Residential Property Management Guidebook....• Keys to the property will not be released until all tenants have signed all documents and all monies have been paid • A thorough

Residential Property Management Guidebook.

A comprehensive property management guide for owners and investors.

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Knight Frank Property Management Guidebook

Knight Frank is founded on Partnership, Integrity and Prosperity. We pride ourselves on a holistic approach to client satisfaction, working collaboratively to deliver the best solutions. Operating in locations where our clients need us to be, we provide a worldwide service that is locally expert and globally connected.

Since opening our doors in 1896, we have become the world’s largest privately-owned global property agency and consultancy. Our longevity is testament to the experience, knowledge and relationships we have developed over the years.

Despite advances in technology, the role of your agent remains fundamental. The personal insight and experience we offer provides an unprecedented level of reassurance and trust. We support our clients through every step of the process by providing outstanding service and advice.

Whether you are a multi-property investor or letting a property for the first time, being a landlord is a time-consuming job that brings with it all kinds of legal responsibilities. It is about so much more than checking the rent has been paid and calling the occasional tradesperson.

At Knight Frank, we offer a complete rental and management service that is designed to make your life easier.

Knight Frank connects people and property, perfectly.

Our history.

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Knight Frank takes the hassle out of finding appropriate tenants; we provide full and cohesive services to ensure we maximise the return on your property.

We invest heavily in our people, processes and technology, and provide a dedicated team that delivers the highest standard of service, efficiently and effectively:• We recognise the importance

of monitoring and managing your rental property to enhance its ongoing appreciation while maximising your returns

• We have highly trained and knowledgeable staff to help you select the best tenants and navigate the legalities for you

• We will provide you with regular and comprehensive feedback on your property

• We have structured and well-defined systems to provide consistency in service and deal with any problems quickly and efficiently.

Working together we endeavour to the achieve the desired outcomes:• Minimum vacancy periods • Reliable tenant/s• Well-maintained property • Regular communication• Transparent and trust-

based relationship.

Purchasing a rental property is still one of the most reliable investments you can make, but the difficulties of tenant selection and the day-to-day management challenges deter many prospective landlords. There are so many time-consuming and complex issues:• How do you confidently

select tenants?• What about rent collection and

inspecting the property regularly?• How do you set prices to attract

good tenants and ensure a fair return?

• Who is responsible for routine maintenance?

• What are your obligations under the Residential Tenancies Act?

By entrusting your property to us, you receive a complete property management service which will protect your investment, secure your return and free you from the hassle of inspections, maintenance checks and chasing rent.

We tailor individual management plans to suit your particular property as well as the level of involvement you wish to have in the ongoing management of your property.

Our role.

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We guarantee the following service: • Provide an accurate estimate of

rental value based on available and comparative data in the relevant market climate

• Supply guidance as to maintenance and/or improvements required

• Photograph in colour and advertise your property across multiple channels

• Continued market exposure through a planned marketing campaign

• Conduct an unlimited number of inspections with prospective tenants including private viewings as required

• Receive, process and thoroughly check all applications from prospective tenants for your consideration

• Arrange for preparation and execution of all relevant documentation including leases and detailed condition reports with photos

• Lodge bond monies with the Residential Tenancies Bond Authority

• Conduct routine inspections of the property and provide you with a report and photos

• Enforce the Residential Tenancies Act and monitor lease conditions and ensure they are always adhered to

• Apply our “zero tolerance arrears” policy stringently and without prejudice

• Ensure efficient, cost effective maintenance of the property is carried out as required by appropriately licensed and experienced tradespeople

• Prepare statements in accordance with rental payments and ensure they are communicated to you effectively

• Complete a final inspection, with photos for evidence where necessary, once a tenant vacates the property and follow up any discrepancies as required

• Deal directly with the builder to ensure all defects are rectified during the defect period for your new build property.

Our service guarantee.

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The normal management process comprises of the following; however, this may differ from state to state: • Market appraisal• Instructing an agent• Preparing your property • Marketing your property• Viewings• Referencing

• Moving in • Inspections• Renewals• Ending your tenancy• Informing parties• Agreeing remarketing

• Final bond inspection • Agreeing bond deductions• Return of deposit• Vacant property management.

The process.

