WORKFLOW ACTION PLAN - PMT Academy · ENTRY CONDITION REPORTS An Entry Condition Report is an...

WORKFLOW ACTION PLAN

The Practical Guide to Systemise your Property Management Department

FOUNDATIONS SYSTEMS KPIS WORKFLOW IDEAL WEEK PROPERTY MANAGEMENT TRAINING COACHING MENTORING AUDITS RENT ROLL DUE DILIGENCE HEALTH CHECK WEBINARS WORKSHOPS, EFFICIENCY, PRODUCTIVITY FOUNDATIONS SYSTEMS KPIS WORKFLOW IDEAL WEEK PROPERTY MANAGEMENT TRAINING COACHING MENTORING AUDITS RENT ROLL DUE DILIGENCE HEALTH CHECK WEBINARS WORKSHOPS, EFFICIENCY, PRODUCTIVITY FOUNDATIONS SYSTEMS KPIS WORKFLOW IDEAL WEEK PROPERTY MANAGEMENT TRAINING COACHING MENTORING AUDITS RENT ROLL DUE DILIGENCE HEALTH CHECK WEBINARS WORKSHOPS, EFFICIENCY, PRODUCTIVITY FOUNDATIONS SYSTEMS KPIS WORKFLOW IDEAL WEEK PROPERTY MANAGEMENT TRAINING COACHING MENTORING AUDITS RENT ROLL DUE DILIGENCE HEALTH CHECK WEBINARS WORKSHOPS, EFFICIENCY, PRODUCTIVITY FOUNDATIONS SYSTEMS KPIS WORKFLOW IDEAL WEEK

4 Entry condition Reports

4 Exit Condition Reports

5 New Tenancy

19 Maintenance

26 Routine Inspections

33 Rent Arrears

40 Tenancy Renewal

46 Change of Shared Tenancy

51 Early Termination by Tenant

56 Tenant Vacancy

Welcome…This flowchart and procedures manual is a practical guide for Property Management teams to assist in the implementation of effective checklists and procedural forms within the office. All of the documents are designed for internal modifications to accommodate the individual departmental needs.

Use this manual as a guide to enhance your own systems and you will see noticeable improvements within your department as a result of establishing defined procedures. You will see an improvement in the efficiency of your team allowing more time to focus on rent roll growth strategies.

To establish a solid foundation and the consistency of service within your department this can take time, but by implementing a basic procedural system, with a strong focus on accountability you can be assured that the department will work effectively and efficiently.

This manual does not cover legislation, it is an outline of best practise processes that will greatly assist the day-to-day management of your rent roll.

ENTRY CONDITION REPORTS

An Entry Condition Report is an accurate and detailed record of the property’s condition and describes the fixtures and fittings at the commencement of the tenancy.

It is imperative that the information included is sufficient to give a clear image of the property and its content. Best Practice would see photos of each area attached to the report.

For ease of staff training and recruitment, have a guideline of how to complete an entry condition report so the terminology is uniformed, having the same look and feel across your entire rent roll.

Be clear and precise when completing the entry condition report. Always write down the brand of any appliances contained in the property. If professional cleaning took place prior to the Tenant occupying the property, attach a copy of these invoices to the condition report as supporting evidence. If applicable, highlight on the report that the carpets have been professionally cleaned and that the property has been pest controlled.

At the commencement of the tenancy the tenant must be given a signed copy of the Entry Condition Report, so ensure you retain the original for your office copy. Request that they sign the office copy as confirmation that they have received the report. Outline the importance of the report and explain it is used as a comparison at the end of the tenancy and therefore it is highly recommend returning the signed copy with any changes to the office within the prescribed period.

Once the Tenant returns their copy always take the time to thoroughly read their comments and changes. If the Tenant copy greatly differs with the office copy, you should arrange a time to meet the Tenant at the property within 24 hours of receiving the report to discuss the discrepancies.

EXIT CONDITION REPORTS

The Exit Condition Report is similar to the entry condition report and records the condition of the property at the end of the tenancy term.

The Tenant must leave the property in the same condition as when the moved into the property allowing for fair wear and tear. What is fair wear and tear? Fair wear and tear occurs through “normal use” or is the “normal changes” that take place with the aging of the property.

When trying to determine if an item is classified as fair wear and tear take into consideration the length of time that the Tenant had resided in the property and review any photos taken at the entry condition report phase.

Entry Condition Reports and Exit Condition Reports must always be carried out and be an accurate representation of the property.

NEW TENANCY FLOWCHART

Notify Tenant & send confirmation email - arrange an appointment sign-

up time

Tenant copy of ECR returned. Scan and save to Electronic

filing

Confirmation email sent to Landlord – documents signed & attach tenancy

agreement

Tenancy Application Submitted

Process Application,

Notify Tenant

Application Declined,

Notify Tenant

Complete ECR

Inspection & Take Photos

Remove Property from

Advertising

Welcome Letter sent to Tenant

Discuss with Owner – arrange cleaning & lawn tidy

Cleaning & Lawn Tidy Required

Keys & ECR Issued

Re-Inspect for ECR and take Photos Tenancy

Documents Signed within

24 hours

1st weeks Rent, Let Fee

and Bond Receipted

Enter Tenant to Trust &

Prepare Tenancy Documents and

Move In Kit

Scan signed Tenancy

documents into electronic

filing

Send email to Owner – tenant

has now moved in

Submit Application to

Owner

Tenant Enquiry

Qualify Tenant

Application Approved

Arrange ECR

Inspection

Property Inspection

WORKFLOW ACTION PLAN | 4 WORKFLOW ACTION PLAN | 5

Congratulations you have received a new Tenancy Application form, which has been completed in full and signed by the applicant.

Identification & Income verification has been received along with the privacy statement. You can now commence processing the application!

It is recommended that you advise both the Owner and the applicant that you have received the application and processing has commenced.

The Tenant default database check should be conducted first before proceeding with employment and rental reference checks. If it is identified that the applicant is listed on a default database then processing can cease.

You have a duty of care to thoroughly check applications and it is highly recommended to seek references in writing. Listed below are the key references you should be checking;

1. Employment reference to current employer

2. If self employed send Accountant reference or request last year tax return

3. Rental reference to current and previous rental agencies

4. If current home owner ensure you have a copy of rates notices and perform an RP Data search

5. Personal reference. Although they may have the best things to say about the applicant, it is still important to verify the details contained within the application

It is vital to be proactive rather than reactive by keeping both the Owner and the applicant updated on the status of the application throughout the process. This will avoid both parties making numerous attempts to contact you seeking updates.

Once all references are returned and you are confident they meet the suitability requirements, it is now time to contact the Owner and submit the application to them.

It is recommended to discuss the application with the Owner via phone and then confirm the conversation via email, seek written instructions to either proceed or decline the applicant.

If you are unable to contact the Owner via phone, send an email pertaining all details of the application and request a response within a particular time frame. i.e. 2 hours. There may be the odd occasion when you are unable to contact the Owner via phone or email so it may be essential to make a decision on their behalf.

If this is required, advise the Owner that you have acted in accordance to their re-letting instructions on the management authority with regards to re-letting the property.

The Owner has now approved the application. The next step is to advise the applicant of the approval. At this time it is important to discuss any special terms of the tenancy i.e. water charges applicable and send a Tenancy confirmation and costs email to the tenant and attach any of these special Agreement terms. This will allow the Tenant time to carefully read the documents prior to signing.

To enable the efficient preparation of the Tenancy documents you must first enter the Tenant’s full name and contact numbers, Tenancy Agreement start & end date, rent paid to dates, bond amount and routine inspection date to your nominated Trust software.

Prepare Tenancy Agreement and Bond Lodgement forms and place in presentation folder ready for the sign-up appointment. The Tenancy Agreement is a legally binding contract with the Owner and the Tenant therefore it is imperative that this document is executed correctly to make it legally enforceable.

It is also important that you include any lawful special terms and conditions that the Owner has requested on the Tenancy Agreement. Ensure that any additional terms to the Tenancy Agreement are not contracting outside of the Act.

A good working relationship needs to be established with the Tenant from day one. With this in mind it is vital that you educate the Tenant around your procedures, expectations and the overall aspects of the Tenancy during the sign-up appointment.

Prior to taking possession, both parties must sign the Tenancy Agreement and any lawful special terms. Each Tenant that is contributing a portion of the bond must also sign the bond lodgement form. The Move In Kit contents should be explained thoroughly and also signed by the Tenant.

NEW TENANCY PROCEDURE

The Move in Kit acts as an instruction manual for Tenants to better understand their obligations throughout the tenancy.

Where possible you should try and have Move In Kits pre-prepared to assist in busier times. Ensure the Tenant is given a copy of the relevant “Tenant Information Booklet” for your state.

Once all documents are correctly prepared, place the Move In Kit and contents in the 1-31 drawer on the day of the scheduled sign-up appointment so that it can easily be obtained when the Tenant arrives to sign.

Prior to the Tenant moving into the property they are required to pay rent in advance and a bond. Ensure a receipt is provided to the tenant at the time of sign-up.

Once the Tenancy Agreement and associated documents have been signed and monies paid, the property is now officially leased and it is now time to change the status on any of the advertising portals.

If you have a window display or an internal rent list you should also stamp leased on these visual displays.

It is also recommended to advise the Owner that the Tenancy documents have been signed and confirm move-in date details for peace of mind. At this time it is suggested to scan and email the Owner a copy of the agreement for their records.

Best Practice would see you make a diary record of the Tenant’s name, property address and move-in date. Depending on your department structure you may wish to invite other team members to this diary note. It is also suggested to diarise to complete the Entry Condition Report two days before the Tenancy commences.

This will allow sufficient time to have trades attend should you need to have a refresh clean done or have lawns mowed. If required, diarise to return the day prior and take photos once any works have been completed.

Print condition report and photos and place in Move In Kit ready for collection by the Tenant. Place photocopied key collection form along with the keys and remotes in the Move In Kit as well.

At the commencement of the Tenancy or the day the keys are collected, the Tenant must be given a copy of all documents, retaining the originals for your office.

The Tenant must receive a copy of the Tenancy Agreement, Tenant Information Guide, Body Corporate By-Laws (if applicable), Smoke Alarm Agreement, Rent Arrears Procedures, Bond Lodgement form, rent / bond receipt and copy of photocopied keys and remotes provided.

A copy of the Entry Condition Report signed and dated by Agent / Tenant is to be given to the tenant. Advise the tenant of the time frame they have to make comments and return to your office.

Send confirmation email to the Owner advising that the Tenant has now collected the keys and successfully moved in to the property.

Explain to the Owner that although every care and attention was taken when conducting the entry condition report that the Tenant may bring some minor items to our attention, that may not have bothered the previous Tenant.

It is important to highlight this to the Owner so they are not surprised should the new Tenant report maintenance when returning the condition report.

Ensure you diarise to follow up the return of entry condition report. Record the return of entry condition report and property address in your calendar on the date due.

Depending on your department structure you may wish to invite other team members to this diary note. If the report is not returned within the required time frame the first step is to contact the Tenant with the friendly reminder and confirm your conversation in writing via email.

