I’m a Landlord

Unlike any other investment portfolio, owning a bricks-and-mortar investment brings with it a whole range of rights and responsibilities. Our resource room gives landlords access to everything you need to know about renting your property from selecting tenants right through to the end of a tenancy.

Our team of experienced property manager’s have stringent tenant selection and screening procedures and conduct regular inspections of the property. We pride ourselves on our proactive approach to communication and keep owners informed of every issue regarding their property.

Contact our property management department for a free, no obligation market opinion of the value of your property or total portfolio.

How do you qualify prospective tenants?

All tenancy applications received at Brad Teal Real Estate are thoroughly reference checked. This involves sourcing documentation showing proof of identification, means of income, previous tenancy references and workplace references.

Only candidates who pass this screening process are put forward to you to consider.

How long does it usually take to find a tenant for my property?

As each property is different, our aim is to find you the right tenant that will love your property. We will conduct public open for inspections and also offer private inspections to prospective tenants that cannot make set timeframes. Your property will be marketed immediately it is available for rent, across multiple mediums.

Our dedicated team of property managers will go to work immediately. They are focused solely on securing you a qualified tenant in the shortest timeframe possible.

How much does it cost for a rental manager to manage my property?

Rental commission rates vary between 5 and 7%. This amount is deducted from the rental income paid to you and is shown in your monthly statement.

A Letting Fee ranges from 1 – 2 weeks rent and is also deducted from the rental income paid to you, usually from the first rental payment for each new tenancy. Please contact our office to discuss further.

How do you determine the best rent for my property?

Setting the correct market rent will ensure that your property will be rented as soon as possible.

In order to achieve you the maximum rent possible, we consider the following factors:

Market demand – this can be seasonal or affected by current affairs. What is the current market demand for your type of property in the area it is located?

Stock availability – what other properties are available right now for rent and how do their location and features compare to your property? This will allow us to calculate a maximum rent for your property.

Other rentals – how does your property compare to other homes that we have currently rented for other clients?

The above factors allow us to accurately assess your home, its location and features and then set the right rent for your property.

What if I want a rent amount higher than your recommendation?

The price you set for a weekly rent amount is up to you. However, keep in mind that market demand will set the rent. If prospective tenants feel that the rent being asked for your property is too high, this will delay securing a tenant and your property may remain vacant longer than necessary.

Your annual rental return will be reduced by 2% for every week your property is vacant, so set your rental price expectations accordingly to avoid unnecessary vacancies.

Do you guarantee the tenant?

We cannot guarantee any tenancy outcome. The paying of rent and maintaining of the property is purely voluntary on the part of the tenant, however, we will use our expertise and experience to fully vet and verify the credentials of each tenant.

Our extensive checks allow us to determine the character of a tenant and whether the tenant can afford to pay the rent. Our market experience allows us to form an opinion on whether the tenant will maintain the property to an acceptable standard.

We recommend that you take out landlord protection for extra peace of mind.

Can you guarantee that a tenant will look after my property?

We extensively check every tenant’s application as part of our comprehensive screening process.

The experienced Brad Teal rental team conducts thorough inspection reports for each in-going and outgoing tenant. We document with photographs to minimise any problems that may arise during a tenancy and address all maintenance requests with both you and the tenant in a timely manner.

May I give you special instructions for managing my property?

Yes. Provided the instructions are lawful, we are happy to abide by your special instructions as to how you wish us to manage your property.

Any special instructions will need to be provided to us in writing or specified in the Management Agency Agreement.

What is a residential tenancy agreement?

A residential tenancy agreement is a legal contract between a tenant and a landlord or agent. The agreement outlines the amount of rent to be paid, payment frequency, the duration of the tenancy, the amount of money required as refundable security bond, as well as other conditions and rules.

When will I receive my rent?

The answer varies depending on which payment method your tenant is on.

We offer tenants the option of direct debit, payment by bank cheque, money order or personal cheque.

Direct debit, credit cards and bank cheques or money orders all have a 3 business day clearance period. Personal cheques have a 4 business day clearance period. Please remember to allow for public holidays and weekends.

We also suggest our landlords allow a week’s grace period from when their tenant’s rent is due, to correspond with mortgage payments and other periodic bills.

What happens if the tenant hasn’t paid their rent?

The tenant will receive an SMS reminder on the 3rd day after a rental payment is due, if the rent has not been paid. The property manager will then follow this up on the 4th day by phone.

