The 10 Most Frequently Asked Property Management Questions

 

1. How much will it cost to manage my property?

This is probably the question that is on everyone’s lips. How much will it cost?

The costs involved in Property Management depend on many factors. Always be sure to read the small print – less fees up front doesn’t necessary equate to a cheaper option overall!

First Avenue's fees and how to get a no-obligation quote.

 

2. What happens if the tenant doesn’t pay rent?

On the odd occasion a rental payment is missed (and identified on our daily report), an arrears management procedure is initiated.

How the arrears procedure works.

 

3. Will I lose control of my property if I give it to you to manage?

Not at all. Usually property owners are not only relieved but are very pleased with the savings they make through having a professional engaged.

More on Property Management services.

 

4. How often do you inspect the property?

Inspections take place prior to tenancy commencement and after a tenancy ceases and the tenant moves out.

During the tenancy period, a tenant can expect that the property they rent will be inspected at a minimum of three times per year. Tenants are provided with a written notice of the inspection day – where a minimum of 48 hours’ notice must be given. Written notice can be via email, letter or text. It is also important to note that there are restrictions on the hours that an inspection can also take place.

In the event of an issue being identified at an inspection, follow-up inspections (as required) will be scheduled and carried out.

 

5. What do you do to ensure I get the best tenant?

Our experience and knowledge of the industry means we have robust systems in place to minimise the risk of placing a poor tenant in a property.

All prospective tenants must complete a comprehensive application form. This allows us to check personal references and have discussions with a tenant’s current or previous landlord. We’ll also undertake a credit check of the applicant to ensure there are no red flags.

Wwe personally arrange a property viewing for every prospective applicant. This allows us to form our own opinions on an individual and their situation.It is important to note that we do decline tenants the opportunity to rent with us (and you) – especially if the reference and credit checks do not satisfy our requirements.

 

6. How much notice do I need to give if I simply wish the tenant to leave?

It depends upon the type of tenancy agreement you have.

Most tenancies are generally fixed term tenancies, which means that you are required to wait till the end of the fixed term. Fixed term tenancies can be broken though, but only where the tenant is mutually agreeable and confirms via written consent.

Where it is a periodic tenancy, you are required to give 90 days notice to the tenant with the notice period added to the current date that the tenant was informed.

 

7. Do you do an inspection prior to doing the tenancy agreement?

Yes of course! But it’s just not a quick look round and scribble on a piece of paper.

We use a piece of software that allows us to prepare a full ingoing inspection report that identifies any existing defects, as a record at the start of a tenancy. Part of the inspection report is the use of photos evidence which can be used to compare the property’s state when a tenancy concludes.

Once the property is due to be handed over to the tenant and they receive the keys to property, they are also provided with the Inspection Report. This is where there is an opportunity for the new tenant to review the report, confirm that it is accurate and then they sign it as confirmation before a copy is given back to First Avenue Property for filing. The Inspection Report then forms part of the tenancy agreement.

  

8. Do we require special insurance if we rent our property out?

You need to advise your insurance company that your property is to be rented. Each insurance company may have different requirements and can advise on these.

We at First Avenue Property recommend to all landlords and property owners renting out their property to take out a policy that is normally coined the “Landlord’s Extension”. This is similar to a Contents Policy which covers the landlord’s fixtures and fittings within the property. There are other providers who specialise in Landlord Contents insurance and their policies can complement an existing insurance policy.

Our policies that maybe of interest include:

  • Insurance cover on property and contents (to cover the fixtures and fittings).
  • Special cover to protect against loss of rents and damage by Tenants.

It is important to note that the tenants are responsible for insuring their own possessions under their own Contents insurance – this isn’t something that you will need to be covered for.

 

9. What if I decide to sell the house?

Another common question we get when circumstances change.

You can place your property on the market whilst tenanted. Contact us to talk through the process and dot the I’s and cross the T’s. There is a formal (legal) process that you need to abide to.

If your tenant is on a fixed term tenancy, you must sell that tenancy as part of property sale (similar to a going-concern).

The main thing to consider here is that you have the right team looking after you. Your property manager needs to be a great communicator (we are specialists in this area), and understands and respects the property is a tenant’s home. They need to be able to organise property viewings during set times to show potential purchases without treading too much into the daily routines of the tenant.

A happy and cooperative tenant can help attract other property investors – especially if they want to continue living in the property. A tenanted rental is always a good look for new investors!

A common, but not necessary, practice is that some property owners will reduce the rent for the tenant during this period where the property is marketed and viewings undertaken as a sign of good faith.

  

10. Who collects the rent and when does it come to me?

In short – We look after all the collection of rents and on-pay these to you once or twice a month. Your choice.

The long version – All tenants are required to pay their rent via an automatic payment in advance. Using First Avenue Property's computerized system, a daily check provides us with the knowledge of rent due on any particular day and if it has been received into our trust account and then is on paid to you.

Using this software, we are able to compile a full statement for our property owners of the rent collected, less fees and payments incurred by the owner. At the end of the financial year we provide a tax year Income and Expenditure summary for your tax returns.

  

 

 

If you have a different question, don't hesitate to contact us.

 

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