If the report is returned, review and sign the Condition Report and provide a fully executed copy to the Tenant. If the Tenant has made changes to the report that are you disagree with, arrange an appointment at the property to go through these changes with the Tenant.

To finalise your new Tenant file, ensure all documents have been electronically saved for your records and auditing of the file. If required, prepare and process a tax invoice in Trust for the Owner, for the payment of any advertising charges applicable.


E-LETTER TEMPLATE EXAMPLE

Dear [NAME],

[APPLICANT NAME] has applied for a rental property through our agency and we would appreciate you taking the time to answer the below reference questions regarding their current tenancy.

A privacy acknowledgement is attached. Please return a copy of the most up to date tenancy ledger.

RENTAL REFERENCE

Period of time rented: ___________________________________________

Rent amount per week: $ ________________________________________

Is the tenant on the lease agreement? ______________________________

Are there any additional occupants? _______________________________

Has the tenant ever been in arrears? _______________________________

What has been the maximum number of days in arrears? _____________

Did they receive any breach letters? _______________________________

Reason: _______________________________________________________

Were routine /periodic inspections done? ___________________________

Was there any damage noted? ____________________________________

Do the tenants keep it clean & tidy? ________________________________

Were pets kept at the property without permission? __________________

Has the tenants been easy to deal with? ____________________________

Did the tenants report a lot of maintenance? ________________________

Did the agency terminate the tenancy? _____________________________

Do you expect the bond to be refunded full? ________________________

If no, why? _____________________________________________________

Would you rent to the applicant again? _____________________________

Thank you for completing the reference.

[STAFF NAME]

CURRENT RENTAL REFERENCE REQUEST


Dear [TENANT NAME],

CONFIRMATION OF TENANCY AND MOVING-IN COSTS DUE FOR [PROPERTY ADDRESS]

Congratulations, your application to rent [PROPERTY ADDRESS] has been approved by the owner.

We look forward to assisting you throughout your tenancy. I confirm the information discussed verbally with you earlier:

1. All tenancy documents are to be signed on [DATE] at [TIME]. All parties must be present for this appointment.

2. Rent per week - $ _______________________________

3. Bond Required - $ ______________________________

4. Tenancy commencement date ____________________

5. Tenancy Term __________________________________

6. Special Terms __________________________________

The Statement of Costs below outlines costs payable by you on or before the tenancy start date.

MOVING-IN COSTS

As part of the steps to secure the tenancy for this property, please arrange payment of $amount, to secure the property, within 24 hours via the method listed below.

Direct Deposit Bank [BANK NAME] Account Name [AGENCY NAME TRUST ACCOUNT] BSB [TRUST ACCOUNT BSB] Account Number [TRUST ACCOUNT ACCOUNT NUMBER] Reference Code* [REFERENCE CODE]

We look forward to assisting you with your tenancy.

If you have any queries please contact me via email or phone.

Kind Regards,

[STAFF NAME]

COST DETAIL OF COST AMOUNT

Rent 2 weeks rent $_______

Bond Bond is equal to 4 times the weekly rent $_______

Sub Total $_______

TOTAL COSTS DUE On the tenancy commencement date, keys will not be handed over until all monies are paid in full and lease documents are signed by all parties.

$_______

CONFIRMATION OF MOVE IN COSTS



Dear [OWNER NAME],

NEW TENANCY INFORMATION – [PROPERTY ADDRESS]

The approved tenant/s have now signed the required tenancy documents and paid the required funds to secure the property.

Please find enclosed the following document copies to confirm the details of the tenancy:

• General Tenancy Agreement

• Pet Agreement (if applicable)

We will keep you informed of any activities and information you should be aware of during this tenancy.

In the meantime, if you have any queries, please don’t hesitate to contact me via email or phone.

Kind Regards,

[STAFF NAME]

CONFIRMATION OF TENANCY TO OWNER

FORM TEMPLATE EXAMPLE

DOCUMENT COLLECTION ACKNOWLEDGEMENT

The following documents have been provided to the Tenants prior to or on the day of the commencement of the Tenancy.

1 x General Tenancy Agreement, Terms and any Special Terms

1 x Entry Condition Report

1 x Inventory (if applicable)

1 x Bond Lodgement Form/s for total Bond payable and paid

Keys and access items as photocopied attached

1 x Tenant Information Guide

Any warranties & manuals relating to the property appliances

1 x Rent Arrears Procedure Acknowledgement

1 x Smoke Alarm Procedure Acknowledgement

1 x Pet Agreement (if applicable)

The tenant/s agrees that it is a requirement of our agency to ensure that the Entry Condition Report is returned to the agency within [AMOUNT] days of receipt.

Failure to comply with this requirement will result in the agents report becoming the true and correct copy.

The tenant agrees that if there are any discrepancies with the comments of the agent, the tenant will contact their property manager immediately to discuss the issues prior to rectifying, to allow the property manager time to visit the property to view and verify the discrepancies.

TENANT CONFIRMATION

I/ We have received documents, information and items detailed above, on, or before the commencement of the Tenancy Agreement.

Rental Property Date

Tenant Name

Tenant 1 Tenant 2 Tenant 3

Tenant Name

Signature

Date

DOCUMENT COLLECTION ACKNOWLEDGEMENT



Keys, Locked Out?

Office Hours – you can collect our office set and return them to our office within the hour. Identification will be required.

After Hours – you will be required to contact a Locksmith at your cost.

Pets

If you have a pet at the time you sign the lease, we need a picture of your pet to put in your file. Not all properties allow pets so if you are considering adding a pet to your family, contact our office prior for approval. You will be required to fill out the ‘Pet Agreement” form on the pet if approved.

Tenant Responsibilities

The following items are the responsibility of the tenant at their expense while they are living at the property:

• Replacement of all light bulbs with the correct wattage.

• Test the smoke alarm every 6 months. The property must have working smoke alarms at all times.

• Reporting non-functioning smoke alarms immediately if batteries do not solve the problem.

• Reporting all necessary maintenance.

• Professional steam cleaning and spot cleaning of the carpets while living in your home. We recommend that the carpets be steam cleaned every 12 months to maintain their condition.

• Keep property clean, inside and out, free of grease, mould, mildew, cobwebs etc.

• If you are responsible for garden maintenance, you will need to mow, water, weed and dispose of all yard debris on a regular basis.

• Reporting malfunctioning irrigation systems or sprinklers.

• If you have a pet, all pet droppings need to be disposed of regularly.

MOVING OUTNotice is required in writing and must meet the prescribed time-frame prior to the expiry of your Tenancy Agreement.

After you have given notice to vacate, please remember to do the following:

• It is the responsibility of the tenant to deliver all keys to our office. Keys can be delivered before close of business the day you are vacating or by 9am the following morning.

• You will also need to deliver receipts for carpet cleaning and any other services that you used to ensure the property is to standard. These can be dropped off with your keys.

• Please ensure that electricity is left on for three days after you vacate the property so we can complete the vacate inspection.

• If you are responsible for the yard please ensure that it is back to ‘move in condition’ before you leave.

Ending a Tenancy Early

If you wish to vacate the property DURING your fixed term Tenancy, please contact your Property Manager immediately. There will be a form for you to complete outlining your responsibilities and to provide us with the authority to commence advertising. This will be emailed to you and it will need to be signed and returned ASAP.

Change of a shared Tenancy Agreement

If a tenant listed on the Tenancy Agreement wishes to move out, all tenants listed on the Tenancy Agreement will need to make an appointment to come into the office and sign a ‘Change of Shared Tenancy’ form. If you want someone else to move in to the property, they will need to fill out an application form and once it has been processed we will contact the owner for the final decision. New tenants cannot move into the property until the application process is complete.

Contents insurance

The owner will not be liable or responsible for loss or damages to articles or property belonging to the tenant. It is advised that the tenant maintain contents insurance for their personal belongings.

Parking of cars

All cars, motorbikes, trailers, camper-vans, caravans, boats and trucks are to be parked in designated parking areas ONLY.

Do not park on front lawn areas, or on Body Corporate designated common areas (where applicable). It is the Tenants responsibility to repair any damage done when parking cars etc in such areas. Oil stains on driveways is the Tenant’s responsibility to remove before vacating the Property. To avoid such damage, we recommend the purchase of a drip tray.

Pot plants

It is recommended that pot plants are raised off the carpet or outside areas to avoid water damage or staining.

TENANCY INFORMATION GUIDE (CONTINUED)


TENANCY INFORMATION GUIDEOFFICE HOURSOur office is open Monday - Friday, 8.30am - 5.00pm.

PREFERRED METHOD OF CONTACT

PAYMENT OF RENTRent is due on or before the due date (the date you have paid rent up to) and the tenant agrees to contact their property manager if they are unable to meet the obligations.

Your first rental payment is to be paid on the first day of the tenancy and the next payment is due on [DATE], then weekly moving forward.

It is recommended to pay rent 3 days before your due date to avoid rent being received to our office after the due date.

OTHER INFORMATION

Condition Report

Please complete, sign and return to our office within [X] DAYS OF THE LEASE COMMENCEMENT DATE

Emergency repairs

Emergency repairs are situations such as:

• Burst water service • Gas leak • Blocked or broken toilet

• Fault/damage likely to cause injury • Serious roof leak • Electrical shock/fault

PHONE [PHONE NUMBER] TO REPORT THESE TYPES OF SITUATIONS IMMEDIATELY.

If after hours, please contact your property manager direct via email.

General Repairs & Maintenance

All general repairs and maintenance must be forwarded to our office in writing so we can act accordingly. This can be done via email, or on the maintenance request forms enclosed in your kit. Please provide as much information as possible of the repairs needed as well as access authorisation for the repairs to be done. Our office will contact you to confirm receipt of your request within 24 hours.

If you report a maintenance issue and the tradesman finds that the repair is due to misuse or due to you not looking after the property, you will be liable for the invoice.

Clogged Drains

To prevent tub and shower drains from clogging; we suggest a product called ‘Drain-O’. This will eliminate hair build up in the drain. Drain-O is available at the supermarket. If the services of a professional are required and they determine that the problem is tenant caused, you will be charged.

Property Routine Inspections

The property is inspected by our Inspection Officer 3 or 4 times per year. You will be notified in writing 14 - 21 days prior. The inspection will be detailed, but brief and it is also a time for you to be able to report any general maintenance or highlight any concerns you may have.

Please Note: As we complete several inspections on the same day we are unable change your inspection days/times.

Email

This is the most effective and quickest contact method if you have email access.

To contact your Property Manager, you can email: [EMAIL ADDRESS]

Appointment

To see your Property Manager in person, please contact the office to make a suitable time.

The team may not always be in, so it is imperative that you call to make an appointment first.

Phone

If you don’t have email access or for any emergencies please contact our office on [PHONE NUMBER].

Messages left will be returned by close of business that same day.

TENANCY INFORMATION GUIDE



Dear [TENANT NAME],

ENTRY CONDITION REPORT – [PROPERTY ADDRESS]

Please find enclosed a copy of the signed Entry Condition Report for your records.

This report will be referred to at the vacate/exit inspection, so it is important to keep this in a safe place.

If you have any questions, please don’t hesitate to contact me via email or phone.

