This module covers market reviews and management of tenancy renewals. When you have a property management listing the services your agency provides to landlords and tenants will have a direct link to the financial viability of the property.
The agent will need to review the condition of the property and its rental return in comparison with those in the current market to ensure the landlord receives the maximum annual rental return that can be expected.
The agency services that are provided will need to ensure the properties are well maintained, vacancy periods are minimised, rent arrears are managed effectively and the renewal of tenancies are conducted according to the landlord’s instructions and expectations.
The processes used by the agency to manage these duties should run smoothly and efficiently for everyone involved.
When you have completed this module you will know how to:
• Negotiate strategies with the landlord- to maximise annual rental returns.
• Plan for and manage tenancy renewals.
• Manage rental arrears to minimise financial loss to lessors.
• Account to the landlord on a regular basis for rental moneys collected.
Explain the laws of “Supply and Demand” in relation to rental properties.
John and Mary have been great tenants. The owner is wanting to increase the rent
excessively which, you feel, may force John and Mary to seek other arrangements. Explain
to the owner why they should continue a tenancy with John and Mary.
You view your agency’s rental arrears list and group the tenants into the following
• Occasionally appear on the overdue list.
• Regularly appear on the overdue list.
What action will you instigate with each group to reduce the frequency of these identified tenants from appearing on the arrears list in the future?
What could be the causes for rental arrears? Include a strategy you think could use to reduce this risk from re-occurring.
What are the prolonged consequences of tolerating rental arrears?
Case Study 2
Pollock & Knightsbridge
When Brandon moved out 18 months later, Jennifer Wray was signed up as the new tenant. Jennifer has been paying rent irregularly since she moved in, although she has kept the property in good condition.
Rentals in the area have been stagnant and demand is low at present. Jennifer is currently three weeks in arrears and Karen is still chasing her. It seems she is out of town for work.
Mrs Roberts called to ask where her rent is, saying that she is tired of the money always being late. Jennifer says she just gets so busy and forgets to pay her rent, but appreciates the reminder calls from Karen. Karen discusses the situation with Mrs Roberts, outlining possible strategies to remedy the arrears situation. Mrs Roberts is impatient and instructs Karen to instigate procedures to ensure that the tenant meets her future rental obligations in a more timely manner or she will remove the property from Karen’s management.
Explain what options are available to Karen to ensure Jennifer pays the rent in accordance
with the lease
What are some reasons why the owner, Mrs Roberts, could be upset about the late payment