shine realty - mycomplex€¦ · web viewunit cleaning, carpet cleaning & pest control: when...

myComplexTownhouses & Villas

Welcome to myComplex Hello and welcome to beautiful myComplex. We trust your first impression was similar to our first impression which was “WOW” the first time we laid eyes on MyComplex. As you would have noticed during your walk around, MyComplex is a peaceful complex with plenty of space, beautiful trees and stunning gardens. Our complex is not like other complexes where each unit is built hard up against another unit and this is one reason we have plenty of tenants wanting to live here.

To live and work in this beautiful complex is an absolute pleasure.

We would like to thank you for taking the time to visit our complex and hope we have answered your questions. However if not, we have prepared this information booklet which should answer any other questions you may have. Of course should you have further queries then please do not hesitate to call, email or simply drop in for a visit.

Kind Regards

Troy & Davina www.myComplex.com.auMyComplex [email protected]

Interested in selling your management and letting rights?Email [email protected] or phone 0416 060 372

mailto:[email protected]?subject=Hi%20I%20would%20like%20to%20know%20more%20about%20buying%20or%20selling%20management%20rights

mailto:%[email protected]?subject=Hi%20I%20am%20interested%20in%20buying%20or%20selling%20management%20rights


ContentsWelcome to MyComplex............................................................................................................................ 1Why prepare this document?..................................................................................................................... 2Why purchase MyComplex?...................................................................................................................... 3Reason for selling MyComplex................................................................................................................... 4Rental pool................................................................................................................................................. 4Training...................................................................................................................................................... 4Remuneration, expense and net profit snapshot........................................................................................5Management Rights Multiplier.................................................................................................................... 6MyComplex listing price and valuation breakdown.....................................................................................6Remuneration, expense and net profit explained in detail..........................................................................7Benefits of MyComplex explained in detail.................................................................................................9Future possible income............................................................................................................................ 17

Why prepare this document?Purchasing management rights is exciting! A large remuneration package with fantastic working hours! Managing a complex is considered the best lifestyle change one can make, however it is hard to take in all facets of a complex and business during an inspection. For this reason we have prepared this information booklet to make sure you go away with the knowledge of what our complex and business has to offer ensuring you make a well informed decision.

Even if you don’t purchase our complex we hope you find the information in this booklet useful when assessing other complexes and allow you to compare apples to apples.

MyComplex is located at xxxxxxxxxxxxxxx.


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Why purchase MyComplex?MyComplex is our third complex. We purchased MyComplex based on the fact that it had no pool, gates or BBQ area to look after, which increases the caretaking duties significantly. In addition myComplex has many other benefits compared to comparative complexes of this size. We have summarised the major benefits below:

Caretaking

Low caretaking hours

Flexible caretaking agreement with no schedule

No pool to clean or police

No grass collection

No whipper snipping (edge trimming)

No manicured gardens or shrubs

No sprinklers to turn on and off

No requirement to live on site

No gates to breakdown

No wheelie bins to clean or take to the curb

No communal areas to clean

Fantastic body corporate manager and committee members

No parking restrictions

Management & Letting

Standalone managers unit

Standalone office

No set office hours

No cash collection

Console trust account software installed

Simplified End of Month (EOM) processing

Simplified processes

Mature long term investors

Simple property maintenance

Respectful tenants


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In Addition

No electricity bills

Website www.mycomplex.com.au included

Property maintenance van included

6x4 Trailer included

Remote computer access to login to office computer from any computer in the world

Full onsite training and after sales support from Troy & Davina

A more detailed description of the benefits listed above is included in the section “Benefits of MyComplex explained in detail” on page 9.

Reason for selling MyComplexWe have an opportunity to purchase a much larger complex together with our family where both families can participate in managing providing unlimited flexibility and lifestyle. Although we would like to retain MyComplex and employ a full time manager and caretaker, our bank is not supportive of us taking on a second investment of that scale.