Kind Regards,

[STAFF NAME]

ENTRY REPORT COPY TO TENANT


Dear [TENANT NAME],

ENTRY CONDITION REPORT NOT RETURNED – [PROPERTY ADDRESS]

At the commencement of your tenancy, our Agency provided you with a copy of the Entry Condition Report, which was with your Tenancy Kit. We also highlighted the following important information regarding the Entry Condition Report:

• The Entry Condition Report records the physical condition of the property and its inclusions at the commencement of your tenancy.

• Legislation requires tenants to complete the allocated section and return one copy of the report to the Agent within [X] days of the lease commencing.

As the allocated time period has passed and our records indicate that the Entry Condition Report has not been returned, we write to advise that the report completed by our office, as accurate and binding and will be used at the Exit Inspection for the purpose of bond disbursement.

If you have any queries, please contact me via email or phone.

Kind Regards,

[STAFF NAME]

ENTRY REPORT NOT RETURNED



Dear [OWNER NAME],

TENANT HAS NOW MOVED IN – [PROPERTY ADDRESS]

The approved tenant/s have now collected the keys and moved into their new home.

Please find enclosed a copy of the Entry Condition Report, which confirms the condition of the property at the commencement of the tenancy and will be the reference used at the Exit Inspection for the Bond disbursement process.

We will keep you informed of any activities and information you should be aware of during this tenancy.

In the meantime, if you have any queries, please don’t hesitate to contact me via email or phone.

Kind Regards,

[STAFF NAME]

CONFIRMATION TENANT HAS MOVED IN


Dear [TENANT NAME],

WELCOME TO - [COMPANY NAME]

We’d like to welcome you to [COMPANY NAME] as a new and valued customer.

Moving can be an exhausting and stressful time! We hope that the relocation and unpacking process is as quick and easy as possible so you can relax and enjoy your new home.

On behalf of the owner, our agency is keen to ensure the property is maintained throughout your tenancy, so please don’t hesitate to advise us of any problems so we can be of assistance or quickly remedy the situation.

Please feel free to contact us if you have any queries during your tenancy, we are here to help.

We are constantly striving for excellence and would appreciate you taking the time to complete the attached survey. Your feedback is valued.

We can be contacted during business hours via email or phone.

Kind Regards,

[STAFF NAME]

WELCOME LETTER TO TENANT



NEW TENANCY SURVEY

TENANCY INFORMATION

Tenant Name

Property Address

Contact DetailsEmail

Mobile

REFERENCE INFORMATION

During the initial inspection of the Property, did you find our staff to be on time, courteous and helpful? Yes No

Comments

During the Tenancy Sign Up and Handover Appointment, were the Tenancy documents organised and explained to you clearly? Yes No

Comments

Was the property presented in a neat, tidy and clean condition upon entry? Yes No

Comments

Are there any outstanding issues that require our attention or follow-up? Yes No

Comments

How would you describe our service and communication so far?

Comments

NameSignature

Date

NEW TENANCY SURVEY

MAINTENANCE FLOWCHART

Work Completed and Invoice Received

Owner Attending to Maintenance

Work completed & Invoice Received

Diarise for 7 days time to Follow Up

Owner advised Work completed - Confirm with

Tenant

No Response – Telephone

Owner to discuss

Work completed & Invoice Received

Not satisfied

with work

Refer to Trades-person

Update Owner on Outcome

Written Request Received

Determine Urgency

General Repairs

Emergency Repairs

Process Payment

Issue Work Request

Issue Work

Request

Advise Owner in Writing of Emergency

Repair – Issue Work Order

Diarise to Follow Up Owner in 2 days if

No Response

Written Instructions Received - Authority to

proceed with work

Written Instructions Received - Authority to

proceed with work

Advise Owner in Writing of Maintenance Request and Seek Written Instructions


It is of vital importance that you give the responsibility of maintenance the utmost care. We are engaged to not only ensure the rent is paid on time but to also preserve the capital value to attract the highest possible rent.

It is necessary to ensure that all repairs and maintenance are carried out promptly, correctly and with minimal fuss and as per the Owners’ instructions.

All property maintenance requests must be in writing and recorded for future reference. Explain this process thoroughly to the Tenant at the initial sign-up appointment, encouraging them to utilise email to report maintenance and to be very detailed in their explanation of the fault.

Where possible have them include photos. Include your procedures around reporting maintenance in your “Tenant Information Guide”, which forms part of your Welcome Kit.

Only emergency maintenance should be accepted over the phone however supported with an email. All staff should be aware of what a non-urgent and an urgent repair is.

In the event of a tenant phoning maintenance through have a list of what is classified as an urgent repair easily accessible so the call can be effectively dealt with. If the call relates to a non-urgent item advise the tenant to report the maintenance in writing and provide them with the appropriate email address.

When a maintenance request is received acknowledge receipt and if required request more information. It is important to record sufficient information to protect your interest and that of the owner should injury or further damages occur as a result of the fault.

On some occasions you may find the Owner is happy for you to proceed with maintenance without contact as long as it falls under the authorised expenditure limit, however best practice would see you contact the Owner on all occasions to seek their instructions.

Once the request has been approved by the Owner in writing, issue the work order to the appropriate trade, remembering to check if the Owner has a preferred tradesman, and where possible indicate the severity and a time frame in which you would like the work completed by.

Always mention in the work order the authorised expenditure limit to avoid any additional costs, requesting the tradesman contact you if they believe the works will be more than authorised.

You should also be communicating with the Tenant and keeping them up to date on the status of their request. Once a tradesman has been engaged, communicate with the tenant and explain that the tradesperson will be in contact with them to arrange a convenient inspection time to undertake the repairs.

In the event of an emergency that exceeds the authorised expenditure limit, you must first attempt to contact the owner with the intent to have the matter rectified immediately. If you are unable to contact the owner, proceed to organise the appropriate trade and inform the Owner in writing of the action you have taken.

As a Property Manager you have a duty of care to follow-up on maintenance requests you have issued to not only tradesman but also to the owner if they advised they will attend to the repair directly. Do not rely on the Tenant to inform you that the job remains incomplete.

It is recommended to have a set day and time each week to make the necessary follow-up calls. If the tradesman has advised the works have been completed albeit await an invoice, change the status of the work order to reflect this so you have a clear understanding of what still remains outstanding.

Once an invoice has been submitted confirm with the tenant that the works carried out were done so satisfactorily. You should also ascertain if the invoiced amount matches any quotes provided and is within your authorised limit. If you are satisfied with the invoice details, approve and process the invoice for payment and complete the work order.

Improvements and upgrades to a property are important to protect the capital growth of the investment. It is a fact that rental properties are exposed to Tenant wear and tear and will require work from time to time. A poorly maintained property will only attract the same standard of Tenant and ultimately lead to further deterioration of the property.

We are often faced with Owners who do not recognise the importance of improvements or upgrade works and as the Property Manager you should educate the Owners that money will need to be spent on improvements and they should include this in their annual budgeting plan.

Preventative maintenance is simply being proactive rather than reactive. When speaking with the Owner you should be highlighting the importance of preventative maintenance and suggest items such as painting, floor coverings, tree lopping/pruning, roof tile replacement etc as items they could review annually to improve the value of their investment.

MAINTENANCE PROCEDURE

This information could be collated at each routine inspection and with the report include quotes for the Owners consideration. You could also suggest an annual maintenance plan from the outset and include items such as lawn mowing, pool maintenance and pressure cleaning.

Another area where you can be proactive saving the Owner money in the long term is with items like tap washers. Often when a Tenant reports a leaking tap, we engage a plumber to attend the property and replace that one tap washer. Being proactive would be to have the plumber replace all of the tap washers throughout the property, reducing the possibility in the very near future of another call out fee.

With the management of strata titled properties you need to be clear on who is responsible for the repair. If you are unsure, always refer the matter to the Owner or Body Corporate before proceeding with the repair, for clarification.

Often the Body Corporate can refuse payment of an invoice if you have not consulted them. The correct application of Body Corporate repairs can reduce the expenses to an Owner.

You have an obligation to the Owner to secure the best price for the maintenance work carried out on the property. Before engaging tradespeople carry out a brief survey of tradespeople in your area and ask some of the following questions;

• Do you have public liability insurance?

• What licences do you hold?

• What is your turn around response time? How quickly can you attend to a problem?

• What guarantees do you offer for their workmanship?

• What hours are you available?

• What is your hourly charge?

• Discuss the format of quotes, invoices and reporting standards



GENERAL MAINTENANCE REQUEST FORM

TENANCY INFORMATION Date Time

Tenant Name

Property Address

Contact Details Email Mobile

DESCRIPTION AND DETAILS OF REPAIR OR MAINTENANCE (Please be as specific as possible)

COMPLETE IF APPLICABLE

Hot Water Gas Electric

Model #

Stove Gas Electric

Model #

Oven Gas Electric

Model #

Air Conditioning

Model #

Dishwasher

Model #

Other

Specify

TENANT INSTRUCTION FOR TRADESPERSON TO ENTER

Dog/s are kept on the premises. Tenant/s agree to restrain or remove for access.

Approval for tradesman to enter with Agency key and to advise tenant of the day of entry

Tenant/s to be present. Tradesperson is to call tenant to arrange time. * Please be aware that if the tenant arranges a time with the contractor but is not home as arranged, the tenant may be responsible for the call out fee charged. Please ensure a nominated person is at home to allow access.

TENANT SIGNATUREName

Signature

PRIVACY STATEMENT: Please refer to the Privacy Statement included in your ‘Moving In Kit’. If you have any questions in this regard, please contact our office and ask to speak to the Privacy Officer

Agency Use

Date received Time Received Property Manager

Action Taken Email owner for instructions

Diarise to follow up in 7 days

Owner’s instructions received Date Time

Owner would like a quote Quote request sent to contractorDate Time Diarise to follow up contractor for quote in 7 days

Email tenant status update

Date Time

Approval to proceed Work order sent to contractorDate Time Diarise to follow up contractor in 7 days

Place in await quote area Quote received Date Time Quote emailed to owner Date Time

Place in Waiting Approval area

Works completed Contact tenant to make sure works

completed satisfactorily Email owner status update

Owner declined quote Owner accepted quote

GENERAL MAINTENANCE REQUEST FORM


Dear [OWNER NAME],

GENERAL MAINTENANCE REQUEST REPORTED BY TENANT – [PROPERTY ADDRESS]

The Tenants have advised of the following item/s that are in need of repair:

Repairs

• [LIST DETAILS]

Requests

• [LIST DETAILS]

So we can action any of the repairs and work to your property, please provide your instructions in writing via reply email within seven (7) days.

If you have any queries or questions regarding the items reported, please do not hesitate to contact me on email or phone.

Kind Regards,

[STAFF NAME]

OWNERS INSTRUCTIONS NEEDED



Dear [TENANT NAME],

REPAIRS AND MAINTENANCE AT – [PROPERTY ADDRESS]

Thank you for your recent advice of repairs and maintenance required at [PROPERTY ADDRESS]. We write to confirm the following has been actioned.

