FAQ’s: Leasing A Property
Who chooses the tenant?
After qualifying all tenant applications, your property manager will present you with the top tenants, then it’s up to you to choose. If you aren’t satisfied, the property manager will repeat this process until they match the right tenant with your property.
The landlord is able to give their property manager specific instructions on the type of tenant they’re looking for.
What do you look for when qualifying tenants?
Long term, full time employment.
Financial serviceability, this is the tenant’s ability service monthly rent repayments.
A minimum rental history of 12 months that demonstrates on-time rental payments, a fully refunded bond and flawless routine inspection reports.
100 points of identification.
The tenant’s lifestyle must match the property and suburb. For instance, a family can’t rent a one-bedroom apartment.
Cash savings in the bank.
How do you determine the best rent for your property?
Determining a fair market value for weekly rent is essential to finding good quality tenants.
Factors to consider:
Demand – is there currently a high or low demand for tenants with rental properties like yours? This can be seasonal and subject to change.
Competing properties on the market – looking at properties currently available for rent and consider their location and features for comparison to calculate a maximum rent for your property.
Condition of your property – we take into consideration the age of your home and the condition of the fixtures and fittings.
These factors allow us to give you enough information to set the right rent for your property.
How long will it take to lease my property?
At Property Managers Melb, our average time to lease your property varies depending on market conditions. However, in recent months it has averaged less than 14 days.
What is the length of an average tenancy?
We only offer tenants 12 month leases, no more and no less. A 12-month lease filters short term tenancy that have a higher risk of damaging your property. It also avoids long term tenants being complacent with your property.
Do you guarantee the tenant?
As the paying of rent and the maintaining of the property is purely voluntary on the tenant`s part, we cannot guarantee any tenancy outcome. We can only use our professional skills and experience to verify that the tenant can afford to pay the rent and to form an opinion on whether the tenant will maintain the property to an acceptable standard.
Property Management FAQ’s
How often do you conduct inspections?
At the start of a new tenancy, our company will conduct an inspection during the first 3 months. Then routine property inspections are conducted every 6 months following.
When can you increase rent?
We keep all tenants in 12-month leases at all times. If a tenant chooses to stay on a month by month lease, we only allow a maximum of a four-month term.
Towards the end of a 12-month lease, prior to making a further lease offer, the property manager reviews the tenants term and the weekly rent of comparable rental properties, we take into consideration:
- the tenant’s timely manner of rent payments.
- the presentation of the property during 6-month inspections.
- market appraisal of weekly rent.
The above is presented to the property owner for consideration.
What is a ‘Condition Report?’
This is a report prepared by your property manager at the commencement of a lease prior to your tenant moving in. It states the condition of your property at the commencement of the tenancy and is completed with full coloured images. It is used for comparison, when the tenant vacates to ensure that the property is left in the same condition, allowing for fair wear and tear.
Can I increase the rent in the middle of a lease period?
The rental rate set in the contract will hold throughout the lease term unless there a special provision allowing a rent increase in your tenancy agreement. If not, at the end of the term, you must provide tenants a written notice of the intended increase.
What happens if the tenant doesn’t pay rent?
We have a ‘no payment, no tolerance’ policy meaning if tenants miss paying rent they are given notice to vacate as soon as legally possible. In Victoria, this is after 14 days.
What if the tenant wants the locks changed?
If the tenant wishes to alter the existing locks or add other security devices to make the property more secure, the tenant must obtain the owner’s consent and pay all expenses incurred. The tenant must provide the owner/agent with a copy of any new keys.
Can I inspect the property whenever I like?
You can however, the tenant needs to be given 24 hours’ notice. The Owner/Agent are limited to a maximum of 4 inspections in any 12 month period.
How much notice does the tenant need to give if they want to move out?
End of lease: The tenant must give 28 days notice in writing if they which to vacate.
Prior to the lease expiring: They must pay break lease fees which are: rent until a new tenant is found or the lease expires, which ever comes first.
Is it compulsory for owners to have landlord insurance?
It is not compulsory to have landlord insurance for your property. Landlord insurance is a good part of risk management.
Landlord insurance covers you against theft and damage (accidental or malicious) by your tenants or their guests. It also covers rental income loss due to unpaid rent (depending on the circumstances) or vacancy while insured damage is repaired.
What are the different types of repairs?
There are two main types of repairs outlined by Under the Residential Tenancies Act 1997, urgent and non-urgent.
Urgent repairs: a burst water service, toilet system, serious roof leak, gas leak, dangerous electrical fault, serious flooding, storm/fire damage, failure of essential service/appliance failure of gas/water/electricity, fault causing unsafe premises, fault causing substantial water loss or a lift/staircase fault
Urgent repairs must be repaired within 48 hours.
Non urgent repairs: do fall into the above list and can be fixed within 14 days of an agent/owner being notified.
Who Pays for Water usage, utilities and other out goings?
The water bill is split in two parts:
– the landlord pays for service charges.
– The tenant is responsible for any cost of water used during the lease, subject to an individual water meter being installed at the property.
Your property manager will notify the water authority of the tenancy and billing.
Rates, property insurance and body corporate fees: these are the responsibility of the landlord.
Electricity and gas: these are the responsibility of the tenant.
We would love to help with any questions about your property, please contact our office anytime on 1300 00 MELB or email [email protected]