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How your property is presented can make a significant difference to the level of interest it receives. For it to appeal to the widest range of prospective tenants we would recommend the following as a minimum: • Remove all rubbish• Clean walls, floors and windows

(internal and external)• Clean inside cupboards, drawers

and bench tops• Clean bathrooms and kitchen,

please check drains are not blocked

• Check curtains and blinds are in working order

• Dust and remove cobwebs• Steam clean carpets• Repair dripping taps, sticking

doors and drawers• Check that all lights are working

and that the smoke detector batteries are new

• Provide three sets of keys, otherwise we can arrange additional sets.

If you have an outdoor area, garden and/or swimming pool:• Cut and edge the lawns • Tidy and weed the garden• Clean and clear balconies

and courtyards• Clean the swimming pool and

ensure it is in good working order. If the tenant is to be responsible for the maintenance of the pool, a handover and clear instructions should be provided.

It is not necessary to spend substantial sums of money, but a clean house where everything is in good working order is required. The tenant is then expected to leave the property in the standard they found it.

We are happy to work with you to present your property at its best.

Preparing your property.

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Once your property is advertised for lease, the agent or ‘leasing agent’ will focus on leasing your property in the quickest time frame.

Depending on the state, ‘Open for Inspections’, ‘Open Homes’ and ‘Home Opens’ are scheduled with you, your current tenant, if tenanted, and/or your prospective tenant, via the property management team or an online booking system. Afterwards we will contact you to discuss any feedback.

In most cases we have found that in competitive markets having an open for inspection/home open is the best way to promote a sense of urgency amongst prospective tenants. However, we understand that every property is different, some properties work best with open for inspections/home opens, whilst others may require private appointments. Both options will be discussed with you prior to marketing the property for lease.

In no circumstances are keys handed out for a property to prospective tenants, we carry out all inspections.

Inspecting your property.

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Our job is to find the most suitable tenant for your property in the quickest possible time.

Our detailed screening process aims to establish that tenants can meet the responsibilities of the tenancy agreement and maintain the property as if it were their own.

Application.

Potential tenants have the option to apply for the property either online or by a paper application form. The tenant must supply 100 points of ID and confirm details such as address and employment.

References.

We conduct thorough checks on potential tenants to ensure that they are aligned with the values and reliability that we know you are after. We will check the following to ensure the information in the application is correct:• Current and historical references• Local and national references• National databases

(dependent on state)

We will discuss all referenced applications with you so that you are able to make a fully informed decision.

Documentation.

• All leases include standard no smoking and no pet clauses, unless instructed

• Tenants pay the relevant bond permitted by the state and will be confirmed at the time of tenancy

• Keys to the property will not be released until all tenants have signed all documents and all monies have been paid

• A thorough and accurate condition report, including colour photographs, is carried out prior to commencement

• Key registers are signed to ensure that all keys, fobs and remotes are documented.

Maximising your rent.

It is our role to ensure you that your property is leased for the maximum amount of rent. Supply and demand will have an obvious impact on the achievable rent, however, it is also the simplest things that can be over looked, such as ensuring that your property is presented to its best at home inspections.

During the tenancy we conduct regular rent reviews, so that you are fully aware of any movements in the market. In line with the relevant state legislation, we will always discuss any potential rent increases with you.

Finding the best tenant.

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Pets (if permitted).

If you are happy to allow a pet at your property it is important to outline the expectations. The tenant must apply in writing to have a pet at the property and references will be required where possible. Pet conditions will be included in the tenancy agreement as follows:

• Only the pet listed will be allowed at the property

• The pet may not come inside the property, unless otherwise agreed

• If the pet becomes annoying or a problem to neighbours, it may be removed (initial warnings would be given in writing)

• The tenant is responsible for any damage caused by the pet and must remove any waste deposited by the pet

• The collection of an additional pet bond which covers any fumigation treatment that may be required at the end of the tenancy is dependent on each state, please ask our local property management team for advice.

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Maintaining your property.

Under the relevant legislation it is the landlord’s responsibility to carry out repairs at the property. Prompt attention to legitimate repairs and maintenance will:

• Keep long term costs down• Ensure tenants remain happy • Maintain the value of your property• Achieve the best rental return.

We will action repairs/maintenance as follows: • Inform you when repairs/

maintenance are required and await your approval

• Enlist a suitable and trusted contractor

• Ask the contractor to organise a suitable time with the tenant to conduct the repair in a timely manner

• Follow up with the tenant to ensure the repair has been completed to their satisfaction

• Invoice the agreed cost to your account.

Any damage caused by the tenant that does not come under normal wear and tear will be recovered from the tenant.

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Miscellaneous.

Landlord insurance.