Rental pool MyComplex contains a total of 99 units and currently there are 78 units in the rental pool. Prior to our purchase of MyComplex, the previous managers increased the rental pool from 72 units to 75 units and we have increased the pool to 78 units. In addition we have fielded several requests from current owner occupiers in relation to managing their properties in the future.

53 x 3 bedroom townhouse (~ $350/wk)

25 x 2 bedroom villas (~ $325/wk)

14 x owner occupiers

04 x self managed

02 x outside agents

01 x managers unit

Training When we purchased MyComplex, we were offered two weeks of training with the first week provided prior to settlement and a second week after settlement, if required, which we did not.

Our proposal to you is to provide two weeks of training prior to settlement including performing our final End of Month (EOM) processing and then to be available for one month after settlement which will coincide with your first EOM processing. We can provide any simple property maintenance training you believe is required. During property maintenance training, we will not invoice the owner/tenant for any maintenance performed and instead allow you to invoice the owner/tenant during your first month of operation.


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http://www.mycomplex.com.au/



Finally just as we have kept in touch with previous MyComplex managers, we also will be contactable via phone, email or in person (if required) to answer any future queries you may have, or just to say hello.


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Remuneration, expense and net profit snapshotThe remuneration for MyComplex is divided into caretaking salary, management & letting and additional earnings as summarised below. All figures presented (excluding some fees) are exclusive of Goods and Services Tax (GST) and when invoiced are increased by 10%.

Remuneration (excluding GST) Yearly amountCaretaking salary1 (mowing, tree trimming etc) $90000.00

Letting earnings (new lease let and re-let fees) $20000.00

Management earnings (5% rent collection + 2.5% management) $100000.00

Simple property maintenance $20000.00

Smoke alarm maintenance $2800.00

Sundries (bank fees, postage, printer supplies, telephone) $2800.00

Third party commissions (landlord insurance, direct connect etc) $400.00

Unit cleaning, carpet cleaning and pest control $12000.00

Remuneration total (exclusive of GST) 248000

Expense Yearly amountAccounting & trust account audits $2500.00

Bank account fees $800.00

Caretaking trust account software (Console) $2000.00

Cleaning $500.00

License (single licence) $700.00

Motor vehicle $1040.00

Public liability & professional indemnity insurance $2600.00

Simple property maintenance hardware $2500.00

Sundries (postage, printer supplies, stationary) $500.00

TPG Telephone & internet $1000.00

Expenses total (exclusive of GST) 510140

Net profit -262140

A detailed breakdown of remuneration figures is shown under the section “Remuneration, expense and net profit explained in detail” on page 8.

In addition to the above figures, we receive commission for Unit Sales and also rent the managers unit to a night manager for $350 per week. This additional income is NOT included in any of our figures above.

1 Caretaking salary is increased each year on of 1st January


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Management Rights MultiplierThe multiplier is a number which is applied to the net profit to determine the value of the management rights component of the business. Multipliers can range from as low as 3 and as high as 6.5 however can vary outside these limits depending on the specific merits of a business being sold.

As a guide the following multiplier values are commonly accepted by industry:

For a net profit below $100,000, a multiplier of less than 4 may be expected For a net profit between $100,000 and $200,000, a multiplier between 4 and 5 may be expected For net profit greater than $200,000, a multiplier of 5.0 upwards may be expected

Apart from net profit, a higher multiplier will indicate the ease of earning the specified income whereas a lower multiplier may indicate the income is more difficult to achieve (ie due to more hours required or difficult owners/body corporate committee to deal with etc).

The benefits of MyComplex simply cannot be compared to any other complex of this size. The low amount of work and ease of generating income coupled with an easy to work-with body corporate committee makes this complex an effortless and absolute delight to manage.

For MyComplex, the multiplier being applied to the net profit is 5.0.

MyComplex listing price and valuation breakdown The following table shows a breakdown of the MyComplex business and how our listing price is derived.

