With the ever increasing issue of Drug labs being found in properties across Australia, the importance of awareness and training has never been more paramount.
Regrettably, Drug (Meth, Speed, Clan) labs have extremely toxic chemicals and are sometimes at risk of explosion. Given that sales people and property managers spend much of their careers walking in and out of property, the risk is potentially high of danger being found or exposure to dangers.
It is a general duty of employers to ensure their staff are safe, trained and educated in many areas; particularly in areas of risk of their safety.
Real Estate Excellence has long been advocating awareness of this wretched societal issue and is now proud to provide at a very low cost to ALL Australian Real Estate Agencies a short training presentation to use to training staff plus provide a wealth of information for a mere $55 including GST. For more information about this service please visit http://www.realestateexcellence.com.au/component/docman/cat_view/36-qld-compliance-and-best-practice/26-property-management-information?orderby=dmdate_published or email stacey.holt@realestateexcellence.com.au
For information generally about this issue, please visit http://www.realestateexcellence.com.au/component/docman/cat_view/38-risk-management-and-industry-important-matters/56-drugs-in-property?orderby=dmdate_published
www.realestateexcellence.com.au
Stacey Holt (Real Estate Excellence Academy)
July 25, 2011
The downside of Tenancy Database law in Queensland
A Platinum Member of Real Estate Excellence has reported the following situation;
A tenant was approved for a property and then found to be listed on TICA several days later. Due to tenancy database law under the Residential Tenancies Rooming Accommodation Act and Regulations, tenants cannot be listed until the tenancy has ended and they meet the criterion (5 reasons) only to be listed. (There are additional requirements – refer to the RTRA Act for more information). This agency (and lessor) have been let down by the legislation and have a tenant with a poor rental history into a property which has now led to a great risk for the investor.
In this situation, it was too late to not accept the tenant and the tenancy was established. Upon the first recent inspection, the following was found;
• Bathroom littered with used nappies
• Masses of clothes throughout the whole house
• There is general trash under and throughout the house
• The batteries were taken out of the fire alarms (immediate breach)
• They are keeping a cat on the property – there are no pets allowed under the lease
• There is evidence that they are smoking in the house – there is no smoking inside under the lease
• The state of the house overall is beyond disgusting – the owner saw a rat in the kitchen!
• There are only 5 occupants authorized under the lease – At least 7 mattresses / beds were noted
• There are other concerns also.
The tenancy agreement does not end until early 2012. Real Estate Excellence is drafting suggested action to take in this situation.
If you are a Member of Real Estate Excellence and require information and education about the tenancy database law in Queensland plus best practice on this matter (and any other Real Estate Industry matter), please contact Stacey Holt. This information was published on the 25th July 2011.
(c) Real Estate Excellence 2011 www.realestateexcellence.com.au
A tenant was approved for a property and then found to be listed on TICA several days later. Due to tenancy database law under the Residential Tenancies Rooming Accommodation Act and Regulations, tenants cannot be listed until the tenancy has ended and they meet the criterion (5 reasons) only to be listed. (There are additional requirements – refer to the RTRA Act for more information). This agency (and lessor) have been let down by the legislation and have a tenant with a poor rental history into a property which has now led to a great risk for the investor.
In this situation, it was too late to not accept the tenant and the tenancy was established. Upon the first recent inspection, the following was found;
• Bathroom littered with used nappies
• Masses of clothes throughout the whole house
• There is general trash under and throughout the house
• The batteries were taken out of the fire alarms (immediate breach)
• They are keeping a cat on the property – there are no pets allowed under the lease
• There is evidence that they are smoking in the house – there is no smoking inside under the lease
• The state of the house overall is beyond disgusting – the owner saw a rat in the kitchen!
• There are only 5 occupants authorized under the lease – At least 7 mattresses / beds were noted
• There are other concerns also.
The tenancy agreement does not end until early 2012. Real Estate Excellence is drafting suggested action to take in this situation.
If you are a Member of Real Estate Excellence and require information and education about the tenancy database law in Queensland plus best practice on this matter (and any other Real Estate Industry matter), please contact Stacey Holt. This information was published on the 25th July 2011.
