Smart Realty


Maximizing Your Rent

How do you determine the best rent for my property?

We always strive to get you the maximum rent possible; however we also must keep in mind setting the correct market rent to get your property rented as soon as possible. Both factors are important to present your property on the market successfully for rent.

To do this, we consider these factors:

  • Demand – Is there a high or low demand for properties at present. This can be seasonal and affected by a number of factors.
  • What Is Available Now – we look at properties currently available for rent on the internet, and consider their location and features for comparison to calculate a maximum rent for your property
  • What We Have Rented Right Now – We compare your property with what we have currently rented, taking into account property location and features.

These factors allow us to give you enough information to set the right rent for your property.

What if I want a rent amount that is higher?

You may place your property on the market at the rental amount you wish. However keep in mind that it is the market demand that sets the rent, and if the market (prospective tenants looking for a rental property) deem the amount of rent too high, your property may stay vacant longer than necessary.

With this in mind, be aware your annual rental return will be reduced by 2% for every week it is vacant!

How the rent is reviewed during the time that you manage it?

When we need to secure you a new tenant, we will always review the rent against market conditions. This will also be done at lease renewal time, or at other times when required. We will always contact you for your permission before the rent is increased.


Getting the Best Tenant

How does someone apply for my property?

We always ask that the prospective tenant fill in an application form, signing giving permission for us to check the information provided. We will never discuss an Applicant with you without this application form completed prior to contacting you.

What if an applicant contacts me?

If in the unlikely chance a prospective tenant contacts you to discuss their application, or in fact ask questions regarding their rejected application, we insist that you simply request that they contact us (your agent). If they Persist we insist that you do not discuss anything further to avoid unnecessary problems and complications.

How do you check an applicant?

With the information provided we confirm their payment and tenancy history by calling their current and/or previous landlord/agent as well as confirming their employment, checking them against a National Tenancy Internet Database to see if they have been lodged as a bad tenant by a previous agent.

In some cases where an applicant may not have a tenancy history we try and confirm other information that may give us insight to show their ability to maintain a tenancy in your rental property, for example a stable employment history. In some cases where this is not possible we may simply reject the application.

What reason do you have to give the applicant to reject their application?

Legally we do not have to give a reason and by industry practice we never give a reason.

Who selects the applicant for my property?

You do! We will  simply give you the information we have collected and by using our experience give you a possible guide as to the tenancy outcome, but at the end of the day it is always your choice!

Do you guarantee the tenant?

We can never guarantee any approved tenant for your property.

We can only attempt to collect information on their past history and confirm their income arrangements. As their paying of rent and maintaining the property is purely voluntary we cannot guarantee any tenancy outcome. This is a land lord risk that comes with allowing someone else to rent your property!


The Marketing of My Property

What do you do to advertise my property?

Once we have a signed Management Agreement authorizing us to act on your behalf, we list your property on several different websites. We will take photographs of the property and create an eye-catching ad.


Property Presentation

How should the property be presented?

We ask that the property be presented in the best manner possible to attract the right tenant for your property.

We don’t want a bad first impression to detract the right tenant from renting your property.

How clean should the property be when a new tenant moves in?

The property should be presented ‘reasonably clean’ in accordance with legislative requirements.

As a very general rule we ask the tenant to leave the property at the standard they found it.

In cases where the property is provided in an extreme level of cleanliness we ask the tenant to leave the property likewise. However in the case of a dispute legally we can only enforce that the tenant return the property in a ‘reasonably clean’ condition, this being their minimum legal obligation.


Pets at My Property (If Permitted)

If I allow pets at my property, what expectations will be given to the tenant?

We always sign pet conditions with your tenant on their tenancy agreement.

This obligates them in 4 ways:

  • No additional pet may occupy the property without prior permission.
  • The pet may not come inside the property unless agreed.
  • The pet must be removed from the property if it becomes annoying or bothersome to neighbors (after reasonable warning has been given in writing).
  • The tenant must be responsible for any damage caused by their pet, and remove any rubbish or feces deposited by the pet.

We also record the details of the pet on the agreement, which is then signed by the tenant.

How do I ensure the pet will not come inside the property?

We obligate the tenant to commit in writing that they will not bring the pet inside. However as we are unable to Monitor the property all of the time, we cannot guarantee that the pet will not come inside the property.

We do look out for any warning signs whilst at the property conducting inspections. However, the only way to ensure that a pet will not come inside the property is to insist ‘No Pets’ right from the start of the tenancy


Receiving My Rent Monies

When do I get paid my rent?