[LIST ITEMS REQUESTED AND ACTIONS TAKEN]

or

The Owner has been contacted and we are awaiting their instructions.

or

It has been requested that Contractor name contact you to arrange a suitable time to inspect the work needed and provide a quote.

or

The owner has instructed our office not to proceed with the requested repairs and maintenance.

The request will be reviewed at a later date because [REASON].

or

[DETAIL OR REASON]

We will be in further contact with you to provide any additional updates, if applicable. In the meantime, please contact us via email or phone if you have further questions.

Kind Regards,

[STAFF NAME]

MAINTENANCE STATUS UPDATE TO TENANT


Dear [OWNER NAME],

URGENT MAINTENANCE ADVICE FOR – [PROPERTY ADDRESS]

Today the tenant at the abovementioned property has been in contact with our office to advise of an urgent repair.

As the managing agent, the repair was deemed urgent and the following was actioned on your behalf to ensure the interests of safety to the tenants and the property:

• [LIST ITEMS REPAIRED OR ACTIONS TAKEN]

As soon as we receive an update from the contractor we will be sure to advise you.

If you have any questions, please contact me to via email or phone to discuss.

Kind Regards,

[STAFF NAME]

URGENT REPAIR ADVICE


Carrying out regular routine inspections is vitally important in property management. There are four main reasons for carrying out a routine inspection:

• To ascertain if the property is being maintained by the Tenant in a clean and tidy condition

• To advise the Owner of any repairs and maintenance that may be necessary

• To suggest any current or future renovations or improvements that may be required

• And most importantly, to ensure that the property is secure and safe for the Tenant to live in

You have a duty of care to the Owner to carry out routine inspections and to issue a written report.

It is good property management practice to conduct these inspections quarterly. If you do not have a structured plan for routine inspections the process can be very time-consuming. Inspecting five properties in different areas is non-productive and time consuming.

Often many offices are relying solely on the trust program to generate the inspection dates when the tenant is first entered. While this system can work well, it is not the most effective.

To overcome this, create zones. When you enter the property details into trust there should be a function to attach the property to a zone. This method allows you to conduct the routine inspections per zone (property) instead of the dates of when the tenant moved in.

ROUTINE INSPECTIONS PROCEDURE

ROUTINE INSPECTION FLOWCHART

Notify Tenant of Inspection

(send e-Letter)

Send invitation to Owner to

attend

Tenant notified to rectify

cleaning/ repairs

Allocate Routine Inspection task

within Trust

Establish Routine

Inspection zones

Diarise inspections

Carry out inspections

Reinspect the Property

Cleaning/Repairs required

Email Owner report with

photos

Unable to access the property

This means a routine inspection will be set on the property regardless of whether there has been a tenant changeover. There may be an occasion when the routine inspection falls due on a property however a new tenant has just moved in. In this scenario, complete the inspection task as though you have conducted the inspection so it remains in the same zone moving forward.

You need to ensure that the inspection is comprehensive and detailed, highlighting any key areas of concern to the Owner with supportive photos.

Many departments are now embracing modern technology and are using software platforms that have been specifically designed for routine inspections.

Ensure the report has a disclaimer on the bottom highlighting that you are not a qualified builder, electrician or pest inspector and it is important that they have regular inspections on their property by these experts.

The most common questions asked are “what to look for?” and “what do we need to comment on?” To assist you in this process we have listed a few areas that should be checked as these areas can easily be overlooked and are more likely to lead to a liability claim should there be a fault.

Check to see:

• That all balcony railings are secure

• That the gutters and downpipes are secure and not overflowing with leaves and debris

• That steps and balcony floorboards are secure and free from dry rot or mould

• That there are no leaks under the kitchen sink, bathroom cabinet or from the hot water system

• That fences and retaining walls are structurally sound

• All property locks are reasonably secure - especially pool fence/gate locks

• That light fittings and power points are secure and not hanging out of their socket

• That there are no tears or ripples in the carpet

• That window panes are secure

• That there are no dangerous obstructions on the property

• That there is no evidence of white ant activity (Fine dirt particles in a small mould or line)

As well as maintenance, you still need to check the Tenant is maintaining the property in a clean and tidy condition. If the Tenant is not keeping the property clean and tidy or you notice there is evidence of deliberate neglect by the Tenant i.e. carpets or walls badly marked or holes in doors or walls, you have an obligation to the Owner to advise them on the condition.

Explain to the Owner on the report the steps you have taken with the Tenant to have these points rectified. If necessary, you should also arrange a follow up inspection to ensure that the Tenant has met their obligations.

Prior to the inspection, enclose Tenant Routine Report with the email informing them of the upcoming inspection, asking the Tenant to complete and return back to you prior to the inspection.

This form will summarise any concerns the Tenant may have making your time at the routine inspection more efficient. It will also allow you to plan if you need to allocate more time at a specific property.

You are aware several months in advance when the next routine inspection is scheduled for so why not extend an invitation the Owner. Due to work commitments or residing interstate they may not be able to attend, but you should encourage the Owner to attend one inspection in a 12-month period. This will allow you to communicate any preventative maintenance or suggest improvements. Owners will be impressed by this invitation and view it as above and beyond in customer service.

The final document that can assist you with routine inspections is a Tenant Feedback form. Once you have attended the property to carry out the inspection you can provide the Tenant with feedback on the inspection.

It is important to thank a tenant for keeping the property to a good standard or presenting it well for the inspection. A lot of tenants go to a huge effort to ensure the property is perfect for the inspection, so a short personal note can go along way.

For example:

It was a pleasure to carry out the routine inspection, thank you for making the effort and presenting the property in such a great manner.

Equally it is important to advise the tenant if you have identified any areas in which they may need to pay further attention to.

We recommend that you pay particular attention to the following areas:

1. Carpets were soiled and cleaning is required

2. Gardens overgrown and require weeding



Dear [TENANE NAME],

ROUTINE PROPERTY INSPECTION IS DUE – [PROPERTY ADDRESS]

Our Agency is required to conduct regular routine property inspections on behalf of its owner.

We have therefore scheduled the routine property inspection for the abovementioned property on [DATE] and between [TIME].

Due to time restraints and schedules, it is difficult to rearrange the allocated time, however, in extreme circumstances you can request a change of entry with our office.

You are welcome to be home for the inspection, however it’s not necessary as we can use our set of keys to access the property and secure the property on our departure.

It’s our role to ensure you are maintaining the property in a neat and tidy condition with no damage and to identify any repairs or maintenance the owner needs to attend to. If you are aware of any problems, please indicate this on the form attached so we are able to detect this at our inspection.

Please see a detailed list below of what we look out for whilst conducting our inspection.

If you have a dog - please ensure dogs are restrained or removed from the property for the inspection to provide our staff with easy and safe access to all areas. Ensure any droppings are picked up and removed and any pet damage or rubbish has been repaired and cleaned up.

If the property has an alarm system and the code has been changed - if the code provided at the beginning of the tenancy has been altered please notify our office with the new code details.

Our staff will leave a note in the property so you are aware we have completed the inspection. This note will mention feedback and requests for your attention, if required.

If you have any queries please contact me via email or phone.

Kind Regards,

[STAFF NAME]

Inside the Property Outside the Property

Walls/light switches + doorways and doors are clean from marks

Lawns are freshly cut/edged and maintained

Carpets are clean and stain free Gardens tidy and presentable/weeds removed Rubbish/lawn clippings removed

Windows, tracks and screens are clean No unregistered car bodies on the property

Kitchen area clean and oven/stove top is free of burnt on food and carbon staining

Oil stains removed to carports, garages and driveways

Shower, bathroom, toilet, laundry and all tiling is clean and free from mould

All areas, garages, store rooms etc are all accessible

All areas and rooms are fully accessible (not locked) Swimming pool/spa – water and sides/ bottom are clean

ROUTINE INSPECTION TO BE CARRIED OUT TO TENANT


TENANT ROUTINE INSPECTION CHECKLIST

Tenant Name

Property Address

Contact Details Email Mobile

The table below lists areas checked to identify repairs and maintenance. If you are aware of any problem with any area listed, please indicate by ticking the box beside the applicable area and leave this form on the kitchen bench or table on the inspection date for our attention.

Interior

Floor Coverings

Walls

Doors

Ceiling fans, if applicable

Smoke alarms

Light fittings

Power points

Built in cupboards – shelving & rails

Curtains / blinds

Whitegoods if included in tenancy

Fixtures eg. oven, hotplates

Hot water system

Furniture, if included in tenancy

All wet areas – taps & pipes below sinks and basins

Exterior

Garage / carport

Gardens & lawns

Paintwork

Guttering & downpipes

Steps – structure & paint

Balcony, verandah and / or deck

Stumps, if applicable

Driveway, paths, courtyard

Locks

Pool / spa, if applicable

Fencing

Taps

Safety Switch Tested OK YES / NO

Test Performed (DATE)

If you have any other concerns or items to report please list in further detail below.

TENANT SIGNATURE Signature Date

TENANT ROUTINE INSPECTION CHECKLIST



Dear [OWNER NAME],

INVITATION TO ATTEND ROUTINE INSPECTION AT [PROPERTY ADDRESS]

As part of our management service to you, we wish to advise that our Agency has scheduled a Routine Property Inspection at your property on [DATE] between [TIME].

We extend an invitation for you to attend at this time and date if it suits your schedule.

If you would like to attend please let us know by [RSVP DATE].

Please email your reply to [EMAIL] or alternatively you may contact me via phone to confirm your attendance.

I look forward to hearing from you.

Kind Regards,

[STAFF NAME]

INVITATION TO THE OWNER TO ATTEND INSPECTION


TENANT INSPECTION FEEDBACK

TENANT INSPECTION FEEDBACK

Property Address

Date of Inspection

Tenant Present Yes No

Property Address

Date of Inspection

Tenant Present Yes No

Staff Name

Signature

Staff Name

Signature

Thank you for today’s Property Routine Inspection.

Please note the following:

Thank you for maintaining the property in good order. It was a pleasure to inspect.

Please attend to the lawns and gardens

Please attend to a thorough ‘spring’ clean

Thank you for your notes left for our attention

Comments:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

Thank you for today’s Property Routine Inspection.

Please note the following:

Thank you for maintaining the property in good order. It was a pleasure to inspect.

Please attend to the lawns and gardens

Please attend to a thorough ‘spring’ clean

Thank you for your notes left for our attention

Comments:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

TENANT INSPECTION FEEDBACK FORM



Dear [TENANT NAME],

NOTICE OF BREACH OF AGREEMENT – [PROPERTY ADDRESS]

With reference to the recent Routine Property Inspection, which was conducted on [DATE], we wish to advise that you are in Breach of your Tenancy Agreement terms. The details of the breach are listed below;

• [LIST ITEMS AND REASONS]

Before issuing this Breach letter we took into consideration the condition of the property at the beginning of your tenancy and we now request that the items listed above be rectified by [DATE].

As part of the process, I advise you also of the following:

• The Owner has been notified of this Breach.

• If the Breach is not rectified, it may result in a Notice to Leave being issued.

If you have any questions or you require any assistance to rectify the Breach please contact our office via email or phone.

