Frequently Asked Questions (For Landlord)

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Check this blog Why need landlord insurance

There are many providers for landlord insurance. Whiling comparing the price, please make sure you have right things covered.

A Property Management Trust Account is designed to handle funds related to the management of rental properties. The primary purpose of this account is to separate and protect tenant and property owner funds from the property manager’s operating funds. 

Under the condition there are enough funds available on your account, here are the types of bills and expenses that can typically be paid from a Property Management Trust Account:

1. Maintenance and Repairs:

   - Costs for regular maintenance of the property, such as plumbing, electrical work, landscaping, and general repairs.

2. Utilities:

   - Utility bills for services such as water, gas, electricity, and trash collection, if the property manager is responsible for paying these on behalf of the property owner.

3. Mortgage Payments:

   - If the property manager is authorized to handle mortgage payments for the property owner, these can be paid from the trust account.

4. Property Taxes:

   - Payment of property taxes on behalf of the property owner.

5. Insurance Premiums:

   - Property insurance and liability insurance premiums for the rental property.

6. Vendor Payments:

   - Payments to contractors, suppliers, and service providers who perform work or supply materials for the property.

7. Management Fees:

   - Property management fees as outlined in the management agreement between the property owner and the property manager.

8. Legal and Accounting Fees:

   - Legal fees for eviction processes, lease agreements, or other property-related legal services.

   - Accounting fees for property-related financial services.

9. Owner Distributions:

   - Distributions to the property owner from rental income, after all expenses and fees have been paid.

10. Advertising and Marketing:

    - Costs associated with advertising and marketing the property to prospective tenants.

11. Tenant-Related Expenses:

    - Refunds of security deposits to tenants, as well as any interest owed on these deposits if required by law.

    - Costs related to tenant move-in or move-out, such as cleaning services.

It is important for property managers to maintain detailed records and documentation for all transactions made from the trust account. Misuse of funds or lack of proper documentation can lead to legal issues and loss of licensure. Always consult local regulations and the specific terms of the trust account to ensure compliance with legal and contractual obligations.

A Property Management Agent is responsible for overseeing the day-to-day operations of rental properties on behalf of property owners. The scope of their duties can vary based on the management agreement but generally includes the following tasks:

1. Tenant Management:

   - Screening and Selecting Tenants: Advertising vacancies, conducting background checks, and selecting suitable tenants.

   - Lease Agreements: Preparing and managing lease agreements, ensuring compliance with local laws.

   - Rent Collection: Collecting rent, deposits, and other fees from tenants.

   - Tenant Relations: Addressing tenant inquiries, complaints, and disputes.

2. Maintenance and Repairs:

   - Routine Maintenance: Scheduling and overseeing regular property maintenance, such as landscaping and cleaning.

   - Repairs: Coordinating and supervising necessary repairs, ensuring they are done timely and cost-effectively.

   - Emergency Repairs: Handling urgent repair needs to maintain tenant safety and property integrity.

A Property Management Agent does not perform actual hands-on work (such as repairing, furnishing, cleaning, etc.). Instead, we organize and coordinate these services with third-party vendors at market prices. Property owners are free to carry out the required work themselves or hire other service providers if they prefer.

3. Financial Management:

   - Budgeting: Preparing and managing the property’s budget.

   - Accounting: Maintaining accurate financial records, handling payments for utilities, taxes, insurance, and other expenses.

   - Reporting: Providing regular financial reports to property owners, detailing income, expenses, and overall financial performance.

4. Legal Compliance:

   - Regulatory Compliance: Ensuring the property complies with all relevant laws and regulations, including safety standards and fair housing laws.

   - Evictions: Managing the eviction process if tenants violate lease terms or fail to pay rent.

5. Property Inspections:

   - Regular Inspections: Conducting periodic property inspections to ensure maintenance standards and identify any issues.

   - Move-In/Move-Out Inspections: Performing inspections before tenant move-in and after move-out to assess property condition.

6. Marketing and Advertising:

   - Listing Properties: Creating and placing advertisements for available rental units.

   - Showing Properties: Conducting property tours for prospective tenants.

Generally, Housing ACT may only inspect your home 2 times in any 12-month period, apart from an additional inspection within the first month of a new tenancy and within the last month of the end of a tenancy.

Housing ACT must give you 1 weeks’ notice in writing of an inspection. This is usually in the form of a letter which is headed “Client Services Visit” and states a date and time at which the visit, for an inspection, is scheduled. The day or time may not be convenient for tenants. The tenants have the right to propose an alternative time.

In the Australian Capital Territory (ACT), landlords are typically responsible for several types of bills and expenses related to the rental property. Here are the common bills and costs landlords need to pay (if may apply to your property):

1. Property Rates and Taxes:

   - Council Rates: Local government charges for services such as waste collection, street maintenance, and other community services.

   - Land Tax: A state tax on land ownership, applicable if the property is not the owner's principal place of residence.

2. Insurance:

   - Landlord Insurance: Covers risks such as property damage, loss of rental income, and liability.

   - Building Insurance: Covers the structure of the property against risks like fire, storms, and other damages. Note that for units or apartments building insurance can be covered by strata insurance, thus landlords only need to buy landlord insurance contents only.

3. Maintenance and Repairs:

   - Routine Maintenance: Regular upkeep to ensure the property is in good condition.

   - Repairs: Fixing any damages or issues that arise, ensuring the property is safe and habitable.

4. Utilities (if not tenant's responsibility):

   - For example, water supply and sewerage costs are landlord responsibility, but water consumption costs are tenant's responsibility.

5. Strata Fees (for units, apartments, or townhouses):

   - Fees paid to the body corporate for the upkeep of common areas and building insurance.

6. Pest Control:

   - Regular pest control services to ensure the property remains free of infestations.

7. Legal Fees:

   - Costs associated with preparing and managing lease agreements, handling disputes, or eviction processes.

8. Other Fees under specific conditions

Reports and Owner distribution will be delivered either at the end of each month or within the 1st week of the next month (since sometimes payment or transfer takes time to settle). If you have not seen these being delivered, please don't be hesitate to contact us.