When do I get my bond back?

When do I get my bond back?

At Real+ we often like to take a moment to think about things from the tenants perspective. This allows us to not only improve the property management process to make things as streamlined and easy for us as possible, but also gain a greater perspective of understanding when communicating and dealing with tenants.

This week I took a moment to think about things from the tenants perspective at the time of vacate, final inspection and bond refund.  I took a moment to think back to the times I have myself vacated from a property, what my expectations were compared to what happened, and then put that into perspective as to how I had handled vacating tenants as a property manager. This vacate stage seems to be one property management function that is handled quite differently from agent to agent.

Some questions I felt went unanswered as a tenant (despite my own property management knowledge, and the receipt of a generic vacate letter) were around when they planned to show prospective tenants through the property, whether I was supposed to drop the keys to their office, when I would be meeting them for the vacate inspection, and most importantly (the most common frustration of tenants and hardest things for a property manager to guarantee):

• How long would it be until my bond was refunded?

Most tenants are relying on and budgeting on that money for some purpose so understandably they get frustrated when it’s not as easy as keys back, bond back. As a property manager, I know I couldn’t guarantee a time frame for the tenant as to when they would get their bond back, it depended on whether they’d returned the property in good condition, if it was clean, if extra work was required, if all the keys were returned, how quickly the landlord confirmed it wass okay to release the bond etc. So many variables.

If we can’t 100% guarantee the time frame, what can we control? How can we avoid an angry tenant at the vacate inspection? Well not only can we control how we communicate the process, but also how we provide expectations to the tenant across the vacate process. This will help alleviate some frustrations. Often we know what the process is and what the tenant can do to ensure they have the best chance of a speedy bond refund, however we are not communicating this to them each time.

Next time instead of sending out the generic vacate letter, why not provide the tenant with an outline of the process and what steps they can take to ensure their bond is refunded as quickly as possible! We have created a handy checklist you can provide to your tenants when they are vacating called the “How to ensure a Speedy Bond Refund Tenant Checklist,” click here for your copy.

If you are Real+ member, click here to visit Real TV where you can watch our webinar on Condition Reports!

So you think you can grow your rent roll?

We see one very common goal amongst many property management businesses across Australia and New Zealand.... Rent roll growth! And why not?

There are many different reasons a business will choose to grow - growth, asset value, profit, sales farming, ego and more... Whatever your reason it’s importantly to firstly be sure of that reason – to establish your WHY before setting your goals, as this will affect the strategies and plans you put into place to get there.

Once you’re sure of your WHY and have set your goals –you will either go down the path of organic growth or potentially look at the acquisition of a rent roll – or perhaps a combination of the two. Which is the better option for you? Well again this will depend on your WHY but it is also vital to weigh up the pros and cons of each strategy.

Organic growth – where a BDM is put in place to prospect, appraise and grow is the most common way of growing your rent roll. The great thing about this option is that you can control quality, location & fees of properties, potentially avoid bad landlords and problem properties – however this option can be a slow way of growing due to the time taken in building landlord relationships and placing a new person on board the rent roll may not be profitable until numbers start to grow.

However more and more agencies are looking to purchase a rent roll as a fast way to grow. According to Harcourts the benefits of buying a Rent Roll include:

Pros
·         Increased size gives business momentum
·         Increases cash flow
·         Irons out fluctuations of a sales department
·         Eliminates a competitor from your local area
·         Increases networks and database
·         More opportunities for sales department
However they advise we must also consider the cons:
·         Landlord rejection
·         Buying existing issues
·         Potentially poorly run portfolio
·         Integration/transition issues

If purchasing a rent roll is something you have considered at some stage this is not something to rush into. There are many factors which need to be considered and it is strongly advisable to have an expert guide you through the process.

Lucky for you, we will have expert Matt Ciallella joining us from MC Rent Roll Broking for our next webinar. He will be on board to take us through all the considerations and variables you will need to consider when purchasing (and selling) rent rolls. Register for the live session here – or Real+ Members can watch the recorded webinar on their Real+ Platform at anytime. 