Kind Regards,

[STAFF NAME]

TENANT ADVICE OF BREACH FOUND AT INSPECTION

RENT ARREARS FLOWCHART

Issue the Tenant a Remedy

Breach letter

Vacant possession

required

Tenant does not vacate

Refer to Tribunal

Flowchart

Tenant Vacated the

Property

Discuss Rent Arrears procedure

with Tenants at the sign-up

process

Contact Owner to advise Tenant

is in arrears and a Remedy Breach letter has been

issued

Tenant has not remedied the

Arrears Breach Contact Owner to seek further

instructions

Proceed to issue the Tenant

a Termination Notice to Vacate

Rent Paid by Tenant Notice

to Leave Withdrawn

Tenant has remedied the

Arrears Breach Contact Owner to

advise

Process daily Arrears 1-2 days Contact Tenant

via SMS


via email


via phone


It is a requirement for all rental payments to be made in advance from the commencement of the tenancy and how you educate the tenant at the time of signing the Tenancy Agreement will determine your working relationship.

Rent arrears should not be tolerated and you should adapt a zero tolerance to this process, thoroughly explaining this from the outset. At the initial tenancy sign-up highlight to the tenant the section of the Act/Lease that refers to what action can be taken if the tenant falls behind in rent payments.

Best Practice would also see you have the tenant sign an acknowledgement document that you have clearly explained this process to the tenant and that they are fully aware of their obligations. Also explain the importance of contacting your office should they be late in paying their rent.

On all occasions the Owner must be informed when the Tenant is in arrears. It is good property management practice to document your actions in writing to the Owner. If the tenancy ends resulting in a considerable rental loss, you will need to prove that you took the necessary steps to mitigate the income loss and had kept the Owner updated on all actions.

The monitoring of rent arrears should be carried out on a daily basis. You need to ensure that the necessary prescribed notice forms are being issued promptly and that any repayment plans are being met. As a Property Manager you have an obligation to the Owner to ensure that rent is paid on time. Remember it is your duty as a Property Manager to ensure that this process is strictly adhered to.

A common trend throughout the industry is that the majority of Tenants who fall into arrears do so consistently and it is how you manage this, as each situation will need to be evaluated carefully and objectively.

When pursuing rent arrears, be diplomatic in your approach. Remember, different Tenants require different action. The best approach is to be firm but fair and usually a polite reminder call will alert the tenant to pay. Best Practice suggests you commence the recovery of rent arrears from 2 days.

With evolving technology the introduction of email and SMS allows for more efficient forms of contact, with the most productive method being a phone call. If you were unable to reach the Tenant for whatever reason you would then consider sending a rent arrears letter.

Below are some recommended approaches:

“Hi Jane, I have noticed rent has not been received today. I realise this may be an oversight, so this is a friendly reminder in order to prevent any further action that will effect your tenancy history.”

Hi Jane, May I ask if there’s a specific reason as to why you have fallen behind in your rent? Please let me know immediately as I have noticed rent has not been received and it is now 10 days overdue.”

Hi Jane, May I ask when will you be rectifying the rent arrears and how much you will be paying? Please be sure to forward a remittance through to our office once this has been paid as to avoid any further action that will effect your tenancy history.”

If the Tenant does contact your office to state they are unable to meet the weekly rental payment, explain to the Tenant that the Owner may consider a rent payment plan until they rectify their financial situation. Always ensure that a Tenant’s repayment plan is formalised with an agreement signed by both parties.

If a Tenant makes an agreement to pay rent on a given day and fails to comply, you should immediately contact the Tenant to discuss. Failure to act promptly with rent arrears may jeopardise any future claims made against the owners Landlord Protection Insurance.

Always document your conversations. This will give you control of when to follow up the Tenant for non-payment as per the arrangement.

It is also recommended that you diarise dates and amounts of the rent payment plan so you can easily keep track ensuring the Tenant is adhering to the agreement. If a Tenant is making no attempt to contact your office or fails to adhere to a repayment plan it may be time to terminate their tenancy. It is never nice to terminate a tenant but whilst the tenant may be having financial hardship, the Owner still has mortgage repayments to make.

Contact the Owner to seek their written instructions, remembering that you must adhere to the instructions of the Owner and not issue a Notice to Vacate without these instructions.

Throughout this process always highlight to the Tenant that should they fail to pay rent, their details may be lodged with a Tenant Default Agency for breach of the tenancy agreement. Ensure they are aware that this could jeopardise their ability to seek future rental properties.

RENT ARREARS PROCEDURE E-LETTER TEMPLATE EXAMPLE

Dear [TENANT NAME],

OVERDUE RENT FOR [PROPERTY ADDRESS]

This email is a courtesy to advise that your rent payment on the abovementioned property is now overdue by [NUMBER] days.

Your legal obligations to pay your rent on or before the due date are detailed in your General Tenancy Agreement.

If you are experiencing difficulties in meeting your obligations please contact me as soon as possible, as it is our Agency’s aim to assist tenants where possible. For example, the due date may need to be adjusted to co-ordinate with your pay dates.

If your rent has been paid up to date before receiving this email, we thank you for attending to this matter.

If you have any questions or wish to further discuss this matter, I can be contacted by email or phone.

Kind Regards,

[STAFF NAME]

FRIENDLY REMINDER RENT IS OVERDUE TO TENANT


SMS EXAMPLES

5:55pm

Messages ContactAGENT

Forgotten to pay your rent? Please call us if you are not able to make your payment today.

[COMPANY NAME] [PHONE NUMBER]

A friendly reminder that your rent is overdue by [NUMBER] days. Please call me on [PHONE NUMBER] if you cannot pay today.


It is important we receive your payment of rent on time. Currently you are [NUMBER] days behind. Please call our office if you cannot make an immediate payment.


Late Rent Payment Again – You are overdue to pay your rent. Rent was due [NUMBER] days ago. Please call me on [PHONE NUMBER] to discuss urgently.

[STAFF NAME] [COMPANY NAME] A reminder that your

rent was due [NUMBER] days ago. Please call the office today on [PHONE NUMBER] if payment is a problem.

[COMPANY NAME]

Please let us know if there are any problems with making your rental payment. You are currently [NUMBER] days behind.



Dear [TENANT NAME],

BREACH OF TENANCY AGREEMENT DUE TO OVERDUE RENT AT [PROPERTY ADDRESS]

Our records indicate that you are currently more than [AMOUNT] days in arrears with your rental payments. As a result you are in breach of the Payment of Rent obligations as per your Tenancy Agreement terms. For your reference we have included a copy of your Tenant Ledger so you can check all payments received by our office to date.

If you have made a rental payment within the last two (2) days please contact our office and advise us of the following:

• The date any other payment was made

• The amount of the payment

• Method of payment with evidence eg Reference Code

If we can verify the payment, the amount paid will be receipted to your ledger and the Breach details will be removed from our records (if it is no longer applicable).

If you have any questions please contact me via email or phone.

Kind Regards,

[STAFF NAME]

BREACH OF AGREEMENT OF RENT ARREARS TO TENANT



Dear [OWNER NAME],

BREACH NOTICE ISSUED TO TENANT – [PROPERTY ADDRESS]

This is a courtesy email to advise that the tenants residing in your investment property are in breach of their Tenancy Agreement. As your managing agent, it is our duty to keep you informed on the status of the tenancy.

The tenants have breached their Tenancy Agreement by [NUMBER] days and our office has issued a Notice to Remedy Breach letter (refer to attached). The breach notice gives the tenant [NUMBER] days to remedy the breach.

If the breach is not remedied within this time, our office will contact you to discuss the matter. If the breach is adhered to, our office will continue to monitor the situation and only trouble you if further action is required.

Should you wish to discuss this matter in further detail, we can be contacted during business hours via email or phone.

Kind Regards,

[STAFF NAME]

NOTIFY OWNER OF TENANCY BREACH OF AGREEMENT

RENT PAYMENT PLAN

Tenant Name Date

Property Address

Your current rent overdue balance is $________. We will allow you to pay your overdue balance according to the below payment schedule.

AGREEMENT – The Tenant agrees and acknowledges the following terms:

• To pay rent payments as specified below and in addition to your regular weekly rental payment.

• Failure to abide by this agreement will result in eviction proceedings. If eviction is sought you may be responsible for additional charges such as debt collection fees, which may have a negative effect on your credit rating and future rental history.

• It is the Tenant’s responsibility to ensure that payment of rent is made on the date specified.

• Any change to the agreed Payment Plan is to be in writing and approved by the Owner

AGREED PAYMENT PLAN Agency Use

Due Date Amount Due Date Paid /Receipted ‘Paid to’ Date Agency Signature

$

$

$

$

$

$

TENANT SIGNATURE Tenant 1 Tenant 2 Tenant 3

Tenant Name

Signature

Date

LANDLORD APPROVAL

The landlord approves of the payment schedule indicated above.

Signed Date


RENT PAYMENT PLAN FORM


TENANCY RENEWAL FLOWCHART

Review tenancy -

expiries three months in advance

Conduct CMA to determine if rent increase is applicable

Contact owner for

instructions to renew tenancy

Diarise to follow-up owner

instructions

Email confirmation to owner &

enclose new Agreement

Email copy of signed Tenancy

Agreement to tenant

Charge lease renewal fee (if

applicable)

Owner does not wish to

renew

Diarise to follow-up return of

agreement

Tenancy Agreement returned &

signed

Enter new lease dates

into trust

Owner approval received

Check if rent is being increased

Complete Tenancy

Agreement & email

Complete tenancy vacate

checklist

It’s important you take every opportunity to negotiate a new tenancy term. Renewing a Tenancy Agreement will ensure that the owner receives income for another fixed term, avoiding a possible vacancy period should the tenant decide to vacate.

Best practice indicates that you, the property manager, should be initiating the Tenancy Agreement renewal with the owner three months prior to the expiry of the fixed term. On some occasions you may find that a tenant will contact you to discuss the renewal options prior to your contact with the owner.

Carry out a Comparative Market Analysis (CMA)

After you have researched the current market, prepare a CMA report so you can discuss the ideal rental return with the owner. Use this report to demonstrate to the owner and justify your recommendations, whether it be an increase or decrease in rent.

Contact the owner to discuss the tenancy renewal

Let the owner know (in writing) that the current Tenancy Agreement is due to expire and ask for their instructions to either offer a new fixed term or a vacate request.

Provide the CMA report as evidence of your suggested rent increase or decrease and request the owner reply within seven (7) days. Diarise to follow the owner up on the eighth day if you have not heard back from them.

Prepare the Tenancy Agreement

Once you have received written instructions from the owner, prepare the Tenancy Agreement or Agreement to Extend Tenancy. Communicate with the tenant and advise them that the owner wishes to renew the tenancy and enclose the completed Agreement for signing.

Request the tenant return the signed Agreement within 14 days unless they wish to vacate in which they’ll need to advise as soon as possible. Diarise to follow the tenant up on the 15th day if you have not heard back from them.

Update the owner

On all occasions you should keep the owner updated and informed of the status of the Tenancy Renewal.

Agreement returned by the tenant

Once the tenant has returned the signed Agreement, sign it yourself as the Agent on behalf of the owner and update the new tenancy start and end dates in your trust software program. At this time ensure you have entered the new rent amount and the date this is to take affect (if applicable).

