Ironfish Real Estate FAQ

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1 Selecting the right Property Manager Why should I choose Ironfish Property Management? In three words, Experience, Expertise and Passion. Our clients know that our people make the difference. We are Real Estate Company that specialises in leasing well designed, sustainable and affordable developments. At Ironfish we're able to provide ongoing development solutions through our newly appointed Project Management Department. We are an end to end property management service that specialises in Developments consisting of as many as 200 residential properties at a time. We work with clients embarking on their first investment, as well as with seasoned investors who know they can count on our experience and know-how. Please see Landlord Pack for further details regarding our management services. Does an Agents location change their ability to manage my investment? It is a well-known fact that over 90% of prospective tenants use the internet to find properties now and the majority of tenants also pay their rent via electronic transfer and communicate by so location is no longer a real concern. Ironfish manages properties North, South, East & West of Melbourne. I am not happy with my current Agent how do I change to Ironfish? This is very simple and best of all does not cost a cent. Our office will supply you with an Exclusive Leasing & Managing Authority to sign and once completed, we will take care of the rest. Our office will contact your previous agent to advise that you have signed the required documentation and that we require the property file & any keys to be made available for collection within 4 days. Our office will then notify your tenants commence managing your investment. Are you the cheapest property management business in the area? Probably not but we remain competitive. Ironfish. At Ironfish we believe we are the best property management business available in the area, we employ trained professionals who are focused on providing a level of service unsurpassed in the industry. We have found that charging a discount price usually equates to a lower level of service and inability to provide the latest technology to clients. Therefore, we charge a competitive fee commensurate with the experience of our staff and high quality of the service we provide to our clients.

2 I ve found another real estate agent with lower fees. Why should I stay with Ironfish? The property management field has become very competitive in recent years. There are lots of real estate agents adding property management departments into their already established Sales Agencies. Often these companies will charge lower fees because they are just starting out or because their core focus is on the income generated from sales commissions. Ironfish is slightly different with respect to the way our company is structured as each of our businesses are separate and are run independently of the other i.e Property Management, Project Management/ New Developments & Sales. This allows our staff to focus on what they specialise in and ensures that our clients receive a higher level of customer service and we are able to deliver much better results. Pre-Leasing Do I need to have Ironfish complete my Pre- Settlement inspection? As a purchaser, you can complete your own inspection or nominate an inspector, family member or friend to inspect on your behalf as your proxy. It is always recommended to use a professional inspection company or Property Manager to complete your Pre-Settlement as we will be able to identify defects that you may miss. Missed defects could cost you time and money in the future if not identified during the inspection. A sample inspection report can be provided by our office upon request. Do you recommend furnishing my Investment Property? Yes and No! This really depends on the location of the property, demand for this type of property and the furniture that is included. Furnished Properties will only appeal to a specific market including Relocations, Students, Contract Relocations and people seeking Short Term Accommodation. You will also have to take into consideration the type, colour, style & quality of furniture you wish to include as this may not be to everyone s taste and could actually hinder the leasing process. If you are interested in leasing your property fully furnished, we recommend that you research the furniture and appliances you intend to provide and advertise the property with the option of being fully furnished at an additional cost. This way you open your property up to the entire market.

