ASSET EDGE RESIDENTIAL | WWW.ASSETEDGERESIDENTIAL.COM.AU

1300 722 157

Property Management [A GUIDE TO OUR SERVICE AND FEES]

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Dear Property Investor You have made a wise decision in taking the time to gather information in order to reach an informed decision on the best and most innovative way to manage your investment properties. Asset Edge Residential (Formerly Allied Residential Marketers) have continued on with our previously pioneered management system free from add-on charges which guarantees that investors will consistently receive the highest possible return from their portfolios. You can now enjoy the benefits of an all inclusive management system that offers reliability, controlled budgeting, fantastic results and no hidden charges or rude surprises, as well as electronic payment of rental proceeds into your nominated bank account twice every month. Asset Edge Residential are all about their clients. We know we are not successful unless you are and we pride ourselves on achieving and maintaining the highest standards in investment management. Our commitment to our growth and mutual success affords us the opportunity of offering you The “Landlord Asset Edge”. “Landlord Asset Edge” is our premium, all inclusive, reduced cost management system – read for yourself how you benefit by entrusting us with your business. We look forward to assisting you achieve your financial goals. Warm Regards Asset Edge Residential

Nic Di Rosso Managing Director | Licensee Office : 1300 722 157 Mobile: 0418 957 346 hello@assetedgeresidential.com.au

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Option 1 or Option 2

Explanation With many years of industry experience, ongoing research and of course by listening to property investors, Asset Edge Residential have identified that the traditional method of property management fees and charges quite often does not achieve the best outcome for investors. This commonly accepted method of charge (which we shall refer to as “Traditional” Option 2) is based upon a percentage charge for management fees (current market rate is 8.5% - 9% plus GST) plus ‘add ons’ …. such as inspection fees, postage and petties, leasing fees, bond or vacating inspections and so on. While this method is very secure for managing agents, it often leaves Landlords without earning any income for up to two months at a time, particularly upon the change over of a tenancy which incurs a lease fee. This arrangement can also make it difficult for a Landlord to determine exactly how much they may expect to receive regularly from proceeds at payout. It generally results in uncontrolled asset management with little peace of mind or security.

Asset Edge Residential have created an exciting alternative known as the

“Landlord Asset Edge” (Option 1)

“Landlord Asset Edge” Option 1 Landlords are entitled to, and receive the same service, commitment and dedication as “Traditional” Option 2

Landlords – there are no short cuts, no trimmings, no honey moon period …

just a sensible and fair price for unrivalled and all inclusive service – to ensure your investments are working to their full potential.

The comparison chart overleaf illustrates the benefits and savings achieved with the “Landlord Asset Edge”.

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Comparison Chart

“Landlord Asset Edge” All Inclusive Management Fee

V’s

‘Traditional’ Market Place Management Fee plus Add On Charges

Rent for each example based on $350.00 per week

Current Market Average Fees 8.5% plus GST

= 9.35% Plus ‘add ons’

“Landlord Asset Edge” 13.0% plus GST

= 14.3% “All inclusive”

6 Month Lease Management Fee Lease Fee 1 x 6 week inspection 1 x quarterly inspection 1 x bond inspection Digital Photography Property Condition Report 6 months post & petties

850.85 770.00

55.00 55.00 88.00 66.00

176.00 46.20

$2107.05 total = 23.15%

1301.30 no charge no charge no charge no charge no charge no charge no charge

$1301.30 total = 14.30%

12 Month Lease Management Fee Lease Fee 1 x 6 week inspection 3 x quarterly inspections 1 x bond inspection Digital Photography Property Condition Report 12 months post & petties

1701.70

770.00 55.00

165.00 88.00 66.00

176.00 92.40

$3114.10 total = 17.11%

2602.60 no charge no charge no charge no charge no charge no charge no charge

$2602.60 total = 14.3%

NB: The above fees and charges are based on market average and may vary slightly between service providers.

Additional fees and charges such as:

Tenancy Check Fees (for each application processed)

Lease Renewal Fees

End of Financial Year Reports have not been included in this demonstration however are charged as ‘add ons’ in the market place but are all included in our all program. The indicative “Landlord Asset Edge” savings illustrated above are a guaranteed minimum

– your saving will likely be much higher! Please Note: Asset Edge Residential reserve the right to review the ‘management fee’ from time to time as necessary

and when so dictated by market conditions. The ‘management fee’ as stated in the current ‘Exc lusive Management Authority for Residential Premises’ Item 7(b)i remains the fee for the term of the contact and in accordance with Item 7.5.

