Yesterday a coroner's inquest began into the tragic death of a baby at a rental property. The tragedy is difficult to comprehend and my thoughts and prayers are with ALL involved.
From a professional aspect, the tragedy hits home as to why Property Managers must attend so promptly to any maintenance or matters that they become aware of. In my many years of agency practice, and particularly the last ten years in agency risk and advisory roles, there are too many occasions where property managers are faced with the challenging task of educating and negotiating with owners of investment property who will not spend money on their investment.
Not only is there statutory general obligations imposed on investors in Australia to maintain their properties to ensure they are fit to live in, in good repair, safe etc, there is of course the real side of this story; and that is the worst case scenario. Someone could get seriously hurt, or worse a child dies.
This blog does not purport to comment on the inquest, merely a general observation of the industry in recent years. Finances are tougher for most but investors need to understand they must factor in the costs of maintenance as part of their investment. Property Managers also need to educate their investors from day one of this requirement. Namely advise landlords of their legislative requirements plus the risk element. This would extend to advising investors to put aside certain funds to attend to day to day maintenance and other matters that happen from time to time such as hot water systems etc.
In reality, dealing with maintenance issues on rental property should not be as difficult as it is for some. However, the reality is that it is. Investors out there having a go and supplying housing that is desperately needed in most areas however doing so on a shoe string budget. Property Managers are trying to educate, communicate and negotiate with tenants and landlords of both rights and obligations and too often being caught in the middle and blamed. Tenants are also frustrated that maintenance is not being carried out.
The 'buck' generally stops with investors; they are solely responsible for their property. Agents and Property Managers who allow investors to disregard their legislative obligations run the risk of loss of reputation in the market place plus the risk management element in the event of injury and being accused of contributory negligence.
I know the frustration; I was a property manager for many years, and a tenant and am also a property investor as well.
I have been for many years a Risk advisor/trainer and have seen too many good agents get caught up in situations that they should never have allowed. Isn't hindsight amazing.... maybe it is time to cull the risk properties and move on...
www.realestateexcellence.com.au
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