3 Am I required to install window furnishings in my property? Yes. Prior to a tenant commencing, you will need to make for blinds to be installed. Ironfish can arrange competitive quotations for your consideration. We will organise access for the supplier to obtain measurements to enable installation to be completed as soon as settlement has occurred so that the property can be occupied immediately. Marketing & Leasing How will you promote my property for rent? Ironfish boasts a high volume of Tenant enquiry due to our size, locations and reputation throughout the community. Ironfish ensures you get the largest possible number of prospective Tenants through your property by using every available resource including; Prominent internet listings with photography and floorplans Professional Photography for all advertising CBD Window display 24 hours, 7 days a week Detailed Rental Lists including photography and floorplans Property signage (where applicable) Advertising on university & Hospital portals via Intranet Extensive database of prospective Tenants Distribution of Rental Lists to local business and relocations agents Advertising on international forums for Overseas Students Advertising on main real estate websites including and How long will it take to lease my property? Our average time to lease your property varies depending on market conditions, however in recent months it has averaged less than 15 days. For new developments, we begin marketing your property 1-2 months prior to expected settlement and will refresh these listings regularly. If a tenant vacates an already tenanted property, our office will commence marketing your property as soon as the tenant provides us with a notice of intent to vacate. Unlike many other real estate companies, we have an office for New Projects/Developments, an office for Property Management and Leasing for each that are dedicated to finding the best tenant in the shortest possible time.

4 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. To do this, we consider these factors: Demand is there currently a high or low demand for rental properties? This can be seasonal and affected by a number of factors. What is available now we look at properties currently available for rent 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 than your recommendation? You may place your property on the market at whatever rental amount you wish. However, keep in mind that it is market demand that sets the rent, and if the market (i.e. prospective tenants looking for a rental property) think that the asking rent is too high, your property may stay vacant longer than necessary. With this in mind, be aware your annual rental return will be reduced by approximately 2% for every week it is vacant! Tenant selection How do you select a tenant? We strive to provide you with the highest calibre of tenants and we will advise immediately if we don t believe the tenant is suitable but ultimately, it is you that will decide who resides in your property. Our office will complete the following checks on your tenant s application; Confirmation of employment (pay slips and/or bank statement) and verbal reference from direct employer. Confirmation of current rental history (including payment history) and verbal reference from Property Manager. Confirmation of previous rental history (if applicable). Where a tenant s previous property is owned, proof of ownership must be provided (Council Rates, Water Rates or Owners Corporation fee notice) 100-point identification check A detailed tenancy database search on TICA & NTD to check for any past rental defaults, debts owed, court orders or listings, bankruptcy & insolvency. Verification that the applicants can afford the rent and all other amounts payable under the terms of the tenancy agreement.

5 Current and previous rental history. Current and previous employment history. School/University enrolment details. Visa status. Parental guarantee information. Once reference checked by us, any application that meets the criteria will be presented to you for approval. What is the length of the average tenancy? For residential properties, the fixed term is usually 6 or 12 months. If a longer or shorter term is requested, we will advise on how to proceed. Can I rent to a friend and still have Ironfish manage my property? Yes. If you would prefer to find your own tenant or have a family member or friend in mind to lease your property, this is no problem however, we would recommend that our office still complete the ingoing condition report as well as any/all formal documentation to prevent any issues when your tenant vacates. Ironfish can handle everything for you so that you do not need to be involved. Do you guarantee the tenant? We can never guarantee the performance of the tenant for your property however, we do have strict tenant screening processes in place to minimise your risk. We use professional experience to verify that the tenant can afford to pay the rent and to form an opinion on whether the tenant will maintain the property to an acceptable standard. As the paying of rent and the maintaining of the property is purely voluntary on the tenant`s part, we cannot guarantee any tenancy outcome. This is a landlord risk that comes with owning an investment property. We insist that you take out landlord protection insurance if the risk greatly concerns you. For information with regards to tenant screening, please refer to our Landlord Information Pack. What tenancy documentation is required? All tenancies are subject to the Residential Tenancies Act. The tenancy documentation includes: A Tenancy Agreement A Condition Report A Rental Bond Lodgement Form. A guide to renting (rights and responsibilities) booklet Ironfish Real Estate also provides tenants with additional documentation to ensure that your property is maintained to the highest standard.

