Property Management Services
The API Difference
API has developed a unique payment system for landlords and property investors which will increase your immediate cash flow and provide various tax benefits.
Australian Property Investor pays the monthly rent to the landlord in full. This allows for cash flow to be increased by approximately $60.00 per week on an average $300,000.00 investment property.
At a later date, any fees, invoices or costs incurred (such as rates) are deducted from a loan account whereby the interest costs are tax deductible.
Alternatively, API offer the more traditional method of management whereby these costs are deducted from the rental and the balance then paid to you.
We aim to provide you with a service that is free of hidden charges and have developed a simple fee structure that ensures you know all of the costs in advance.
You will be charged a flat initial lease fee to cover tenant selection and vetting, and a flat monthly management fee to cover all of the services detailed below. Unlike more traditional fee structures, we will not charge you extra for items such as advertising, tenant referencing or statements.
Property Management
As property managers and estate agents, the philosophy of API is to provide you with property management that is unrivalled, ensuring you of a professional, efficient and personal service at all times.
We understand perfectly the value and importance that you place in your property and, of course, your obvious concerns when leaving it in the care of tenants.
As such, our service covers all aspects of property management, from finding and vetting tenants through to the final inspections upon their vacation.
The following sections describe in detail the services that we offer, but please do not hesitate to contact us if you require any further information.
Advertising
Your property will be advertised on www.realestate.com.au and www.realestateview.com.au accompanied by a detailed description and digital photos.
Subject to Body Corporate approval, we will arrange a For Lease board to be erected at the front of the property.
Should you wish, we can also arrange to place an advertisement in the Age or the local newspaper.
We are also in regular contact with various relocation agents within Melbourne and inform them of suitable properties as they become available.
We carry out weekly Open for Inspections of your property plus any private appointments requested by prospective tenants. We DO NOT hand out keys to your property and allow unaccompanied inspections.
Tenant Selection
Prospective tenants are required to complete a comprehensive application form so their suitability can be ascertained. This includes current and previous agents/landlords, current and previous employers, plus personal and professional referees.
Furthermore, a search is carried out through the National Tenancy Database to ensure they have no history of bankruptcy or bad tenancies.
Document Preparation
API handle all the preparation of documentation required to ensure all legal aspects are covered and your new tenant makes a smooth transition into your rental property. We will:
- prepare REIV approved lease documents
- add any pertinent special conditions
- complete a written condition report of the property
- take digital photos as further evidence of the property's condition
- provide a Department of Consumer Affairs rental guide which explains the rights and duties of the tenant
- complete the required Bond Lodgement form and forward with the bond to the Residential Tenancies Bond Authority
- provide the local water authority with the tenant's details so water bills are sent directly to the tenant (providing the property has a separate water meter)
- prepare full inventories of furnished properties.
Routine Inspections
We conduct routine inspections every six (6) months and follow up with a detailed report of the property's condition and provide suggestions for general upkeep of the property.
Rental Arrears
We follow up all rental payments once they are more than 3 days in arrears and serve the relevant Notices in due course. You will always be informed if your tenant falls into arrears.
Rental Reviews
Rents are reviewed annually according to current market conditions and comparable property prices. We issue the relevant Notice in sufficient time to allow for the required 60 days notice.
Lease Renegotiations
Both the landlord and tenant are notified prior to the expiration of the lease and each party's preference is sought for an ongoing tenancy. Either a new lease agreement will be prepared or the tenancy will continue on a monthly basis.
Repairs & Maintenance
We can arrange maintenance to your property according to your instructions. In the case of non-urgent maintenance, we can either refer to you before taking action or can organise maintenance on your behalf up to an agreed cost.
If you have preferred tradespeople, we will record their details and contact them when required.
Certain repairs are considered under the Residential Tenancies Act to be of such a serious nature that action must be taken immediately. Should such a situation arise, we will take all reasonable steps to contact you but if we are unable to, we will arrange necessary repairs.
Tenants have the authority under the Residential Tenancies Act to organise urgent repairs up to $1000.00 out of office hours - we therefore supply each tenant with details of our preferred tradespeople for such instances.
Statements
Rent is collected on a monthly basis (unless otherwise arranged) and a fully itemised statement is forwarded to you. Any maintenance invoices will be attached to these statements for your income tax records. Funds will be paid to you by electronic transfer to your nominated account.
Vacating Tenants
Tenants are provided with a detailed cleaning guide outlining our expectations in relation to the final inspection.
We liaise with the tenants to co-ordinate inspections for prospective tenants to optimise the chance of having someone ready to move in once the property becomes available.
We then carry out a final inspection to ensure the property has been left in a clean condition and there is no new damage.
Should this inspection be satisfactory and rent paid up to the final day, we complete the Bond Claim form with the tenant and disburse the monies within the required time frame.
Payments
To save you time and inconvenience and to ensure simplicity at tax time, we can arrange to pay the following expenses on your behalf:-
- Council rates
- Water rates
- Body Corporate fees
- Insurance premiums
- Maintenance invoices.
Insurance
We highly recommend that every landlord take out insurance, not only to cover the building, but a policy specifically designed for landlords. This will cover not just internal fixtures and fittings but loss of rent, malicious damage and even tax audits.
Victorian Civil & Administrative Tribunal
VCAT deals with disputes arising between landlord and tenants when issues cannot be reasonably resolved. In the event of a dispute, we will:
- Serve the relevant Notice on the tenant;
- Make application to VCAT for a hearing;
- Attend any Tribunal hearings on your behalf to present the case;
- Follow up on any rulings and/or Orders issued;
- Arrange debt collection/insurance claims where required.
Fee Structure
Letting fee
We charge a letting fee equal to 2 week's rental including gst - this includes internet advertising, conducting inspections, application and credit checks, document preparation and digital photos. You will not be charged a re-letting fee for negotiating a lease with the existing tenant.
Management fee
Our management fee is 7.7 per cent including gst of the gross monthly rent collected - this includes rental collection, routine inspections, rent reviews, lease renegotiations, arranging repairs and maintenance, paying of rates and invoices on your behalf, VCAT attendance and vacating inspections.
If you have any questions regarding our property management services call Australian Property Investor now on 03 9568 1553 or email us for a FREE, No Obligation appointment.
For more information, please visit our Property Management Melbourne department.
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