Traditional Permanent Leasing
At a glance, the permanent lease process would cycle through about 6 stages. Below, is a very simplified flow.
1. APPOINTING A PROPERTY MANAGER
The discussion should start with a consultation about your property. Bear in mind that partnering with a reliable and effective Property Manager is the key to successful property ownership. Either they take time to understand your goals and expectations or they don’t and your property is just another number on the rental listing they have to manage.
2. SIGNING ON A PROPERTY MANAGER & MARKET APPRAISAL
Once decided, you will need to sign a contract with the property manager. Next, they will then determine the appropriate rental level for your property. Your property manager may recommend further renovations or improvements to your property, to maximize its rental potential. You decided if you would like to proceed, and they will handle the rest.
3. MARKETING, VIEWINGS & TENANT SOURCING
Your property manager should explain their marketing strategies, such what channels they will be using or the networks they can tap into. They should also explain how they arrange property viewings, and how they ensure that your property is presented in an optimal way to prospective tenants. Check if they have a basic upkeep schedule in place for your vacant property.
4. TENANT SELECTION
Different property management companies handle the tenant profiles differently. Some may allow you to select your own preferred tenant profile or they may simply select one according to what they think is a best fit. Your property manager will explain their tenant screening process, structure and negotiate the contract (in your interest) with your selected tenant for you.
5. CONTRACT EXECUTION
Your property manager will prepare and execute the tenancy agreement together with attendant paperwork.
6. TENANT SUPPORT & OWNER REPRESENTATION
Your property manager should take care of the tenants and represent you for all your property-related matters in regards to liaisons with all required service providers such utilities registrations, internet setups etc. They may conduct an pre-tenancy inspections, perform basic cleans and repairs. Check to ensure that a move-in property report will be conducted, and that handover and a tenant orientation process will be done.
7. CLAIMS PROCESS & OWNER REPORTING
Consult with them on their claims processing from tenant to you, and finally to deciding on appropriate contractors to hire to make good any claims.
8. TENANT EXIT
Exiting tenants are expected to hand back the property in its original condition. They have a responsibility to restore the property to its original condition. When your tenant vacates, your property manager should:
- Conduct moving-out inspection, and request tenant to agree on restoration or repair work required.
- Balance of tenant deposit determined after deducting for necessary repair/restoration works. Your property manager should then begin organising repairs and restoration work, to get the property ready for the next cycle to begin.