6 Who signs the tenancy documentation? It is standard practice for Ironfish to sign these documents on your behalf. We will, of course, send you copies of any documents signed on your behalf for your records. May I give you some special instructions? Yes. You may give us some special instructions in relation to the property and the way it is managed, provided the instructions are lawful. These special instructions will need to be either specified in the Management Agency Agreement or provided in writing to us. Pets If I allow a pet at my property, what expectations will be given to the tenant regarding the pet? If a pet is permitted we will provide the tenant with strict written conditions and an additional clause would be added to the lease agreement. The major conditions would be; The pet may not come inside the property. The pet must be removed from the property if it becomes annoying or bothersome to neighbours (after reasonable warning has been given in writing). The tenant must be responsible for any damage caused by their pet, and clean up any mess left by the pet. The tenant must have the carpet professionally cleaned and the property professionally fumigated upon vacating the property. If the tenant has a pet, can I ask for an extra bond or a pet bond? Unfortunately, no, however if the properties rent exceeds $ per week then we are entitled to request a bond of up to 6 weeks rental. Keys & Security What keys must be supplied to the tenant? All tenants listed on the Tenancy Agreement must be given a full set of keys. This includes keys to all external doors, windows, garage or letterbox locks. Ironfish must retain a full set of keys at the office, as the developer/builder only usually provide two sets of keys at settlement, we will order any addition sets required. This may necessitate having keys cut at your expense.

7 What if the tenant wants the locks changed? If the tenant wishes to alter the existing locks or add other security devices to make the property more secure, the tenant must obtain the owner s prior consent and pay all costs. The tenant must provide the owner/agent with a copy of any new keys. How secure must the property be? The law requires that an owner must provide and maintain locks and other security devices to the property in order for the property to be reasonably secure. It is recommended that key operated deadlocks be fitted to all external doors and windows. Accounts Can Ironfish Manage payment of my accounts? Yes. Ironfish aims to make owning an investment property as simple as possible. If you don t want the hassle of paying the outgoings for your investment property, Ironfish can arrange this for you. To arrange Ironfish to make payment of your outgoings simply complete an accounts authorisation form (can be provided by contacting our office) or alternatively you can change your postal address for your investment property to 647 Lonsdale Street, Melbourne Vic 3000 with all providers including; Council, Owners Corporation, Water Provider & Insurance Provider and we will arrange payment from the rental income received to our office and issue you with a statement that provides a breakdown of all accounts paid. Newly constructed properties may initially require several accounts to be paid at the same time resulting in no payment. If this occurs, we will issue a statement showing a breakdown of all accounts (including outstanding accounts), without payment being made. Can you access my personal bank account? No. Ironfish Real Estate cannot access any of your personal banking details, manage your loan account or view balances. We do not have any access to your personal banking information and this must be managed by you directly. We suggest that you check the account balance monthly or ensure that you have adequate funds (the equivalent of 6 months rental) in the account to prevent dishonours. What payments are landlords responsible for? Landlords are responsible for the payment of all outgoings with respect to their investment property. These include; Council Rates, Water Rates & Service Charges, Owners Corporation Levies, Landlord Insurance, Smoke Alarm Servicing, Telephone Line Connection & New Meter Connection Fee (Line & new meter charges generally only apply to new properties).

8 If you do not have separate meters for your electricity, gas, oil or water service, you will be responsible for the costs of that service or supply. What payments are tenants responsible for? If the property is separately metered, the tenants are responsible for paying the following charges: all charges for the supply or use of electricity, gas or oil (including supply charges and reconnection fees) a charge for an upgrade to the electricity or gas meter all charges based on the amount of water consumed (but not service charges or reconnection fees) all sewerage disposal charges all charges for the use of bottled gas (but not for the supply or hire of gas bottles) If the landlord pays a bill that the tenant is responsible for, then the tenant is required you back. You cannot charge more than the utility provider has charged. Who pays for water usage? If there is no individual meter for the rented premises (as is the case in blocks of older style units), a tenant cannot be charged for water usage. Please inform our office prior to advertising if you are aware that your property is not separately metred. The tenant is responsible for payment of all water usage charges during the tenancy if the property has an individual water meter. It should be noted that in Victoria, all service, sewage, rates & additional charges must be paid in full by the owner of the property. Accounts will be issued separately for payment. Rental Payments & Arrears Management How soon will I receive rental after my property is leased? This will depend on whether it is a new or existing property and how long the property has been vacant. An existing property will typically receive the rental payment within a week of the tenant commencing (minus leasing fees and any accounts awaiting payment). A new property can take up to 3 months to have funds available for disbursement as set up costs and first time payments are often due at or just after settlement. These include; Leasing & Management Fees, Blinds installation, Water rates, Council Rates, Owners Corporation fees etc. Please refer to Fees after settlement schedule for further information. What happens if my tenant doesn t pay the rent? Ironfish has a set procedure in the event that the tenant does not pay the rental. Ironfish will also contact you to advise if payment has not been received so that you