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Management Fee

“Landlord Asset Edge” “Traditional” Option 1 Option 2

14.3% GST inc 9.35% GST inc Management fees cover the day to day operational procedures involved in managing your investment properties in accordance with the Residential Tenancies Act (1987) and include but are not limited to:

o Preparation of Residential Property Lease o Collection and receipt of rent o Daily control of rental arrears o Lodgement of security bond o Payment of accounts eg rates, maintenance and taxes etc o Liaise with Landlord and Tenant o Electronic payment of rental proceeds into Landlord’s nominated bank

account on the 1st and 15th (or next working day) of each month o Email statements immediately after each payout to Landlord o Arrange necessary property maintenance or improvements, inspect

work and liaise with tradespeople o Conduct regular rent reviews o Invoice Tenant and receipt payment for accounts such as water

consumption o Exercise the Landlord’s rights to issue all appropriate notifications o Disperse the security bond upon the closure of a tenancy o Maintain all appropriate records, documentation and files relating to

the property “Landlord Asset Edge” Option 1 Management Fee includes all services as detailed from pages 4 to 8 however, please read on for a description of these services and their value under the “Traditional” Option 2 scheme.

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Leasing Fee

“Landlord Asset Edge” “Traditional” Option 1 Option 2

INCLUDED NO EXTRA CHARGE!

Equivalent of 2 week’s rent plus GST

At Asset Edge Residential we pride ourselves on our success in securing suitable, high quality tenancies and consistently achieve low vacancy rates with minimal vacancy periods being suffered by Landlords. Leasing a property requires effort, commitment and above all – easy accessibility to the property and the Asset Manager. The majority of prospective tenants are working professionals and require access to view and apply for properties after hours and seven days a week. Our Asset Managers provide this service with outstanding results. Supervised viewings are conducted and tenancy applications are accepted on any day of the week. Tenancy data base screens are compulsory on all applications and any other information provided is confirmed and processed. Generally, an applicant may expect to be advised of the outcome of their application within twenty four hours of lodgement. Care is always taken to select tenants that ‘suit’ a particular property. Tenants that love the property they live in will always care for it in a most acceptable manner and retain occupancy for as long as possible.

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Tenancy (Quarterly) Inspections

“Landlord Asset Edge” “Traditional” Option 1 Option 2

INCLUDED NO CHARGE!

$55.00 GST inc per inspection

Tenants receive their first routine inspection within six to eight weeks of the commencement of their occupancy. Thereafter routine inspections are scheduled on a quarterly basis. Inspections are a great opportunity to stay in touch with tenants, ensure the property is being maintained at the desired standard and address any maintenance or property improvements. Well maintained and presented properties attract discerning tenants. Should a tenant fail to pass a routine inspection they would be issued with a Breach Notice accompanied with a ‘Work Order’ – simply a list of items which must be addressed. They are given fourteen days for rectification at which time a second inspection is conducted to confirm compliance. This procedure assists to ensure all properties managed by Asset Edge Residential are continuously maintained with high standards. During routine inspections attention is also paid to seasonal maintenance, such as gutter cleaning for winter or a start up service to evaporative air conditioning units ready for summer. Landlords receive an emailed report, often accompanied with digital photos detailing the results of a routine inspection within twenty fours hours of the inspection being conducted.

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Bond (Vacating) Inspections

“Landlord Asset Edge” “Traditional” Option 1 Option 2

INCLUDED NO CHARGE!

$88.00 GST inc per inspection

A bond inspection is conducted at the completion of a tenancy with the aid of the Property Condition Report. It is necessary to ensure the vacating tenants have thoroughly cleaned the property (inside and out), had the carpets professionally steam cleaned and left all fixtures and fittings in correct working order. Asset Edge Residential provides vacating tenants with a detailed ‘Check List’ to assist in their preparations for the final inspection. A successful inspection ensures the return of their security bond in a timely fashion – generally within five working days.

Property Condition Report

“Landlord Asset Edge” “Traditional” Option 1 Option 2

INCLUDED NO CHARGE!

$176.00 GST inc per report – small home

A comprehensive report with photographs providing the visual and operational details of the property, both internally and externally (including all fixtures and fittings). Asset Edge Residential thorough reporting system ensures the Property Condition Report may be relied upon to resolve any discrepancy which may arise during a Bond Inspection. Property Condition Reports are updated during the Bond Inspection (ready for the next tenancy) allowing for reasonable, fair wear and tear.

