LANDLORD QUESTIONS

ANSWERING
THE TOUGH

QUESTIONS

You say you're different but everyone says that

We get it. Every agency claims to be different. They’re better, cheaper, more effective…they all say it. But if everyone’s saying it, how much does it really mean?

Errigal Property has a distinct key point of difference to any other agency in Brisbane.

We are the only agency in Brisbane that combines property management AND maintenance.

Essentially all property managers offer the same services. They may claim to rent faster, manage better or cost less, however ultimately they offer the same services – managing your property in compliance with legislation.

We do that too. But we don’t stop there.

At Errigal Property, our experienced, licensed inhouse maintenance team don’t just change the lightbulbs or fix the door handle but can also carry out any refurbishment or renovation you may want for your property to improve your return on investment. We can reduce unnecessary call-out fees. And we guarantee to beat any comparable quote.

The concept of Errigal Property came to us after we calculated what we had saved on our own investment properties by carrying out our own maintenance. It was a fraction of the cost of hiring a tradie!

Our friends and family would all complain about the exorbitant costs of maintenance, or their property manager sending out the wrong trade for a job, for which they had to pay.

We felt there had to be a better way.

Of course, we were lucky because I was a registered, licensed builder that had the skills to be able to do it myself. But what about those who either didn’t, or couldn’t due to geographical distance?

We began to explore the possibility of bringing what has always been seen as separate under the one umbrella – a property management company that carries out its own maintenance.

The benefits are considerable.

  • We can generally attend to quote in a shorter timeframe.
  • We have the knowledge inhouse to send the right people the first time, helping reduce unnecessary call-out fees.
  • We guarantee to beat any comparable quote.
  • And by cutting out the middleman, communication is more seamless. We’re able to get your approval quickly and therefore the work carried out faster and cheaper. Happy tenants, happy you!

So yes, Errigal Property does claim to be different. And it’s a claim we’re happy to back up!

What happens when the s*!t hits the fan?

Obviously things going down the crapper is something we try to avoid at all costs! However, despite excellent screening processes, legislative compliance and every contingency, sometimes s*!t just hits the fan.

So what happens then?

Most agencies will vaguely point to their QCAT preparation/tribunal attendance fee and try to move the conversation along. No-one wants to talk about the possible negatives of renting your property.

As an Errigal client, we want to be fully transparent. While every effort is made to avoid any kind of legal proceeding, it is practical and prudent to consider how your agency handles matters when things are not sunshine and roses.

There are a number of reasons why things may deviate from ‘Plan A’. These might include your previously great tenant losing their job and therefore their income, falling behind on rent. Or sub-standard maintenance is carried out and further action needs to be taken. Damages when a tenant leaves or another type of claim on their bond. Another potential reason may be that you require vacant possession and yet the tenant does not leave.

Every property manager is great at handling things when matters run smoothly. How they react when the train is off the rails is where you really see what they’re made of!

At Errigal Property, we have many years’ experience and an excellent track record in contract negotiation, collection of outstanding monies and liaising with trades, tenants and landlords to resolve matters amicably. We will act as your intermediary to guide the process, making every attempt to find a resolution to the issue.

Every situation is unique and the steps may differ, however we will guide you throughout the process step-by-step, whether it be an RTA Conciliation Hearing, a QCAT matter or a warrant of possession.

We will mediate with tenants or tradespeople on your behalf and prepare for and attend any hearings that may be necessary. You can be assured that your Errigal property manager will always your back and make every effort to obtain a resolution that suits you.

Why shouldn't I just self-manage my property?

In Queensland, no licence is required to self-manager your property, and you certainly have the right to do so! While the thought of saving that management fee can be very appealing to a first-time landlord, you should be aware that the way you manage your property can be a critical factor in the success of your investment.

Any landlord wishing to self-manage should be aware of the risk involved. They need to ensure they thoroughly understand and fulfil the obligations of a landlord and have weighed all the pros and cons.

