Forum Replies Created
HI FKPrice, I’m a PM in Qld and own a couple of my own IPs and have LLP insurance. I use a company called MGA Insurance Brokers (Toowong in Brisbane). I find them reasonably priced (approx $215pa) and they do offer discounts for multiple properties (not sure of the discount though).
Always check what policies cover, ie., accidental, malicious damage (excess amounts); excess on loss of rent cover and what is required to claim, ie., at what point would you need an assessor before you can claim and start repair work. All necessary questions as it is only when you claim you find out they don’t cover this or that.
Other companies that are purely for LLPI is a broker called Terri Scheer also in Brisbane at Mt Gravatt.
Hope this helps[thumbsupanim]
Yasna & Simon
Hi Crashy, sounds to me like you are in Qld? Is that correct? If so, and your lease has expired, they must provide you with two months notice in writing to leave unless previous notices to remedy have been provided for the same breach and then it would be seven days (as long as it is a serious breach).
Therefore, if I were you, I would call the PM and advise you will be vacating and that you will be providing them the required two weeks notice, in writing. I would suggest if you settling your home on 8th September then you should probably vacate rented property a few days after that giving you enough time to move, clean, get carpets shampooed, etc.
Really there is not more to be said – that is the law!
Also I would ask for an appointment with the PM to be at the rented premises to conduct your final inspection. Make sure they have supplied you with an exit condition report. Fill this in, compare it with your entry condition. If there are any problems and you need to rectify these, then agent must give you 24 hours to do so.
After all of this, if you still have problems in getting your bond back, and you have paid rent up and left property as per entry condition report, then complete a refund of bond form, post it to the RTA with only your signatures and they will contact agent to get authority to release bond. If agent does not give it and you cannot mediate, then it will be up to the agent to prepare for small claims court, not you.
I doubt it will get to that however thats how it works. I’m a PM in Qld.[dead2]
Hope this helps. Bye
Yasna & Simon
Hi Donna and everyone else
I have had to claim on several policies for landlords (I’m the PM) and it is only when you do make a claim that you realise what is and what is not covered. IE., just making a claim through CGU and unless damage is malicious (and you can prove it), you are not covered. Example is polished floor boards (new at commencement of tenancy, had some issues with tenant during tenancy), so when they left there were lots of scratcheds/gouges! Now need to prove it is malicious as insurance company saying it is accidental so that they dont have to pay!
Also keep in mind all (in my experience) malicious claims have a minimum excess of $500 and they charge this per incident (not per claim). ie., if floor boards in lounge maliciously damaged and carpets in bedroom have cigarette burns – then $500 per incident!!
So lots of things to ensure your insurance company covers – cheapest not necessarily best.
I’ve used several brokers ie., MGA Insurance & Terri Scheer Insurance brokers – both OK but again need to find out excess on loss of rent, accidental/malicous damage, etc.
Hope this helps[daisy]
Yasna & Simon
Hi CoopsT
I have landord insurance and it costs me approx $200 per property. I does not however cover “rent during vacancy periods” (would be fantastic if it did)!
What it covers are things like malicious & accidental damage ($500 excess per incident); shortfall in rent arrears if a tenant leaves (the amount covered depends on the reason the tenant left) and also covers if a tenant leaves during a fixed term lease – again the period of time you receive cover for depends on circumstances of the tenants departure!!!. [winking]
Most of these insurance policies are generally only available if you are using a PM. I’m in Qld and the broker I use is MGA Insurance Brokers in Toowong, they are underwritten by GE & QBE Insurance.
Hope this helps. [sunny]
Yasna & Simon
In relation to the form used to have your tax reduced for each of your pay periods (if you have an investment property) is called a 221D from the last time I completed one. Hope this helps.
Yasna & Simon
Thanks, great information. Will save us some time.
Yasna & Simon
The sensations Sunshine Coast of Qld. Live in Buderim, work in Mooloolaba and people pay to come here!!! Although at the moment you would think it was the Sunshine Coast – weeks and weeks of lashing rain. Doesn’t matter!!
Yasna & Simon
Hello Dr X & Surrey, you both have obviously had some nasty experiences with either PM or landlords. One shouldn’t generalise when it comes to any “group” of profession!
I hope as investors you don’t get a call from a PM (if you are using one) to describe a home that has just been trashed [bike2] or when you look at your statement, you wonder why there is no rent coming in. [dead2]
Hi JJ & Jo, as mentioned the bond does not belong to you (if you are the landlord) unless of course the tenants have left owing rent and/or debt due to damage/cleaning incurred from not leaving the property as when they went in (refer to entry condition report)(don’t forget if there has been some cleaning/damage issues it is always best to allow the tenant 24 hours to go back and rectify.
I know for a fact that the majority of tenants are fabulous as are the majority of landlords and PM’s and the relationship between all three work very well. It is the minority (landlords, tenants & PM’s) the screw it up for the rest of us.
Always end things the way you started them (with everyone happy with the experience).[daisy]
Yasna & Simon
In Qld, [dead2] you cannot access the tenant’s bond unless the property has been relet or the end of the lease (whichever comes first). At that point, you can work out how much is owing (including rent owing, cost of advertising to relet, any clean up costs and reletting fee.
If the tenant agrees [thumbsupanim] and the whole or part of the bond will cover outstanding debt and they sign over the bond, then great! If the outstanding monies are greater than the bond and the tenant is happy to sign the bond over and then formulate a plan to repay any outstanding debt, then great!