I didn’t get my statement via email – can I get a reprint?

Yes. Contact your property manager and they can arrange a reprint to be sent to you.

I didn’t receive my End of Financial Year (EOFY) Statement

Please contact your property manager who will arrange to send this to you. All EOFY statements are sent out after June 30.

How often will a routine inspection of my property be conducted?

Routine inspections can only be conducted on a 6 monthly basis under Victorian law. However, we conduct the first inspection at the 3 month mark and then inspect your property every 6 months thereafter.

Do funds held in trust accrue interest?

No.

What happens if the tenant has caused damage to my property?

Where a tenant has caused damage, the property manager will ask the tenant to rectify the damage. However, if the tenant disputes that any damage was caused by them, the matter may be taken to the Victorian Civil and Administrative Tribunal (VCAT), the body that deals with tenancy disputes.

What is VCAT?

The Victorian Civil and Administrative Tribunal is a court where disputes arising from tenancy matters are heard and resolved.

Who looks after the gardens and pool at my rental property?

Generally, the tenants are responsible for the gardens and pool unless the lease agreement states otherwise. The owner may choose to provide this service using an external contractor of their choice, at their own cost.

How often can we increase the rent?

In Victoria, a landlord can increase the rent every 6 months, in line with market rental. However, you cannot increase the rent where a tenant is in a fixed lease agreement.

What is the length of the average tenancy?

For residential properties, an initial fixed term lease is usually granted for 6 or 12 months. Upon expiration of the lease, you can enter into another fixed term lease with your tenant, via mutual agreement.

What happens when a Tenancy Agreement expires?

After a fixed lease tenancy agreement expires, a tenant can choose to stay on but they are not obligated to enter into another fixed term lease. If the tenant chooses to remain in the property they can do so on a month to month basis.

The following notice periods are required to be given:
• Tenant: 28 days
• Owner: 90 days

What does month to month mean?

Month to month refers to a situation where there is no fixed term lease in place. A tenant can vacate your property by giving 28 days’ notice in writing. The terms and conditions set out in the original lease are still relevant and need to be adhered to by all parties.

How can I terminate a tenancy?

Depending on the terms of the lease, the following will apply:

• Fixed Term tenancy in place:
– when the fixed term of the agreement is due to expire, either party must give at least 28 days’ notice

• Fixed term tenancy has expired:
– when the fixed term of the agreement has expired (a continuing tenancy), a tenant is required to give at least 28 days’ notice.
– An owner must give a tenant at least 60 or 90 days’ notice depending on the length of the lease.

• End of Tenancy due to breach:
– either party may give a 14 day termination notice at any time, if either party breaches a term of the agreement.
– A landlord may issue a 14 day termination notice if the tenant is more than 14 days in arrears of rent

Can a tenant break the Tenancy Agreement?

Yes, with penalties. Should a tenant break a fixed term lease, the following costs will be incurred by the tenant. Payment of:

(a) Rent until a tenant approved by the owner takes possession, or the lease expires (whichever occurs first);

(b) Reletting fees and advertising costs to relet the premises.

Should the premises be vacant before a new tenant is secured, it is also the tenant’s responsibility to ensure the grounds are watered and maintained, including clearing the letterbox for this period.

What is the responsibility of the tenant if I allow a pet at my property?

If a pet is permitted we will provide the tenant with the following strict written conditions:

a) Yard Kept Clean – keep the yard clean and free from animal faeces.

b) Rubbish Kept Cleared – clean up any rubbish/items scattered by the pet.

c) Flea Infestation – in the event of any fleas or flea eggs being present as a result of the animal, you will need to arrange for flea fumigation of the property prior to and upon/after vacating the premises. This is at tenant cost.

d) No Pets Inside – pets are not allowed inside the residence at any time.

e) Damage Rectification – repair any damage to the premises caused by the animal, protect and immediately rectify any damage caused to garden irrigation systems and fittings.

f) Garden Damage – replace plants or vegetation damaged or destroyed by the pet directly, or indirectly (ie. plants died because a garden irrigation system was damaged by the pet).

g) Additional Pets – other than a pet previously approved by the owner, you are not to keep any other animals at the rental premises, (even on a short-term or temporary basis), including dogs, cats, birds, fish, reptiles, or any other animals.

h) Temporary Pets – the tenant will not harbour, substitute or “pet-sit” any other pet, and will remove any of the pet’s offspring within 45 days of birth (should this occur).

i) Bi-Laws and Local Council – abide by all local, city or state laws, licensing and health requirements regarding pets, including vaccinations.

j) Disturbance and Noise – the pet shall not cause any sort of nuisance or disturbance to neighbours. You must do whatever is necessary to keep the pet from making noise that would annoy others, and will take steps to immediately rectify complaints made by neighbours or other tenants.