We will deposit all monies collected into your nominated bank account on or before the 1st Day of the following month (if public holidays overlap the days the funds will be transferred earlier) We do then recommend that you have ample sums for your mortgage payments if the dates do not match your repayment dates.

How do you collect the rent?

We collect the rent by internet banking, bank deposits and Centrelink Payments.

What happens if my tenant does not pay the rent?

Paying the rent is always a voluntary action on behalf of the tenant. We can never force a tenant to pay their rent. Even a tribunal can only ‘order’ a tenant to pay but can never physically force them to pay. If a tenant does get behind in their rent payments, this is the process we follow.

1 Days Behind – Contact tenant to remind them they are in arrears.

3 Days Behind – Issue “Breach of Notice for Non-­ Payment of Rent” – this requires the tenant to rectify the situation and gives them 14 days to remedy the Breach.

If after 14 days all of the outstanding rent is not paid, we will issue a “Notice of Termination for Non-Payment of Rent”. This notice seeks to terminate the tenancy and requires the tenant to vacate the premises within the next 7 days. We will contact you prior to issuing this notice for your authorization.

Approx. 4 weeks behind (25-28 days) – Lodge an application with the tribunal for an order of payment subject to your instructions, an application will be made to the court at the expiration of the Termination Notice (7 days) to minimize any possible loss of rent that could Occur and to comply with the requirements of all Landlord Protection Insurers.

Approx. 6 weeks behind (40-47 days) – Tribunal Hearing – order given to pay or be evicted.

Approx. 7-8 weeks behind – Eviction may occur if payments are not made as per the tribunal order.

As you can see, the full legal process can be very drawn out and lengthy. Unfortunately the bond will never cover the shortfall in rent. If you have landlord insurance will there be a reasonable prospect of covering the rent payment shortfall, in the case of your tenant defaulting in their Rent payments.

Without landlord insurance, the chance of recovering owed rent monies is minimal. If you have no protection for your rent payments, the problem is further compounded with the fact that the bond will probably be exhausted with owed rent. You will then most likely have cleaning up and re-letting costs, as well as outstanding monies like water consumption owed by the tenant.

Therefore without landlord insurance, this process can be quite financially damaging.


Inspecting Of My Property

Do you inspect the property at the beginning of a tenancy?

We conduct a comprehensive inspection of your property when a tenant first moves in.

We inspect your property area by area (lounge room, bedrooms, kitchen, front and rear yards, garage etc.) and then all items present in each area (walls, ceiling, light fittings, curtains, windows, stove etc.).

We record their condition and cleanliness item by item, and then a brief description and detail about the item. This Would involve recording details of any marks, scratches and dents, etc.

We also take photos outside, as well as inside the property.

How often do you inspect the property during the tenancy?

We inspect the property approximately within the first six weeks of a new tenancy and every three months thereafter (unless instructed by the owner otherwise). This inspection is not as detailed as the start of tenancy inspection. This inspection is more of a walk through, checking room-by­ room the tenant is keeping the property damage -free and reasonably clean. We will also take photos of the outside of the property, and any repairs or concerns observed provided we have the tenant permission.

We also note any repairs reported or observed by us and any other recommendations needed to assist you in keeping the property in the best condition possible.

We will mail you a copy of the inspection however if there are urgent items requiring attention, we will let you know as soon as possible.

What about when the tenant vacates the property?

When the tenant lets us know they will be vacating, we send them detailed information on our expectations of how the property needs to be presented.

Once the tenant has fully vacated, we compare the property to the ingoing inspection report completed when the tenant moved into the property.

We carefully check through the report item-by-item, ensuring it has been left in the same condition as when they moved in, taking into account reasonable wear and tear for the period of time they have been in the property. This is a legislative requirement.

We ensure the property has been left reasonably clean.

We will also arrange to have a special water reading performed at your property.


Taking a Bond

How much bond do you take from the tenant?

In general, you cannot ask for more than the equivalent of four week’s rent.

When do you pay back the bond monies?

We only refund the bond after the following has occurred;

  • The tenant has fully vacated the property and keys returned
  • The property has been inspected, and is satisfactory when compared with the ingoing inspection report
  • All monies are paid. This could be any outstanding rent, water or anything owed by the tenant
  • If the tenant is breaking their lease, any re-letting fees and advertising costs (pa rt or full costs)

If the tenant has a pet, can I ask for an extra bond (a pet bond)?

The maximum allowed as a “Pet Bond” Is $260 – regardless of the number of pets for fumigation of the property
(if necessary) at the end of the tenancy.

No animals may be kept on the premises without the owner’s permission.


Tenancy Agreements

What do you explain to the tenant when they move into the property?