If the tenant disputes the rent increase

In most rent increase situations you will need to negotiation with both parties to come to an agreement. Often tenants may not want to pay the extra $10 per week, so you should always discuss this with the owner and suggest they meet in the middle at $5 as an example.

Send confirmation to the owner

Scan the Agreement and save in electronic filing and within trust. Send the confirmation email to the owner & tenant with a copy of Tenancy Agreement.

Process Tenancy Renewal fee

Process the tenancy renewal fee in your trust software as per the Management Authority.

TENANCY RENEWAL PROCEDURE



Dear [OWNER NAME],

TENANCY AGREEMENT DUE TO EXPIRE - [PROPERTY ADDRESS]

As the current Tenancy Agreement will expire on [DATE], we ask for your written instructions regarding an offer to renew.

Please find important information enclosed and outlined below.

As part of our tenancy renewal process we have reviewed the rental price for your property. The review is based on comparative rentals in the current market and we believe the market rent for your property is [$ AMOUNT] per week being the same rent as it is currently achieving OR [$ AMOUNT] which is an increase of [$ AMOUNT] per week.

Below is a list of comparable properties to outline how we have justified the weekly rental price.

• [PROPERTY ADDRESS], [RENT ACHIEVED], [HOW LONG ON MARKET]



As the lease renewal process requires us to provide the tenant with reasonable notice to renew, we ask if you could complete the attached Tenancy Renewal Authorisation form, within 14 days, to provide our office with your instructions.

If we have not received your instructions by [DATE], we will refer to the Management Agreement’s renewal instructions, if applicable, and offer the existing tenants a renewal as per our recommendations mentioned above.

We look forward to receiving your instructions. In the meantime, if you have any questions please do not hesitate to contact me.

Kind Regards

[STAFF NAME]

TENANCY RENEWAL INSTRUCTION REQUEST TO OWNER

TENANCY RENEWAL INSTRUCTIONS

Property Address

OWNER’S INSTRUCTIONS

Note for Client: If you wish to give alternate instructions other than the following options, please change the details and initial beside the change.

Offer current Tenant a Fixed Term agreement of 3 months 6 months 9 months 12 months at the suggested market rent of $___________ per week.

DO NOT RENEW LEASE and ISSUE TENANT/S A ‘NOTICE TO LEAVE’ – WITHOUT GROUNDS to current Tenants, giving the required notice

REASON (for Agent information):____________________________________________________________________________

After issuing the Tenant a ‘Notice to Leave’ as requested above, re-list the Property for lease with rent as per the above suggested market rent of $___________ per week.

Offer the current Tenant a Periodic Tenancy (ie not a Fixed Term lease). I understand that whilst the Tenant is on a Periodic Tenancy they may give [X] weeks notice of their intention to leave the Property however, as the Owner I/ we must provide the Tenants at least [X] Months Notice to Leave the Property – Without Grounds.

OTHER: ________________________________________________________________________________________________

Additional Instructions: ______________________________________________________________________________________

__________________________________________________________________________________________________________

__________________________________________________________________________________________________________

__________________________________________________________________________________________________________

__________________________________________________________________________________________________________

Owner/s Name/s Signature Date

OFFICE USE ONLY

Date Received Time Received

Staff Member Checklist Commenced


TENANCY RENEWAL INSTRUCTION FORM



Dear [TENANT NAME],

LEASE RENEWAL OFFER FOR [PROPERTY ADDRESS]

As you may know, your Tenancy Agreement at the above mentioned property expires on [DATE]. We are pleased to advise that the Owner is offering to renew the Tenancy Agreement for a further term of [AMOUNT] months.

Please find enclosed a copy of the Agreement for you to consider, sign, and return, to secure the tenancy offered. Please note the key changes outlined below.

RENT INCREASE

You will note that the rent has increased by [$ AMOUNT] per week to [$ AMOUNT] per week, in line with current rental market values.

BOND INCREASE

Additional Bond of [$ AMOUNT] is also required to reflect the new rent.

WATER CONSUMPTION COSTS

Not Applicable

Applicable - Tenant to pay ALL water consumption costs within one (1) month upon receipt of a tax invoice provided by the agency.

Depending on your plans, please select one of the two options below and action the steps outlined.

OPTION 1 – Accept offer to renew the Tenancy Agreement

Please read the Tenancy Agreement, correct any spelling errors (if applicable) and sign and date, ensuring you have your signatures witnessed. Return the signed Tenancy Agreement to our office by [DATE] (14 days).

OPTION 2 - Decline the Tenancy Agreement offered

If you choose to decline the Tenancy Agreement offered and you wish to vacate the premises, please provide your intentions in writing by [DATE].

If you have any questions please do not hesitate to contact me via email or phone.

Kind Regards,

[STAFF NAME]

LEASE RENEWAL OFFER TO TENANT

Dear [TENANT NAME],

ACTION REQUIRED FOR LEASE RENEWAL - [PROPERTY ADDRESS]

This is a friendly reminder that your Tenancy Agreement is due to expire on [DATE].

Our records show that our agency has not received advice of your intentions. Do you wish to renew the tenancy as per the Agreement that was emailed to you? OR If your intention is to vacate at the expiry of your lease, please provide written notice as soon as possible.

The owner has advised that no periodic tenancy is on offer, so it is imperative that you action one of above options as soon as possible.

If our agency has not received either of the above documents by [DATE], a Notice to Leave may be issued, requiring all tenants to vacate the property on the lease expiry date.

If you have any queries please feel free to contact me via email or phone.

Kind Regards,

[STAFF NAME]


LEASE RENEWAL REMINDER TO TENANT


CHANGE OF SHARED TENANCY FLOWCHART

Tenant Request to Change Tenancy

Agreement

Process application and refer to

owner

Prepare new tenancy & bond

paperwork

Confirmation letter sent to owner &

tenant, enclose new Tenancy Agreement

Arrange for tenants to sign new

paperwork

Tenancy Application form completed by

prospective tenant who wishes to be added to Agreement

Request received in

writing

Discuss with tenant

All documents

signed

No

Yes

Owner approves of the tenancy

change

Tenant requests to Change Tenancy Agreement

If a tenant wishes to change the tenancy arrangement ensure you receive this in writing outlining who the current tenants are, which tenants are vacating and which tenants wish to occupy the property. Request the new occupants complete and submit an Application Form.

Application Form completed for new tenants

Process Application Form as per New Tenancy Procedure.

The tenant default database check should be conducted first before proceeding with employment and rental reference checks. If it is identified that the applicant is listed on a default database then processing can cease. You have a duty of care to thoroughly check applications and it is highly recommended to seek references in writing.

Listed below are the key references you should be checking;

1. Employment reference to current employer

2. If self employed send accountant reference or request last year’s tax return

3. Rental reference to current and previous rental agencies

4. If current home owner ensure you have a copy of rates notices and perform an RP Data search

5. Personal reference - although they may have the best things to say about the applicant, it is still important to verify the details contained within the application

Contact the owner

Prior to approving a change of Shared Tenancy Notice you will need to discuss with the owner. Advise the owner of the requested change and discuss the suitability of the new tenants. The tenants do have a right to submit a Change of Shared Tenancy, however you still have an obligation to ensure that the new occupant/s will be suitable to reside in the property.

Send the tenant a confirmation letter

It is important to communicate the decisions in writing with the tenant. Send the tenant a confirmation email to advise the change has been approved and that all parties need to be present in the office to sign the Tenancy Agreement and the Change of Shared Bond form (if applicable).

Depending on the circumstances, you may choose to type a new Tenancy Agreement or simply alter the current Agreement. If you are making adjustments to the current Agreement, ensure that all parties including the property manager sign the changes. It would be best industry practice to enter into a new Tenancy Agreement.

Complete Change of Shared Bond Arrangement form

All tenants - vacating and moving in - will need to sign the Change of Shared Bond Arrangement form. Failure to obtain all signatures will result in delays in processing the Refund of Bond form at the end of the tenancy. Once all tenants have signed the form, send to the Rental Bond Authority and keep a file copy for your records.

CHANGE OF SHARED TENANCY PROCEDURE



TENANT REQUEST TO CHANGE TENANCY AGREEMENTThis form is to be completed by all remaining, ingoing and outgoing tenants.Application form for tenants who wish to be added to the Tenancy Agreement must be returned with this form.

Property Address

NEW AGREEMENT DETAILS

Date Amendments to take effect

New terms or special terms to be added to existing Agreement

TENANT/S – TO BE ADDED TO EXISTING AGREEMENT

Details Tenant 1 Tenant 2 Tenant 3 Tenant 4

Name

Signature

Date

TENANT/S – TO BE REMOVED FROM EXISTING AGREEMENT


Name

Signature

Date

TENANT/S – TO REMAIN ON EXISTING AGREEMENT


Name

Signature

Date

OFFICE USE ONLY



CHANGE OF SHARED TENANCY REQUEST FORM

Dear [OWNER],

REQUEST FOR A CHANGE IN SHARED TENANCY AT [PROPERTY ADDRESS]

We have received advice from the current Tenants requesting a change of shared tenancy. This means one Tenant is vacating the property and another applicant would like to be approved and replace this Tenant, for the remainder of the existing Tenancy term.

Below are the details of the Tenant who wishes to vacate and the applicant who is seeking approval to be added to the agreement.

• Vacating Tenant - [INSERT INFORMATION]

• Ingoing Tenant - [INSERT INFORMATION]

• Continuing Tenant - [INSERT INFORMATION]

The Ingoing Tenant completed and submitted an Application for Tenancy, which was processed as usual by our Agency. The reference checks have been completed and below are the outcomes listed in detail.

• [INSERT REFERENCE DETAILS FROM APPLICATION]

Please find enclosed the form all parties have completed to confirm details of the Change of Shared Tenancy.

If you could please reply with your instructions by [DATE], so we can finalise this request. Once approval has been given, we will make the necessary adjustments to the General Tenancy Agreement and have all parties sign agreeing to the change.

If you have any queries, please contact me via email [EMAIL ADDRESS] or phone [PHONE NUMBER].

Kind Regards,

[STAFF NAME]


REQUEST FOR CHANGE IN SHARED TENANCY TO OWNER



Dear [TENANT NAME],

CHANGE OF SHARED TENANCY CONFIRMATION – [PROPERTY ADDRESS]

This is to advise that your request for a change of shared tenancy has been approved. We will now require all tenants to visit our office to sign the new tenancy documents.

We will amend the Tenancy Agreement and complete a Change of Shared Tenancy Bond form with the new information. These documents need to be signed by both the current tenants who contributed to the bond and the new tenants taking possession.

We will not be able to change the Tenancy Agreement and bond details unless all parties have signed the documents.

Please contact our office within 24 hours to arrange a suitable appointment time.

Kind Regards,

[STAFF NAME]

CONFIRMATION OF CHANGE TO SHARED TENANCY TO TENANT

If a tenant wishes to break their Tenancy Agreement, it must be received in writing.

