Found the perfect rental property but worried about missing out on it to other renters?

Here are some helpful tips to consider when applying for a rental property. Essentially, it all comes down to making a good impression.  

• Be Prepared in Advance. Ensure you have a 1Form profile ready to go with required ID and supporting documents. 1form allows you to have your information saved in the one place, making it easier to apply for properties.

• Submit a neat and complete application. 

• Make sure your application is filled out correctly for each renter.  Ensure you have references and they are informed to expect to be contacted. 

• Provide copies of supporting documentation such as bank statements, photo ID, an employment confirmation letter along with two recent pay slips, proof of ownership of current residence (if applicable) and any pet references. 

• A well-crafted 1form application complete with all supporting documentation will make it much quicker and easier for an owner to provide approval. Everyone wins. 

• Sometimes, attaching a covering letter with specific details outlining why you would make a  good renter the property gives you extra points. Organize a copy of your renter ledger or a written reference from your current rental agent. 

• Treat the property with respect when visiting during inspection times. Do not slam doors or push any open with your feet. Turn up on time to the inspection so that the agent doesn’t have to wait for you while you rush through. If you are running late, contact the agent to let them know. Let them know if you are planning to apply for the property. 

• IF you like it, apply for it. After the inspection, if the property is right for you, apply for it immediately. Do not assume that you are the only who may be interested in the property, there may be others who have applied already and are being processed. 

• Often, successful tenants apply for long-term leases or pay a few months rent in advance. While not necessary to secure a property, some rental providers may find this appealing if deciding between a number of quality applicants. 

• Be available to sign the lease documents and have your first month’s rental and bond money ready. 

Leasing process:  

Occasionally, rental providers appoint several agents with hope to achieve a faster result, however it is in the rental provider’s best interest to remain with the one agent. The reason being that this will allow the exclusive agent to exercise all their professional power to screen prospective tenants and select the most suitable applicant in due course. In the scenario where there are several agents (external variables come in play), it becomes a race to fill the vacant property and in a minority of instances, the foundations of being a neat, clean, tidy and reliable renter are forgotten and this may lead to future dramas.

• Rental Appraisal
• Signing up the Leasing and Managing Authority, Landlord Instruction Form
• Arranging key handover (if applicable)
• Marketing Campaign, including photos taken for advertising
• Private and Open for Inspections
• Renter selection with comprehensive reference checks with all applicants
• Presentation of Applications to the Owner and Acceptance
• Signing of Rental Agreement and collection of rent and bond
• Entry Condition Report is done
• Handover of Keys to Tenant

Property management process:

• Rent collection
• Routine Inspections
• Repairs & maintenance
• Rental Agreement Expiry & Rent Reviews
• At the end of the tenancy

We take rent arrears seriously as we understand the primary reason for Rental Providers renting their property out is for the income. Elite Rental Team operates on a 2 day default system, where arrears collection commence on the 3^rd day of arrears, followed by constant follow up. On day 15 of rent being unpaid, a formal Notice to Vacate is issued, followed by an Application to the Victorian Civil Administrative Tribunal for a Possession Order.

• Zero tolerance policy on rent arrears
• Dedicated trust account team and auditors
• Email itemized statements and End of Financial year statements
• Pay the property outgoings on your behalf

To ensure that the property is well maintained and looked after, we carry out up to two routine inspections per year, the maximum allowed by legislation. A report with photos is always forwarded to you after the inspection If you are in Melbourne, you are welcome to attend the inspection together.

Properties grow old and things break down over time, even due to normal wear and tear. When renters report a breakdown or if we find items that require maintenance, we report them to you and help to coordinate maintenance. To ensure that the property is maintained in good and working order, we ensure the following:

• Network of qualified tradespeople
• Quality workmanship
• Competitive rates
• Comprehensive work orders and quotes
• Direct communication with you
• After hours phone diversion for all emergencies

When the rental agreement is close to expiry date, we follow up with tenants in advance. We make rental recommendations based on the current market. Ultimately, our goal is to minimize the property’s vacancy and maximize the return on your investment.

When a renter wishes to vacate the property we will confirm the details in writing to you. We will take care of all the necessary end of rental agreement documentation. A final inspection will be carried out to ensure your property has been left in good condition.

• Renter provides a Notice to Vacate (minimum 28 days notice)
• Notify rental provider and re-advertise the property
• Repeat rental agreement process
• Finalize tenant’s bond for any damages, rent owing
• Make suggestions and recommendations to Rental Provider

Our goal is to help you capitalize on your investment and ensure you receive the highest possible rent in the shortest possible time - while also considering your desired tenants and how to effectively reach them through the strategic pricing of your property

We look at many important factors when advising our rental providers on a suitable rental figure such as (but not limited to):

• Location and condition of the property
• The number of similar properties currently available and how this will affect demand.
• The advertised prices of comparable properties and how long these have remained available.
• Current rental demand and external factors that may affect demand during the advertising process.
• Statistical data available such as rental statistics released through REIV.

Whether you’d like to know what your home is likely to rent for or its worth, please contact our team to provide a quick, reliable and honest appraisal of your property.

