The ongoing professional management of your investment is critical to protect both the rental income and the asset from potential tenant damage. Whilst organic capital growth is depicted by economic conditions, supply and demand, the rental income of a property is a key ingredient to servicing bank loans and maintenance costs that requires skill and market knowledge.
UCHK property management services commence this process months before your real estate investment is completed and ready to be occupied by a tenant, thus ensuring a seamless transition from purchasing your investment to finding the best tenant.
Our knowledge of the rental market and rental processes offers overseas clients the peace of mind that there investment will perform well and produce a healthy income.
Professional real estate management
UCHK Consulting strives to achieve the best possible rental results for our clients from day one until the property is sold or owner occupied.
A majority of UCHK Consulting Ltd approved investment properties are provided with a developers rental guarantee (rental assurance) for the first 12 months. This ensures the new property owner has a income stream from day one until a tenant moves in and commences paying rent.
As the property developer has a financial interest in the initial payments of rent, the developer is very keen to promote the apartment and the complex and find a tenant as soon as possible.
This is great for the property investor as a new project that reaches completion will have usually 50% of the project being offered for rental at the same time. Depending on the size of the project this could be hundreds and could take many months for the apartment stock to be absorbed by the rental market.
After the initial rental period of a new project, the common trend is that tenants will stay for many years therefor, the situation of a large amounts of rental properties becoming available within the same period is un-likely to re-occur.
It is a good practice for all investors to ensure they have sufficient funds in reserve for each property they own. 3-4 months of funds available equivalent to the mortgage repayments.
If you have a Rental Guarantee from developer, they are paid in errors verses a tenant whom pays in advance. Some rental guarantees from developers specify that a claim can be made every 3 months only. It is the property investors responsibility to meet there own financial and mortgage responsibilities during any vacancy period, with the developer responsible in any shortfall under the rental guarantee.
The rental market also has its peak and slow periods such as the Christmas break and Easter long weekend wherein, tenants are rarely looking at finding a new property to lease. Weather the the circumstances are due to peak or slow periods, supply and demand fluctuations, the developers rental guarantee will cover any loss in income.
During the initial letting of the property under the rental guarantee, the property manager specified by the developer will be appointed. UCHK Consulting will oversee and liaison with every aspect of this process to ensure the highest standards of service is maintained and that every tenancy application is presented to UCHK (on behalf of our clients) for review and consideration.
The fee for the ongoing of collection of rent from the tenant, conducting property inspections and preparing reports. This fee is 6-7% of the monthly rental amount.
The industry standard for property management fees is 1-2 weeks of the rental amount as a letting fee (this is related to finding a tenant, interviewing and short listing applications, and preparation of the rental agreement.
Within the market demographics of an UCHK approved investment property the vacancy rate is often lower than the reported 3-4% market vacancy.
The REIV is the most authoritative source for information about the Victorian rental market with historical vacancy rates from October 2002. The REIV provides broad industry rental property data and trends at www.reiv.com.au
Landlords insurance is highly recommended by UCHK Consulting for all clients. It is a minimal cost that will protect your assets from tenant related situations. Damage to your property caused by accidental incident, natural disaster, fire or theft. Even a perfect tenant can be subject to miss fortune such as loss of employment or an accidental fire. This could even be a piece of furniture accidentally falling over and breaking a window. All of which is not protected under the complex insurance policy. For as little as $200 per year a major insurance company can provide full protection landlords insurance.