If the tenant has a pet, can I ask for a pet bond?

The Residential Tenancies Act (the main law covering renting in Victoria) does not mention pet bonds. If you want to take a pet bond and the original weekly rental amount was less than $350 per week, you must apply to the Victorian Civil Administrative Tribunal (VCAT) to seek approval to take more than four weeks’ rent as a bond.

What keys must be supplied to the tenant?

The tenants must be supplied with a full set of keys to the property.  Should they have extra keys cut, we will require these to be returned at the end of the tenancy also. This includes keys to all external doors, garage, windows or letterbox locks.

We may not have a spare set of keys to your property so please ensure you have a spare cut at your own expense.   Additional keys may be required and any keys cut will be at your expense.

Can the tenant change the locks?

Yes, they can but the tenant must obtain the owner’s prior consent to change any locks and pay all costs. The owner or agent must be provided with a copy of any new keys.

Does my property need to be secure?

Victorian law requires that a property must be “reasonably secure”. Therefore an owner must provide and maintain locks and other security devices.

The fitting of key operated deadlocks to all external doors and windows is recommended.

Who pays for water usage?

Where a property does not have individual meters, common in older apartment blocks, the landlord is responsible for water usage charges.

However where a property has an individual water meter, the tenant is responsible for any water costs during the tenancy.

Who pays for damage by the tenant?

In property management, there is what is considered acceptable “wear and tear” and then there is damage to a property.

Where a tenant has damaged a property and it is not considered normal wear and tear, in most cases the bond will provide sufficient funds to remedy the damage. If not, the owner has the option of taking the matter to VCAT to obtain a ruling against the tenant.

Landlord protection is recommended to cover any issues that may arise from a tenancy.

Do I need to provide you with an emergency contact?

If you feel that you will be difficult to get hold of on a regular basis, our recommendation is that you nominate a local contact to act as your representative. Please ensure this person is aware of the extent of their authority.

The name and contact details for your representative can be provided to us in writing or recorded in the Management Agency Agreement.

Do you need to know when I change my details?

Yes. If you change your address, bank account, phone number or email address please notify us in writing as soon as possible.

What happens to mail addressed to me that is sent to the property?

Whilst we ask tenants to forward to our office any mail addressed to you, we strongly recommend that you lodge an application with Australia Post to redirect your mail to your new address.

I want to sell my property. Can Brad Teal help?

Yes. Our property management clients are supported by the Brad Teal sales team who are local area experts.

Please get in touch with your property manager for information on how we can help you sell your property or assist in buying another property.

Can I manage my own rental property?

Yes, however you will be bound by the same legislative requirements that apply to real estate agents.

As such, if as a private owner you are found to be in breach of the Residential Tenancies Act, you will be subject to the same disciplinary action and potential fines that would apply to real estate agents.

I’d like to move management of my property over to Brad Teal. What do I need to do?

Just talk to one of our experienced Brad Teal property managers, sign a form and we will take care of the rest.

When you choose to move the management of your property across to Brad Teal, we will notify your tenants and organise for the keys to be collected from your old managing agent.

Everything else carries on as usual. We’re here to make the process as easy as possible for you.

Do I need landlord’s insurance?

Taking out landlord insurance, whilst not compulsory, will certainly offer you peace of mind. As property specialists, we do encourage our landlords to put a landlord insurance policy in place for their property.

Your landlord insurance policy protects one of your biggest assets, so choose it wisely. We recommend you seek cover that includes the event of a tenant not paying rent, departing the property early or damaging your property. Check the terms and conditions carefully to ensure you are covered for what will suit your needs.

If an appliance breaks that isn’t a necessity eg: dishwasher, do I need to fix it?

Yes, you do. Your tenant entered the lease for the agreed weekly rent based on the condition of the property at that time and that all appliances were in working order.

It is your obligation as the landlord to maintain the property in exactly the same condition as the tenant agreed to rent it from you.