(c) Real Estate Excellence 2011 www.realestateexcellence.com.au
July 24, 2011
Inviting the tenant to the final inspection (QLD)
The Property Agents and Motor Dealers Act Code of Conduct for Real Estate Agents and Property Managers is the legislation which requires property managers to take reasonable steps to invite the tenant to the final inspection and to provide a reasonable opportunity for the tenants to go back to the property to do any final cleaning or other matter that may have been missed upon vacating.
As there are two separate legislation for this procedure (the RTRA Act and the PAMD Act), there should be sound understanding of the requirements for tenants and agents.
Refer to the relevant sections below in relation to Agents and the PAMD Act;
39 Final inspection of rental property (PAMD Real Estate Agent Code of Conduct)
(1) A real estate agent managing a rental property must take
reasonable steps to ensure that any final inspection of the
property, on vacation of the property, is conducted in the
presence of the customer.
(2) However, subsection (1) does not apply if the agent
reasonably believes the agent’s life or physical safety may be
endangered by conducting the inspection in the presence of
the customer.
(3) If the final inspection discloses a thing to be done, including
cleaning, for which the real estate agent has reason to believe
the customer is responsible, the agent must give the customer
a reasonable opportunity to attend to the thing.
(4) This section does not apply to a customer renting premises if
the right of occupancy of the premises was given for holiday
purposes.
34 Final inspection of lots in a building complex (PAMD Resident Letting Agents Code of Conduct)
(1) A restricted letting agent collecting rents from a customer for
lots in a building complex must take reasonable steps to
ensure that any final inspection of the lots, on vacation of the
lots, is conducted in the presence of the customer.
(2) However, subsection (1) does not apply if the agent
reasonably believes the agent’s life or physical safety may be
3 For the lessor’s right of entry see the Residential Tenancies Act 1994, sections 109
(Grounds for entry), 110 (Notice of entry) and 111 (General qualifications about
entry). For vacation of premises to which a periodic tenancy applies see section 160
of that Act (Notice to leave if premises being sold).
(3) If the final inspection discloses a thing to be done, including
cleaning, for which the agent has reason to believe the
customer is responsible, the agent must give the customer a
reasonable opportunity to attend to the thing.
(4) This section does not apply to a customer renting premises if
the right of occupancy of the premises was given for holiday
purposes.
Tenant’s obligations of how they are required to leave the property upon handover are covered under the RTRA Act. Agents generally cannot charge the tenant rent (on behalf of the lessor) after they have vacated if they have to go back to attend to any matters such as cleaning; however there has been QCAT decision which has granted compensation for rent to be paid in this situation.
If you are a Platinum Elite, Gold Priority, or Elite Professional Individual Member of Real Estate Excellence and require more best practice advice on this matter such as tenants compensation for rent charging after vacating (or any other industry matter), please contact Stacey Holt.
This information is current as at 24th July 2011
July 16, 2011
Tenancy sign up CD - Queensland
Real Estate Excellence is excited to announce a new service; a tenancy sign up CD to be played on a computer or laptop with sound as a .wmv file. The presentation is in a video format and runs for approximatetly 25 minutes. This service is vital for Licensees and Property Managers; saving a great deal of time for property managers but also excellence for risk management and evidence of what the tenant was advised when the tenancy commenced. Consistency of systems especially for sign up procedures is paramount for Industry.
The presentation covers the key tenancy documents required to commence a tenancy in Queensland such as the Form 18a, General Tenancy Agreement, the RTA Form 17a Information Statement, the RTA Form 1a entry condition report and the bond lodgment process.
Other key matters such as tenant insurance, smoke alarms, rent payments and maintenance is also discussed. For more information, please refer below. A FREE example is available to view.
Other key matters such as tenant insurance, smoke alarms, rent payments and maintenance is also
Investment Proposal for Services and more information can be found at
http://www.realestateexcellence.com.au/component/docman/cat_view/36-qld-compliance-and-best-practice/26-property-management-information?orderby=dmdate_published
(c) Real Estate Excellence Academy July 2011
www.realestateexcellence.com.au
stacey.holt@realestateexcellence.com.au
The presentation covers the key tenancy documents required to commence a tenancy in Queensland such as the Form 18a, General Tenancy Agreement, the RTA Form 17a Information Statement, the RTA Form 1a entry condition report and the bond lodgment process.
