Residential Property Management
Prosper Group does not treat property management as a result of property investing. To us, it’s a key ingredient of successful property investing.
The way your residential investment property is managed can make a significant difference to your rental income and asset growth. At Prosper Group we take a different approach to property management, our entire business is focused on protecting and growing the wealth of our clients. We guarantee you achieve the best return on your investment and continued asset growth, all whilst ensuring your property is being looked after and your tenant is happy.
We undertake inspections after the first two months of a tenancy commencement and then at six-monthly intervals to assess the property’s condition. We provide you with a full report after these inspections with photographs giving you the evidence you need that the property is being effectively maintained.
On top of the day-to-day communication with tenants, we provide investment consultations to you, demonstrating how you can increase its value, avoid costly repairs as well as market conditions for rental increases,peak seasons and promote your property to attract loyal tenants
For peace of mind, income surety and maximum return on your residential property investment, you can trust Prosper Group, the investment property experts, to manage it all for you.
Tenancy Application Form
To apply for a property through Prosper Group, please click the Apply Now link below and fill out the form.
Residential Property Management FAQ’s
- Unfortunately, most real estate principles are not focussed on the property management division of their agency, rather their focus is directed towards sales. If the principle doesn’t care about property management, it is likely this belief will form part of the culture of this agency.
- It is important you find an agency which has a focus on property management and employs high calibre specialised team members to look after their client’s asset. It is important you interview your property manager, just as you would your financial adviser, accountant or solicitor.
- Prosper Group’s residential property management division is an integral division of the business. To us, property management is a key ingredient to successful property investing. Over the years we have invested in building a quality, highly experience team, best available technology platforms, continuous process improvements and ongoing professional development.
- Traditional property managers typically just advertise the property when vacant, collect the rent and attend to any repairs as necessary. Prosper Group take the perspective that your property is an asset – and focus on ensuring the asset is performing at its most optimum income and capital value.
- A property manager can have a positive or negative effect on the following factors:
- Rental rate
- Vacancy between tenants
- Tenancy retention
- Costs of repairs and maintenance
- Interest on payment of council rates, strata fees, land tax etc
- Time to complete urgent repairs
- Condition of your property
Yes, as well as managing your property and property manager will lease the property when a new tenant is required
- Your property is marketed professionally to ensure that the best tenants are attracted to your property, as the saying goes “first impressions last”. Further a professional campaign will minimise vacancy periods.
- Every leasing campaign has a marketing strategy behind it, i.e. the target market and current market trends for your property needs to be identified. We strongly believe that leasing follows the same methodology as marketing e.g. attract, nurture, convert. Real Estate is no longer posting photos to a portal and hoping for the best, this approach is outdated. You treat leasing like you would a marketing plan and you execute accordingly.
- Prosper Group ensures each property has professional photography, you cannot expect a quality tenant with a property that is presented poorly.
- Prosper Group use the two leading portals being Realestate.com and Domain, as well as our own website and social media.
- Signboards are a vital form of marketing and attracts a different audience than online. Prosper Group believe in having signboards installed at each of our upcoming/vacant properties. We have found this generates a substantial amount of enquiry and often spikes interest for those who are not yet in the market, yet like the look and/or location of the property.
- Database, we currently use a database that logs all prospective tenants. This allows us to match are target prospective tenants with suitable properties.
- Open Inspections and private inspections, Prosper Group ensure that two inspections are carried out each week at a time which is suitable to the target market. Further we understand that often prospective tenants cannot always make open times, therefore we will make ourselves available for anyone who requires a private one on one inspection.
After each inspection we follow up with each prospective tenant to gain feedback and their level on interest, which is passed onto our client along with any recommendations.
- As your manager its is important we maximise the financial return of your property through achieving the highest rental rate. However, we also need minimise the vacancy period between tenants, therefore the rent must be carefully analysed.
- Prosper Group have a point of difference in the fact we can follow current market trends not just through our management portfolio, but also from the feedback of what our buyers’ agents are seeing in the various Sydney markets.
- To determine a properties rental rate, we need to analyse the current; levels off demand, stock on the market, vacancy rates, days on market and market trends.
- In order to achieve a greater rental rate Prosper Group will regularly advise clients on suggested works which lead to an uplift in rent.