9 can make arrangements to cover any outgoings in the interim. Usually, non-payment of rental is an oversight on the tenant s part however, if the issue is more serious then we will continue to contact the tenant by phone, , sms & post until such time as rental is received. If no payment is received within a 14-day period, our office will serve a Notice to Vacate. Maintenance & Damage Who is responsible for smoke alarms, light globes and tap washers? It is the landlord s legal responsibility in Victoria to provide working smoke alarms and light globes, and to fix any leaking taps prior to the commencement of the tenancy. During the tenancy, the tenant is responsible for replacing any smoke alarm batteries and light globes. An owner must have smoke alarms inspected once per year, Ironfish is not legally qualified to check the functionality and suitability of certain types of smoke alarms and as such, a qualified professional is engaged for that purpose. Who deals with maintenance at my property and how? There are two main categories for maintenance, both of which are just as important as the other, however dealt with differently. Fortunately, as we have such a large property portfolio, we generally receive discounted rates from our tradespeople for all of our clients. The property is a house, 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. Who pays for damage/maintenance to my property? The question of what constitutes damage and what is considered acceptable wear and tear is always an issue in property management. In cases of damage to a property attributable to a tenant that is not considered normal wear and tear, normally the bond will provide sufficient protection to remedy the damage. If not, the owner can take action in the Tribunal against the tenant. Also, landlord protection insurance will often provide cover for these types of issues.

10 General maintenance General maintenance is maintenance usually due to fair wear & tear and is required to be carried out under the terms & conditions of your lease agreement to ensure that your property is maintained in good condition. We encourage tenants to report all maintenance in a timely fashion and endeavour to have it resolved just as fast as minor repairs can become major repairs if not attended to immediately. Emergency Maintenance Emergency maintenance is determined by Consumer affairs as below; burst water service blocked or broken toilet system serious roof leak gas leak dangerous electrical fault flooding or serious flood damage serious storm or fire damage failure or breakdown of any essential service or appliance provided by a landlord or agent for hot water, water, cooking, heating, or laundering failure or breakdown of the gas, electricity or water supply any fault or damage in the premises that makes the premises unsafe or insecure an appliance, fitting or fixture that is not working properly and causes a substantial amount of water to be wasted a serious fault in a lift or staircase. With regards to all emergency repairs, whilst every attempt will be made to contact you to discuss and seek approval to resolve the issue, if you cannot be reached within an appropriate time frame, our office will provide approval for works up to a maximum of $ as per Victorian legislation. Inspections What measures do you take to protect my property? At the commencement of the tenancy we complete an extensive ingoing condition report detailing the overall condition and features of the property. We also take a number of photos to support this and use these to compare the condition of the property at the termination of the tenancy. A bond of 1 months rent minimum will also be held with the Residential Tenancies Bond Authority, this can be exhausted at the end of a tenancy in the event that rental is owing or there is damage to the property. The tenants are also required to 1 months rent in advance and maintain rental payments on time throughout their tenancy. Rental payments are constantly monitored and measures taken to recover any overdue payments at all times.

