Wood Property

FAQ Property management (owners)

Of course you can. The residential rental provider, in consultation with Wood Property, can personally select the renter they think is most suitable. A rental provider has the right to choose the person they think is the most suitable applicant for their property. They can decide based on a number of different things, including (but not limited to) an applicant’s rental history and employment status. However, it is against the law to refuse to rent a property to someone because of certain personal characteristics, including age, disability, race or religion.

Not really. The tenant is entitled to quiet enjoyment of the property they are paying you rent for. However, a condition of the lease permits the owner or Wood Property to inspect the property twice within a twelve-month period. We organise those inspections on your behalf, and you’re welcome to come along with us.

We have these inspections staged throughout the tenancy to ensure a rent review can be done in line with your renters lease expiring.

Most residential tenancies are for 12 months. This is agreed at the commencement of the lease. However most renters stay in a property for about 2 years. You can now have leases for up to 5 years, but with apartments we are finding this is not a request renters are after.

Yes you are. Obviously, we are talking about someone’s home (the renters) so the law quite rightly, puts in place terms and conditions and processes to govern an owner terminating a tenancy. Suffice to say a problematic renter gives the residential rental provider more cause to terminate a tenancy.

The owner. Under residential leases the owner is responsible for payment of rates like council, water, sewerage and drainage, Land Tax and all owners’ corporation charges.

The renter is responsible for usage costs like phone, power, water, internet, and gas.

The owner and renter both share responsibility for the upkeep and maintenance of the property. The owner agrees to keep the property in a good tenantable condition and the renter agrees to maintain it in accordance with the original condition report save for fair wear and tear and to report any maintenance in a timely manner. The renter is responsible for consumables, like light globes for example that can be replaced, but not the fitting.

Well it depends and every owner should get advice on this. If the property is part of an apartment complex; the owner’s corporation is responsible for building insurance and things outside your apartment, while the owner is responsible for things inside the apartment, which leaves you to consider:

  • Public liability
  • Accidental or malicious damage by a tenant
  • Theft of items by a tenant
  • Loss of rent
  • Legal expenses
  • Damage caused by fire, storm, water leaks, etc

Some of the most important insurance today is loss of rent and public liability. We recommend owners ensure they have full coverage for loss of rent and public liability. Wood Property can put you in recommend someone.

We can pay your rent in to any bank account you wish. If that is a mortgage off set account or similar that’s fine. However, it’s important to clarify Wood Property are not responsible for maintaining your mortgage. Also interest rates change so the amount that needs to go to a mortgage will change.

It’s in your interests to maintain a close contact with the owner’s corporation via your buildings committee. Wood Property normally do this on your behalf so that the building is maintained correctly, and your investment is protected.

Our understanding is that your rent is input-taxed and doesn’t include GST in the rental charge. You also can’t claim credits for the GST included in any costs relating to the rental, such as agent’s commission or repairs and maintenance on the premises. Importantly we are not qualified to give tax advice and you should seek independent advice from a qualified adviser that we can refer you to.

Hopefully no time at all but of course it depends. It can however range from one week to 4 for 5 weeks or even longer if the owner is holding out for a specific type of renter or a premium rent. This is where Wood Property can really help to advise you on what renters want and where the rental market is for your specific property.

If we are talking about an income return it is usually between 3% to 5%. This is also called a yield or capitalization rate. We prefer to talk about total return which includes capital growth as there is no point buying a high yielding property if the capital value is stagnant or even declines. Total return for quality property over an extended period property is around 12%.

Firstly, we initiate action to terminate the renter assuming they are now in breach of the lease and are unable to rectify the damage. We then work through a process to recover the cost of repair from the renter, their bond and insurance.

Regular small increases is better than less frequent large increases. The answer however is perhaps predictably… it depends. Wood Property has access to current and relevant information means we are able to advise you (the owner) on the market rental level of directly comparable property and how many days they spend on market to lease.

Yes you can. Expenses incurred in managing your investment are generally tax deductible from the income. This includes the agents’ fees, reasonable travel expenses, insurance premium, plus the other costs like rates, taxes, and owners corporation charges.