Important Information for residential property owner (leasing)

SPHERE OF INFLUENCE

De Freitas & Ryan are building one of the finest residential rental portfolios in Perth with our sphere of influence extending to Yanchep in the North, Mandurah in the South and Midland in the East. We are now building our brand and our residential rental portfolio in by following the same basics and culture of taking care of people’s property in an affordable, conscientious professional and skilful manner.

FRICTION SLOWS YOU DOWN

We all need to be aware that whilst property managers, property owners and tenants all must abide by the rules and regulations of the Residential Tenancies Act, good old fashioned values of respect for one another and doing what you said you would do go along way to minimising friction in this business. If tenants are treated like “second class citizens” then that surely would impact negatively on the tenancy and in some cases the property itself. It is vital that your agent has the “smarts” about him or herself and never goes down that path. Our culture at De Freitas & Ryan is based on the rotary 4 way test of what we think, say or do.

  1. Is this the truth?
  2. Is it fair to all concerned?
  3. Will it build goodwill and better friendships?
  4. Will it be beneficial to all concerned?

OWNER FREQUENTLY ASKED QUESTIONS

How is my property’s rental value determined?

A good property manager who lives and breathes the business makes it their business to be right across all the current market values of properties available for lease on today’s market. This knowledge is supported by market evidence and with the outstanding technology available today, you can literally do your research with the click of a mouse or the touch of a screen. Our clients expect us to be accurate with pricing and that we are.

When do I receive my rent?

De Freitas and Ryan make it clear right from the commencement of the tenancy that rental payments must be in accordance with the lease and that is payable in advance. Once the rent has been cleared we account to all owners at the end of each month with funds being banked electronically and statements forwarded by email.

What length of tenancy agreement is recommended?

It is standard practise to lease properties for a twelve month period with the renewal being negotiated towards the expiry of the fixed term. We also cater for two, three or in some cases even longer year leases, however in these instances we have rent increases built into the lease to protect our clients.

How long does it take to lease my property?

So long as your property is priced and marketed correctly your vacancy rate should be minimal. We also pride ourselves in maintaining excellent relationships with our tenants, which usually leads to them being more co-operative when allowing us access to show the property to new prospective tenants. This of course again minimizes our client vacancy time and loss of rental income. Your agent must also be prepared to show your property outside of normal working hours, as in many cases this is the best time for capturing prospective tenants looking for their new home. We hold open for inspections and private viewings at times to suit tenant’s, once again to ensure we minimize any loss of rental income.

Can I set my own rent?

Of course you can, but you should listen to your agent in regard to rent levels as the knowledge and experience on what constitutes the current market price is one of the key reasons why you are employing them. If a property is slow to lease because the rent is slightly too high, it only takes a few weeks of “lost rental” to impact negatively on your properties financials. Having a proactive property manager that not only understands the market dynamics but communicates frequently with you will save you thousands of dollars in lost rental income.

Do I need landlord insurance?

Whilst it is a requirement for all our property owners to be adequately insured in regards to building and contents insurance, landlord insurance is a more individual choice influenced by each client’s differing needs. Our active and engaging management style results in very few landlord insurance claims. In today’s complex world, rises in divorces, redundancies and other life events can occasionally affect a tenancy in completely unexpected and unforseen ways. It is strongly advised that landlord’s be adequately insured to protect their interests. Many of our landlords take out landlord insurance to safeguard them against any malicious damage or lost rental income in the unfortunate event a tenancy is ended unexpectedly and outstanding monies cannot be recovered.

How often is my property inspected?

We carry out our first inspection six weeks after the commencement of the tenancy to ensure that the tenants have settled in well and everything is as it should be. We then do inspections every four months which we find works well for all concerned. Another form of inspection is through the eyes of our “switched on” and loyal group of tradespeople. They understand our motivation for property care and are always on the lookout to report back any potential issues they observe that may adversely impact on the property.

What is considered as fair wear and tear?

It is interesting to note that these few words are often at the height of tenancy disputes and yet amazingly so there is no definition of fair wear and tear in the Residential Tenancy Act or the Judiciary with the Magistrates Court.

So after being in the industry for many years , our directors Miguel De Freitas and Rod Ryan decided to formulate their own definition of fair wear and tear in an endeavour to have both owners and tenants know what is expected in relation to the condition of property at final vacate inspections.  Our definition is as follows:

Wear and tear is damage that naturally and inevitably occurs as a result of natural forces (e.g  sunlight and rain) normal wear, normal usage and ageing.  Wear and tear is a form of depreciation over time, which occurs even when an item is used correctly and with care and proper maintenance.

What if I need to sell my property?

After many years in the Real Estate industry you get to know who are the top salespeople and who aren’t. You also need to ensure that your tenancy isn’t impacted on adversely by the wrong approach from a salesperson. So what we do is appoint the right salesperson on your behalf and work closely with them to ensure you receive an outstanding result for your property. Selling investment properties happens all the time due to people’s circumstances changing and is just another area of expertise where we can obtain the best outcome on your behalf

How do I move my rental property properties across to De Freitas & Ryan?

No agent likes losing business, however if they are not the “right fit” for you as a client and it’s time for you to place your trust in De Freitas & Ryan, we will arrange a smooth transaction of management from agent to agent. You don’t have to do a thing at all – just leave it to us at De Freitas & Ryan.

Do I need a depreciation schedule for my rental property?

Without a doubt. We all pay our taxes and we all need to claim what we are entitled to in the form of depreciations allowances relative to your property. Our company can point you in the right direction by providing you with specialists in that area.

Do De Freitas & Ryan supply me with an annual end of financial year financial statements for my rental property?

The answer is yes but the best part is that it is supplied free of charge.