accountant who knows how to treat your asset as a business! It’s in your interest to work with an accountant well-versed in the opportunities and risks that concern a property investor’s return. Your accountant should work with you to maximise the benefits you receive from your investment property. If they’re simply inputting the figures you provide regarding income and expenses, it could be time to look for a new provider. From both a compliance and financial perspective, a clued-up property expert accountant will help you get the most out of your investment property.
The Let’s Rent Team are available should you have any questions in regards to your investment property and maximising your tax return this EOFY!
If you’re looking for a home that offers both a great community feel as well as simple connection to the city, then you really can’t beat Annandale. This suburb offers a welcoming village feel and a zippy commute to the CBD – who wouldn’t want that kind of balance in life?
What’s Annandale like to live in?
It’s easy to see why houses and private rental properties in Sydney’s popular suburb of Annandale are always in demand. The University of Sydney and University of Tasmania campuses are both close by, as is Royal Prince Alfred Hospital. Beautiful Rozelle Bay is situated directly to the north, while surrounding suburbs include Glebe, Lilyfield, Leichhardt, Stanmore and Camperdown. Residents are a diverse mix of families, couples and singles with quite a youthful vibe to the area. Quality early learning, primary school and high school are all covered, including Annandale Public School, St Brendan’s Catholic Primary School and Annandale North Public School. There’s also a convenient blend of supermarkets and local grocers.
In our experience providing property management services in Sydney, one of the great things about Annandale is the wider streets that make it both a family-friendly and bike-friendly place to live. Of course, the shining gem in all this is the proximity to the city, with several bus route options, the tram from Jubilee Park station or a drive of under 10 minutes. So what about when you’re not at work?
Here’s how you might fill your weekends in Annandale:
- Taking some time out in Jubilee or Bicentennial Park – Glebe Point is about as picturesque as it gets!
- Enjoying a leisurely brunch at one of the fantastic cafés in the area.
- Joining a workshop or grabbing a great bite to eat at Tramsheds.
- Catching up with friends over a pint at Wayward Brewing Co.
- Relaxing on the water with a boat charter out on the Harbour, and
- Soaking in the brilliant ever-changing exhibitions at Annandale Galleries.
What types of rental properties are available in Annandale?
There aren’t too many large blocks in Annandale, but thanks to pocket parks all over the place you’re never far away from a green space. There are plenty of heritage houses and character homes as well as cool industrial-chic apartments to choose from. So whether you’re solo or coupled, or raising a growing family, you’re sure to find an ideal property in Annandale.
Explore available properties
If you’re a property owner seeking real estate property management in Annandale, Let’s Rent can provide expert service and experience in the local area. We can not only provide advice on the best rental rates for the area, but can also attract and screen quality tenants and ensure your rent is paid on time. Contact our specialists in residential property management in Sydney today.
While we firmly believe in providing genuine people-based property management services in Sydney, we’re also very aware that the right technologies can help to make these services more reliable, robust and responsive. Here are three big areas where our use of technology allows us to provide highly effective property management.
Maintenance requests and management
Here at Let’s Rent we use a modern software package that’s used by only 90 other agents in Australia, which enables us to keep better track of details relating to your property. Your tenant’s maintenance request doesn’t just get scribbled on a Post-It note and promptly forgotten. We make it easy to submit a maintenance request on our website or to email the team, and then we follow up with a timely response. Our internal systems enable us to keep a detailed record of property inspections, photos and maintenance requests and invoices so there is a clear record for owners.
Making your paperwork easy
You don’t need to be bothered by every detail of your investment property – that’s why you use residential property management! Our internal system allows us to offer a streamlined paperwork process for owners. We run a trust account for rental and bond monies, which is reconciled daily and audited annually. Rents are paid either fortnightly or monthly into this account by direct debit, which allows us to identify any issues very early on with zero tolerance for any arrears. We manage the payment of your water rates, council rates, strata levies and maintenance costs as needed. These costs are deducted from rental payments and transferred to you at the end of each month. You receive an email each month with a detailed electronic statement including all paid invoices. Then at the end of the year, we send through an electronic statement outlining your income and expenses. It’s all so much easier for you and your accountant.
Rent reviews and lease renewals
Tenants will naturally be reassessing their rental situation as their lease expiry comes up. Our internal systems means that we get in touch with you about 8 weeks before the lease expires to review the situation. We can talk about whether you have plans for the property, whether the tenant is interested in staying on and whether rent should be adjusted. Being proactive with this type of timing allows you and us to create the best plan for the situation. If your tenant will be staying on we get the paperwork organised to make renewal seamless, and if the tenant is moving on we can get started finding a new tenant to keep any vacancy period to an absolute minimum.