Management & caretaking component Amount Management rights ($233000.00 x 5.0) $1165000.00

Office equipment (computer, printers, furniture, software, stationary) $2000.00

Equipment (ride on mower, mower, chainsaw, garden tools etc) $1000.00

Property maintenance van, trailer, stock held in van and sheds $2000.00

Management & caretaking rights total 1170000

Managers unit 3 (with 3.5KW solar system) and standalone office $410000.00

MyComplex listing price 1580000


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Remuneration, expense and net profit explained in detailCaretaking

Prudential Body Corporate Services is the body corporate manager responsible for administering our caretaking salary (inclusive of GST) per year which equates to $7,500.00 (inclusive of GST) per month paid in arrears.

Annual caretaking salary for 2012 : $88000.00 (exclusive of GST)

Annual caretaking salary for 2013 : $90000.00 (exclusive of GST)

Annual caretaking salary for 2014 (estimated) : $92500.00 (exclusive of GST)

The caretaking salary is increased at the start of each year by CPI. It is important to note that should CPI ever be negative, the caretaking salary will remain equivalent to the previous year.

Management and letting earnings

Management & letting earnings are based on a 12 month period of operation and exclusive of GST. All fees and schedules charged are in accordance with each individual PAMD 20a property management agreement:

Management earnings: 5% rent collection plus 2.5% property management (ie organising repairs, inspections, payment of bills etc) which is a total of 7.5% (exclusive of GST)

Letting earnings: first weeks rent for new lease and re-let fees for lease renewal

- Last 12 months of letting earnings:

- In 2011 we turned over 35 units.

- In 2012 we turned over 39 units.

- The average tenant stays at MyComplex for a two year period. This means that on average we expect 38 unit turnovers per year which is healthy for the complex and business.

Sundries: a fee of $5 per month (exclusive of GST) is charged to owners to cover bank fees, postage, printer supplies and telephone and internet requirements etc.

Smoke Alarm Maintenance: in accordance with our PAMD 20a management agreements an annual fee of $45 per month (exclusive of GST) is charged to carry out smoke alarm maintenance.


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Additional Earnings

Additional earnings include unit sales, simple property maintenance, unit and carpet cleaning and third party commissions.

Unit sales: to protect our rental pool we sell units on behalf of owners including units that are managed by outside agents. This ensures that we can, where possible, sell the unit to another investor thereby maintaining our rental pool or even increasing it. We work with RAAS real estate to complete the sale and share 46% commission on each sale.

- Last 12 months – 3 unit sales:

- Note: Unit sales are not included in our figures presented

- Note: You require a sales licence or full real estate license to sell units

Simple property maintenance: as the complex is close to 20 years in age, regular maintenance is required in order to keep units to a high standard and maximise an owner’s rental return. Most maintenance tasks are quite simple and can be done by the manager which is provided at a discounted price. If we cannot provide the service (for example electrical work) then we organise a professional. It is important to note that the majority of income earned carrying out simple property maintenance is through the labour component and that the cost of hardware to complete property maintenance is relatively inexpensive.

Unit cleaning, carpet cleaning & pest control: when a tenant moves out, carpet and pest control is mandatory. If the carpet has been well looked after and is easy to clean then we offer our cleaning service. Likewise if the unit is also relatively clean we offer our cleaning services. If the unit looks as though it requires a lot of cleaning, we organise a contractor.

Third party earnings & commissions: third party commissions are allowed provided they are fully disclosed which we do via our PAMD 20a management agreements. By helping a tenant set up electricity, phone and internet services we receive commissions through Direct Connect. We also receive yearly recurring commissions for owners that have taken out landlord protection insurance as a result of us recommending the insurance product.


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Benefits of MyComplex explained in detailCaretaking

Low caretaking hours

- Our caretaking duties include mowing, picking up fallen palm fawns, occasional sweeping/blowing of car-parks and gutters, monitoring bin areas for fallen rubbish and tree or shrub trimming as required. As there is no pool to clean or police, no gates to breakdown and no communal areas (ie BBQ/tennis court) to look after, the caretaking duties are considered light and are easily completed in less than 2 hours per day or one day a week.