The pros and cons can be often the same!

For example, cutting out the middleman. As a self-managing landlord, you’ll be directly in touch with the tenant for all matters relating to the tenancy and property, which can be a double-edged sword! While you’ll always know what’s going on, this can be extremely time-consuming, your tenants will have your direct contact details and you will have to make all decisions by yourself. Depending on your level of knowledge and expertise, this may be daunting.

You may initially save on expenses such as the management fee, however the time you spend finding and screening tenants, dealing with tenant enquiries and requests, collecting and managing rent/bond, conducting inspections, researching legislation and finding trusted trades to carry out maintenance can be challenging. Not to mention what may happen if things go wrong!

Property management is not simply about addressing issues when they arise. A professional property manager is a problem solver who is proactive in their approach to managing your property. What’s more, this is their job, your property is their priority and they also hold an unbiased perspective, which can be advantageous when making decisions. What’s more, a good property manager is a trusted advisor who can be worth their weight in gold…or at least their management fee!

When deciding whether to self-manage your investment property, ensure you have considered these factors carefully!

The property needs repairs but its super expensive. Can I just not do them?

Owning rental properties comes with risk, and one of those is maintenance. The only constant you can expect is that there are always things that will go wrong when you least expect it.

It is a requirement that all rental properties in Queensland meet minimum housing standards. It probably goes without saying that any safety issues must be addressed immediately, as your tenants have rights to ensure their residence is safe and habitable. They have considerable recourse with the RTA Conciliation Process or QCAT to ensure that any safety-related work is carried out.

Image by Jan Mallander from PixabayFurthermore, any appliances or fixtures within the property must be in working order, and remain in working order throughout the tenancy. For example, if an appliance is provided at the commencement of tenancy and requires replacement or repair, this work must be carried out.  This even comes down to a microwave that might have been provided.

The long and short of it is, no, you cannot delay it or just not do it.

It has generally been accepted that maintenance will cost about 1% of the property value per annum.  And this is a great place to start. However unless you have unforeseen issues arise, with good planning maintenance costs should fall well below this 1%.

However, if you follow a general rule of thumb to set aside 1% of your property value per annum, this will ensure you have a contingency plan when the s*!t hits the fan.

Your property manager should take a whole-of-property approach and have a solid baseline of the overall condition of the property from time of signup, which identifies any potential or emerging issues. They should then work with you to prepare for and plan general maintenance in an effort to minimise any unexpected surprises.

What's the admin fee actually for?

Back in the dark ages we needed to send receipts, leases, contracts and any reports or correspondence by mail, incurring significant costs for postage, paper and ink. Leases had to be typed in triplicate on a typewriter and hard copies of everything retained, taking up valuable floor space. To cover these costs, agencies implemented an admin fee.

With the technology available today and cloud storage almost standard, we believe the admin fee to no longer be appropriate and should be included in a flat management fee.

Marketing is expensive. Is it really worth the outlay?

Each agency has their own marketing package, generally consisting of, at a minimum, professional photos of your property, onsite signage and online advertising.

At Errigal Property, we have a standard package that also includes social media and a menu of additional items you may wish to invest in.

And marketing is absolutely an investment! Research shows using professional photos and expertly written ads can ensure your property is rented in about half the time. Let’s say you have a property listed for $700 per week. For every day it’s vacant it is costing you $100. Suddenly the cost of professional photos and advertising on realestate.com.au makes a whole lot of sense.

There are numerous add-on options you can also consider to increase rentability.

Floor plans have become increasingly popular, allowing prospective tenants to envision the size and space of the property before attending an inspection. It can really help eliminate time-wasters and increase the number of those willing to apply for the property. What’s more, unless the property undergoes significant renovations, this is a one-off cost and can be re-used for many years to come.

Video is another tool that is increasing in popularity. A professionally produced walkthrough of your property gives a prospective tenant insight into what it might be like to actually live there.

