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Quest Serviced Apartments FAQ’s

Frequently Asked Questions

Investing in property is a big decision, so we’re sure you might have a few questions. Our most common queries are listed in the table below, but if there’s something that still needs answering please get in touch by registering your details using the link on this page. We’ll email you a full stock list containing all the information on available apartments and provide you with the direct contact details of one of our experienced representatives who can answer any questions and help with specific apartment or location information.

The Quest Lease

Who will manage my property?

Each Quest business is owned and managed by an experienced Quest Operator in line with the reputable standards of the Quest brand and supported by our proven systems and business format.

What are the management fees?

In most cases, there are no management, letting or advertising fees, which is one of the key advantages of Quest Properties over other investments. All obligations typically covered through the payment of a management fee are taken up by the Quest Operator at no charge to you.

How frequently will my property be inspected?

As you would expect, our Operators and other staff are cleaning, checking and maintaining your apartment on a daily basis as part of running a high standard accommodation business.

Am I responsible for repairs and maintenance?

Quest will be responsible for general maintenance and upkeep of your apartment. Quest will also be responsible for repairs, maintenance and replacement of the contents. As a Landlord you will be responsible for any structural and capital expenditures, replacements, repairs and works to fixed equipment items. Periodically you will be required to pay for repainting, new carpet and certain works to keep your apartment in fresh condition. These works are arranged for you by your Quest Operator.

What utilities will I pay for?

While some leases do differ slightly, in most cases Quest will pay for gas, electricity, telephone, insurance, water usage charges and the non-capital related body corporate fee, known as the Administration fee. As a Landlord you will pay council and water rates (excluding water usage) and any capital expenditure & sinking fund levies.

What are the typical lease terms/times?

This will vary depending on the property, but most leases operate according to one of the following:

  • Initial term 5 years, plus 4 x 5 year options (exercisable by the Tenant)
  • Initial term 7 years, plus 3 x 7 year options (exercisable by the Tenant)
  • Initial term 10 years, plus 3 x 5 year options (exercisable by the Tenant)

What happens at the end of the lease?

It is hard to predict what will occur at the end of the lease as this is 20+ years in the future, however, these are the options that will be available at that time:Quest may offer you the opportunity to extend the term of the lease further. For example, Quest Royal Gardens was the first Quest property established back in 1988, and the Quest Property Investors have agreed with the Quest Operator to extend the term of that lease by a further 15+ years. Alternatively, you may choose to convert your property to a standard strata residential apartment (STCA), and move in, lease or on-sell as you prefer.

Can I sell my property during the term of the lease?

Yes. While Quest Properties are most suited to a long term, buy and hold strategy, occasionally an investor will need to sell their property. Fortunately, there is a healthy market appetite for existing properties. To start with, existing Quest investors own in excess of 5,000 strata apartments.

What is the relationship between the Quest Operator and Quest?

The Quest Group operates under a franchising system. Over our 25 year history, Quest has recognised that Franchising provides the greatest level of service delivery and consistency in Guest experience – better in our view than Quest would deliver itself if it were to be the sole operator of the network. Quest has an intensive and rigorous selection process to ensure that each new Quest Operator will not only become a valuable member of the Quest team, but are committed to achieving their own personal and financial objectives. The relationship between the Quest Operator and Quest is governed by a Franchise Agreement and Operations Manual which set out the terms, conditions, processes and systems which underpin the success of the Quest franchising model. This focus on the franchisor/franchisee relationship is continuous, with a comprehensive suite of activities and business development programs available to maintain an ongoing, successful relationship. The Quest model has been refined over the last twenty plus years to reflect what we consider to be the best business disciplines in the accommodation industry, not just in Australia but also world-wide.

What types of apartments can I purchase?

There are a variety of apartment configurations available from studios to 1,2 and 3 bedroom designs. Most apartments offer open floor plans with separate living, dining and sleeping areas, fully equipped kitchens and laundry facilities. The majority of Quest properties are 4 or 4.5 star AAA rated and offer a number of on-site facilities to ensure a pleasurable guest experience.

 

Rent

Am I able to live in my apartment?

As the Tenant, Quest will have exclusive use of the property for the duration of the Lease. Of course, the Quest Operator would welcome the opportunity to have you stay in your apartment at a favourable room rate at a time convenient to you.

How will rent be paid to me?

Rent will be paid into your nominated account monthly. Your rental return is fixed and does not vary depending on the performance of the business during each 5 year period between rent reviews.

How much will my rent increase by each year?

Your rent will be indexed annually with rent increases of generally 4% or CPI each year of a 5 year term. At the conclusion of each lease term, there will be a market review, which provides both parties the opportunity to reset the baseline rent to market.

How is the rent set for a new apartment?

The initial rental for a lease is always set at market to establish a healthy and sustainable property investment and business. We do this based on our balanced stakeholder approach, which we’ve consistently applied over 25 years, to ensure there is a fair return for both Quest Property Investor and the Quest Operator – recognising that each is vitally important to the success of the other.

How does the market rental review process work?

Most Quest leases include a market rental review after every 5 years. This is to ensure that rents remain broadly in line with market conditions so as not to disadvantage either the Quest Property Investor or the Quest Operator. The rental review process was developed based on a rental philosophy provided to Quest by CBRE, the world’s largest commercial real estate services firm, and takes into account a number of relevant factors including the prevailing market conditions, the performance (past, present and future) of the Quest business, and the application of standard benchmarks developed using data from the industry and network of Quest Properties around Australia.