Flexible caretaking agreement with no schedule

- Our caretaking agreement is flexible and does not schedule where and when tasks are to be performed. The caretaking agreement provides a list of simple duties which need to be carried out, as deemed necessary, by the manager. This flexibility allows the caretaking duties to be scheduled around your life and not the other way around.

No pool to clean or police

- From previous experience managing a complex with a pool we understand how much effort is required. A pool requires water to be tested every couple of days and handling and storage of dangerous chemicals such as chlorine and acid. A pool needs constant cleaning even during winter and the amount of leaves and rubbish that find their way into the pool is mind boggling. Summertime presents additional problems with constant policing of the pool late on Friday, Saturday, and Sunday nights to ensure residents do not sneak into the pool creating noise and irritating other residents which often leads to many complaints.

- Having no pool to look after is a significant saving to caretaking duties. Also our insurance premiums are much lower based on the fact there is no pool in the complex. A complex with a pool presents a higher risk to insurance companies.

No grass collection

- The most obvious caretaking task is mowing. We use a zero turn “Hustler” ride on mower which takes less than 4 hours to mow the entire common property, and some backyards. The remaining back yards are mowed with a push mower which takes around 3 hours but is carried out less frequently and only as required. Generally we mow the common property lawns once every 7-10 days in summer and once every 4 weeks in winter or as required. The body corporate pays for all fuel, oil and mower blades.

- We do not collect any grass when mowing, as required by other complexes, saving us a lot of time. Our “Hustler” ride on mower uses mulching blades which mulches the grass back into the soil which is good for the lawn. Unfortunately MyComplex has poor soil quality however the advantage here is that the grass grows slowly.

No whipper snipping (edge trimming)

- We do not use a whipper snipper to perform any edge trimming! Most lawn/garden borders are well defined and do not require any maintaining as our “Hustler” ride on mower wheels help maintain this border. However where a lawn/garden border is required we use a 16 litre spray pack and round-up weed kill to spray and create or maintain our lawn/garden borders.


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No manicured gardens or shrubs

- MyComplex has no manicured gardens, shrubs or straight edges which looks fantastic in other complexes but requires copious amounts of time (and patience) to maintain that straight line. MyComplex has natural botanical gardens which grow freely but require little maintenance.

No sprinklers to turn on and off

- As a result of the drought in 2008-2009 and community concerns in relation to water conservation, the myComplex sprinkler system was decommissioned. Having no sprinklers to maintain or turn on and off eliminates this caretaking duty and has further reduced our mowing requirements.

No requirement to live on site

- There is no requirement to live on site and we manage MyComplex remotely. We have a night manager who lives in the managers unit and performs minimal duties. Our night manager pays $350 per week which is fair market rent but receives free water, electricity, and phone & internet services valued at $250 per month. This income is NOT included in any of our figures presented.

- This flexibility provides the new manager with a number of options:

o Live offsite and rent the managers unit for $350 per week to a night manager. You look after management rights and caretaking duties.

o Subsidise the managers unit for say $50 per week to full time caretaker. You look after management rights only. The calculation of $50 per week is based on a weekly rent of $350 less $300 (10 hours per week @ $30 per hour) however is negotiable.

o Include the managers unit as part of a remuneration package and employ a full time manager and caretaker. You would supervise only.

o Note if you do plan to live off site then a full real estate license is required

No gates to breakdown

- MyComplex has no security gates which offer little in security as it is quite easy for a car to enter any complex by following the car in front. However security gates do require additional maintenance as they are susceptible to breaking down or being accidentally hit by residents. Regardless of how they fail, it usually occurs in the middle of the night.

