‘Spring Clean’ Your Rent Roll
If you are selling your property, you’d surely do some preliminary ‘sale’ ready work. Perhaps a fresh coat of paint, some gardening and landscaping and decluttering to start. You’d want the photos to look as attractive as possible so the right buyer ‘falls in love’ with it.
But what about your Rent Roll business? How attractive does it look to the right buyer? Will they ‘fall in love’ with it?
Here are some initial handy tips to help you get ‘sale’ ready:
1. Complete a full file audit
Go through each and every Landlord and Tenant file for each property to ensure that all the items listed (purchase the checklist here) are included in the file.
2. Check title references
Make sure that a title search is attached to each Management Authority, and that the names on the Authority match the names on the title search.
3. Do a full key audit
Identify any keys and entry items that are missing.
4. Do a full Bond Audit
Complete an audit of a Bonds held to ensure that the Bond amount held is correct for the property, that the number is completed accurately, and that all Bonds are accounted for.
Get help cleaning up your Rent Roll
5. Trust Account System
Ensure the Trust Account system is in immaculate order.
Now is the time to really take charge of any outstanding arrears, maintenance, inspections and rent any vacant properties. It is also a good idea to try to minimise the number of periodic tenancies in the rent roll.
Arrears – Tenants usually fall into the habit of paying their rent when and in the amounts, they want, regardless of the requirements of their Tenancy Agreement, because the Agency has allowed this to happen. If your records show that arrears have not been managed well, this suggests to a Buyer that you have a high maintenance rent roll. The other risk factors are the impact of cash-flow (as you only earn management fees on rent paid) and, of course, the risk of management loss.
Maintenance – Maintenance should be managed daily.
Routine Inspections – Ensure all routine inspections are up to date and are being conducted as per the timing in the Management Authority.
Vacancies – A vacant property is not producing any income for the Agency, so it is important to get any vacant properties rented as this will increase the value of the rent roll.
Periodic Tenancies – Compile a list of all tenancies that are periodic in the rent roll. Contact the Landlord to recommend that the tenants be placed on a new fixed term tenancy agreement.