If the tenant has just left never to been seen again, then you can send a bond form into the RTA (in Qld) without the tenants signature and the RTA will spend 3 weeks endeavouring to locate the tenant. If they cannot, after 3 weeks, the bond (or the part of the bond that is legally yours due to loss incurred by the tenant breaking their lease and leaving) will be forwarded to you (or your agent).
If the tenant disputes the release of the bond, then the matter will go to mediation and if not resolved, to small claims court! [whip]
The first thing to do is to ensure the property has not been damaged and is being offered to let.
Hope this helps
Yasna & Simon
Hi Carmen, had a look at this at a time when my mum was thinking of going into one (glad she didn’t). Looking at the fine print (not sure if all retirement villages are the same), there was a clause that when she eventually sold, she had to pay for the unit to be totally renovated and if there was capital growth over the period of holding the unit, the company running the retirement village received a cut (can’t remember what %age) of the growth. So we quickly moved on from that idea!!
Yasna & Simon
[guitar]We met in pub after midnight, hit if off, three weeks later were living together and 9 years on, the relationship just keeps on getting/staying great. Sounds like we are not the only lucky ones!! Cherish what you have!![drummer]
Yasna & Simon
Have only just signed onto forum so hope you found what you needed. If not, let me know and I can make some suggestions.
Yasna & Simon
What state is the property in as tenancy laws are different for each state?
Yasna & Simon
Hi Marvin, I believe the following to be the case:
Q1) you cannot sublet without the agents, or landlords, approval;
Q2) RTA (1300 366 311) will give you advice, and you could try the REIQ. [gossip]
Q3) Rental agreements [dead2] can be obtained from RTA, I also think you can get them from a post office (used to be able to) or if you have a good rapport with a RE Agent, they may be able to give you a copy.
I would be weary of doing this (subletting that is) as the original lease will be in your name and any damage / loss of rent by tenant you sublet to will, in the end, be your responsibility. [drummer]
I’m talking about residential property only, commercial property is treated quite differently, I think!
Hope this helps. [daisy]
Yasna & Simon
Hi Sunstone [thumbsupanim]
Do you have any such meetings planned for either north side of Brisbane or Sunshine Coast Region?
[gossip]Yasna & Simon
My husband Simon will be going. We are from Sunshine Coast. Hope you get a chance to catch up.
Bye for now[bike2]
Yasna & Simon
Property management is a difficult career path – you need to be firm but fair and appease sooo many people. I’ve been doing it for over 8 years and have really enjoyed it. Have got better job offer in same firm so am happy to move on and move away from the unenviable stress. A good business owner understands the need for a great PM and should pay good salary for them (but thats another matter all together).
Back to your question – all inspections (in QLD) must be, as ANNAW2 has stated: formal, tenant notified in writing at least a week before inspection, and written report provided to owner and if any problems, a letter sent to tenant to rectify any problems that weren’t there prior to them moving in. Copy of initial entry condition report (once returned signed by tenant) to owner for information and any instructions.
Then, again depending on management agreement, we do inspections every 3 months unless, with prior consent of owner, extend these to 6 monthly if long term excellent tenant.
I think your agent is playing games with you. Hope this helps.
Yasna & Simon
I was using Terri Scheer Ins Brokers however have also had some difficulties with claim, ie., $500 excess for accidental or malicious per incident (they claim that cigarette burns in carpet after final inspection indicates that these were individual incidents per room and therefore $500 excess applied for each room). Therefore not worth claiming!!!. Plus they have approx $180 excess on loss of rent after deduction of bond for cleaning, repairs, etc.
Have now switched to MGA Insurance Brokers (underwritten by GE & QBE). Approx $210 per property (discount given for 4 or more properties) and no excess on loss of rent (will use any left over bond as their excess). $500 excess still applies for accidental or malicious damage. Malicious damage must be reported to the police or they will not pay (applies to most companies) and usually if big claim then need to get an assessor out before undergoing any repair work.
Hope this helps. Bye for now
Yasna & Simon
Wow!![singer] What a fantastic forum to be involved in and what great positive feed back to someone who needs their confidence restored!
Your all winners out there and I love reading all the posts. Here’s to a positive future.
[thumbsupanim]Yasna & Simon
Hi KP
Greetings from Sunshine Coast, Qld! Rates on the coast here vary greatly. Most reputable and highly thought of PM’s charge 8.5% + GST, 1weeks re-let fee + GST, statement fee of between $5 & $6 +GST and maybe some advertising.
There are some other agencies that are trying to buy business with a fee of 5.5%. I know some investors that were swayed by this and have regretted the move. The agencies are trying to build up their rent roll so they can sell it on![dead2]
There are also some agencies which will provide different levels of service for different fees, ie., an all inclusive fee of say 9-10% with no other charges (gold service); or 7-8% with some extras (silver service); and, 5-6% with lots of add ons (bronze service). It may be worthwhile chatting to your PM and asking if they can offer something like this and YOU letting them know what level of service you require.
We need to remember that a 1% or 2% saving on PM fees are, in the end, not that great when you consider the implications of not have a great PM and that the various legislation changes quite regularly (usually in the tenant’s favour) and if your PM only charges a nominal fee and doesn’t keep up with all the changes, etc., the end result could be quite costly!!
Hope this helps and bye for now[juggle]
Yasna & Simon