To get started with a modern and progressive property manager in Sydney’s inner west or eastern suburbs, contact the Let’s Rent team today.
Most property management companies offer both real estate and property management services in Sydney. While their property management team can help you attract and retain tenants for your investment property, the sales team can help you sell your property if you choose to offload it.
On first thoughts, this might seem like a solid idea. The team already knows your investment property, which makes both leasing and selling simpler. Right?
But here’s one big question to consider:
What if the incentive to sell your property for you outweighs the incentive to manage your property well?
Providing multiple services means that there could be multiple motivations when it comes to giving you advice and support.
For example, if house prices are high could you be encouraged to make a quick sale – even though it may not be in your best interest?
Using a dedicated property manager takes all of the ambiguity out of the equation.
We’re in business for one reason and one reason only: getting you the very best rental return. That means we’re motivated to find you high quality tenants, to ensure your property stays in its optimal condition, and to show your tenants with respect with clear communication. It also means we can focus all of our attention on continually improving our team, processes and platforms.
At Lent’s Rent, for example:
- We dedicate time to fully training our property managers – something which is surprisingly rare in the industry.
- We’re highly focused on answering phone calls and emails.
- We’ve put time into finding the right software package so we can deliver the best service.
- We have the time to conduct detailed property inspections and to communicate clearly with tenants.
- We provide advice around rental rates and property improvements that are focused solely on getting you the best rental yield.
- We’ve also developed our policy that all rent is to be received via direct debit, which identifies any issues early on and allows us to maintain a very low rate of arrears – typically less than 1% of all properties.
These reasons all contribute to why almost 88% of all our new business still comes from referrals: a rate which has been quite consistent since 2005.
By choosing property management in Sydney without a sales team attached, you get 100% focused service. And if you ever do decide you want to sell your investment property, you can be confident it’s not because a sales team has been in your ear.
So when it comes to choosing from property management companies, consider choosing one that only offers property management services like Let’s Rent.
You don’t want to be messing around when it comes to finding the best property management agent to manage your rental property in Sydney. While the right property manager will bring you reliable rental return and tenants who are happy to renew the lease, the wrong one could bring you nothing but trouble.
Based on our experience within the industry, here’s how to find the right professionals.
This is universal advice, whether your investment property is located in Sydney or anywhere else in the world. It pays to use a property manager who works in that particular area and understands the local market and demographics. This is because we can provide realistic guidance when it comes to reviewing your rental rates each year, and setting your property apart in the market when finding a new tenant. This is exactly why our property managers focus specifically on the inner west and eastern suburbs of Sydney.
Ask questions (lots of them!)
We’ve covered all of the must-ask questions for your new property manager in a previous blog post, but here are three of the key ones:
- How do you make sure my tenant pays on time?
- How do you find and screen tenants?
- What percentage of tenants with you are currently in arrears?
If a property manager can answer your questions clearly and without excuses, there’s a good chance they know what they’re doing.
Assess their communication
Responsive communication is one of the single most important qualities you can look for in residential property management companies. Not only is it important that you and your tenants get your questions answered, but it’s also a legal requirement that any urgent repairs or maintenance will be attended to quickly. So if a potential property manager is hard to get hold of, give them the flick and look elsewhere.
Consider word of mouth recommendations and referrals
While Google shouldn’t be the deciding factor when it comes to finding the right rental tenancy agency, it can really help to read through reviews and recommendations for a property management agency. The odd bad review might not be much to worry about, but a consistently low rating should tell you to steer clear. We see a personal recommendation as the ultimate proof of performance, and we’re happy to report that almost 88% of all our new business comes from someone referring their friends or family to us.
Evaluate how proactive they are
Property management is one area where complacency is unfortunately very common, and it can absolutely lead to problems for you and your tenant. The Let’s Rent team is very aware of the problems that complacency can bring in this industry, which is why we’re continually assessing and improving our processes. We’re proactive about improving the way things are done.
We focus on developing positive tenant relationships. We choose to use direct debit rental payments, which means our arrears are consistently less than 1% of all properties we manage. And, we conduct regular rental reviews to ensure you’re getting the best possible return on your investment.
If you are in the midst of finding a new property manager in Sydney’s inner west and eastern suburbs, get in touch and we’d be happy to answer any and all of your questions.