Can Brad Teal pay any rates on the property for me?

Yes, we can. Just get in touch with your rental manager.

We are also able to arrange any maintenance repairs for you and for any council rates and charges or Owners Corporation fees to be sent directly to our office for payment from your rental income.

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Transferring your property

Transferring your investment property to Brad Teal couldn’t be easier. Simply expand the link below, answer a few quick questions, and we’ll take care of the rest. No need to even contact your current managing agent, leave that to us.

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Work with a market leader

The Brad Teal rental department is the market leader in Melbourne’s north-west, managing a portfolio of over 3000 residential and commercial properties.

The consistent growth of the portfolio is due to our proven track record of providing owners with service in which they have 100% confidence that their property is being well cared for to maximize its rental return and increase its capital value.  Our portfolio managers are extensively trained and supported by an administration team that is second to none. A ceiling is set for the number of properties managed by each individual portfolio manager to ensure that the attention to detail on each property is not compromised. Every property manager is responsible for high standards, monitored by a set of Key Performance Indicators which includes the number of routine inspections conducted and the level of rent arrears. Our state-of-the-art software offers clients a fully computerized, electronic pay-out system, minimising any delays as owners monies are directly credited to their accounts.

We have stringent tenant selection and screening  procedures and conduct regular inspections of the property. We pride ourselves on our proactive approach to communication and keep owners informed of every issue regarding their property.
Contact us for a free, no obligation market opinion of the value of your property or total portfolio.

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Unlike any other investment portfolio, owning a bricks-and-mortar investment brings with it a whole range of rights and responsibilities. Our resource room gives landlords access to everything you need to know about renting you property from selecting tenants right through to the end of a tenancy.

We have stringent tenant selection and screening procedures and conduct regular inspections of the property. We pride ourselves on our proactive approach to communication and keep owners informed of every issue regarding their property.

Contact us for a free, no obligation market opinion of the value of your property or total portfolio.

What is commercial real estate?

Commercial real estate refers to property used solely for business purposes. It generally consists of offices, restaurants, petrol stations or retail shops. The term “commercial real estate” may also be used to refer to industrial real estate.

What is industrial real estate?

Industrial real estate generally refers to property used for manufacturing and production and usually consists of factories and warehouses. The term “commercial real estate” may also be used to refer to industrial real estate.

How are commercial rents calculated?

To calculate a commercial rent, multiply the amount per square metre of usable space by the available space. Occupiable space can be the building area, land area or a combination of both. For example, if the rentable square meterage is 1500 and the price is $1 per square metre, your monthly lease amount is $1,500.

 

Variations in the rate per metre can be influenced by a number of factors including:

  • Surrounding tenants
  • Location
  • Quality or age of the building
  • Size
  • Services
  • Type of property
  • Type of construction
  • zoning
What is an outgoing?

Expenses incurred that are considered necessary to maintain a functional property are referred to as outgoings. Unlike a residential real estate lease where the landlord pays for most outgoings on a property (such as council rates), a commercial lease differs. Most tenants will be required to pay the owner for any outgoings on a commercial property lease.

 

These expenses are in addition to any agreed rental monies.

 

What do outgoings consist of?

 

Any of the following may be considered outgoings under a commercial lease:

  • Statutory charges, such as council rates, water and drainage charges
  • Any costs incurred in operating the building
  • Insurance costs
  • Servicing of any essential safety measures, such as fire extinguishers, exit signs and so on
  • Cost for ongoing building maintenance. These may include cleaning of gutters, servicing of air conditioning and heating units, building roller doors and so on
  • Where a property is strata titled, owners corporation fees
Who pays outgoing expenses?

Payment of any outgoings on the building will be negotiated at the beginning of the lease and documented as part of the terms and conditions. These outgoings may include council rates, water rates, strata levies, any insurances or land tax payable.

When does GST apply?

Where a property owner is registered for GST, GST must be charged on both the rent and any outgoings collected from the tenant. The charging of GST applies irrespective of whether an individual or a company (as the property owner) is registered for GST. Bonds are not subject to GST.

Where GST is charged, the owner must provide a tax invoice clearly showing the GST amount. If the tenant is also registered for GST, the tenant may be able to claim a credit for any GST that has been paid.

Gross Leases

Under a gross lease, the owner is responsible for payment of all outgoing expenses. The tenant is only required to pay the agreed rental payment each month. As a rule, most smaller tenancies operate on this basis.