- There are three types of inspections carried out during a tenancy. The purpose of these inspections is to ensure that no issues arise during the tenancy and your property is being well looked after by your tenants.
- Ingoing Condition Report – an Ingoing Condition Report is completed, this is a legal requirement which is outlined in Part 2 of the Tenancy Agreement and is relied upon for the refund of the tenants bond.
- The purpose of this report is to clearly identify the condition of the property prior to the commencement of the lease, this is carried out by the Senior Property Manager. It is important the report is generated with both commentary and photos attached. A copy of this report is handed to the tenant at the time of collecting the keys, the tenant then has 7 days to agree or comment on each item of the report. This report remains on file until the tenant vacates, at which time we compare the condition of the property from commencement to vacate date. The report dictates whether the tenant receives all, part or none of their bond.
- Routine inspections – The legislation states that a maximum of four routine inspections can be carried out per year and tenants must be given 7 days’ notice in writing before the inspection is performed. Prosper Group’s policy is a routine inspection after the first 2 months of the tenancy and then every 6 months thereafter, unless more is required to manage the tenant.
- The purpose of these inspections is to ensure that the property is being well maintained by the tenant, it also allows for tenants to report any repairs and maintenance that may be required. Prosper Group believe they also serve another purpose, they allow your manager the opportunity to undertake an analysis of the current condition and provide you with advice on upgrades that can be made with the aim of maximising your return and value. Further allows for a maintenance plan to be created for when the tenant decides to vacate. This results in clients being able to budget for upcoming works and removes nasty surprises and a prolonged vacancy.
- Final inspection – this inspection is carried out at the end of the tenancy once the tenant has vacated. During this inspection the Ingoing Condition Report is utilised by comparing each item within the report to its current condition, this allows us to identify any damage caused by the tenant. Allowances need to be made for reasonable wear and tear, however if the tenant has damaged the property, for example, red wine stains on the carpet, they can be asked to pay compensation, taking into consideration depreciation and the size of the stain.
- Should the tenant dispute any damage or claim amount then compensation can be made through the tenant’s bond. If the tenant again disputes the claim, then the matter is taken to the National New South Wales Civil and Administrative Tribunal (NCAT) to be heard and decided upon before a Tribunal member.
- Once a tenant has been approved for your property and prior to collecting the keys the tenant is required to pay a bond. The legislation states 4 weeks rent, this cannot be any more or any less. Once paid the bond is transferred to the Rental Bond Board until the tenant decides to vacate.
- The bond is not released to the tenant until the final inspection has been carried out and all parties are satisfied with the condition.
- The three options available to a tenant include:
- Direct Debit via the tenant’s financial institution
- CREDIT CARD – via DEFT Online
- Direct deposit into Prosper Property Management Trust
- Upon signing a new tenant, we outline the different payment methods. We always recommend and prefer that they set scheduled payments for either of the above methods and run through our expectations of their rental payments.
- Prosper Group have a strict process in place to prevent arrears from occurring. The process is as follows:
- 1 DAY in arrears, we send an SMS to the tenant,
- 3 DAYS in arrears, we phone or e-mail the tenant
- 7 DAYS arrears, we send a formal letter to the tenant, email and text everyday thereafter
- 15 DAYS in arrears, we issue a Termination Notice (As per the legislation we cannot legally terminate at tenancy until the tenant is 14 days in arrears)
- On the last business day of each month our accounts team will carry out an End of Month disbursement, meaning our clients monthly invoices are paid and the balance of funds is transferred into their bank account. On the same day our clients receive a monthly statement showing the income and outgoings for that month.
- Income includes: rent and water usage reimbursement
- Outgoings includes: Strata levies, council and water rates, scheduled gardening, Smoke Alarm Compliance, Insurance premiums and repairs and maintenance contractor invoices
- For any outgoing that would be due to maintenance and repair, you will be notified by Prosper Group beforehand. Therefore, you will not receive any unexpected outgoings.
- Prosper Group organises and manages all repairs on behalf of our clients.
- The Managing Agency Agreement with Prosper Group provides a limit for of $500 to be spent on any one matter prior to permission from our clients being required. Anything over $500 requires permission and in most cases, if the matter isn’t urgent, more than one quote will be provided for approval.