Owners – we get it. You don’t want excuses and you don’t want delays – you just want the damn rent paid on time! It’s not too much to ask, but how do you ensure it happens?
As residential property managers in Sydney, we started really thinking about this issue almost a decade ago. Today, 99% of our tenants actually pay in advance on average. Here’s how we manage it.
Setting up direct debit payments for rent
The one single change that makes a huge difference at Let’s Rent is requiring tenants to pay their rent on a fortnightly or monthly basis via direct debit. This minimises the chance that someone will forget to pay their rent, and allows us to pinpoint any issues quickly. Many tenants actually prefer the convenience of direct debit, so it works for everyone.
Setting the expectation for zero arrears
At Let’s Rent we’re proud that our arrears are consistently less than 1% of all properties we manage. How do we manage such an impressive rate? We make it clear from the start that we have an expectation of zero arrears, which ensures everyone is on the same page. If for any reason a payment doesn’t go through, we let you know and actively work with the tenant to get balances back to normal.
Finding the right tenants
Of course, some tenants are more reliable th
an others. One of the most important elements is to find the right tenant in the first place, who has a history of reliable payments and a solid employment history. We know how crucial this is to rental reliability, which is why we dedicate extra time and effort into our pre-tenancy reference checks including picking up the phone. You should expect nothing less from professional real estate investment property management in Sydney.
Maintaining respectful relationships with tenants
There can be horror stories about the fraught relationships between landlord and tenants – but we believe this tension can be completely avoided with mutual respect. We build strong and respectful relationships with tenants, and respond to maintenance and repair requests without delay. Tenants are much more likely to respect tenancy conditions and pay regularly when they’re satisfied with the arrangements and feel valued.
Reviewing rent regularly
Rental reviews are a must to ensure you’re receiving reliable and appropriate return on your investment property. We review rents every year for every property, providing a market review on whether a rental increase is recommended or not. Experience can make all the difference between getting maximum rental yield for your property and risking a property vacancy – we’ll help you get that balance right.
Let’s Rent is the go-to solution when you’re looking for investment property managers in Sydney or agents to help find rentals. You can learn more about why owners love to rent with us, or contact us today to get started.
Perhaps your current property manager hasn’t conducted thorough reference checks when your tenant was chosen, or perhaps private property management hasn’t gone as planned. Either way, if the current tenant in your rental property is causing problems there are a number of reasons you might consider evicting them or choosing not to renew their lease.
These reasons include:
- Failure to pay rent
- Regularly late payment of rent
- Malicious damage to your property
- Breaching the tenancy agreement
- Conducting illegal activities at the property, such as dealing illicit drugs or other criminal activity.
In most cases in New South Wales, you’ll need to provide at least 14 days’ written notice if you wish to end a tenancy due to wrongdoing on the tenants’ part.
However, the best way to deal with these tenancy issues is to avoid them in the first place.
If you’re experiencing problems such as the above with your tenants, it’s a sign that your current rental property management may not be up to scratch. These problems can be all but eliminated by using the right agent to manage your rental property. Why is this the case?
An experienced and thorough property manager will:
- Have the processes in place to meticulously check a potential tenant’s references to ensure they are reliable and responsible, and
- Have proven systems in place to ensure rent is paid on time.
Here at Let’s Rent, we choose to address these two aspects with extra detail.
- Finding the right tenantWhen it comes to reference checks, we like to speak with potential tenants at property visits to get a feel for whether they’ll be a right fit for your property. Upon application we check employment, tenancy and personal references, as well as the tenancy database for any outstanding matters. For this step we like to pick up the phone and conduct reference checks with a conversation, because we believe that this gives us a much clearer context. It sounds simple, but we find this really helps to match the ideal tenant to each property.
- Having the right systems in placeSome years ago we decided we could improve our payment system, and implemented a direct debit system for all rental properties that we manage. Again – it sounds simple, but having this system in place sets a clear understanding for tenants. On average, 99% of our tenants are paying in advance. We also maintain good relationships and mutual respect with tenants, conducting detailed property inspections to ensure everything is looking as it should be on an ongoing basis.
With these factors, you can significantly minimise the risk of having tenants that need to be evicted, and save yourself a lot of hassle in the process. If you’re looking for honest, proactive and practical property management services in Sydney, then get in touch.
You’ll want a steady, reliable and competitive return from your investment property – so how do you find the right choice when you’re choosing between property management companies? These 10 questions will help you separate the best from the rest.
