APPLICATION CHECKING

Q: How do you check tenancy applications?

A: We check tenancy applications in detail, the main areas being:

• Residential History
• Employment History
• Identification Documentation
• Tenancy Databases

Q: What are you looking for in a tenancy application?

A: We are looking in a tenancy application for:

• Consistency - The truth will always make sense.
• Stability - we want someone who will stay in your property for a while. If an applicant is changing homes or jobs every 3-6 months, we will normally look for someone else.

Q: How many applications will I get to consider?

A: We filter through all the applications before they are given to you. So just because you received 1 or 2 to consider, it definitely does not mean that is all the interest you have had.

We filter out any:

• Bad current agent references
• Bad payment history
• No I.D given
• No proof of affordability, funds
• Where background checks show bad history
• Where affordability is over the QCAT and government issued benchmark for financial hardship of rent to income ratio.

BOND

Q: How much bond does the tenant pay?

A: For most tenancies, four week's rent.

Q: What happens to the bond?

A: We remit the bond to the Residential Tenancies Authority (RTA) who provide a record of lodgement to us and the tenant. Thus, a full audit trail of the bond money is completed. Lodging bonds with the RTA provides strong security to the bond payment system.

COUNCIL RATES PAYMENTS

Q: Council Rates: Can you pay them for me?

A: Yes, we can however you will need to either email it to us or ask the council to send us the rates directly (email or post). We cannot ask the council for you, this is a process you will need to do, along with any forms they need to do this.

LOCATION OF PROPERTIES

Q: Can you manage my property in (suburb)?

A: Yes, Natgroup manages property across the entire Gold Coast and Brisbane area. We have many large investor clients who love being able to use one property manager for their entire portfolio.

LEASES

Q: How long do tenants normally want to rent for?

A: The two most commonly requested lease terms are 6 or 12 months; however, as the owner you can offer any lease term you like. We recommend 12-month leases to encourage stability with your tenants.

Q: What happens at the end of the lease?

A: Towards the end of the lease, we contact you to obtain your instructions. You can choose to renew the lease or ask the tenant to vacate. If the tenant has been following the rules, we normally recommend that you renew the lease. We will also contact the tenant and see what they would like to do.

Q: What happens if the tenant is moving out?

A: We schedule the final inspection and very few agents to this, but at Natgroup we commence viewings up to three weeks prior to the vacate date. This is the best way to get your house rented again fast. Viewing while the tenant is still in the property reduces the vacant period and also gives us eyes in the property which help to pre-warn us of any issues that will need to be attended to at the final inspection.

LEASING VACANT PROPERTIES

Q: How do you find new tenants?

A: We find new tenants through home opens, internet advertising, SMS to our rental wait list, our website, current tenant databases we hold, past enquiries, enquiries from other property that didn't suit, handing out rental lists, social media and referrals from our existing tenants and owners.

Q: What is the best method for finding new tenants?

A: The best method for finding new tenants is to conduct regular home opens at the property, as activity leads to results. As well as contacting enquiries immediately and conduction same day inspections where possible.

Q: How often do you do home opens for my property?

A: We do open homes twice a week, every week, until your property is leased and sometimes more often if we have multiple groups scheduled for the same time. This is double the activity level of the average real estate agent. We are unaware of any other real estate agency consistently doing twice weekly or more open homes.

Q: Can you rent my property out the day after someone moves out?

A: Once a tenancy expires, there is a 3-business day period in which we must complete an exit report, communicate with previous tenants and address any issues. So please allow for this time as a new tenant cannot move in until this is done.

Q: How soon can a tenant move in?

A: In most cases, the tenants will book in an inspection, so allow time for this to happen (see Question "when will you advertise my property?). Once they inspect, they may apply over the next 1 to 3 days. Once we have the application it will take approx. 2 days to process (we need to wait for current agent references).

Also keep in mind that most will have a move in date of 2 weeks’ time as they need to give 14 days’ notice (current legislation) where they are leasing now, There are cases where tenants are ready sooner, they want to lease earlier so they can move out and in over a few days, or the people have sold a property, these may be sooner than 14 days and every application is different.

The applications that look good will then be given to you, for approval. Please ensure you respond within 24 hours to avoid further delays in move in date.

Q: How many applications will I get to consider?

A: We filter through all the applications before they are given to you. So just because you received 1 or 2 to consider, it definitely does not mean that is all the interest you had.

We filter out any:

• Bad current agent references
• Bad payment history
• No I.D given
• No proof of affordability, funds
• Where background checks show bad history
• Where affordability is over the QCAT and government issued benchmark for financial hardship of rent to income ratio.

Q: What about mowing lawns before a new tenant moves in:

A: For properties with a lawn. while the property is vacant the lawns will need to be maintained. Also, the week prior to a tenant moving in, the lawns will need to be done and gardens weeded, sprayed. This is a requirement for the entry report that will be done and sets the standard for how the property must be returned to us when they move out. We will get this organised the work order to get this done for you.

