Rent Payments & Accounting

 

Receiving my rent monies

When do I get paid my rent?

We will deposit all monies collected into your nominated bank account on the last day of each month.

How do you collect the rent?

We collect the rent by Electronic Funds Transfer or Centrepay (processed and deducted by the tenants Centrelink entitlements at the charge of $.99 per fortnightly payment)

What happens if my tenant does not pay the rent?

Paying the rent is always a voluntary action on behalf of the tenant. We can never force a tenant to pay the rent. Even a tribunal can only ‘order’ the tenant to pay but can never physically force them to pay.

If a tenant does get behind in their rent payments, this is the process we follow:

3 Days behind- SMS text message friendly reminder
5 Days behind- Email reminder
7 Days behind- Property Manager calls tenant & Owner
9 Days behind- SMS text message friendly reminder
12 Days behind- Email reminder
16 Days behind- Serve Termination Notice (This obligates the tenant to pay all monies owed within 10 days)

Approximately 4 weeks behind (25-28 days)- Lodge application with the tribunal for a order of payment
Approximately 6 weeks behind (40-47 days)- Tribunal hearing- order given to pay or be evicted.
Approximately 7-8 weeks behind- Eviction may occur if payments are not made as per the tribunal order.

Unfortunately the bond (4 to 6 weeks rent- depending on the weekly rent) will never cover the shortfall in rent.

Only if you have landlord insurance will there be a reasonable prospect of covering the rent payment shortfall, in the case of your tenant defaulting in their rent payments.

Without landlord insurance, the chance of recovering owed rent money is is minimal.
If you have no protection for your rent payments, the problem is further compounded with the fact that the bond will probably be exhausted with owed rent. You will then most likely have cleaning up and re-letting costs, as well as outstanding monies like water owed by the tenant.

Therefore without landlord insurance, this process can be quite financially damaging

Receiving my rent monies

When do I get paid my rent?

We will deposit all monies collected into your nominated bank account on the last day of each month.

How do you collect the rent?

We collect the rent by Electronic Funds Transfer or Centrepay (processed and deducted by the tenants Centrelink entitlements at the charge of $.99 per fortnightly payment)

What happens if my tenant does not pay the rent?

Paying the rent is always a voluntary action on behalf of the tenant. We can never force a tenant to pay the rent. Even a tribunal can only ‘order’ the tenant to pay but can never physically force them to pay.

If a tenant does get behind in their rent payments, this is the process we follow:

3 Days behind- SMS text message friendly reminder
5 Days behind- Email reminder
7 Days behind- Property Manager calls tenant & Owner
9 Days behind- SMS text message friendly reminder
12 Days behind- Email reminder
16 Days behind- Serve Termination Notice (This obligates the tenant to pay all monies owed within 10 days)

 

Approximately 4 weeks behind (25-28 days)- Lodge application with the tribunal for a order of payment
Approximately 6 weeks behind (40-47 days)- Tribunal hearing- order given to pay or be evicted.
Approximately 7-8 weeks behind- Eviction may occur if payments are not made as per the tribunal order.

Unfortunately the bond (4 to 6 weeks rent- depending on the weekly rent) will never cover the shortfall in rent.

Only if you have landlord insurance will there be a reasonable prospect of covering the rent payment shortfall, in the case of your tenant defaulting in their rent payments.

Without landlord insurance, the chance of recovering owed rent money is is minimal.
If you have no protection for your rent payments, the problem is further compounded with the fact that the bond will probably be exhausted with owed rent. You will then most likely have cleaning up and re-letting costs, as well as outstanding monies like water owed by the tenant.

Therefore without landlord insurance, this process can be quite financially damaging

Taking a bond

How much bond do you take from the tenant?

If the rent is $250 or less per week, we can charge a maximum of four weeks rent for the bond. If the rent is $251 or more per week, then the maximum bond we can charge is six weeks rent.

For example, if the rent is $200 per week, we can charge no more than four weeks rent for bond which is $800. However if the rent is $260 per week, we can charge six weeks rent which is $1560.

When do you pay back the bond monies?

We only refund the bond after the following has occurred:

  1. The tenant has fully vacated the property and keys returned.
  2. The property has been inspected, and is satisfactory when compared with the in-going inspection report.
  3. All monies are paid. This could be any outstanding rent, water or anything owed by the tenant.
  4. If the tenant is breaking the lease, any re-letting fees and advertising costs (part or full costs)

If the tenant has a pet, can I ask for an extra bond (a pet bond)?

Unfortunately no! We are legally only allowed to take one bond, as specified above.

Receiving my financial statements

Why do i receive statements?

We will issue you both monthly and yearly financial statements, accounting for all monies we have handled and disbursed to you on your behalf in accordance with legislative requirements.

You will receive your monthly statements together with any tax invoices from trades-persons or other disbursements paid during that month on your behalf. Your end of year statement accounts for all monthly statements accumulated, for accountancy ease.

When do I receive these statements?

Your monthly statement will be sent to your email on the last day of every month, and the end of year statement will come to you in July of each year being the month immediately following the end of financial year.

How do I understand these statements?

Your monthly statement is clearly formatted in three sections-
First being income received from the tenant. Second, expenses deducted from the income. Third, the balance that has been transferred to your bank account.

What do I do if I misplace a statement?

Call us and we will reissue another one to you. This will be charged at a cost. Please refer to your management agreement schedule or addendums for these charges