It is recommend the tenants complete an internal form “Notice of Intention of Early Termination” so you can seek a suitable new tenant as soon as possible, and so you can outline any re-letting costs that they may be liable for (if applicable).

Once you have received written notice that the tenant wishes to break their Tenancy Agreement, contact the owner and get their authority to relet the property. In some cases, there might be prevailing circumstances that may restrict the reletting procedure. (For example, the owner may intend to take possession at the end of the tenancy so his daughter can move in and there is two months remaining on the tenancy.

EARLY TERMINATION BY TENANT PROCEDURE

EARLY TERMINATION BY TENANT FLOWCHART

Tenant written request to break

Agreement received

Send the owner a

confirmation e-Letter with update on

vacate

Send the Owner a confirmation

e-Letter & attach new Agreement

Finalise the bond & keys

returned

List property for rent

New tenant(s) secured

Sign-up completed with new

tenant

Keys returned by exiting

tenant

Final Inspection carried out

Reletting expenses

charged to Tenant

Print tenant ledger record

New tenant moves in

Record tenant

reference

Document any damage or cleaning

Owner authorises

request

No – Advise tenant

Yes – Advise tenant


You may then need to negotiate with the tenant to find another suitable tenant for the two- month period or the owner may allow the tenant to vacate early.) Explain to the owner that they cannot unreasonably withhold the tenant from breaking their Tenancy Agreement.

Send a confirmation e-Letter to the tenant advising of the approval, it is recommended to enclose the following documents to ensure the vacate process is smooth.

• Tenant cleaning guide

• Copy of Entry Condition Report (as a reminder to the tenant about the condition of the property upon entry)

• Vacate envelope checklist

• Copy of keys/remotes provided to the tenant at the beginning of tenancy to ensure all keys/remotes supplied are returned

Once you have authorisation from the owner, be sure to immediately relist the property for rent. It is recommended to review your previous advertisement content including photos before publishing the listing. As part of your marketing strategy, arrange a “For Lease” sign to be erected. If the property is a unit/apartment ensure you seek body corporate permission before erecting a sign. Once the listing is live online, send confirmation to both the owner and the tenant.

Place the hard copy tenant file in the “Tenants Breaking of Agreement” allocated area whilst you are attempting to secure a new tenant.

Follow the New Tenancy flowchart and procedure once you have secured the new tenant. Continue with the procedure below for the exiting tenant.

Now that you have a firm vacate date, add a diary appointment in your calendar and depending on your office structure you may wish to invite other team members into the appointment.

On the scheduled vacate/handover day, ensure you cross-check all keys returned by the tenant to ensure they match what they were given at the start of the tenancy. Photocopy the keys returned by the tenant for your records.

It is recommended to sight and obtain a copy of the carpet cleaning receipt and pest control receipt (if pets were present). Place the returned keys and copies of receipts in the vacate pack awaiting your scheduled final inspection.

Prior to conducting the final inspection, confirm with the owner if they will be present. Complete an Exit Condition Report documenting the condition of the premises at the end of the tenancy.

The tenants must leave the property in the same condition as it was at the commencement of the tenancy (allowing for fair wear and tear).

It is recommended you take photos as supporting evidence if there is any damage noted. These may be required if there are any disputes regarding the release of the bond. If there is cleaning or repairs to be carried out, document this in writing and advise the tenant.

Best practice suggests you allow the tenant an opportunity to return to rectify these items within a reasonable time frame. If the tenant is unable to attend or is in dispute about the items, it is recommended you have the appropriate trades attend to minimise the disruption for the new tenant to move in.

It is important that both the owner and tenant are kept updated on the final inspection. Once the final inspection has been carried out, contact the owner to provide an update on the property’s condition, and be sure to document the conversation in writing.

Because they broke their lease, the exiting tenant may be responsible for paying reasonable costs towards reletting the property. Ensure that you allocate these charges to the tenant prior to finalising the release of the bond.

Prior to finalising the release of the bond, ensure that the tenant’s rent has been paid up to the vacating date. If any repairs or cleaning was conducted, allocate those charges as a deduction from the bond also (if necessary). It is recommended you communicate these charges with the tenant to ensure a prompt refund of the bond; and to minimise any risk of an unnecessary dispute.

Once all tenants have signed the release of the bond, issue this promptly to the required authority and advise the tenant of your actions. If there is a dispute over the bond amount or if there are invoices outstanding, place the file in the “Bond to be Finalised” allocated area. This will give you a central point for all bond claims pending finalisation or release of funds.

To make providing rental references easy in the future, record the tenant’s rental history, final condition of the property and any complaints received in the tenant file within your trust program. This is completed once the bond has been lodged and all deductions have been finalised (if necessary).

It is recommended you print a full tenant ledger and place it in the hard copy file. Archive the tenant vacating file, ensuring the box is clearly numbered and labelled. You can also record the box number in the tenant file within the trust program, as well as tenant archiving spreadsheet. This will allow you to track and monitor old tenant files with ease.

NOTICE OF INTENT TO BREAK TENANCY AGREEMENTThis form is to be completed by all remaining, ingoing and outgoing tenants.Application form for tenants who wish to be added to the Tenancy Agreement must be returned with this form.

Property Address

Reason for wishing to break the tenancy agreement:

Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Time Start

Time Finish

Details Tenant 1 Tenant 2 Tenant 3

Full Name

Email

Mobile

Signature

Date

OFFICE USE ONLY



This is to confirm that I/we __________________________________________ hereby advise that I/we wish to break my/our Fixed Term Tenancy Agreement. Could you please list the property for rent and assist in locating a new suitable tenant. I/we understand that we are liable to pay rent until a new suitable tenant is secured or the tenancy agreement expiries (whichever comes first), that I/we are liable to pay a compensation fee to the Owner and all associated costs with the advertising of the property.

Advertising Costs: $150

Compensation Fee: Equal to one weeks rent plus GST

Proposed Vacate Date: ________________

I/we understand that I/we are bound to the terms and conditions of the Residential Tenancy Agreement, which includes maintaining the property including lawns and gardens.

I/we will have the carpets professional cleaned,, the property fumigated for fleas (if pets were present) and receipts provided to the agent at the time of handing back the keys. I/we will have the property presented in the same condition as per the entry condition report up on vacating.

I/We agree to the Agent entering the premises with prospective tenant/s to inspect the property on these selected day/s and times, subject to the Agent first contacting me/us to confirm each inspection.

I/we have read and understood the information and conditions on the Notice of Intention to Break Lease Form and agree to the terms.


EARLY TERMINATION NOTICE FORM



Dear [OWNER],

TENANT BREAKING OF AGREEMENT REQUEST – [PROPERTY ADDRESS]

This is to advise that the tenant/s at the above mentioned property has requested to break the Tenancy Agreement by vacating early.

We have explained to the tenant that they are responsible for all rental payments until another tenant is found or until the Tenancy Agreement expires on [DATE]. The tenant will also be responsible for all reasonable reletting costs, which may include advertising.

You can be confident that every endeavour will be made to assist in locating another suitable tenant in the quickest possible time.

We will keep you updated on the situation, however, should you have any particular instructions regarding the reletting of the property, please feel free to contact our office as soon as possible.

Kind Regards,

[STAFF NAME]

TENANT REQUEST FOR EARLY TERMINATION TO OWNER

Dear [OWNER],

BREAKING OF TENANCY AGREEMENT CONFIRMATION – [PROPERTY ADDRESS]

This letter confirms your request to break your Tenancy Agreement at the abovementioned property.

In order to seek the owners’ instructions we require you to sign a “Notice of Intention to Break Tenancy Agreement” form, which you’ll find attached.

Once we receive this signed form, we will commence advertising the property. Please be sure to indicate your preferred day and time for inspections on the form, and we will do our best to work in with you when showing prospective tenants through the property.

As stated in your Tenancy Agreement, you will be responsible for the payment of rent until another tenant is found or until your Tenancy Agreement expires, which is on [DATE]. You will also be responsible for the payment of reasonable costs to secure a new tenant, including a letting fee and advertising costs incurred by our office.

We will advise you when a tenant has been secured and need confirmation that you will vacate on the agreed date.

Please contact our office should you wish to discuss this matter in further detail.

Kind Regards,

[STAFF NAME]


CONFIRMATION OF EARLY TERMINATION TO TENANT


TENANT VACANCY FLOWCHART

Conduct CMA to determine if rent increase

applicable

Notify Owner – Authority to relet property

Notice To Vacate received from

Tenant

Refer to Lost Management

Flowchart

Update Owner on final

inspection

Tenant to return & attend to

items

Confirm notice with Tenant(s)

List property for rent

Key returned

by Tenant

Final inspection carried out

Discuss with

Tenant

Issue work orders to

trades

Reinspect Property

Works completed

satisfactorily

Tenant returned

Finalise Bond refund

Archive Tenant

Update Owner on final

inspection

Works completed

Finalise Bond refund

Print Tenant rental ledger and file note

records

No

No

No

Yes

Yes Yes

Yes

Whether the tenant or agent is to give notice to vacate, both must do so in writing. You must ensure that once “Written Notice” has been received or given that it is in accordance with the Tenancy Agreement terms.

Notify the owner in writing of the tenants’ intent to vacate and obtain their authority to relet the property. Before listing the property, you should review the rent and discuss a possible increase with the owner (if applicable). At the same time, invite the owner to attend the scheduled final inspection.

Send the tenant confirmation that the Notice To Vacate has been received. It is recommended to enclose the following documents to ensure the vacate process is smooth.

• Tenant cleaning guide

• Copy of Entry Condition Report (to remind the tenant about the condition of the property upon entry)

• Vacate envelope checklist

• Copy of keys/remotes provided to the tenant at the beginning of tenancy to ensure all keys/remotes supplied are returned

Remove hard copy documents from file and place the Move In Kit and contents in the 1-31 drawer on the day the tenant is scheduled to vacate so that it can easily be obtained when the tenant returns the keys.

It is now time to list the property for rent. It is recommended to review your previous advertisement content including photos before publishing the listing. As apart of your marketing strategy, arrange a “For Lease” sign to be erected. If the property is a unit/apartment ensure you seek body corporate permission before erecting a sign.

Record the date the tenant is vacating in the diary and depending on your office structure you may wish to invite other team members to the appointment.

On the scheduled vacate/handover day, ensure you cross-check all keys returned by the tenant to ensure they match what was issued when they moved in. Photocopy the keys returned by the tenant for your records. It is recommended to sight and obtain a copy of the carpet cleaning receipt and pest control receipt (if pets were present). Place the returned keys and copies of receipts in the vacate pack awaiting your scheduled final inspection.

Prior to conducting the final inspection, confirm with the owner if they will be present. Complete an Exit Condition Report documenting the condition of the

premises at the end of the tenancy. The tenants must leave the property in the same condition as it was at the commencement of the tenancy (allowing for fair wear and tear).

It is recommended to also take photos as supporting evidence if there is any damage noted. These may be required if there are any disputes regarding the release of the bond. If there is cleaning or repairs to be carried out, document this in writing and advise the tenant.

Best practice suggests you allow the tenant an opportunity to return to rectify these items within a reasonable time frame. If the tenant is unable to attend or is in dispute about the items, it is recommended you have the appropriate trades attend to minimise the vacancy period for the owner.