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Postage & Petties

“Landlord Asset Edge” “Traditional” Option 1 Option 2

INCLUDED NO CHARGE!

$7.70 GST inc per month

With the application of the best available technology, Asset Edge Residential achieve constant communication with Landlords via email, SMS, newsletters and telephone. Owner’s statements are provided by email the moment Pay Out occurs. Eliminating excess postage and paper costs allows us to pass the savings on to our clients while helping our environment! In addition, our tenants and landlords are able to login to our “Cloud” based system using their unique user codes. This gives tenants and landlords live and up to date status of rent, forthcoming inspections, maintenance requests and much more, all included.

Lease Renewals

“Landlord Asset Edge” “Traditional” Option 1 Option 2

INCLUDED NO CHARGE!

$66.00 GST inc per lease

Long term tenancies provide stability for investors and in general, reduce the wear and tear factor on a property with less move-ins and outs. Asset Edge Residential actively pursue lease renewals and enter into negotiations with tenants approximately one month prior to the expiration of a lease. Rent reviews are considered at this time.

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Advertising

“Landlord Asset Edge” “Traditional” Option 1 Option 2

On-charged at cost On-charged plus photography charges

Properties due for vacation are introduced to the market via a carefully planned marketing campaign. Approximately three weeks before the property is vacated “For Lease” signs are placed on site and immediately following is the lodgement of the property on the Asset Edge Residential, REIWA and numerous other for rent web sites plus our social media platforms. A properties for lease list with colour photos and descriptive text are displayed in our office for potential tenants. Newspaper advertising is generally scheduled no earlier than one week prior to vacation. All advertising and marketing provides ‘after business hours’ contact details. Our marketing campaigns have a professional edge, momentum and often achieve the desired result within a short time span. Asset Edge Residential do not profit from advertising and pass the cost to Landlords as charged by the service provider. Payment of advertising accounts and sign placement/removal will be made from rental proceeds in accordance with the Management Authority.

No Headaches – No Worries

Asset Edge Residential provide a complete, professional and reliable service. Accounts such as land tax, water/land rates and strata levies can all be paid on your behalf from rental proceeds. Please discuss with your Asset Manager should you choose to utilise this service (no extra charge!) – we will be pleased to compile annual budgets pertaining to your properties and have the ability to retain an agreed amount, in trust, before each Pay Out on the 1st and 15th of the month to ensure funds are always available for the payment of such accounts.

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Pay Out With our strong focus on the needs of investors, Asset Edge Residential conducts electronic ‘pay out’ of rental proceeds to Landlords on the 1st and 15th of each month (or the next working day). We understand the funds are more effectively used paid against your mortgage rather than sitting idly in a trust account! Electronic statements are remitted on the same day as payout and all Allied Residential Marketers’ Landlords receive a hard copy of their annual income and expenditure statements at the close of each financial year for accountancy purposes – at no extra charge!

Insurance Due to the Privacy Act and the Financial Services Review Guide (11.03.2004) Asset Edge Residential are unable to arrange insurance cover or policies on a client’s behalf. We do however, strongly recommend the continued cover of your premises complimented with some form of Landlord’s Insurance. Your insurance provider will assist you with details of available cover and their costs. Policy renewal accounts may be forwarded to Landlords, care of Asset Edge Residential, for payment from rental proceeds if you instruct your insurance provider to do so.

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Why Choose Asset Edge Residential We offer sensible, dedicated service and commitment at an affordable,

realistic, fair price and in fact, believe we are the pioneers of an all inclusive (no hidden charges) management system in residential real estate in Western Australia, “Landlord Asset Edge”

We offer a stable platform in the market place in order to create

investment success for clients We Pay Out Landlords electronically twice each and every month

We implement the best available technology along with innovative

procedures to reduce out-dated overheads and pass the savings on to our clients

We provide both Tenants and Landlords with their own unique login codes to access our “Cloud” based system. Anytime 24/7 access to your property file

Asset Edge Residential have strict procedures for the daily

management of rent arrears Asset Edge Residential Landlords receive greater, more regular and

reliable cash flow We have the experience and know how to make your investment work

for you! “The entire theory and practise of property management may appear quite simple and straight forward; something one may learn in a relatively short period of time, however what can not be gained quickly is the knowledge and experience required to retain success and control of a situation if something goes wrong!” Disclaimer

We do not provide personal financial advice. As such, our authorised representatives will not be taking into account your personal objectives, financial situation or needs. Because of this, before acting on this information, you should consider the appropriateness of the information having regard to your own objectives, financial situation and needs.