Maximize Your Rent
How does M Residential determine the best rent for my property?
M Residential always strives to secure the maximum rent possible in the market conditions that prevail. There is always a trade-off between achieving a high rent and having your property occupied. Both factors should be considered when securing a new tenant for your property.
To do this, we consider these factors:
- Demand: Is there a high or low demand for properties at present? This can be seasonal and affected by a number of factors.
- What is available now? We look at properties currently available for rent in the newspaper and/or the internet, and consider their location and features for comparison to calculate a maximum rent for your property.
- What we have rented right now: We compare your property with what we have currently rented, taking into account property location and features.
These factors allow us to give you the information you require to set the right rent for your property.
What if I want a rent amount that is higher?
You may place your property on the market at the rental amount you wish. However, bear in mind that it is the market demand that sets the rent, and if the market (prospective tenants looking for a rental property) deems the amount of rent too high, your property may stay vacant longer than necessary. With this in mind, be aware your annual rental return will be reduced by 2% for every week it is vacant!
How the rent is reviewed during the time that we manage it?
When we need to secure you a new tenant, we will always review the rent against market conditions. This will also be done at lease renewal time, or at other times when required. We will always contact you for your permission before the rent is increased.
Getting The Best Tenant
How does someone apply for my property?
We always ask a prospective tenant to complete and sign an application form, giving us permission to check the information provided. We will discuss an applicant with you once they have been processed.
What if an applicant contacts me?
In the highly unlikely scenario where a prospective tenant contacts you to discuss their application, or ask questions regarding their rejected application, we recommend that you simply request that they contact us (M Residential). Let them know that we are managing the property on your behalf and that we are the ones to talk to with regard to the tenanting of the property. If they persist, we recommend that you do not discuss anything further to avoid unnecessary problems and complications.
How do you check an applicant?
With the information provided we confirm their payment and tenancy history by calling their current and previous landlord/agent as well as confirming their current employment. If they have been employed for less than 12 months, we verify their previous employment. They are checked against a National Tenancy Internet Database to see if a previous agent has lodged them as a bad tenant. We also take copies of their driver’s license, passport and visa.
In some cases, where an applicant may not have a tenancy history, we try and confirm other information that may give us insight to show their ability to maintain a tenancy in your rental property (eg. a stable employment history).
In some cases where this is not possible, we may simply reject the application.
What reason do you have to give the applicant to reject their application?
Legally we do not have to give a reason and by industry practice we never give a reason.
Who selects the applicant for my property?
You do! We will give you the information we have collected and by using our experience give you a possible recommendation as to the tenancy outcome, but the final selection is always your choice!
Do you guarantee the tenant?
We can never guarantee any approved tenant for your property. We can only attempt to collect information on their past history and confirm their income arrangements. As their paying of rent and maintaining the property is purely voluntary we cannot guarantee any tenancy outcome. This is a risk that comes with acting as a landlord and allowing someone else to rent your property. There is always some security if you choose to have ‘Landlord Protection Insurance’.
The Marketing Of My Property
What do you do to advertise my property?
Once we have a signed Management Agreement authorising us to act on your behalf, we market your property using the following forms of advertising:
1. Internet: Your property is promoted, along with photos and viewing times, onto the following websites, maximising coverage to any prospective tenant using the Internet to locate a rental property.
2. Rental listing brochure: Your property is added to our in-office brochure listing your property’s details with a photo. This is given to anyone who comes in looking for a rental property.
3. Window display: Our rental listing brochure is also featured in our window display. This is popular for easy access after hours. Your property will also feature on our window monitor display which continuously rotates each of our available properties.
4. For rent sign: Placed outside of the property (optional).
5. Newspaper: We place the details of your property into The West Australian Classifieds. This is charged to you, at the cost we are charged (optional).
How should the property be presented?
We ask that the property be presented in the best manner possible to attract the right tenant for your property. We don’t want a bad first impression to detract the right tenant from renting your property. Please refer to our guide ‘Getting the Property Ready for Your Tenant’ in Section Three with tips and a checklist on how to present your property for rent.
How clean should the property be when a new tenant moves in?
The property should be presented ‘reasonably clean’ in accordance with legislative requirements. Please refer to our guide to ‘Getting the Property for Your Tenant’ in Section Three for recommended levels of cleanliness.
As a very general rule we ask the tenant to leave the property at the standard they found it. In cases where the property is provided in an extreme level of cleanliness we ask the tenant to leave the property likewise. However in the case of a dispute legally we can only enforce that the tenant return the property in a ‘reasonably clean’ condition, this being their minimum legal obligation.
If I allow pets at my property, what expectations will be given to the tenant?
We always sign pet conditions with your tenant on their tenancy agreement. This obligates them in 4 ways:
1. No additional pet may occupy the property without prior permission.
2. The pet may not come inside the property.
3. The pet must be removed from the property if it becomes annoying or bothersome to neighbours (after reasonable warning has been given in writing).
4. The tenant must be responsible for any damage caused by their pet, and remove any rubbish or faeces deposited by the pet. A pet bond is taken when they sign up. The tenant is also required to fumigate the property both internally and externally upon vacating the property and provide proof of receipt. A pet bond is taken when they sign up ($260).
We also record the details of the pet on the agreement, which is then signed by the tenant.
How do I ensure the pet will not come inside the property?
We obligate the tenant to commit in writing that they will not bring the pet inside. However as we are unable to monitor the property all of the time, we cannot guarantee that the pet will not come inside the property. We do look out for any warning signs whilst at the property conducting inspections. However, the only way to ensure that a pet will not come inside the property is to insist ‘No Pets’ right from the start of the tenancy.
Consider A Tax Depreciation Schedule
With the end of financial year just around the corner, it is now the perfect time to consider the tax advantages of owning an investment property. Have you considered arranging to have a tax depreciation schedule for your investment property?