It is important that both the owner and tenant are kept updated on the final inspection. Once the final inspection has been carried out, contact the owner to provide an update on the property’s condition, ensure you detail the conversation in writing. At this point, discuss the condition of the carpets, walls and curtains. Will they need replacing or upgrading in the near future to maintain the property?

Prior to finalising the release of the bond, ensure that the tenant’s rent has been paid up to the vacating date. If any repairs or cleaning was conducted allocate those charges as a deduction from the bond (if necessary). It is recommended to communicate these charges with the tenant to ensure a prompt refund of the bond so you don’t end up in an unnecessary dispute.

Once all tenants have signed the release of the bond, issue this promptly to the required authority and advise the tenant of your actions. If there is a dispute over the bond amount or if there are invoices outstanding, place the file in the “Bond to be finalised” allocated area. This will give you a central point of all bond claims pending finalisation or release of funds.

To make rental references easy in the future, record the tenant’s rental history, final condition of the property and any complaints received in the tenant file within your trust program. This is completed once the bond has been lodged and all deductions have been finalised (if necessary).

Then print a full tenant ledger history and place it in the hard copy file. Archive the tenant vacating file, ensuring the box is clearly numbered and labelled. You can also record the box number in the tenant file within the trust program and in the tenant archiving spreadsheet. This will allow you to track and monitor old tenant files with ease.

TENANT VACANCY PROCEDURE



NOTICE OF INTENTION TO VACATE

Property Address

Reason for Vacating the property

Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Time Start

Time Finish

Details Tenant 1 Tenant 2 Tenant 3

Full Name

Forwarding Address

Email

Mobile

Signature

Date

OFFICE USE ONLY

Date Received Time Received Staff Member

As per our Tenancy Agreement I/we __________________________________________________________

hereby advise that I/we will be vacating the above property by the ____ day of __________ 20 ____.

We are aware that this notice must be given [NUMBER] days prior to vacating. We are aware that rent will be charged up to and including the day we return all keys and remotes to the office.

We acknowledge the keys must be returned to the Agent on or before 9am the following day of the above vacating date or we will incur additional rent at a daily rate. I/we advise that I/we will on this day, hand to your office all keys in our possession, including any keys that we may have duplicated.

We authorise you to erect a For Lease Sign (where applicable). We will have the property returned to the same condition noted on the Entry Condition Report, fair wear and tear excepted. We are aware that all items such as carpet cleaning, fumigation and chimney sweep must be completed prior to the keys being returned and failure to do so may result in the agency issuing the appropriate professional trades to attend at our expense. All receipts for these services must be provided to the agent upon vacating.

I/We agree to the Agent entering the premises with prospective tenant/s to inspect the property on these selected day/s and times, subject to the Agent first contacting me/us to confirm each inspection.

NOTICE OF INTENT TO VACATE

PRE-VACATE PHONE SURVEY SCRIPTS

“Hello, this is [NAME] from [COMPANY NAME]. This is a quick courtesy call to see if we can assist you as you prepare to vacate [PROPERTY ADDRESS] on [VACATE DATE].

We know it’s a very hectic time for you so I have a few questions and details that many of our tenants find helpful with so much on their mind. It will only take a few minutes.

Do you need contact details for a professional cleaner, carpet cleaner or gardener etc? If reply is no, ask… What companies are you using?

____________________________________________________________________________________________________

____________________________________________________________________________________________________

When you hand in the keys, please remember to also hand in the receipts for carpet cleaning and pest control for fleas if you have had any pets at the property.

____________________________________________________________________________________________________

I’ve checked your rent payments for you and I can confirm that amount of rent due up to and including the vacate date is [AMOUNT]. Have you made arrangements for payment of this amount?

____________________________________________________________________________________________________

Have you arranged to cancel your regular rent payment?

____________________________________________________________________________________________________

Have you arranged for all keys to be returned including any that friends, family or a cleaner or other home service company may have?

____________________________________________________________________________________________________

What time can we expect you to be at the office with the keys?

____________________________________________________________________________________

We have scheduled to conduct the Exit Inspection on [DATE] and following this inspection we will be in touch.

Is there anything else we can help you with at this time?

____________________________________________________________________________________

Thank you for your time and we hope your move goes smoothly.


CHECKLIST EXAMPLE

TENANT CLEANING CHECKLIST

GENERAL All exhaust events throughout the property to be clean and

dust free Venetian blinds to be wiped down thoroughly (if applicable) Flyscreens to be removed carefully and hosed or brushed

to remove dirt/dust (if applicable) Windows and windowsills to be cleaned thoroughly

throughout – vacuum window tracks Doors and doorframes to be left clean and undamaged

throughout – vacuum door tracks Marks to be removed from walls, powerpoints and light

switches throughout Cobwebs to be removed from ceiling cornices and walls All light fittings to be cleaned and free from insects – gently

remove All floors and skirting boards to be washed removing any

marks All ceiling fans throughout to be free from dust (if

applicable) Clean all mirrors throughout including wardrobe door

mirrors (if applicable) Clean carpets by registered carpet cleaner to Australian

Standards. Supply copy of receipt. Fumigate for fleas – by registered pest company, if pets

were kept at property. Supply copy of receipt showing service details.

Empty council bins and place bins on footpath for collection.

KITCHEN The oven and griller is to be cleaned. Drip trays to be

cleaned of all grease. Rangehood to be cleaned including the filters (where

applicable). All cupboards to be cleaned inside and out (don’t forget

the tops of the cupboards). Sink and taps to be cleaned and polished. Walls and tiled areas to be free from grease. All benches and floors to be cleaned. The dishwasher is to be left clean. Wipe over internal door

and removed debris from bottom drainer (if applicable).

BATHROOM Shower recess to be scrubbed and free of soap residue. Grouting to be free of all soap residue or mould. Shower screen to be cleaned with all soap residue

removed. All plugholes are to be clean and free from hair. Mirrors to be wiped over. All drawers and cupboards to be cleaned inside and out. All tapware and towel rails to be cleaned. Toilet to be cleaned thoroughly, including bowl, seat and

cistern.

LAUNDRY Clean behind, inside and around washing machine alcove. Clean inside, outside and behind dryer. Remove lint (if

applicable). Clean inside, outside and around laundry tub, cabinets,

shelves, drawers, tapware.

BALCONY AND DECKS Sweep and mop, clean railings, glass and light fittings. Remove all cobwebs.

GARAGE, CARPORT, DRIVEWAY Sweep and remove any oil residue from concrete, pavers,

paths and driveways. Remove all cobwebs from ceilings and under eaves.

GARDENS AND LAWNS Mow lawn, trim all edges, weed gardens and remove all

rubbish.

The below cleaning checklist is a guide only.To avoid cleaning charges and unnecessary deductions from your bond, it’s in your best interest to ensure that following items are attended to, before returning the keys/vacating the property.

TENANT CLEANING GUIDE CHECKLIST

Dear [TENANT NAME],

CONFIRMATION OF VACATING NOTICE – [PROPERTY ADDRESS]

This is to confirm receipt of your “Notice of Intention to Leave”, which is in accordance with your Tenancy Agreement. All keys and property remotes are to be returned to our Agency by 9am on [DATE].

It is important to note that rent is payable inclusive of this date and until all keys are returned; whichever event occurs last. Remember to also cancel any automated direct debits set up to pay your rent.

As part of the vacating process, we draw your attention to your Entry Condition Report, and request that you pay particular attention to this document as a reminder of the condition of the property when your tenancy commenced.

You are required to have the carpets professionally cleaned, the property pest controlled for fleas inside and out (if pets were present) and the lawns and gardens maintained (where applicable). Please note that it is important that you retain the receipts for these services and produce them at our office in the enclosed envelope when handing over all property keys and remotes.

We also have enclosed a copy of our Cleaning Guide so that you are aware of our expectations and the areas that we will be focusing on when conducting the vacate inspection.

Important Note: If the property is not cleaned to the agent’s satisfaction within a reasonable time frame a professional cleaner may be engaged to clean where required and the cost will be deducted from your bond.

We ask that the electricity remains on for a period of three days following your vacate date. This will allow our office sufficient time to undertake the vacate inspection and arrange for any additional cleaning, repairs and or maintenance if required.

The owner has instructed our agency to relet the property and we ask for your assistance and co-operation in allowing our agency to show prospective tenants the property. Of course, we will notify you before each appointment or ‘Open House’ and we will be present for any appointment time arranged with your approval.

We are always striving for excellence and value our client’s and customer’s feedback. Enclosed is an end of tenancy survey and we would appreciate you taking a few moments to complete this.

If you are unsure of any details, please do not hesitate to contact our office.

Kind Regards,

[STAFF NAME]


CONFIRMATION OF TENANT VACATE NOTICE TO TENANT



Dear [TENANT NAME],

FINAL INSPECTION UPDATE – [PROPERTY ADDRESS]

This is to advise that the vacate inspection has been carried out at the above mentioned address.

Thank you for your effort and for preparing the property for the vacate inspection.

We have noted the following items as outstanding - they require your urgent attention within the next 24 hours to enable us to finalise your bond refund.

We enclose a copy of the Entry Condition Report and also the Exit Condition Report for your reference.

• [LIST ITEMS]

• [LIST ITEMS]

• [LIST ITEMS]

Due to property leasing commitments we are unable to extend the above deadline.

We understand you may not be able to personally tend to the items requested above. In this event, please provide your written instructions as authorisation for our Agency to arrange the work to be completed by contractor/s on your behalf.

Please outline if you’d like the associated cost/s to be paid from your Bond or if you’d like to pay the contractor directly.

Please contact our office urgently to discuss the above so we can promptly finalise the release of your bond.

Kind Regards,

[STAFF NAME]

VACATE INSPECTION COMPLETE LETTER TO TENANT

Dear [TENANT NAME],

TENANT HAS NOW VACATED – [PROPERTY ADDRESS]

I write to confirm that the Tenant/s have now vacated the property and our agency has conducted the vacate inspection and Exit Condition report.

The following is a summary of the Vacate Inspection and enclosed is a copy of the Exit Condition report and supporting photos for your reference:

The Property has been returned to the condition as at the beginning of the Tenancy allowing for fair wear and tear. The Bond will be refunded in full to the Tenant less any rent owing or incidentals i.e. water.

The Tenant is responsible for attending to the following items at their cost:

• [LIST ITEMS TENANT MUST ATTEND TO]

• [LIST ITEMS TENANT MUST ATTEND TO]

Once the Property has been rechecked and approved by the Property Manager, the Bond will be disbursed to the relevant parties.

As the owner of the Property the following items fall under owner’s obligations and responsibilities:

• [LIST ITEMS LESSOR MUST ATTEND TO]

• [LIST ITEMS LESSOR MUST ATTEND TO]

We ask for your instructions as soon as possible to attend to these items. Please reply to this email by [DATE] to ensure we are able to have these items fixed promptly before the new tenant moves in.

If you have any queries please do not hesitate to contact us via email or phone.

Kind Regards,

[STAFF NAME]


TENANT HAS NOW VACATED LETTER TO OWNER


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