If you are Real+ member, click here to visit Real+TV where you can watch our webinar 7 Secrets to Buying & Selling a Rent Roll with our special guest presenter Matt Ciallella from MC Rent Roll Broking.

Are we keeping our staff safe?

by Hermione Gardiner

As many of us have seen in the news, an outgoing inspection ended in a trip to the ER for a Western Australian property manager last week after she was brutally attacked by a tenant. We thought it prudent for you, our business owners and department managers to make comment on this and raise some awareness for on the safety of your team.

The relationship between property manager and tenant is usually fairly normal until this last day. On this last day emotions are high both from:

-          The tenant:

o    Stress of packing, cleaning, moving

o    Stress of money on the line

o    Irate nature if they have been asked to leave or terminated

-          The property manager:

o    Worry of confrontation at vacate

o    Uncertainty of how to broach issues with a long standing tenant whom they have a working relationship with

o    A poor attitude of “finally this difficult tenant is leaving so I don’t care”

It’s no wonder these situations can escalate out of control, especially when you already have an irate tenant at play. As Sara Young of Realmark says: “Whilst these types of incidents are rare, the outcome can not always be prevented, and while we don’t want to spark panic, it is important risk is minimised”

So how can we minimise the risk to our teams? Each office will be different but here are some tips:

• Communication of process – What does your vacate confirmation letter say about how the vacate process will take place? Does the tenant think that they will get their bond back on the spot? Are they aware there can be a two week turn around on the bond refund? Have they been provided with a copy of their ingoing condition report? Have they been provided with the steps to ensure there is the best chance of their bond being refunded? Take a look at the “How to get your bond back” tenant checklist in the resources section of your Real Plus platform.
• It’s okay to leave – Do your staff know that they can just walk out and leave if they feel unsafe, uneasy or threatened? What is your procedure if they do feel unsafe or have to leave? Is it in your procedure to you report any violence or threats to police. Have you considered investing in panic alarms for your staff to carry?
•  Outsourcing inspections Have you considered this avenue to avoid confrontations with tenants – outsourced inspections provide an independent report, unbiased and based on the facts, allowing you to distance yourself from findings. Outsourcing comes at a cost of course, but perhaps consider the other benefits of your property manager not only being able to rely on an independent report, but also the cost savings of that time in the office.
•  Bringing two people, or a third party along Have you considered sending two people to inspection if tenant is already an irate customer. May not be plausible for every inspection but we need to support those team members. What procedures do you have in place to warning system for future property managers of past situations, is this recorded in your trust accounting software?
• Keeping track – Staff need to diarise all inspections so we know where they are at all times. Importantly if a PM is conducting their inspection on their way home, must check in after inspection – is this written into your office procedure?
• Training in conflict resolution – Do your team regularly undergo training on conflict resolution? Do they know how to get a clear head and get out of threatening situations? Do they know how to stay neutral and factual, stating what is different and that will be discussed with owner. Not what consequences are. We have some great webinar training on the platform or can cater something to your team.

What other tips and ideas do you have to ensure your staff stay safe? Let us know! And of course get in touch on our facebook if we can help in any way.

An issue of staffing in property management

An issue of staffing in property management

By Hermione Gardiner

Over the last week I have been lucky enough spend some time on the west coast of Australia and one overarching frustration facing property management businesses (stretching from the east coast) appears to be staffing. There appears to be lack of quality property managers available, a high turnover. And from my conversations with some amazing people over the last week i’ve discovered an air of frustration around training someone up and then that person leaving the business or industry all together when they've only just begun.

Property management, the less glamourous sister of sales, requires not only an array of skills but also a tough skin. Property management is not for the faint hearted and even the successful experienced property managers i’ve been lucky enough to meet and work with along the way will admit its not an easy feat. However I still believe that the positives outweigh the negatives and as a profession it can also be rewarding, flexible, provides an environment where no two days are the same. It becomes a career and as an industry we are constantly looking to improve and better what we do which I love. 