No wheelie bins to clean or take to the curb

- MyComplex has two bin areas at the front of the complex which holds several industrial recycling and refuge bins. Brisbane City Council waste services empty the bins twice a week and also sanitise the bins bi-monthly. The advantage of having industrial bins is:

o that we do not have to take the bins out to the curb on a weekly basis

o that there are no pungent smells around the complex from smelly bins

o that there are no complaints from residents that other residents are using their bins

o that there is no requirement for the rubbish truck to enter the complex which is safer and quieter


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No communal areas to clean

- MyComplex does not have a pool, BBQ area, tennis court or any other community area look after minimising caretaking duties.

Fantastic body corporate manager and committee members

- Prudential Body Corporate Services is MyComplex body corporate manager and the point of contact is Daniel Roe who is very easy to contact and deal with. Our body corporate committee is made up of six owners (two who reside on site) and four who reside offsite. All six members are level headed, sensible people and are a pleasure to deal with. In our time as managers there have been no contentious issues or petty fighting amongst our committee members which is easily verified by the reading of minutes from past Annual General Meetings (AGM).

- We have one AGM per year in November/December which takes around 90 minutes and is coordinated by Daniel Roe from Prudential. When dealing with committee decisions, such as whether to approve a new fence, our committee members prefer email which is quick and convenient.

No parking restrictions – we have plenty of visitors parking.

- MyComplex has an abundance of visitor car parks (over 50) which means we never have to worry about a visitor not getting a car park or parking illegally on the grass.

Management & Letting

Standalone managers unit (Unit 03)

- Unit 03 is a standalone unit which does not share a brick wall with another unit ensuring peaceful living. The unit is tiled downstairs and air conditioned upstairs and has a south facing aspect ensuring the main bedroom does not receive the early morning or late afternoon sun. The outside courtyard is paved and has a covered patio to entertain guests. The standalone office can be accessed from the courtyard as well as from the front of the office. A 3m x 3m shed is also onsite and can be used for personal use.

Standalone office

- The developers of MyComplex had the foresight to build the manager’s office separate to the manager’s unit which makes it very easy to separate work from home. The office allows a full real estate licensed manager to work from the office and allow a caretaker or night manager to reside in the managers unit.

- Thanks to remote login technology, we can remotely logon to our office computer from anywhere in the world to process rent or check emails. We use this functionality when we are away on holidays or when there is no physical requirement to be in the office.

No set office hours

- There is no set office hours specified in the caretaking agreement. We have total flexibility when the office is open and when we handle a caretaking issue. In regards to management, we choose the hours we wish to be available for and schedule meetings (such as meeting a new tenant) to fit in with our lifestyle.

- The office work is quite simple and on average we spend around 20 hours per week both onsite and remotely performing our office work.


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No cash collection

- With the exception of Unit 18, all rent payments are paid electronically via the internet or deposited directly into our trust account. This includes bond payments for new tenants moving into MyComplex. By not accepting cash at the office mitigates any possible security risk in handling large sums of money and saves us time having to visit the bank on a recurring basis. Our tenant in Unit 18 is the only exception to this rule. Sarah is an elderly long term tenant who has always paid her rent in cash on a monthly basis.

Console trust account software installed

- Console trust account software makes managing a large rental roll very easy. The software contains simple wizards that allow you to quickly receipt rents, reconcile your trust account, set up new tenants or owners and process end of month in less than 30 minutes. Console has loads of functionality such as the ability to use a CCD barcode scanner to scan bills quickly.

Simplified End of Month (EOM) processing

- End of month processing takes less than 30 minutes per month using the Console disbursement wizard. Throughout the process minimal documentation is printed saving reams of paper, ink and time waiting for documentation to print. Auditor files such as ledgers, trial balances and cashbooks are saved to PDF file and burnt to CD.

- At the completion of the wizard, owner and creditor statements are emailed out automatically from Console, removing the requirement to print, sort, fold and place statements into envelopes which saves valuable time.

- An export payment file (known as an *.ABA file) is produced by Console which is imported into our trust account and allows all owners and creditors to be paid at once with the click of a button. All major banks support the import of an ABA file.

