July 27, 2017

Dear Name

Property rental yields and asset value

The secret to maximizing and optimizing

As your managing agent, our objective is to maximize the rental yields you achieve on your property and ensure your property grows in value in line with or better than market averages.

Our role is to do more than just collect the rent and arrange maintenance. Our team have clear objectives to follow to ensure we always achieve market average or better than market average rental yields for you. We also measure the asset value of your property against market average. If we maintain market average or better, you can also feel confident that your property remains appealing for the market demographic in which your property is located.

It is important for you to understand how we do this and how our team works to achieve yours and our objectives.

Objective 1

Secure the best possible tenant in the shortest possible time for the longest possible term at the highest possible rent.

This means that your team is tasked to minimize vacancy, mitigate loss of returns, and achieve the highest possible rent. Your team is responsible for ensuring they are managing the end of tenancy by proactively communicating with you and the existing tenant. If the tenant does not sign the tenancy renewal within the required time they will be given a notice to vacate the property. By following these timelines, you can feel assured that you will have maximum time to market your property to secure a replacement tenant. Our team are also trained to be discerning when processing applications and not eager to accept the first or only application to retain your management. If, after processing the application, your consultant finds the application to be unsuitable, your consultant will discuss the application with you, provide advice, and seek your instructions. This is how the team ensure they secure the best possible tenant.

Generally speaking, the longer your tenant stays in your property, the better for you. However, this is not always the case, and every property and every tenancy term is negotiated taking into consideration numerous factors. These factors are current and future market activities, market trends and predictions, developments and plans for future developments to infrastructure. Your consultant has been trained to negotiate longer tenancy terms with rental increments included for long-term tenancies. This is how your consultant can help you feel reassured that you have the longest possible tenancy term with the ability to ensure your rent will increase in line with market movement.

Finally, your consultant will work to achieve the highest possible rent for your property based on the current market and appeal of your property. Your consultant will provide advice on what maintenance, refurbishments or replacements may be necessary to make sure your property is regarded as being the most suitable against competing properties available at the same time. Your team is trained to know and have an in-depth knowledge of the market area. The team must undertake two hours market research every week as part of their requirements to fulfil the objectives of their role. Researched information is discussed at monthly and quarterly team meetings. By doing this, our team interprets information and market trends and are able to offer you consistent information and advice about your property.


Objective 2

Inspect the property every 17 weeks to assess the standard of the tenant, their care of the property, the current rental yield in comparison to market average, and general appeal of the property.

Your consultants are trained to inspect your property every 17 weeks, regardless of when the tenant has commenced their tenancy term. As you are aware, our inspections are termed property assessment inspections. Unlike many agencies, your assigned Portfolio Manager’s objective for the inspection is to ensure they provide you with the advice you need to guarantee your property remains appealing within the market in which your property is located, is achieving the best possible rent and, if not, what is required to improve the appeal and yield of your property, and rate the tenant’s occupation standards and care of the property.

The inspection is a visual inspection of the property. This inspection will more than likely not reveal all maintenance that is required and will most certainly not reveal out of sight repairs. However, your Portfolio Manager is trained to gauge what is necessary to ensure your property remains appealing, without over capitalizing, for you to achieve your objectives as a property owner and their first objective.

Following the inspection, your Portfolio Manager will send you a detailed report along with recommendations for repairs, maintenance and possible replacements or refurbishment. In the week following your inspection, your Portfolio Manager will call to discuss the inspection findings, offer advice and seek your instruction.

As well, every 12 months, a consultant will schedule an annual review call to discuss your property, the previous 12 months’ returns, inspections, current market activities and future trends. Following this meeting, a plan will be put in place to ensure our team is working to achieve your objectives and accomplish the objectives of their role.

Market initiators and speculators

Your team has been trained to think and act like stockbrokers. Just like stockbrokers provide advice on stocks and shares so their clients achieve the best possible yields and growth, our team is trained to ensure our clients achieve the best possible yields (rental returns) and growth (property equity growth).

By training our team to conduct effective and comprehensive market research along with the ability to analyze and share data, we have the capability to provide you with real knowledge so you can make confident decisions as and when requested.

Whilst many property managers are reluctant to increase rents in fear of losing tenants, your team has been trained to understand market activity, analyze numbers and move rents with confidence. This is why and how we mostly achieve better than market rents. Our team initiate the rental increases to ensure the market remains in tune with market trends.

Your team has also been trained, just like stockbrokers, to have confidence in making long-term market speculations and offer you the information you require to make long-term decisions regarding your property. For example, if your consultant advises you to secure a 3-year tenancy term with an annual fixed increase, you can feel reassured their research has provided the data they require to speculate future trends.

It is in the property owner’s best interests, as well as the tenant’s, to ensure properties achieve market rent, or better. When properties earn less than market rent, this affects the rental yield for all property owners in the market area. By maintaining the standard and appeal of the property, you can attract better quality tenants who maintain and care for the property at higher standards than the average tenant.

Also worth taking into consideration is the data that owners who maintain their properties during a tenancy term usually inspire the tenants to also maintain and care for the property. As well, the tenants are more than likely to accept rental increases and happy to renew their tenancy term upon expiry as they know the property is being maintained by the owner.

I sincerely thank you in advance and take this opportunity to reassure you of our sincerest endeavors in providing you with the service and results that are truly second to none.

We look forward to a continuing long and mutually rewarding relationship.

Sincerely yours

Business Name

Own Name

Position