The 10 Year Leaseback Guarantee includes;
A 10 Year Lease with OzLease Pty Ltd. This means that upon acceptance, OzLease will then lease the property for 10 years.
The performance of the Leaseback is guaranteed by the JDT-OZLEASE Discretionary Trust, which is independently managed and backed by Jardine Lloyd Thompson Australia.
The OzLease Leaseback Guarantee incorporates Landlords Cover Insurance (Building and Landlords Protection Insurance). This cover has been benchmarked against the market and is provided at a very competitive rate. This Insurance is designed specifically to meet property investor's requirements and is underwritten by QBE Insurance.
OzLease provides full property management services in designated metropolitan areas and chooses the most suitable and professional Property Manager from their accredited Property Managers to manage the property in other areas. OzLease will then sub-lease the property direct to the selected tenant. The tax deductible fee for the Leaseback Guarantee is 5% of the gross rental income per week (plus GST)
The monthly guaranteed rental income is determined.
The Real Estate Property Manager deducts their standard management fees and property expenses for the month.
OzLease deducts the 10 Year Leaseback Administration fee.
OzLease pays the balance of funds by electronic transfer to the owner's nominated bank account by the 10th day of the following month.
There is a vacancy during the 10 Years of the Lease with OzLease.
The tenant is late in paying their rent.
The tenant cannot pay the rent for any reason.
A new tenant is being sourced between tenancies.
You decide to sell the property at any time during the 10 Year Lease. (subject to conditions)
If OzLease increases the rent through regular rent reviews, the Owner will receive the higher amount (less standard costs).
If the Owner wishes to cancel their lease with OzLease they can do so at any time by providing 30 days notice with no financial penalty (Note: the tenant has the right to remain in the property until their sub-lease with OzLease expires).
OzLease works in conjunction with the Property Manager to maximise the longer term returns from the investment property.