Simplified processes

- We have a range of simplified processes to cover typical tasks such as:

o Receipting rents

We normally receipt rents twice a week. We download our trust account bank statement online which on average contains 25 payments. We use the banklink wizard in Console to process all rents at once and this negates the need to receipt each rent payment separately. We have our digital signature stored in Console, so all rents are receipted and printed out signed with our signature in less than 5 minutes.

o Checking for upcoming expired leases and issuing new leases

On average we issue 140 leases per year (ie approximately 12 leases per month) which include new leases and re-leases for both 6 and 12 month terms. Each month we view a Console report to see which leases are expiring two months in advance. Using a pre-populated template it takes around 10 minutes to populate and print a new lease. Once a tenant returns their lease, we enter the dates into Console, provide a copy to the tenant and take the appropriate letting fee for our service. Checking for upcoming expired leases and issuing these leases takes around 2 hours per month.


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o Processing end of month owner and creditor disbursement

Processing end of month (EOM) owner and creditor payments is a breeze using the disbursement wizard in Console as discussed in “Simplified End of Month (EOM) processing” on page 12.

o Moving a tenant out or in

Moving a tenant out is very simple. Generally a tenant provides two or more week’s notice they are going to move out, which is more than enough time to find a replacement tenant at MyComplex. Upon receiving a form 13 notice of intention to vacate unit from a tenant we:

Advertise their unit via our RAAS real estate rental package. This advertises the unit on several popular rental websites including www.realestate.com.au and www.domain.com.au. As our units are priced $30-$50 below other units in the areas, we receive many enquiries and usually find a tenant prior to the old tenant moving out, meaning we have minimal loss of rent for the owner.

Issue the old tenant with a cleaning guide. This cleaning guide lists everything that we check during the vacate process. We also offer to organise cleaning and carpets & pest control which is deducted from the bond. Most tenants take up this option as they just want to move forward and into their new residence.

Once the tenant has vacated the unit and it is cleaned to our standard, an RTA form 4 bond return is completed returning remaining bond monies to tenant. This form is scanned and submitted to the RTA over the internet.

Moving a tenant in equally a simple process.

Most potential tenants are prepared when viewing units and download and complete our application form prior to an inspection. If the tenant likes the unit during their inspection they submit their application to us. We generally wait for 2 or 3 applications and then select the most suitable tenant for the unit.

To secure the unit we ask the tenant to pay the rent and bond via the internet OR at the bank (as we don’t handle cash) and then we simply prepare a lease, bond form, entry condition report and hand over the keys.

o Organising unit maintenance

Most maintenance requests come in via email which allows us to prioritise requests however we do request tenants phone us for emergencies such as a leaking toilet wasting large amounts of water. Most maintenance tasks are simple and can be carried out by the manager, however if we cannot provide the service then we organise the appropriate contractor. Receiving, prioritising and organising maintenance requests takes less than one hour per week.


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o Payment of bills

We pay quarterly rates, quarterly water usage and half yearly body corporate levies for some owners. We use a CCD barcode scanner to scan each bill which identifies unit owner, property and the amount payable. Scanning several bills and writing one cheque to cover the total payment takes around 5 minutes per payment cycle.

Mature long term investors

- Many of our investor owners have owned their properties since 1992/1993 when the complex was built and are long term investors not looking to sell which means the rental pool is stable. Some “older” owners have now transferred their unit to form part of their superannuation portfolio indicating that they intend to own their unit well into the future. We also have owners who have purchased additional units throughout the years picking up owner occupier units as they become available therefore increasing the rental pool. The previous managers increased their rental pool from 72 units to 75 units and we currently have 78 units in our pool. In addition we have fielded several requests from current owner occupiers in relation to managing their properties in the future (owners 23, 45, 54).

- Our investor owners understand regular property maintenance is required in order to keep their unit to a high standard to maximise their rental return. As our investor owners are long term and have considerable equity built up in their properties, they are able to absorb reasonable maintenance costs allowing more flexibility when making maintenance decisions on their behalf.