Net Leases

Under a net lease, whilst the owner will pay any outgoing expenses, the tenant will be invoiced every quarter and is required to pay for any outgoings agreed upon in the lease conditions. This payment is over and above the agreed rental payment the tenant is required to pay each month as part of their lease agreement. Therefore, the owner will be reimbursed by the tenant.

What are lease options?

It is common when renting out commercial and industrial property to include a lease option within the terms of the lease. A lease option allows the tenant the option to extend the lease past the initial period of the lease, for a number of years according to the options provided by the landlord.

For example, a lease option may be 1 + 1 year, where the tenant signs a 12 month lease with the option to extend the lease for a further 12 months. Common lease options are 1 + 1 year, 2 + 2 years, 5 + 5 + 5 years and so on.

A tenant may consider a lease option advantageous, as it gives them a surety that they will be able to operate their business at the property for an extended period, particularly where they have or intend to invest a significant amount of money to fit out the premises.

How do tenants pay their rent?

Similar to residential tenancies, most commercial and industrial tenancies operate on a monthly basis, with rental paid by the tenant each calendar month. Your property manager will issue your tenant with a tax invoice each month. Your tenant then pays their rent directly into our real estate trust account. We then pay you.

We offer you the most up to date automated systems to allow your experienced commercial and industrial property manager to easily track and manage your property. We keep track of when rent reviews are due, we notify you when your tenant is nearing the end of their lease, we closely monitor rental payments and quickly action collection of rent arrears. We also manage maintenance and organise repairs as needed. At every step, we keep you updated as to progress.

 

What happens if a tenant stops paying the rent?

Part of the role of your qualified property manager is to ensure a good relationship is maintained with your tenant, including maintaining a good line of communication. This can usually avoid most problems.

Should your tenant stop paying the rent, stringent collection procedures are in place and followed to try and resolve the matter quickly. Your property manager will send your tenant a reminder letter and call them to ascertain the reason for a missed rental payment. A site meeting will also be arranged to resolve the situation. If the matter cannot be resolved, a Notice To Quit will be issued to your tenant and they will be required to vacate the premises immediately.

Why should I have my commercial and industrial property professionally managed by an agent? Am I able to collect the rent myself?

Yes, you can collect the rent yourself, however, successfully managing a property involves considerably more than just rent collection.

Your specialist property manager will manage everything that professional commercial and industrial property management involves. This includes:

  • Liaising with you to advise on acceptable lease structures tailored to your property. This will ensure your investment retains its value and allows for future growth over time.
  • Liaising with your tenant to negotiate favourable lease terms for you. This ensures any lease will enhance the value of your property rather than restrict or devalue your property.
  • Liaising with your tenant in an expert, professional manner to resolve all questions, queries and issues in a timely manner. Our professional property managers draw on their many years of experience in commercial and industrial property management to ensure you always achieve the best possible outcome
  • Regular checks to ensure your property is maintained and any maintenance issues are addressed quickly.
  • Advising you regarding market trends and keeping you updated on current rental and sale values.

Whilst some landlords choose to follow a “do it yourself” approach, engaging a professionally trained commercial and industrial property manager removes your need for daily involvement, saving you both time and money.

A quality property manager will ensure your property is well maintained and that you are maximising the returns on your investment. Your qualified property manager is also fully across the intricate laws that govern ownership of commercial properties, ensuring that you and your investment remain compliant and avoid any legal complications.

What kind of insurance do I need for a commercial building?

When insuring commercial or industrial real estate, your responsibility only extends to the structure, not the contents. The tenant is responsible for any contents on the premises. However, you are liable should anyone be injured on your property, so you will need to ensure you have liability insurance as well.

You may also wish to consider insuring against interruption of rent, to reimburse you should your building be damaged by fire, storm, cyclone or similar events which then results in loss of rent.

Why Brad Teal?

Long gone are the days when a property manager simply collected the rent. With over 500 pages of residential and retail tenancy legislation to consider, it has never been more important to have a qualified professional manage your investment. Not only that, it takes up a lot of time! Our team has the experience, knowledge and qualifications to protect your investment, maximise your rental returns and identify potential problems before they arise.

Located in each of our ten offices, our residential division has local knowledge that is second to none and our commercial team covers everything from factories to shop fronts to office space.

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