What is the difference between a standard, feature, highlight or premiere ad? realestate.com.au offer a range of different types of ads that you can select from. Our standard package includes a standard ad, however if your goal is to rent the property quickly, it might be advantageous to upgrade!

In a nutshell:

  • Feature listing is a larger listing with agency branding which appears higher on the search results than a standard listing
  • Highlight listing is a larger listing with agency branding which appears higher on the search results than a feature listing
  • Premiere listing is a larger listing with agency branding which appears higher on the search results than any other listing

The type of advertising add-ons you select could be dependent on the current market conditions and your needs – your Errigal Property Manager will be happy to discuss and customise a package just for you.

Breaking up is hard to do...

People hate confrontation and will stay with an ineffective property manager because leaving is uncomfortable and such a hassle. With more than 53% of landlords reporting they’re unsatisfied with their current agency, that’s a lot of ineffective property management!

It doesn’t have to be such a hassle! Errigal Property can help you take the pain out of the switch by attending to all the paperwork on your behalf.  There are some things you do need to consider prior to making the switch:

  • Management Agreement: check your agreement to ensure there’s nothing preventing you from leaving prior to a specific date.
  • Notice times: your current agent will require written notice in accordance with legislation – this may range from 30 to 90 days.

We’ve made it even easier by preparing the email template for you – just copy and paste, sign and send! Copy us in and we’ll take it from there. It can’t be easier!

Image by <a href="https://pixabay.com/users/tumisu-148124/?utm_source=link-attribution&utm_medium=referral&utm_campaign=image&utm_content=6930723">Tumisu</a> from <a href="https://pixabay.com//?utm_source=link-attribution&utm_medium=referral&utm_campaign=image&utm_content=6930723">Pixabay</a>Changing property manager letter

Dear [current property manager]

RE: [Property address]: Notice of Termination of Management Agreement

This email serves as written notice that I/we will be terminating your management agreement after [date]. This is in accordance with the [number of days] notice required by that agreement.

Management of the property will be taken over by Errigal Property, copied into this email. They will be in touch to arrange the handover of keys and any relevant information.

Can I charge my tenants for water? How does that work?

Can I charge my tenants for water? How does this work?

A landlord is able to pass on full water consumption charges (including bulk water charges) to tenants, however there are minimum criteria that must be met in order to do this legally. These include:

  • the rental premises must be individually metered
  • the rental premises must be water efficient
  • the tenancy agreement states the tenant must pay for water consumption

Please note this does not include sewerage or fixed asset charges.

Water efficiency

A property is considered water efficient if certain water fixtures meet relevant standards which can be found at the RTA Water Charging Fact Sheet.

Image by delo from PixabayTo ensure your property is water compliant, Errigal Property recommends that a WELS Compliance Test be carried out prior to tenancy. Should the property be found compliant, a certificate will be issued. Should the property require work to achieve compliance, a quote can be obtained to have this work carried out.

Errigal’s inhouse maintenance team can even take care of this for you!

Charging tenants for water

It is crucial that obligations for water costs be negotiated at the commencement of tenancy and written in the tenancy agreement. It is also important to note that billing periods are unlikely to align with tenancy agreements, and the water meter will be read and noted on entry and exit condition reports in order to calculate costs.

Errigal Property can take care of all of your bills for you, if you choose. In this instance, the water bill will be received by the landlord or the agency and the full amount should be paid. An invoice will be raised by Errigal to the tenant with the amount of consumption payable. Tenants will have 30 days to pay the agreed amount.

The importance of creating a baseline of your property's condition

According to the RTA website, at the end of a tenancy the tenant must leave the property in the same condition it was in at the start of the tenancy, fair wear and tear excepted. They cannot require the tenant to leave the property in better condition, purchase goods or services (ie. carpet cleaning/pests) or use specific services.