Q: Does it really need to be Bond Cleaned

A: Yes, if the property has never been leased before a Bond Clean is a "detailed intensive clean" of every corner, hidden spaces, unreachable spaces etc. This is a specialist clean and not your everyday normal clean. This is important as your entry report covers every small space and items in your home and there are anywhere from 600 to 1,000 photos of the condition of your property.

The tenants in the future must then return the property to us with a bond clean in exactly the same condition.

PAYMENT TO OWNERS

Q: When do I get rental funds/payments?

A: We process our "End of Month" on the first business day of the following month. This is because we need to allow the month to "close" and receipt all rent payments up to 11:59pm on the last day as per government audit requirements. We will then process and "End of month run" and all EFT payments are made that day. Please allow 24 hours in some cases for interbank transfers.

If you have chosen to receive "Mid-Month" payment as well (where any rent received from the 1st to the 14th is transferred to you) this process is done on the 15th of the month or next available business day.

Q: What method do you use to pay owners?

A: We pay owners by electronic funds transfer direct to your nominated bank account.

Q: What day do you make the payment on?

A: For the end of month audit process we receipt rent up to the last day of the month, then we are required to let the month rollover and payment is made the first business day of the following month.

Mid-month payments are processed on the 15th of each month or closest business day. Mid-month payments include any funds receipted from the 1st of the month to the mid-month date. Two things may delay the payment to you - your bank and the day of the week. We are with CBA so if you are as well that may speed things up.

WITHHELD FUNDS

Q: Why have funds been withheld from my end of month statement?

A: Sometimes we have to hold some or all of the accrued funds shown on your statement. There are several good reasons why the money may need to be withheld and you will usually know in advance. The first reason for withholding is for uncleared funds paid by the tenant. Cheques take up to seven days to clear and electronic payments take one day. We must make sure the money is fully cleared before we remit it to you. The second reason for withholding funds is where there is an account payable, for example maintenance expenditure or leasing expenses. The third reason for withholding funds is when we anticipate expenditure in the future and will need the current rent accrued to help pay for it. Some examples of anticipated expenditure are where a new hot water system has been ordered, or a tenant is likely to be evicted and we will need to arrange clean up and re-leasing.

STATEMENTS

Q: Do I get a statement?

A: Yes, of course. Each time we pay you, we issue you a statement, normally by email.

INVOICES

Q: What about invoices, do I get them?

A: Yes, if you receive email statements then you will get pdf copies of invoices paid on your behalf to external suppliers.

RENT

Q: How often does the tenant pay rent?

A: The tenant pays rent every week, fortnight, or month; depending on what was agreed when their lease was first written. After a while, sometimes tenants pay at uneven frequencies, which they are allowed to do as long as they are in advance of their due date.

Q: How does the tenant pay rent?

A: All new tenants are requested to pay rent by direct debit into our trust account. Using direct debit is the most reliable method of rent payment and helps to keep rent arrears low.

ARREARS

Q: Do tenants ever get into arrears with their rent?

A: Yes, almost all tenants will experience difficulty with rent at some stage during their tenancy. A good property manager expects the tenant to default and has systems in place to manage the situation immediately.

Q: As an owner, what should I do about rent arrears?

A: Two things you can do as an owner about rent arrears. Firstly, have a good property manager who will manage and control the situation for you with daily reminders, call and messages all noted on the tenant’s file. Secondly, build up over time a cash flow buffer in your bank account. Try not to live and make loan repayments directly from your rent account. Have enough reserves that you can run your life for up to three months without any rent coming in. Note you will get the rent money eventually, but for example an eviction will create a gap in cash flow until the money is recovered through the court and insurance. Be prepared is the watchword for rent arrears.

Q: What is your company policy for rent arrears?

A: We have a zero-tolerance policy for rent arrears regardless of their reason, and the difference is that we strictly enforce that policy!

PETS

Q: Do I have to allow pets?

A: As of October 2022, when new law reforms came into place cannot deny tenants having pets. The only way pets can be denied is:

• There is a body corporate and their by laws prohibit animals or some type of animals
• Council regulations to not allow that type of pet.
• The property is not fenced for certain types of animals.

Should the tenants obtain pets the new laws also require them to pest spray the property and fix any damage caused by their animals.

ROUTINE INSPECTIONS

Q: How often do you inspect my property?

A: As required and usually every three months to 4 months or as per your management agreement. If the tenants are very good, time frames may be extended. This is all noted in your property management agreement.

Q: Do I get an inspection report?

A: Yes, you get a two-page written report and one page of colour photographs. We do not use 'tick and flick sheets' which are common in the industry, as they do not provide enough detail for you. We subscribe to an advanced reporting system done via an tablet on site and report details and photos stored in cloud and auto time stamped and dated.