Other key matters such as tenant insurance, smoke alarms, rent payments and maintenance is also discussed. For more information, please refer below. A FREE example is available to view.
Other key matters such as tenant insurance, smoke alarms, rent payments and maintenance is also
Investment Proposal for Services and more information can be found at
http://www.realestateexcellence.com.au/component/docman/cat_view/36-qld-compliance-and-best-practice/26-property-management-information?orderby=dmdate_published
(c) Real Estate Excellence Academy July 2011
www.realestateexcellence.com.au
stacey.holt@realestateexcellence.com.au
July 11, 2011
Payment of Rent by Electronic Transaction
Section 86 of the RTRA Act (Qld) sets out when rent is deemed to be paid when the tenant pays electronically. Effectively if the tenant can prove when they paid rent, that day is deemed to be the day in which the rent is paid.
86 Payment of rent by electronic transaction
(1) This section applies—
(a) if a tenant effects an electronic transaction to pay rent to
the account of the lessor or lessor’s agent on a day; and
(b) does not take any action to defer the payment to the
lessor’s or lessors agent’s account to a later day.
(2) Payment is taken to be received by the lessor or lessor’s agent
on the day the tenant effects the electronic transaction.
(3) Subsection (2) applies even if, because of circumstances
beyond the tenant’s control, the payment to the lessor’s or
lessors agent’s account happens on a later day.
Example—
The tenant uses BPay to authorise payment of rent to be debited to the
tenant’s account on a Wednesday. However, the financial institution,
because of its internal arrangements, does not actually debit the tenant’s
account and credit the lessor’s or lessors agent’s account until the next
day. The rent payment is taken to have been received by the lessor or
lessor’s agent on the Wednesday.
This information is current as at 11th July 2011.
(c) Real Estate Excellence provides general Real Estate Best Practice Advice and Serviceswww.realestateexcellence.com.au
Future Property Agents Act Update (QLD)
Whilst no one in the Industry would be overly disappointed that the new Act has not commenced given the costs to businesses when such change occurs; a lot of industry are frustrated as to the sudden request from Government in regards to calling for submissions yet again on the Acts. Submissions are due on the 20th July 2011. Real Estate Excellence will be writing a submission on behalf of Members and the Industry in general.
There is great confusion as to what is actually happening. Real Estate Excellence has written today to the Deputy Premier and Minister for Fair Trading Mr Paul Lucas asking for clarification in regards to our industry’s future legislation and requested more information.
Real Estate Excellence will provide updates to Members in coming days and weeks; when information comes to hand. The Mid July Member Update is due out later this week. If you are not a Financial Member of Real Estate Excellence, and would like more information, simply email Stacey Holt. Bronze Agency Membership is only $11 per week including GST – there are five membership options.
This information is current as at 11th July 2011.
To review the bills, visit www.parliament.qld.gov.au
Thank you to ADL www.adlsoftware.com.au who late last week sent an email out to their clients and the industry to bring the matter to our attention.
July 6, 2011
Most readers and practitioners know that the current PAMD Form 20a (soon to be changed with the future Property Agents Act) is made of a combination of statute and contractual law; meaning of course that section 133 of the PAMD Act currently (section 76 of the future Property Agents Act) requires that appointments with clients (lessors and sellers) must be in writing and must be in the approved form. (Section 134 currently and section 77 in the future Act).
(c) Real Estate Excellence provides General Real Estate Agency Best Practice Advice and Services this information is current as at 6th July 2011
The attachments commonly referred to the schedule and terms and conditions of the PAMD Form 20a (and 22a) are contractual law based; meaning the law doesn’t say we have to use those pages however it is best practice and for sound risk management that we do as an industry.
In relation to terminating management agreements, it depends on the actual agreement, refer to current term 4.2 (page 2). This term commonly refers to the terms and conditions which depend on what form provider that your agency uses for the attachment and terms. It is commonly no less than 30 days’ notice and no more than 90 days’ notice. The term can be negotiated between the parties. Some agreements allow for the maximum 90 days however this may appear as an unfair contract term law given the new laws that commenced federally on July 1 2010 in this regard.
If you require more advice on this matter (or any other agency matter), or let only managements or multiple listing managements, and your agency is a Platinum Elite, Gold Priority Agency Member OR a Professional Elite Individual Member please contact Stacey Holt for best practice advice.