11 Can I attend Routine Inspections with my Property Manager? Yes! You re more than welcome to accompany us on inspections. Inspections are carried out every 6 months and a vacate inspection is completed at the end of a tenancy. We find that most landlords are happy to leave the hard work to us, however we do encourage owners to attend at least one inspection every few years if possible. If you are Overseas, Interstate or simply unable to attend, you can take comfort in the fact that our office will complete a detailed inspection report including photographs and also advise you immediately of any maintenance or renovation work that may be required. Can I inspect the property whenever I like? Unfortunately, no. The tenant needs to be given a minimum of 24 hours notice in writing (not including weekends) and you must allow for postage days. Typically, tenants are advised of inspections at least a week prior to attendance. The Owner/Agent is limited to a maximum of 1 inspection in any 6-month period unless otherwise agreed or unless access is required for a specific reason. A tenant can also refuse to allow an inspection within the first 3 months of their tenancy as we must allow what is called quiet enjoyment. In order to complete 2 inspections within the year, we will typically hold the first inspection after 3 months and the second 6 months after to ensure the property is being maintained. A report will be sent to you following any inspection. Ending a tenancy What happens when the Tenancy Agreement expires? The Agreement continues on a periodic basis once expired (month by month). Each party is required to give a specified period of notice to terminate an Agreement. Notice periods will vary depending on the reason for vacating. It is not necessary to renew a Tenancy Agreement when the fixed term period ends. In fact, in Melbourne, many landlords and tenants choose not to enter into a renewal agreement once the initial fixed term expires. While we can request that a tenant renew their Tenancy Agreement for a further fixed term, we cannot insist that they do so. Any renewal agreement must be mutually agreed between the parties. How can I terminate the tenancy? There are 3 main ways that a tenancy can be terminated. 1. To end the tenancy at the end of the fixed term Landlord must provide at least 90 days notice to end a tenancy when the fixed term of the agreement (12 months or more) is due to expire. 2. To end a tenancy after the fixed term has expired (i.e. a continuing tenancy)

12 A tenant is required to give at least 28 days notice and the owner must give at least days notice to terminate the agreement any time after the fixed term has ended. Notice period depends on the reason you require the tenant to vacate. 3. To end a tenancy as a result of arrears A 14-day termination notice may be given at any time if either party breaches a term of the agreement, or if the tenant is more than 14 days in arrears of rent. Can a tenant break the Tenancy Agreement? Residential Tenancy Agreements are legally binding contracts. However, if a tenant wishes to break the Agreement and vacate the property before the fixed term expires, the tenant is responsible for the following: Rent until the date a new tenant takes over the property, or until the fixed term expires (whichever happens first) Any agreed advertising costs The owner s costs of a letting fee. It is important to note that the owner/agent must make reasonable efforts to minimise any potential losses the tenant may suffer in this situation. How much notice do I have to give my tenant if I want to sell the property or move back in? If the premises are to be sold or offered for sale with vacant possession immediately after the lease ends; or the premises have been sold and all sale conditions have been satisfied; or the landlord, a member of their immediate family (including parents and parents-in-law) or a dependant (who normally lives with the landlord) will be moving in, then the landlord is required to provide the tenant with 60 days notice in writing via registered post. The landlord must also provide additional time for postage. The notice period must coincide with the lease end date or the tenant must be in a periodic tenancy. Where the tenant is in a lease agreement, notice may be provided but the tenant is not required to vacate until the end of the lease agreement. Insurance Do I need Landlord insurance? It is policy of our company that all landlords hold a valid landlord insurance policy. Ironfish Real Estate has recently entered into an arrangement with PIP insurance to ensure that our client receive the best possible cover at the best price. Property Insurance Plus (PIP) specialises is protecting your investment property and can provide you with market leading insurance that will safeguard your asset and the income it provides. PIP can insure your property against rental income loss, accidental and malicious damage, damage caused by pets along with theft and legal liability cover. PIP can also deliver Landlord and Building policies to suit the needs of any investment property. Your initial policy will receive 14 months cover (for the price of 12 months cover) at a cost of $ per year.