We highly recommend taking out landlord insurance. You may have the best tenants in the world, but everyone can go through hardship at times. Landlord insurance can cover you for loss of rent, accidental loss or damage, malicious damage, pet damage and more.

Each insurance policy is different, so it is important to ensure the policy suits your individual needs and property.

Breaches of tenancy.

We will work hard to ensure that a breach of tenancy does not arise. However, in the unlikely case of a breach, we will inform you of the breach and recommend the correct course of action in line with the relevant state legislation.

Selling or moving back into my property.

Due to the variables it is best to discuss your circumstances so we can correctly advise given the type of lease and the relevant state legislation.

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Adelaide

StrathpineBrisbane

Gold Coast

Canberra

Melbourne East

Sydney | North Sydney | West SydneySouth Sydney | South West Sydney | IllawarraPerth

Perth Residential

Melbourne

Launceston

Hobart

Devonport

Cairns

TownsvilleMackay

RockhamptonGladstone

Darwin

Wagga Wagga

Newcastle

Our Locations.

Our Services.Asset ManagementFacilities Management, Property Accounting, Property Management

Commercial, Industrial & RetailLeasingIndustrial, Office, Retail

Occupier ServicesTransactional Services and Tenant Representation, Strategic Advisory Services, Portfolio and Facilities Management

Project Management & Building Consultancy Workplace Strategy and Implementation,Building Consultancy, Cost Consultancy, Project Management, Sustainability

Sales & AcquisitionsHealth, Aged Care & Retirement, Agribusiness, Asian Markets, Commercial, Industrial, Institutional, Land Development, Pubs & Hotels, Retail, Service Stations

Research & ConsultancyMarket Research Reports, Industrial, Office, Residential, Retail, Alternative Asset Classes, Consultancy, Property Due Diligence, Risk Analysis, Strategic Advice

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SalesExisting Homes, House & Land, Land, New Developments, Prestige Residential

Town PlanningCommercial, Industrial, Recreational,Residential, Sustainability

Valuation & AdvisoryAgribusiness, Commercial, Going Concerns, Health, Aged Care & Retirement, Pubs & Hotels, Industrial, Residential Developments, Retail

For Bayley’s New Zealand office locations please visit:

knightfrank.com.au/bayleysnzlocations

Find your perfect property todaySearch the very best commercial and residential properties for sale and to rent from around the world.

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Important notice

The Property Management Guidebook (© Knight Frank LLP 2019) is produced for general interest only; it is not definitive and is not intended to give advice. It must not be relied upon in any way. Although we believe that high standards have been used in the preparation of the information, analysis and views presented in this publication, no responsibility or liability whatsoever can be accepted by Knight Frank LLP for the contents. We make no express or implied warranty or guarantee of the accuracy of any of the contents. As far as applicable laws allow, we do not accept responsibility for errors, inaccuracies or omissions, nor for loss or damage that may result directly or indirectly from reliance on or use of its contents. This publication does not necessarily reflect the view of Knight Frank in any respect. Information may have been provided by others without verification. Readers should not take or omit to take any action as a result of information in this publication. Reproduction of this report in whole or in part is not permitted without the prior written approval of Knight Frank LLP. In preparing this publication, Knight Frank LLP does not imply or establish any client, advisory, financial or professional relationship. Through this publication, neither Knight Frank LLP nor any other person is providing advisory, financial or other services. In particular, Knight Frank LLP is not authorised by the Financial Services Authority to undertake regulated activities (other than limited insurance intermediation activity in connection with property management). Knight Frank LLP also trades as “Knight Frank”. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names. The Property Management Guidebook is compiled from information contributed by various sources including Knight Frank LLP, its direct subsidiaries and a network of separate and independent overseas entities or practices offering, inter alia, property services (together these are generally known as “the Knight Frank global network”). Each entity or practice in the Knight Frank global network is a distinct and separate legal entity. Its ownership and management is distinct from that of any other entity or practice, whether operating under the name Knight Frank or otherwise. In any event, no entity or practice operating under the name Knight Frank (including Knight Frank LLP) is liable for the acts or omissions of any other entity or practice. Nor does it act as an agent for or have any authority (whether actual, apparent, implied or otherwise) to represent, bind or oblige in any way any other entity or practice that operates under the name Knight Frank (including Knight Frank LLP). Where applicable, references to Knight Frank include the Knight Frank global network.

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Documents

Residential Property Management Guidebook....• Keys to the property will not be released until all tenants have signed all documents and all monies have been paid • A thorough