We go through all of the most important expectations. For example, how they must pay their rent on Time, where to pay their rent. What we do if they do not pay their rent. We discuss our repairs and maintenance policy, what happens in an emergency repair situation, how often inspections occur and what we look for.

We also supply them with two copies of the ingoing inspection Property Condition Report. Explain how they must check, sign and return one copy of the Property Condition Report within 7 days.

What do they sign?

We prepare a Tenancy Agreement covering the details of the tenancy, with terms and conditions.

We explain the main parts of the agreement to the tenant before we get them to sign it. We will then send you a copy of the tenancy agreement together with a copy of the ingoing inspection report, for your records.

When do they get keys and possession of the property?

After all the forms have been explained and signed, all bond monies and first two weeks of rent received we will then grant them the keys and possession of the property.


Repairing and Maintaining My Property

Who is responsible for repairing my property?

Under legislation it is the responsibility of the landlord to repair the property. This means it is at the landlord’s expense.

Who is responsible for general wear and tear?

General wear and tear that occurs from tenants Just living in a property is expected and legislation provides that it be allowed. A few extra marks and scuffs on the walls, some chips and scratches to doors and doorways will occur over time, along with the gradual wear of everything that is in the property.

The only time a tenant can be held responsible is if wear and tear is considered ‘excessive’ for the time frame that the tenant has been in possession. For example, a newly painted property with walls severely marked after 2 years resulting in the walls having to be painted again may not be allowed as ‘reasonable’ wear and tear. In a tribunal this type of situation, if proved, could result with the tenant paying for the painting to be done, minus any depreciation for the age of the paintwork at that point in time when it was repainted again.

Please also refer to Residential Tenancies Act for specific legislation on this issue.

What if the tenant is at fault?

If a tenant has caused damage to an item that is not the result of normal break down or wear and tear, this will be charged to the tenant.

Normally, a tradesperson would let us know that the repair was normal or was influenced or caused by the tenant.

What happens if a repair is required after hours, or on weekends?

The tenant is proved with the Property Managers mobile number and is asked to call if there are any emergencies. The owner will be contacted and instructions to be given by the owner. In circumstances that the owner is not contactable we will proceed with repair if classified as an emergency otherwise the repair will be dealt with next business day.

Who is responsible for maintaining the lawns and gardens?

Unless otherwise agreed, the tenant is responsible to maintain the lawns and gardens to the standard they were given at the start of the tenancy.

If the property is provided with watering systems these need to be working and kept maintained during the tenancy.

What about cleaning the roof gutters and pruning?

According to legislation it is the landlord’s responsibility to ensure these are done. Of course, we can arrange gardeners on your behalf to do these for you.


Renewing the Lease with My Tenant

Who decides if the lease will be renewed?

You do! We will contact you by letter before the lease is due, and seek your instructions if you wish to renew or in fact not renew the lease. Once we have your approval we will then approach the tenant to have the lease renewed.

If I do not wish to renew the lease, do I have to give a reason?

If you do not wish for the lease to be renewed you are not obligated to give your tenant a reason.


Notice Required When My Tenant Is Vacating

How much notice must my tenant give when they want to vacate the property?

This depends on the type of lease they have signed. If They wish to vacate the property on a non-fixed term lease (“periodic lease”), they are required to give only 21 days’ notice in writing.

If they are on a “fixed term tenancy” they have to give 30 days’ notice to vacate. Of course it is up to us to approach the tenant to seek their intention to either renew the lease or vacate the property usually about 2 months beforehand.

If they break their lease, they may do so with little to no notice, however they are subject to paying rent until a new tenant is secured, or to the end of the lease (whichever occurs first). They must also contribute to the letting fee and advertising costs (please refer to the next section).


Breaking of a Fixed Term Lease

Who pays for the letting fee and advertising costs when a tenant breaks their fixed term lease early?

Unfortunately we have no control over the tenant breaking their lease early. People’s circumstances change and sometimes they move out earlier than expected. In this case, we will need to charge letting fees and advertising again.

However, under legislation we are entitled to charge a tenant for part or the full amount of these costs to be reimbursed back to you, depending on how much of the lease remains when it is broken. We also must take into account the current lease or entire term of leases they may have already served at the property, when calculating monies for reimbursement.


Breaches of Tenancy

What happens if the tenant breaks one or more of the conditions of tenancy?

Depending on what has occurred depends largely on what action is taken. If the breach is minor approaching the tenant verbally or in writing maybe appropriate. If it is something serious we will consult with you first to discuss what action to take.

Serious breaches of tenancy may involve using the property for illegal purposes or bringing in pets without prior permission etc.