When leasing a property out, our investors often ask whether they should lease the property out furnished or unfurnished. There is no right or wrong, however either will have its pros and cons, and will also depend on a variety of factors such as, location of property, target renters, supply and demand in the area.  

There are a few common ways for rental providers to make their property available for lease:

• Fully furnished and equipped – In this instance, all household items are included: everything from furniture to kitchen utensils, cutlery and crockery.
• Unfurnished – No furniture is provided
• Fully furnished – Most necessary furniture is provided
• Partly furnished – Partially furnished with some tables and chairs
• White goods only – Some or all of the white goods are supplied

Furnished Properties - Pros and Cons

We look into the benefits and risks that come with letting a property out furnished. 

Pros of a furnished property:

• You can normally rent the property out for a high rental amount
• Suitable for renters who do not own and do not want to buy any furniture
• When the rental agreement ends, you may be able to use the furniture yourself or offer it to future renters
• The cost of furnishing the property may be claimed as a tax deduction 

Cons of a furnished property:

• Higher upfront cost of furnishing the property
• Opportunity cost of furnished property – may lose out on potential renters looking for an unfurnished property
• Higher turnover rate as renters often looking to stay 3-12 months
• Furniture needs to be replaced/maintained every 3-5 years
• More maintenance costs as furniture or white-goods may breakdown
• Higher insurance premium to cover the value of the furniture and contents 

Unfurnished Properties – Pros and Cons

        Most renters are looking to sign into a long-term lease, as renters want to find a place to call home and do not like the idea of having to move homes once every 6 or 12 months. For this reason, a large group of renters prefer to rent an unfurnished place or a place with white-goods only, where they can buy their own furniture to their liking and style.  

Pros of an unfurnished property:

• Renters who buy their own furniture may stay longer, as moving could be troublesome and expensive
• Renters may be happier with their own furniture and less problematic for you
• You are not responsible for maintenance of the furniture and insuring tenants' furniture

Cons of an unfurnished property:

• Unable to attract higher paying renters who are looking for flexible short term rental agreement, e.g executives
• Missing out on renters looking for a furnished property 

        Overall, there is no one solution that will be perfect in a rental market. You may consult with our experienced property managers about your individual property on their advice regarding furnishing the property or keeping it unfurnished. Sometimes, having the flexibility of offering both options to the renters may attract a higher client base to ensure that you do not lose out on a potentially good renter.

Now that you have decided to offer the property on the rental market for rental agreement or even if your current tenant has given you a formal Notice to Vacate, you wonder how to market the property and increase your chances of securing a high-quality renter in the shortest amount of time possible, paying the asking rent, and signing a long term rental agreement, to maximize the return on your investment property. Time is crucial for an investor as any vacancy means loss of rental income.  

Today’s consumers are fast paced, technologically apt, using computers, tablets and smartphones to browse property websites to seek their next property to call home. Elite’s recommendation to maximize the appeal of your property:  

• Accurate market appraisal with current market rental advertised. A property advertised above market price may end of sitting vacant too long resulting in rent loss
• Other channel agents for prospective tenants looking to relocate from interstate/overseas
• Professionally taken photography to best showcase the property
• Accurate description to make the property sound attractive
• Using state-of-the-art software to manage existing prospective who missed out on previous properties, as well as future enquirers to ensure your property is promoted to a large client base and efficient follow up to any potential lead.
• Advertising on all major real estate websites where tenants look for properties to rent

Renting your home or investment property out to renters can be a difficult decision to make, especially when most of the time, you do not know who the renters are.  

Choosing the right agent, one who will communicate with you regularly, keep you informed and act in your best interests is essential in making sure your property is well looked after.  

At Elite, all our staff are committed to keeping the best interests of our rental providers. We take an empathetic approach in our dealings with you and are determined to achieve not only the highest rental price, but also the best possible tenant to ensure your property is well maintained.

It is important to note that Owners Corporation insurance for strata type buildings such as apartment blocks, provide building insurance cover as well as cover for common areas in the building. However, this cover does not extend to contents in apartments such as floor coverings, curtains, blinds, and contents that can be ordinarily removed. We look into the other important areas why landlord Insurance is highly recommended for investors letting their property out:  

• Loss of rent cover
• Liability cover
• Accidental damage
• Malicious damage
• Contents cover
• Fire and floor cover
• Theft cover  

Whilst insurance premiums with different providers vary, the costs are often less than a dollar a day. Considering this expense is tax deductible measured against how much you would be out of pocket for unexpected events and damage/loss of rent incurred, taking out a Rental landlord Insurance policy should be a simple decision. We recommend all rental providers to do their research to find policy to suit their needs and ensure they obtain the appropriate level of cover for their investment property.

Property depreciation is a tax break that allows investors to offset their investment property’s decline in value from their taxable income. Australian law allows investors to claim tax deductions on both the decline in value of the building’s structure and items considered permanently fixed to the property and the decline in value of plant and equipment assets found within it. Some examples are ovens, dishwashers, floor coverings and blinds.  

If your property is renovated, it is recommended to keep accurate accounting records as this can be claimed towards property tax depreciation.  

There are some rules and guidelines into claiming towards property tax depreciation, however in most cases, there are tax savings to be had. We recommend all property investors to consult a qualified quantity surveyor.