Frequently Asked Questions
Red Circle Real Estate’s average time to lease an investment property varies, dependent on market conditions. We make sure your property has maximum market exposure through:
· Extensive online advertising
· Prominent signage
· Potential Tenant database matching
· Open for inspections and private viewings
· Our detailed weekly rental list
· The Red Circle Real Estate courtesy car to transport prospective tenants to and from your investment
· Red Circle Real Estate’s office exposure
· The above factors are aimed to ensure that Red Circle Real Estate has one of the lowest vacancy rates in Ballarat.
We have a leasing consultant accompany all prospective tenants during inspections. This means that our leasing consultants can answer any queries immediately and ensure that any features & facilities are identified.
Before any application will be considered, Red Circle Real Estate conducts an extensive background check on every applicant, including:
· Confirmation of the applicant’s employment or source of income
· Our exclusive Tenant Rating System
· Confirmation of past and current landlord/agent references
· Confirmation of the applicant’s identity through our ‘100 point’ check system
· A video for the tenant outlining the terms & conditions for leasing your property
In accordance with the legislation, all tenants have a 14 day grace period in which to pay rent before legal action can be taken by the landlord. Our policy regarding rental collection and arrears is as follows:
· 3 days in arrears: Courtesy call to tenant.
· 4 days in arrears: Reminder letter sent.
· 5-11 days in arrears: Reminder letter sent & a call or SMS every day.
· 11 days in arrears: The tenant is formally advised that if rent is not received within 4 days, a notice to vacate will be served.
· 15 days in arrears: Depending on our arrangements with you we will seek your instructions and / or serve the tenant with a 14 day notice to vacate.
· An application to VCAT (Victorian Civil and Administrative Tribunal) will follow immediately after the notice to vacate, requesting possession of the property
· If the matter cannot be resolved and is bought before VCAT, Red Circle Real Estate will attempt to obtain an order entitling the landlord to possession of the property
· Once the landlord has possession of the property a subsequent application is made to VCAT. This application allows Red Circle Real Estate to retrieve the bond and cover any outstanding rental
Red Circle Real Estate has developed a team of Advisors who are confidently able to provide information on current market conditions and preferred sales methods to achieve the best possible result. Statistics on sales data show that Red Circle Real Estate’s sales team has time and time again achieved better results for owners than any other company. If you are considering selling, please contact your Property Advisor to arrange a free market appraisal from our Residential Sales team.
As your managing agent Red Circle Real Estate has a responsibility to inspect your investment property. We will conduct the following inspections:
· Prior to your tenant occupying the property (Entry)
· Upon the tenant vacating the property (Exit)
· Every six months during the tenancy (Routine)
· Additional inspections may be required during a tenancy to complete maintenance, property valuations or if the property is on the market for sale
When your tenant decides to vacate the premises at the expiry of their fixed term, they must submit written notice of their intention to vacate 28 days prior to vacating. If your tenant decides to vacate the premises prior to the expiry of their fixed term lease, commonly known as ‘breaking the lease’, there may be costs incurred by your tenant. Should an unforeseen circumstance arise whereby your tenant must break the lease agreement, the vacating tenant may be responsible for charges associated with re-letting the property, including advertising and on-going rental until a new tenant is found. Marketing your investment starts once your tenant submits their notice to vacate.
Rental monies received by Red Circle Real Estate will be transferred into your nominated bank account, weekly or monthly, once your tenant has made payment. Tenants’ payments via direct debit or cheque will require three business days clearance in our trust account. A landlord statement will be prepared detailing the income and expenditure activity represented by the monies transferred and all invoices paid on your behalf will be attached.
We can send all correspondence, including statements and invoices by email, rather than the standard postal service.
You will hear from us as much or as little as you like. At a minimum your Property Advisor will contact you:
· Each week during a vacancy period
· When an application to lease the property is submitted
· Each time a routine inspection is done (every six months)
· If the tenant falls into rental arrears
· When it is time to review the rent
· When a tenant gives notice that they will be vacating
Contact will occur via letter, email or phone. If you have a preferred method or frequency of contact please let us know and we will endeavour to communicate with you as advised.
Insurance is an increasingly necessary part of life and this is particularly the case when it comes to protecting your property investment asset. It is important that you take out “Building Insurance” to cover your property against unexpected damage to your property (e.g. storm damage, fire etc.) and also take out “Landlord Contents Insurance”. Red Circle Real Estate recommends its landlords take out landlord’s contents insurance, which is specifically designed to protect landlords for loss of rent, contents, accidental or malicious property damage and public liability. If your property is part of an Owners Corporation, it is important to know if the building and common areas will be included in the overall building insured by the Owners Corporation and the Landlord Contents Insurance policy, it is also imperative to cover all items within your apartment such as carpet, blinds and light fittings and also check if the policy includes cover for public liability should your tenant or visitor injure themselves within the property. Another question to ask is whether or not the policy protects you against financial losses if the tenant defaults on rental payments. Please speak to your Property Advisor if you require further information.