1. What percentage of tenants on your books are currently in arrears?
This is perhaps the single most important question because it cuts right through to the heart of the matter. If a small fraction of tenants are in arrears, it’s a strong sign that the property manager is actively doing their job.
2. How do you make sure that my tenant pays their rent on time?
Methods matter. As one example, at Let’s Rent, we place a strong and clear emphasis on having tenants pay by direct debit. By automating this process we’ve been able to reduce our arrears to less than 0.5% of our portfolio on average. At Let’s Rent, we have been able to ensure that 99% of our tenants pay their rent in advance, so you have peace of mind.
3. How do you manage and maintain your systems?
Let’s just say it – in 2020, your property manager should not be relying on post-it notes and paper forms for everyday processes. Things like paperless condition reports and electronic leases can make a world of difference for owners and tenants.
4. How up-to-date on legislation are you?
You’ll want peace of mind that your property is being managed by someone who’s across the latest legislation. If a property management agency is providing regular updates and news as they relate to your property, it indicates that they’re keeping up-to-date.
5. Are you solely focused on managing properties – or do you sell them too?
A property manager has less incentive to manage your property well if you can also use their services to sell your property. It’s worth checking that any prospective property management service is focused on property management alone.
6. How do you advertise or find new tenants?
You’ll want the right potential tenant seeing your property. At Let’s Rent, for example, we’ve been achieving strong results with realestate.com.au and domain.com.au listings for the suburbs of Annandale, Darlinghurst, Maroubra, Birchgrove and Petersham.
7. How do you screen tenants?
You’d be surprised (and horrified) by how often property management services don’t conduct a truly thorough screening for new tenants. Be sure to check that yours really follows through with employment and previous tenancy checks. At Let’s Rent, we like to do this over the phone to gain a true impression and we make sure to maintain the paperwork required to back it up.
8. How do you estimate rental rates?
Rental rates can fluctuate, but what’s most important is working with a property management provider who will give you the facts – and the choice – when finding the right balance between keeping your property rented and ensuring a healthy rental return.
9. How do you handle urgent and emergency repairs?
Not only do you deserve effective maintenance services for your investment property, but tenants also deserve a proactive and responsive service when it comes to urgent issues.
10. What are your residential property management rates?
Of course, value is vital when it comes to maximising your return from your rental property. Any provider should be upfront about costs. Focus on finding real value rather than just the lowest price, because the last thing you need is a property manager who will cut corners.
We get that you want peace of mind when you rent out your property. That’s why our services are built around providing thorough, transparent, and focused property management services in Sydney. Give us a call on 02 9555 4886 and we’ll be happy to answer all these questions and any others you might have.
Oh yes – the stakes can certainly be high when it comes to finding a tenant for your rental property. The right tenant means reliable payments and minimal maintenance. The wrong tenant can lead to missed payments, or even your property being trashed. It’s simply not a process you want to get wrong. That’s why our residential property managers in Sydney have a defined process for finding the right tenant. Here’s how we go about it.
Advertise the property in the right places.
The first step is to get the right eyes on your property listing. We achieve good results with listings on realestate.com.au, DOMAIN and our website. A listing should include a clear and enticing description, together with professional, well-lit photos that give a true sense of each living space. Outlining the features and lease terms in the listing helps to develop a suitable tenant pool at this early stage. At Let’s Rent, we use virtual furniture if a property is vacant which gives a sense of size and identifies each room.
Maintain clear communication with potential tenants.
Everyone deserves to be kept in the loop while a property is being rented. We require all potential tenants to register before they see the property, so we can keep them updated throughout the process. This also gives us the chance to update you on the level and quality of interest for your property, and where it fits in the market for rental properties in Sydney.
Engage and speak with potential tenants.
We find that one of the best ways to determine whether a tenant will be right for your property is to engage with them, both at the viewing and over the phone. This can provide a wealth of information that might not be outlined on their application.
Really, truly conduct reference checks (we mean really).
It’s both surprising and disturbing how many investment property managers in Sydney will skip through the reference check process for the sake of efficiency or from pure laziness – but it’s such a crucial step. We check with the national tenancy database for any outstanding matters against the applicant, and we actually pick up the phone to check employment tenancy and personal references. Once more, an actual conversation reveals far more context than an email can.
Make an informed decision.
If you’re renting your property out with our team, here’s where we provide you with the details so you can sign off on your new tenant. We’ll provide you with a summary of the potential tenant’s background and provide our observations. Armed with this information, you can make a fully informed decision and sign on your new tenant with confidence.