13 Do I need contents insurance? This will depend on your property and insurer. Contents insurance covers the financial cost of repairing or replacing your household personal possessions and furnishings, such as curtains, furniture, white goods, stereo, TV, computers and other electrical appliances, clothing, jewellery, sporting equipment and even toys. This would only be required if the goods provided did not form part of the lease agreement. If my Owner s Corporation has building insurance, do I still need to get Landlord Insurance? Yes. Building insurance provides cover for the actual structure of the property. This includes permanent fixtures such as: roof, walls, ceilings, floors, doors and windows, fitted kitchens, built-in cupboards and bathroom suites. Garages, sheds or gazebos are also usually covered, but it s best to check with your insurer beforehand. Fences, gates, boundary walls and mains-supply pipes aren t usually covered by default, but read the details of your policy first. A standard buildings insurance policy should cover the full cost of repair/rebuild in case of: Fire, lightning strike, storm damage falling trees explosion (caused by gas leaks etc.), earthquake, vandalism, vehicle collisions with the building, bursting or freezing of the plumbing but again, you must read the details of your policy first. Selling/Investing Can Ironfish provide me with a rental or sales appraisal for my property? Yes. Sales and rental appraisals can be provided upon request. Please contact your Property Manager directly if you require an appraisal to be completed. If I want to sell my property, can Ironfish help? Ironfish is currently in the process of setting up a dedicated real estate sales team to service the needs of our property management clients. At this stage, the service is not yet available however, we do have a preferred local agent and can assist with agent access etc. For information on how we can help you sell your property or assist you in buying another property, contact your Ironfish on (03)

14 Communication How accessible is my Property Manager? We currently have several locations throughout Melbourne for Sales & Property Management and all Property Management staff are provided with a mobile phone for work use. Our office phones are also diverted after office hours so that one of our team can always be contacted in case of an emergency. Staff also have WeChat & which they can be reached anywhere, anytime. What do I do if I misplace a rent statement? You can login to the landlord portal on our website using your unique username and password and can check or download your statements and invoices, anywhere, anytime. You can also contact your property manager and they can arrange for a replacement statement to be sent to you via immediately. What about someone to contact in emergencies? If it may be difficult to contact you on a routine basis, we suggest that you nominate someone locally to act as your representative in case of an emergency and that this person is advised of the extent of their authority. That person s name and contact details should be recorded in the Management Agency Agreement or alternatively, provided to us in writing. If you have booked a holiday, will be overseas or are unable to be contacted for any specific period of time, please contact your property manager and provide them with specific instructions with regards to the management. What should I do if I change my address, bank account, phone numbers, address etc.? You can login to the landlord portal on our website using your unique username and password and click the update details button. You can change any information and it will be sent through to our office directly. You are also welcome to send through via to your property manager. No changes will be made unless a request is received in writing. What happens to any mail that comes addressed to me at the property? We ask the tenants to forward to us any mail addressed to you, however they are not always as diligent with this as we would like. It is strongly recommended that you request Australia Post to redirect your mail to you.

15 Complaints What do I do if I have a complaint? Should we fail to perform any of the duties as listed in this Property Management guide, we invite you to register your complaint in writing and we will endeavour to resolve your complaint within 5 business days. Please direct all complaints C/O Officer in Effective Control and send to feedback.melbourne@ironfish.com.au or 647 Lonsdale Street, Melbourne Vic If our office is unable to resolve your dispute directly, you are welcome to contact Consumer Affairs or Estate Agents Resolution Service. Please find details below; Estate Agents Resolution Service (EARS) is a dedicated service for advice, information, complaints and dispute resolution regarding the purchase, sale and management of property. Telephone: Consumer Affairs is Victoria s consumer affairs regulator. Their purpose is to help Victorians be responsible and informed businesses and consumers. Telephone Website