- The reason this amount is in place is to minimise any delay in getting approval for minor repairs which is urgent.
- Importantly, our experienced team understand the costs of certain repairs and think commercially on behalf of our clients prior to works being approved or being passed onto our clients for approval.
- Prosper group have preferred qualified tradesman that have worked with us for several years, their work is of a high standard and their pricing is reasonable. If, however our clients have their own list of tradesmen which they would prefer us to use then we can certainly do that.
- Prosper Group are very happy to work with our clients to ensure they are satisfied with the repairs and maintenance process, some landlords are happy for their property manager to arrange for repairs where others would like to be notified beforehand, which ever you choose we are here to work with you.
- All lease expiries are reviewed 3 months prior to the lease expiring. What this means is we carry out what is called a rent review to ensure that your property is achieving current market rent. This review is sent to our clients along with a recommendation at which time we seek instructions.
- Should the current rent be under market values and the tenants agree to a new lease on a higher rental rate than current, then we send the tenant the required 60 days notice as per the Residential Tenancy Agreement.
- If a rental increase can’t be justified, then we look to sign the tenant up on a new lease at the same rent.
- It is important these steps occur 3 months prior to the lease expiry as we want to ensure that we have enough time to negotiate a lease term with our client and the tenant or at least understand what our client’s intentions so we can prepare accordingly.
- This will depend on whether or not the tenant is on a fixed term lease agreement or a continuing agreement.
- When on a fixed term lease agreement the tenant is required to provide in writing a minimum of 14 days notice to vacate, this date can not be any earlier than the expiry of their lease.
- If the tenant is on a continuing lease agreement then they can vacate at any given stage although under the legislation they have to provide a minimum of 21 days notice in writing
- The above timelines differ in the event of a landlord issuing a termination notice and we would suggest speaking with our Senior Property Manager to give you clarity around this.
- If a tenant decides to break their lease whilst in a fixed term then they are required to pay a break fee as per Clause 41.1 in their Residential Tenancy Agreement;
- 41.1 if the fixed term is for 3 years or less, 6 weeks rent if less than half of the term has expired or 4 weeks rent in any other case
- What that means is that in the event that the tenant wants to vacate they are required to pay 6 weeks rent if the agreement is in the first half of the original tenancy period and 4 weeks rent if the agreement is in the second half. This does not act as a notice period, this payment is to be made upon handing back the keys.
- The legislation has various ways for a landlord to terminate the tenancy agreement, although this will depend purely on the scenario and whether or not the agreement is within a fixed term or not, i.e. if the original lease term has expired
- A landlord terminating a tenancy agreement can be quite complex although to break it down in simple terms we have noted below the ways in which a landlord can terminate the tenancy agreement:
- End of Fixed Term Termination notice, this cannot be prior to the day in which the tenancy Agreement expiries and must be a minimum of 30 days notice. For example, if a tenants lease was due to expire on the 30th of January we would be required to provide notice of an End of Fixed Term Termination notice no later than the 23 December (postage and handling 7days + 30 days notice).
- If the tenant is on a continuing agreement you are required to provide a No Grounds Termination Notice, this provides the tenant with a minimum of 90 days written notice.
- Termination due to a breach of their tenancy agreement, this can differ dependent on the matter of the breach. Further this is not straight forward and will require guidance from your property manager.
- Landlords Insurance: This is to protect a londlord against any of the below risks and to put it simply, protects you against the tenancy:
- Loss of rent
- Accidental loss or damage
- Malicious loss or damage
- Legal liabilities under a tax audit
- Building and Contents Insurance: This covers the structure of your property. It includes cover for garages and sheds, as well as permanently attached fixtures and fittings, such as solar panels, fences and gates. It can provide cover for damage caused by events such as flood, storm, fire, and more
- For further information on property insurance, please contact your Insurance Broker for their advice.
- Prosper Group manage all the income and outgoings on your behalf
- Each month our clients are provided with a monthly statement
- At the end of the financial year, Prosper Group will provide a financial year statement
This is entirely up to you and what your preference is, we suggest to any landlord to have us pay this on your behalf purely because it will make it easier for accounting purposes for you as all Income verse expense will be on the on statement.