July 5, 2011
What happens to declined tenancy applications?
Under the Federal Privacy Act there is a requirement to disclose how information is kept and stored and what will be done with people's personal information that is collected.
In the case of applications for tenancy that are not accepted, most agencies have a policy that they shred documents or dispose of them in appropriate paper waste privacy bins within 4 weeks of application (or some other time frame). The prospective tenant whose application was not successful must be aware of this policy under the Privacy Act. An example of compliance is to have a disclosure on the agency application form about the privacy policy and/or you could advise the tenant when you phone them to decline their application. At the stage of disclosure upon non acceptance, the tenant should be given an opportunity to retrieve their personal information prior to disposal.
In the case of applications for tenancy that are not accepted, most agencies have a policy that they shred documents or dispose of them in appropriate paper waste privacy bins within 4 weeks of application (or some other time frame). The prospective tenant whose application was not successful must be aware of this policy under the Privacy Act. An example of compliance is to have a disclosure on the agency application form about the privacy policy and/or you could advise the tenant when you phone them to decline their application. At the stage of disclosure upon non acceptance, the tenant should be given an opportunity to retrieve their personal information prior to disposal.
The best adage is "if it is not in writing, it doesn't exist" - agencies cannot go wrong with this policy.
If you are a Platinum Elite, Gold Priority Agency Member OR a Professional Elite Individual Member and require more best practice advice on this matter or any other agency best practice matter, please contact Stacey Holt.
(c) Real Estate Excellence Academy provides General Real Estate Agency Best Practice Advice and Services only. www.realestateexcellence.com.au
July 1, 2011
Property Management Risk Management and Best Practice
Please find below some questions recently requested for best practice advice from a Real Estate Excellence Platinum Elite Member – the best practice advice responses will be provided in the Mid July Real Estate Excellence Member Update. If Members require the answers to these questions prior to the Mid July Member Update, simply email Stacey Holt and request. Thank you.
1. If a landlord breaks their management with another agency and comes across to us, and their existing tenant is in arrears by 5 plus weeks, does the previous agency need to follow through to try and recoup or do we have to take that on. (The tenant is also looking to break their lease on the grounds of hardship?
2. What happens when a tenant moves into a property and maintenance issues arise and then the landlord doesn’t want to fix them or takes their time in attending to the problems, and then the tenant says I want a rent reduction dating back to the beginning of their lease and the landlord says no. How would you recommend I handle this?
3. Would you recommend it to be best practice to take photos of the house at the time of completing an entry condition report and again at exit for proof should anything go wrong? Is it legal.. .would a Tribunal look at them or could they be deemed to have been altered given the photos were taken with a digital camera?
4. We have a few properties on our books where we are charging the tenants excess water as the owners have said they water wise. Is this sufficient or do we need a plumber to issue a certificate? If so, how should we handle the properties that don’t have certificates in place and have been charged water today?
5. End of Month – Can end of month be done on the first day the following month I.e. that is we will do ours tomorrow (which is what we normally do) or do we actually have to do them on the last business day of the month?
6. I have a landlord whose home is approximately 30 years and they have a veranda with a railing (photo attached) which wouldn’t comply with today’s standards (did back then). We have tenants with small children; one child crawled through on to the roof of carport. I have put all this in writing to him to have it fixed immediately. He has asked for a handyman to go round and put a rail down the bottom so a child couldn’t crawl through - this would no doubt fix that problem, however my concerns are that this could then allow a child to easily climb over. The handyman went around but won’t do what he has asked because his licence etc. will be at risk. The owner doesn’t want to spend any more on the home i) because he can’t afford to and ii) to be fair does address maintenance issues as they arise but he doesn’t feel he should fix it since it was legal when they built the home. 20 other properties in the area have verandas like his and he raised his children there with no problems. He also says the tenant took the property with the railing the way they are and also asked isn’t it her responsibility to supervise her children. I sympathise with him but feel I need to give him notice. However, he has asked the tenant put in writing her concerns. Can I have her breach the landlord?
(c) Real Estate Excellence Academy Pty Ltd provides Best Practice General Real Estate Advice and Services - www.realestateexcellence.com.au
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