ponsonby property management ltd monica chen optimising property investment performance
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Ponsonby Property Management Ltd Monica Chen Optimising Property Investment Performance. 75 steps or tasks with approximately 16 different processes. Property management process. What is Property Management?. A system designed to maximise your financial return and minimise exposure to risks. - PowerPoint PPT PresentationTRANSCRIPT
Property management process
75 steps or tasks with approximately 16 different processes
What is Property Management?
Basic rules defined by the RTA
1.For periodic tenancies the landlord must give the tenant at least 60 days’ written notice to increase the rent, in addition to a period allowed to correctly serve the notice.
2.There is no limit to how much a landlord may increase the rent, as long as the rent is not increased excessively above market rate.
3.For periodic tenancies, the rent cannot be increased within 180 days of the beginning of the tenancy, nor within 180 days of the last rent increase
4.Rent can only be increased for fixed-term tenancies where provision for this is written into the tenancy agreement.
Review doesn’t equal increase
In our agency we review every 3 to 4 months or 3 months prior to the fixed term expiry date.
Key considerations1.You must review regularly
2.Be confident that the new rent you are asking for is the rent in the current market condition
3. Be reasonable
4. Regular increases but at small increments
Benefits of fixed term tenancies
-Minimise vacancy rate-Immunity against seasonal rental fluctuation -Provide certainty to both parties
Rules about fixed terms
They automatically become periodic tenancies on expiry of the fixed term unless either party gives the other party written notice of their intention not to continue with the tenancy. This notice can be given by either party between 21 and 90 days before the date the tenancy expires.
90 Days 21 Days Expiry
2. Manage fixed term break effectively
Can’t advertise at a higher rent without releasing the tenant from current fixed term.
3. Align fixed term renewal date with your rent increase
- Less confusion for the tenant with fewer and tidier transitions for tenants
- Easier to obtain co-operation from tenants
- Position of power for rent increases
Scenario 1 Scenario 2 Scenario 3 Scenario 4
Betty is happy with all terms
Betty is happy with a rent increase but not a fixed term.
Betty happy with another fixed term but no rent increase.
Betty is not happy with rent increase and fixed term.
- Tenant Betty is currently renting 12 Lincoln Ave for $700 per week
- Her 12 month fixed term tenancy is due to expire on the 20th of January 2013
- 90 days before the expiry date, Landlord Steve offers Betty another 12 month fixed term tenancy starting on the 21st of January 2013 at $725 per week.
90 Days
21 Days
Expiry
-Confirm in writing-Terminate-Negotiate
-Accept
How do you renew a fixed term tenancy?90 Days
Notified by system that tenancy is expiring. Confirm with the landlord about their plans and intentions. Contact tenant to find out what they want to do. Negotiate between landlord and tenant if necessary.
70 Days
Last day to be able to send out rent increase notice for Fixed Term Tenancy Ending, in conjunction with fixed term tenancy renewal.
30 Days
Ensure all paperwork is returned by the tenant and all information is updated in the system. If not returned, call the tenant and inform them of the 21 day limitation. Inform owner that we have not received paperwork. Inform tenant of our intention to re-let and not extend the tenancy. Last day for tenant to be able to confirm extension in writing. Prepare property to be advertised. Inform owner of no response from tenant. Follow Vacating Procedure.
21 Days
Property to be advertised. Normal advertising procedure
0 Days Tenant Vacates
-1 Day Unless communication is documented properly, the tenancy will roll over to a periodic tenancy