A tough skin and a positive attitude towards the industry does come with time and experience, sadly however, not everyone is able to gain the time and experience, not everyone can get through the conflict and complaints, as we see many new starters leaving the industry they’ve just started in within the first year, or jumping ship looking for an easier option. 

I feel that we need to step back think how can we help and support these people into the industry to get the best start into property management. Give them a realistic picture but also the support and encouragement to get through. 

I believe that ongoing education, training and development is necessary to help this issue but also I think it is important for that new starter to have a better understanding of the big picture. An understanding about how the small admin tasks or routine inspections you are helping with fit into the big picture. An understanding of what it means if they do their job well, (what it means if they don’t), what their involvement means to the client and the business. And an understanding of whats involved in owning an investment property if they do not own one.

If we do this then perhaps we might start to breed a new generation of property managers who not only can stick it out to build up that tough skin, can build great relationships with our clients, but also become as passionate about property management as we have become. I’ll be looking into ways to support and help these new starters along the way in our next weekly webinar next week so a new starter can have the best opportunity for success and longevity in the industry and your business.

Need to increase your productivity? A lesson in distractions.

By Fiona Blayney

Heading back into the office this week after being offsite for the past two months (we had our second child), I started to think 'how the hell am I going to make this work?' Many mums out there will understand that fear (but that's a whole other article).

What I want to share today is more about one of my resolutions... To increase my focus by removing my distractions.

The first part of this was to quickly establish what my primary distraction is, what was the number one thing that took me off track each day. Step 2 was to set about reducing or removing it from my work life. I knew if I could do this I would increase my productivity in the time I'm in the office, be able to leave at a reasonable hour and be 'present' for that short window of time we have with our kids between arriving home and putting them to bed.

You may or may not be surprised by what I found out about myself this week. I am the distraction!

By this I mean, perhaps I get too excited about our business but I love interacting with our 8 team members, I'm keen to be across the 'activity' in the office so I can support them, I tend to interrupt others when I have a not so pressing question, and know I can be a mosquito .... attracted to the bright shiny lights of business otherwise known as the fun stuff, the ideas.

Really I have always known this shocking reality, but as your external responsibilities grow you have a new found driver to stay focused, not over commit and communicate effectively.

So far I'm on track, I have maintained my level of awareness, empowered my team to continue to act like I'm not here, make decisions like I'm on holidays and identify their own distraction....

It's perhaps not uncanny that they too found the same distraction.... Themselves

Are you and your team up for some role play?

Don’t worry nothing too sinister here, but after our recent Scripts and Dialogues webinar we’ve had some request from our Directors and Department managers for advice on Role Playing.  Role Play is not just valuable in the new business arena but can be a great way to build up the confidence and dialogue skills of your team.

Role Playing provides your staff a chance to act out, rather than merely talk about ways to solve problems effectively – the benefits are endless. It also gives you the opportunity to provide them with supervised practice, feedback and support in dealing with “real life” problem situations.

As a manager this kind of teaching technique will come naturally to some, however for those who haven’t dabbled much in Role Play for your team, or are looking to improve we have some tips here for you:

• Try to give advance warning of a role play. Some will need time to mentally prepare for this (or time to find an excuse not to attend, which of course they won’t be able to get passed you...)
• It is helpful for you to take the lead and act the situation out first to get things off to a good start.
• Be sure to clearly define the situation and roles to be played (some may wish to write the situation and role down first)
• The staff should be encouraged to be realistic in role plays – but should also to understand that it will usually feel a little awkward and unnatural. (The point is that skills will translate naturally in a real life situation.)
• Gentle encouragement may be needed for some staff where as some staff will take at it like a fish to water (those will be your initial volunteers).
• It is fine for you to coach them to portray their roles during the action as it provides feedback and support. Always try to swap the roles to allow both parties to have a go at each role.
• Praise all role play efforts, there is no wrong, just room for improvement.
• If there is a group situation, always encourage the group to be the one to provide the feedback on what they did well, what they could improve on and their own suggestions for the situation.

For more ideas, assistance Role Plays (new business or property management) don’t hesitate to contact Hermione at Real Plus here