We will let you know whether we should serve a termination notice on the tenant first or use more diplomatic means to rectify the breach.


Landlord Insurance

Why do I need landlord insurance if I have an agent?

We at no time can guarantee your tenant’s performance at your property. The risk belongs to the owner of the property, and therefore the owner should be insured for such a risk.

Why do I need landlord insurance if I have a good tenant?

Even a good tenancy can turn bad. If the tenant’s circumstances change sometimes the tenancy will become unstable. This can result in rent owing and the property not maintained.

It pays to be properly insured, even with a good tenant

What does landlord insurance cover?

Landlord insurance will cover rent loss due to tenant default and malicious damage to the property caused by the tenant

It is important for you to know what your landlord insurance policy will and won’t cover. Please consult with your landlord insurer so that you are fully aware of the extent of your cover and also any excesses that may be applicable in the event of a claim.


Pest Control Services

Should I get my property regularly checked for termites?

Yes, we strongly recommend all of our clients choose a pest control service and request that they regularly Check your property for termite activity at the frequency they recommend.

Unfortunately we do not contract them to do this on your behalf, unless you specifically instruct us in writing to do so each time it is required.

Please note, it is a general exclusion of all building insurance policies that damage to your property caused by termites is not covered (not insurable). Therefore regular checking is the best way to prevent termite damage, or

At least attempt to identify warning signs that termites are creating damage. Without this the damage could be substantial and very costly to rectify.


Costs Incurred At My Rental Property

Who pays for electricity and gas charges?

These are a tenant expense. However, if there are charges relating to the supply of these services to a property, then the supply charges are at a landlord cost.

A good example of this is if a property has bottled gas supplied. The tenant pays for the gas in the bottles; however the landlord would be responsible for the charges related to the gas bottle rental. This is a charge associated with the supply of the gas.

Also, if you are moving out of your property and you have your own gas bottles remaining, please remove them. There is a high chance that these bottles will be accidentally removed by a gas bottle supply company, Giving room for an avoidable dispute with your tenant and missing gas bottles. Let the tenant arrange their own rental bottles.

Who pays for water charges?

Water consumption charges are agreed between the landlord and tenant.

The land lord can contribute to the account if they wish otherwise the tenant is liable for the total water usage.

Please note the water bill account will remain in the owner’s name and the bill will be deducted from the owner’s funds and reimbursed back to the owner once the tenants have paid their account.

What about council and sewerage rates?

All these costs must be paid by the landlord as specified by legislation


Receiving My Financial Statements

Why do I receive statements?

We will issue you both monthly and yearly financial statements (without any charge), accounting for all monies we have handled and disbursed to you on your behalf in accordance With legislative requirements.

You will receive your monthly statements together with any tax invoices from tradespersons or other disbursements paid during that month on your behalf. Your end of year statement accounts for all monthly statements accumulated, for accountancy ease (at no extra charge as per your agreement).

When do I receive these statements?

Your monthly statement will be sent to you approximately on the 1st of every month, and the end of year statement will come to you in July of each year being the month immediately following the end of the financial year.

How do I understand these statements?

Your monthly statement (credit- money received/debit­ funds paid out)

What do I do if I misplace a statement?

Call us and we will reissue another one to you.


Selling or Moving Back Into My Property

What happens to the tenancy if I wish to sell my property?

You may sell your property at any time. However any fixed term lease in place is guaranteed to your tenant. This means if a person buys your property and they wish to occupy it, they must wait until the tenancy is finished unless the tenant agrees otherwise.

What if I want to move in or someone from my family wants to move in?

Again any fixed term lease is guaranteed unless the tenant agrees to move out unless mutually agreed by both parties in writing or by an order from a court, the fixed term tenancy cannot usually be ended before the date stated in the Agreement.

As is the case with the property being sold, this usually involves an amount of compensation being paid to the tenant as agreed by both the landlord and the tenant.

What if they are on a non-fixed term agreement?

You can end a periodic tenancy by giving the proper notice in writing for any of the reasons below:

  • No particular reason – you can (without giving them a reason), give written notice to the tenant ending the tenancy not sooner than 60 full days from the date you give them notice.
  • The property has been sold (contract signed) and the occupier requires vacant possession, give written notice to the tenant ending the tenancy not sooner than 30 full days

A regulated Form lC notice must be used when giving 30 day or 60 day notice.

Can you sell my property on my behalf?

Selling your property is not part of the service we provide. However, we do work with few agencies in conjunction.

Just let us know if you want to sell, even if you are just thinking about it.



Smart Realty is Perth’s local property management agency. Call us: 08 6154 9957


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