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
Stacey Holt (Real Estate Excellence Academy)
October 18, 2011
October 13, 2011
Real Estate Excellence MID October 2011 Member Update
Welcome to the Mid-October Edition of the Real Estate Excellence Member Update. The Update was emailed to all Members October 13th 2011
Industry Update
Pool Safety Certificates and a Reminder about the Pool Register
Curtain and Blind Laws Update
LICENSEE AND ADMINISTRATION best practice
Auditing Trust Accounts
| Month of licence expiry | Audit period (dd/mm) | Audit report due by end of |
| January | 01/10 - 30/09 | January |
| February | 01/11 - 31/10 | February |
| March | 01/12 - 30/11 | March |
| April | 01/01 - 31/12 | April |
| May | 01/02 - 31/01 | May |
| June | 01/03 - 28/02 | June |
| July | 01/04 - 31/03 | July |
| August | 01/05 - 30/04 | August |
| September | 01/06 - 31/05 | September |
| October | 01/07 - 30/06 | October |
| November | 01/08 - 31/07 | November |
| December | 01/09 - 31/08 | December |
Applying for an extension
Lodging your audit report
Changing an auditorApplying for approval as an auditor
Ceasing to trade
Unused trust accounts
Penalties
Residential SALES best practice
Rental Properties for Sale
Residential PROPERTY MANAGEMENT best practice
| General Questions and Best Practice Response Below are some common questions asked from property managers and best practice responses from Real Estate Excellence that will be of assistance to property managers and licensees. Question How to tackle landlords that want tenants to deal with light bulbs, clean gutters, house washing, trim trees etc. and some dialogue we could use Real Estate Excellence Suggested Response
Question How to tackle routine inspections with tenants who are not keeping the property clean (a lot of them think we are only inspecting for maintenance or damage, and are not looking at how they keep it). Wondering what is best practice here? Is it always worth breaching a tenant for cleaning? Or depending on the extent, is it worth mentioning to the tenants verbally or in writing, is there some dialogue or should this always go in writing regardless of the seriousness of the issue Real Estate Excellence Suggested Response Question Trees and fencing….we are never sure where we stand and are not sure how to convey professionally to a landlord where our responsibility ends and where they need to handle these issues Real Estate Excellence Suggested Response Question How do we cover ourselves with tenants who keep the property in poor condition, don’t pay rent on time but the landlord has instructed us to keep them on? Should we put something in writing regarding this, or some dialogue when dealing with these landlords (who then complain about lack of rent and the condition of the property?) Real Estate Excellence Suggested Response | |||||
| Property Management Resource CD Real Estate Excellence is proud to release a new service. The Property Management Resource CD has over 160 training and resource documents. Substantial Member Discounts are provided as part of this service. For more information, please email Stacey Holt. The following information is included on the CD provided.
The information provided is current as at 10th October 2011. |
Stacey Holt - Director
REAL ESTATE EXCELLENCE ACADEMY PTY LTD www.realestateexcellence.com.au
REAL ESTATE EXCELLENCE ACADEMY PTY LTD www.realestateexcellence.com.au
October 10, 2011
Policies and Procedures Best Practice Guide - Property Management coming soon!
Guide
Queensland
Property Management
| Procedure | Page |
| Appraising Rental Property | |
| Listing presentation | |
| Completing the PAMD Form 20a | |
| Lessor obligations | |
| Listing the property for rent | |
| Showing the property | |
| Completing an entry condition report | |
| Completing and understanding the General Tenancy Agreement | |
| Tenancy applications and processing | |
| Tenancy sign up procedures | |
| Tenant obligations | |
| Issuing of Notices | |
| Bond lodgement | |
| Rent payment methods | |
| Arrears management | |
| Smoke Alarm management | |
| Pool Laws Management | |
| Appointing Contractors and Tradespeople | |
| Routine maintenance | |
| Emergency maintenance | |
| Lease renewals | |
| Rent increases | |
| Bond increases | |
| Break lease | |
| Change of shared tenancy | |
| Tenant requests | |
| Disaster Management | |
| Dispute Resolution during the tenancy | |
| Entry notices | |
| Routine inspections | |
| Reporting to the lessor | |
| Reinspecting property after a routine inspection has been completed | |
| Water | |
| Rental property for Sale | |
| Notice period for Breaches | |
| Ending the tenancy lawfully | |
| Terminating tenancies due to breach of agreement | |
| Urgent Tribunal Applications | |
| Vacating | |
| Bond Refunds | |
| Bond Disputes | |
| Dispute Resolution | |
| Non Urgent Tribunal Applications | |
| Completing Tribunal Documentation | |
| Presenting in Tribunal | |
| Debts owing by tenants | |
| Tenancy Databases | |
| Abandonment | |
| Lost management | |
| Record keeping management | |
| Filing management | |
| Email management | |
| Lessor communication | |
| Tenant communication | |
| Negotiation Tips | |
| Follow up | |
| Best practice completion of RTA documentation | |
| Job Description examples | |
| Time management | |
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