Q: Can I come along to an inspection?

A: Yes, you are welcome to come along to any inspection. If you are planning to attend, please notify us beforehand so we can manage our schedule to meet you at the property.

SMOKE ALARMS

Q: Smoke Alarms

A: It is legislation that smoke alarms must be installed in EXACTLY the correct rooms and areas to comply with the government rules for leasing a property. Yearly inspection and testing of these smoke alarms must be done, and we engage Smoke Alarms Solutions to do this for you. We cannot do this for you and certainly don't want to be responsible should a fire cause loss of property, loss of life and it be features in the news or investigated by authorities or insurance companies.

These must be checked at every tenancy change, once yearly and the tenants must have an emergency number to call for faults, even in the middle of the night or 2am and someone must respond. This is why we use Smoke Alarm Solutions and the service costs $99 per year at the moment and is tax deductible.

TECHNOLOGY

Q: What boutiques technology do you use?

A: Our goal is to provide you with the best service and manage your properties efficiently and effectively. Our team has invested in a more advanced and complete and modern software solution, and we are excited to share several of the new capabilities and how they will benefit you.

• More effectively market your properties and fill vacancies sooner. We can quickly advertise vacancies online, posting to our website, and hundreds of other listing sites. Applicants can also apply online directly from their smartphones.
• Price rentals right for your market and reduce vacancies. Our built-in rental comparison tool provides actual rental rates for units similar to yours in the same geographic location. This insight allows us to maximize your revenue and fill vacancies faster.
• Screen for the best residents. Streamlined, built in resident screening includes standard background and credit checks along with past rent payment history and more in-depth searches.
• You will be paid faster and more securely. New functionality provides our team the ability to deposit funds directly into your bank account, up to twice a month!
• On-demand access to your statements. Owner statements are securely posted to an online Owners Portal, saving time and paper. These simple statements provide you with a quick snapshot of your property details for the past month. We can also include maintenance invoices and additional reports you request.
• Handle property maintenance issues faster. We use online systems for electronic work-orders and communication with vendors so we can quickly resolve issues. At your request, we can email you a copy of the work order and relevant information giving you real-time updates.

TENANTS

Q: Are there any good tenants?

A: Yes, most tenants are good, it is only a minority that are bad and give the rest of the law-abiding tenants a bad name. Most people who own homes today started by renting in the past and were great tenants.

Q: Are there any bad tenants?

A: Yes, plenty of them. We subscribe to a premiere background search company that does a thorough check through all possible avenues to avoid approving any tenants that have done wrong to other landlords in the past. Our thorough checks include rent payment history, breach history, eviction history, if they are or were company directors, company related searches, police checks, QCAT checks and other thorough background checks. Most other agencies want to save money and only do basic checks to half of these. You will find bad tenants congregated around:

• Poorly managed properties.
• Poorly maintained properties.

Q: Will I ever get a bad tenant in my property?

A: If you own a rental property for long enough, the answer unfortunately is yes. Anyone who promises that you will never get a bad tenant is either lying or inexperienced. Our thorough and good tenant screening will provide significant protection;however, it is a numbers game and eventually you will get a bad tenant. The important thing is to have a property manager who expects this to happen, will not be surprised by it, and has systems and procedures to deal with it immediately.

VACATING TENANTS

Q: When will you advertise my property for rent?

A: We will get everything ready, beforehand if we have photos, description etc. The property will then be launched 3 days prior to us getting access or lease expiry. This is because within hours we will start to receive messages, enquiries, and calls to book in to view in the next day or two. If we advertise too early, you lose all those enquiries as they do not wait more than 3 days to inspect.

Q: Lease ends and exit reports:

A: Once a tenancy expires, there is a 3-business day period in which we must complete an exit report, communicate with previous tenants, and address any issues. So please allow for this time as a new tenant cannot move in until this is done.

Should anyone else apart from us access the property prior to our Exit Process being done and the report, this will entirely void the exit report and process. You will then NOT be able to claim and cleaning, damage etc as someone else has entered the property. Please never give keys, book in trades, or go into the property until we have completed our process. Allow 3 business days for this to be completed.

WATER INVOICING

Q: How do I charge tenants for water consumption?

A: Our agency can only pay for water and invoice to the tenants for their usage if we get sent a copy of the current water rates straight away.

This is either by you emailing it to us or by you contacting the local council and organising with them to send us the rates directly (email or post). We cannot ask the council for you, this is a process you will need to do, along with any forms they need to do this.

Please keep in mind that any rates notices over 6 months old cannot be invoiced to the tenant under current Queensland legislation, so please ensure you immediately forward us the rates notice if you wish to be re-imbursed. *Only for properties which are individually metered and written into their leases.