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Landlords where are your management fees going?

By Courtney Wade

When selecting a Property Management team to manage your investment or portfolio it is often NOT common for landlords to ask in depth questions about what is actually covered for the management fee. It is much more common that the actual fee is compared across agencies to secure value. Although value is very important the difference between $10-$15 a month could mean your property is not receiving the service it could be.

Whilst many agents will discount fees to gain business, does this mean they will also reduce the service that should be provided to your investment property. What the management fee can cover can vary considerably from agents and it is really important to be aware or find out what your agent is providing you- after all for a a lower level of service this may not be good value.

At Ray White Mornington our landlords receive the following included in their management fee:

Daily Disbursement Monday to Friday and  rent payment checks. Each day our Property Managers come in and check all payments have been made by the due dates. Any landlords who have money paid are paid out that day so no money is held over. Any landlords whose tenants have not paid on the due date are notified immediately and informed the process from that point.

Maintenance – For many agents the maintenance component is simply what is reported by tenants and then what is viewed at the Routine Inspection. At Ray White we send out regular newsletters and updates regarding seasonal maintenance, tax claim works and capital maintenance. Pro-Active maintenance can ad value to the property, attract better quality tenants and ensure less vacancy. Only being re-active to maintenance is not adding value for you management fee and could mean when selling or releasing you are faced items needing repairing or replacing to ensure the highest price for sale or rent.

Rent reviews are one of the most important components of the management process. Done well they can ensure higher annual returns and when not done properly can mean unnecessary loss of rental income that you are entitled to. Many landlords are unaware of notice periods, market trends, and vacancy rates that their property manager should discuss in detail with you when a lease and rent is up for review. Ray White Mornington ensure that all landlords understand the 60 days notice and postage (5 days) legislation that needs to be factored in to increase rent to ensure that this takes affect once the lease has expired. If this is not served on time landlords are missing out on rent due to the agent. Often due to market trends vacancy rates may be higher and therefore an increased rent could be risky if the tenant moves out and the property is vacant longer than normal. Your property manager should discuss all of this to ensure you are not serving the increase at a level that could risk losing a good tenant.

Routine Inspections at Ray White Mornington are a chance for our property managers to meet with the landlords with full transparency. All Ray White Mornington landlords are invited along to their routine inspections. We want landlords to view their properties to see the tenants keeping them in good condition, it is also a great opportunity for pro-active maintenance to be discussed or planned for the future. If there are any concerns both property manager and landlord can discuss a desired outcome and this can be put in place to ensure this is sorted out and the landlord is always kept fully informed.  Recent technology has seen the a digital format of routine inspections possible within our department. Should a landlord not be able to attend we can ensure should required relevant photos are sent through so they are still knowing exactly how the property is being kept.

Annual Sales Appraisal is provided to all Ray White Landlords as required to ensure they are kept up to date with the market trends. Our sales and rental teams work closely to ensure we cover all clients real estate needs. Should you have properties in other suburbs or States we can also refer another Ray White office to complete an appraisal or provide you an emailed market comparison report of the area.

Newsletter-  We provide all landlords a copy of our quarterly newsletter filled with news and tips designed to assist all landlords. We want to keep all landlords informed of any news legislation or ideas that may be of assistance. We are always looking to provide knowledge and service that will ensure being a landlord through Ray White is a smooth enjoyable process.

Events- Being part of the Ray White Network means all Ray White Landlords are invited along to regular events within our industry. We have recently held a Investor Information Evening and we have a Seller/Landlord Information night approaching for early 2014.  There are in-room auctions closer to the CBD,  home shows, Discount nights etc all open to our Ray White Family of Landlords to benefit from.

Concierge allows all Ray White Landlords to seek assistance for connections, insurance, home loan health checks and assistance etc. Ray White ensures all landlords can have all aspects of becoming a landlord covered in house to make the process as easy as possible.

Within our own office here at Ray White Mornington we are a family owned business with a mission to ensure all landlords receive a personalised service and an experience that makes being a landlord an enjoyable and rewarding experience.  To ensure this does occur we also have the support of the Ray White Network that has world class technology, training and results.

To discuss purchasing or transferring you investment to the Ray White Mornington Family please call Courtney Scott 0433 680 975 or 5973 2806

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