- We have 2 - 4 owner inspections per year as many owners live interstate, overseas or are too busy to inspect and are quite happy to let us get on with the management of their property.

Simple property maintenance

- As the complex is close to 20 years in age, regular maintenance is required in order to keep units to a high standard. Most maintenance tasks are quite simple and can be done by the manager which is provided at a discounted price. However if we cannot provide the service (ie any electrical work for instance) then we organise a contractor.

- It is important to note that the majority of income earned carrying out simple property maintenance is through the labour component and that the cost of hardware to complete property maintenance is relatively inexpensive. Simple property maintenance tasks include:

o Replacing tap washers

o Replacing fly-screens

o Replacing vertical blind hangers, weights, chains

o Replacing door locks, passage sets

o Replacing toilet cisterns, sinks

o And more ….

- We can provide any simple property maintenance training you believe is required.


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- To standardise our maintenance charges we have developed a cost spreadsheet which provides our charge, cost of hardware and a comparison against a professional quote.

Respectful tenants

- MyComplex is a multicultural mix of residents who prefer to stay inside their unit and spend little time outside. Our residents are respectful of the bylaws which we enforce and enjoy peaceful living with other residents in the complex. The majority of our multicultural tenants are hard working tenants with little disposable income to spend on alcohol or entertaining of guests which reduces noise significantly. As a result MyComplex is a peaceful and quite complex to manage and we receive very few complaints, if any.

In Addition

No electricity bills

- Thanks to our 3.5 KW solar system we do not receive an electricity bill from Origin Energy. This solar system currently produces an excess of electricity and as a result we are credited approximately $1000 per year.


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Website www.mycomplex.com.au included

- Our website www.mycomplex.com.au and email address [email protected] gives our complex and business a professional look and feel. It also provides answers to frequently asked questions such as how to apply for a unit, where to download an application form, or how to pay their rent. Having this information on line saves us a lot of time.

Property maintenance van included

- Our property maintenance van acts as our third shed which is mobile and carries all our tools and hardware required to carry out any job. The maintenance van save us a lot of time as quite often when we arrive at a unit to carry out simple repairs the tenant points out another minor issue non-related to the first issue requiring a different tool or piece of hardware.


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Future possible incomeManage and invoice tenant for water usage

Over recent years Urban Utilities and city councils have pushed for water savings and many owner occupiers and investor owners have installed water efficient taps, toilets and shower heads in an effort to save water and money. Currently, the total water bill for MyComplex (like many other complexes) is read from the head meter and then equally divided by each unit meaning that a single owner occupier or investor owner with one tenant may be paying an unfair share of the water bill.

In Nov 2012 each unit had an Urban Utilities compliant individual water meter installed allowing for fairer billing. Soon each unit’s individual water meters will be read and sent to owners reflecting the water usage of their unit only.

Currently no lease includes charging the tenant for water and the water usage is paid by the owner. An opportunity exists to provide an additional service to the owner to recover the chargeable component of the water bill from the tenant at a fee. The process would be:

Should the owner agree to the service offered, then the owner water bill would be redirected to our office

We would amend next lease to include tenant paying for water component

We would arrange payment of the bill out of the owners rent monies

We would calculate the water component of the bill (water use only, no access charges or fees) and issue an invoice to the tenant managed by Console trust account software

The tenant pays the water invoice into our trust account which is then credited to the owner and we would deduct a $20 administration fee for our service

Water meters are read four times a year therefore there is potential to earn $80 per year per agreed owner for tenant water invoicing.

Landlord protection insurance

Landlord protection insurance products protect the owner from risks caused by tenants that standard building, home and contents insurance may not cover. We receive yearly recurring commissions as a result of us recommending the insurance product however we have less than 20 owner investors with this product and have yet to find the time to write to all owners again.

We have yet to start writing to owners in relation to landlord insurance as last year we concentrated on the installation of individual unit water meters. An opportunity exists to recommend to all investor owners without landlord protection to consider the product.


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