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Monday, 18 October 2010

Michelle Farrow

Dear Michelle,

RE: Your Investment Property In Dianella

I note with interest that you are proposing to lease your property in Dianella and I thought our property
management services may be of interest to you.

Please find enclosed our Management Pack which outlines the fees and charges applicable to renting out a
property with our office and the services we provide.

Should you have any further queries, please do not hesitate to contact myself or Jennifer our property
manager.

Kind Regards,

Rhys Chester
Sales Consultant
m 0411 846 189
e rhys@ianhutch.com.au

Jennifer Portelli
Residential Property Manager
Ian Hutchison Real Estate

Phone: 61 8 9474 22 00
Mobile: 0416 097 179
Email: jennifer@ianhutch.com.au
Summary of Standard Fees & Charges
Fixed Management Fee – 8.00% + GST of gross collections - Unfurnished
9.00% + GST of gross collections – F/Furnished
For example if the gross collections were $300, the management fee at 8.8% would be $26.40 & 9.9%
would be $29.70.

Letting Fee – 2 week’s rent plus GST


One off charge at the commencement of each tenancy. This is the fee for conducting viewings at the
property, processing applications and preparing the Tenancy Agreement documents.

Property Condition Report - $200.00 plus GST


One of charge at commencement of first tenancy to record the condition of the property and photographs.

Final Bond Inspection - $90.00 plus GST


Only charged at the end of each tenancy. The property is inspected against the Property Condition Report
to ensure it is left in a satisfactory standard. This also includes update of the Property Condition Report for
the next tenancy and new photographs.

Routine Inspections - $45.00 plus GST


The first inspection of each tenancy is conducted after 6 weeks and then every 3 months thereafter.

Inventory Report - $150.00 plus GST Fully/Furnished


$225.00 plus GST F/Furnished & Equip
One of charge at commencement of first tenancy to record the inventory of the property and photographs if
property is furnished.

Annual Summary - $45.00 plus GST


Annual charge for end of financial year statement.

Postage & Petites - $8.00 plus GST per month


$10.00 plus GST - Overseas

Signage - $40.00 plus GST


Cost for erection and removal for a To Let sign if required.

Internet Advertising - $50.00 plus GST


Cost for the property to be advertised on 5 websites.
REIWA, RealEstate.com, Ian Hutchison, rentfind.com.au & realestatewa.com.au

Fixed Term Lease Renewal/Negotiation Fee - $50.00 plus GST


Cost to re-negotiate new Lease with existing Tenant

Title Search - $20.00

Tenant Enquiry Fees - $15.00 per person (including GST)


Database check for prospective tenants
INFORMATION ON OUR PROPERTY MANAGEMENT SERVICE

Thank you for the opportunity to discuss the management of your rental
property.

With our conveniently located office in the busy Millstream Arcade, we


offer our property owners a high profile location from which to promote
their property and personalised, professional service at all times from our
well qualified and fully experienced Property Managers.

To locate a suitable tenant on your behalf we offer the following services:

 Inclusion of your property on our Internet Web page, REIWA Web


Page, realestate.com, rentfind.com.au & realestatewa.com.au – with
accompanying colour photographs

 Placing a photograph in our office window display.

 Regular contact with relocation specialists and large multi-national


companies.

 Advertising on our “Rental List” which is accessed freely throughout the


day by passing pedestrian traffic.

 Erection of a “To Let” signboard, where permitted.

We are careful with our tenant selection, checking references through the
National Tenancy Database and confirming employment, business and
personal references. Once a suitable tenant has been approved, both by the
Property Manager and the owner, a comprehensive Property Condition
Report (and inventory where necessary) is completed. This is a “once only”
report and forms the basis of the tenants’ bond refund at the end of the
tenancy and the condition to which the property is to be maintained
throughout the tenancy.

We request the equivalent of four week’s rent as Bond (maximum


permissible by law). The Bond is deposited with the Bond Administrator at
the Ministry of Fair Trading for the length of the tenancy. Two weeks rent
in advance is also obtained. We offer a six to twelve month Lease and at
the end of this term, we would contact the owner for authority to offer the
tenant a lease renewal and also for any changes in the terms offered
including the rent rate, before contacting the tenant.
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Throughout the tenancy, we carry out quarterly inspections of the property.


A written inspection report is forwarded to the owner. During the
inspection, any incidental items of maintenance that are required are noted
and expressed to the owner for their authority to have the work done. We
have access to a wide range of qualified tradespeople for any necessary
repairs. Copies of all invoices are forwarded to you with your monthly
statement, unless you have requested email statements.

2-4 working days between each tenancy, this is to allow for the bond
inspection and property condition report update to be done and any work
to be attended to if required.

At the end of each month, the owner is paid the nett balance of all rents
collected after deduction of tradesmen’s invoices, fees and any other
deductions authorised by you. These funds can be transferred directly into
your bank account or a cheque is sent to you. A statement is forwarded at
that time along with copies of invoices for accounts that have been paid and
a copy of the routine inspection report if an inspection has been done in
that month.

At the end of each financial year, we can provide an Annual Summary for
taxation purposes, summarising total monies collected, total costs for
maintenance, council and water rates, strata levies (if applicable) and fees.

Our “Authority to Act as Managing Agent” and list of professional fees are
enclosed. The management fees quoted are a guideline only dependant on
whether you are an owner of more than one rental property or whether the
property is furnished or unfurnished. Should you wish to further discuss
the fees, please do no hesitate to contact our Property Management
Department.

We assure you of personalised and professional service and look forward to


managing your investment property.

IAN HUTCHISON REAL ESTATE

C on Admin(F)/Shared/Pgmt/Rara 2