Tenants are however expected to leave the property in the same standard evident at the commencement of the tenancy, ie. if carpets were cleaned to a certain standard, they must be cleaned to that same standard upon exit.

Errigal Property highly recommend that any property being presented to the rental market be professionally cleaned, including carpets, and that lawns/gardens be tidied with receipts kept on file and noted in the Entry Condition Report.

When you first become an Errigal client, we also prepare a comprehensive ErrigalPlus Property Report which outlines the condition of the property, the type of fixtures and appliances and provides any recommendations for repairs or maintenance.

 

Together these help to eliminate any ‘he said/she said’ upon tenant exit and determines an excellent baseline for the standard of cleaning required.

My property's built in underneath but not legal height. What does this mean for rent/advertising?

In Queensland there are certain requirements for a room to be considered ‘habitable’ (ie. bedrooms, living room, dining room, study etc). These relate to ceiling height, natural light and natural ventilation (see the Building Code of Australia).

A habitable room should have a ceiling height that is a minimum of 2.4m from the finished floor to the lowest part of the ceiling. Kitchens, hallways and corridors have a minimum requirement of 2.1m. A habitable room must also have an opening to outside providing natural light and ventilation, which must be at least 10% of the floor area of the room and more than 900mm from an adjoining boundary. Any room or area of the house that does not meet this standard are considered ‘non-habitable’ and are termed ‘utility rooms’ or ‘multipurpose rooms’.

What this means for you is that any ‘non-habitable’ rooms cannot be advertised or listed as habitable.

Can you pay our bills? What are the benefits?

In short – yes, we can. Errigal Property is more than happy to have your bills sent directly to us for payment from the rent that has been collected. The benefit of this is that your annual statement will reflect all bills and helps with depreciation – helpful at tax time! Please note handling your bills does not incur any additional charges.

What's the point of including garden/pool maintenance in the rent? Do I have to do this?

In a perfect world your tenant will look after the house, pool and its surrounds just as well if not better than you would. However in the real world tenants are obligated to keep lawns and gardens neat and tidy…and that’s it. And with regards to pools, your tenants lack of skill, care or attention may find your pool in need of some serious…and costly…TLC.

We have seen many a landlord despair that their beautiful garden is now maintained ‘neat and tidy’, as opposed to the flourishing it once was. Or a pool once sparkling now kept ‘just OK’ or worse.

Photo by Karolina Grabowska: https://www.pexels.com/photo/person-in-brown-shorts-watering-the-plants-4750270/Additionally, some tenants may either not possess the right tools or equipment to maintain their lawns or pools, or don’t have the time to do so.

Errigal Property does recommend that lawn/garden and pool maintenance be considered as an inclusion in the rental price. Knowing the maintenance is in the hands of a professional is one less thing for you as a landlord to worry about!

How can I increase the rentability of my property?

Errigal Property are the specialists in increasing rentability! Our motto is RRR – Renovate, Refurb, Rent.

There are several ways you can increase the rental yield of your property, whether you have current tenants or not.

If you do have tenants in place, you can negotiate a rental increase (dependent on market conditions) at the time of renewal. You can also offer to do some work that will improve living standards in exchange for the increase.

Pre-tenancy, the options are broad. You can take advantage of our inhouse maintenance team to increase the rental yield of your property. From a simple cosmetic uplift to a complete refurb, we know where to best put your money to get the most out of your investment.

New floors, a lick of paint, some fans or air con and new window coverings can completely transform your property with a corresponding rent increase to go with it!

See some before and afters below!

What's the purpose of inspections? Is it to assess the cleanliness of the tenant?

Partially, however we at Errigal don’t believe enough time is taken to focus on the condition. The main purpose of an inspection, whether it be entry, exit or routine, should be to inspect items and fixtures for maintenance issues. This is particularly important when first preparing the property for rent. Ensuring we have a correct baseline for cleanliness and condition of the property is essential so it can be clarified which issues relate to each tenancy.

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