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Routine inspections: The biggest mistakes PMs make

1. Doing too many inspections in a day

Routine inspections can be tiring. Once you’ve done a few in a day, this can result in corners being cut and shortcuts taken. Understand your personal energy levels and be realistic about your limit. Keep the number of inspections that you conduct in a row at a level that works for you. If you get tired quickly, adjust your schedule so you’re not doing a whole day of them in a row.

2. Beware the ‘desk’ inspection attitude!

Too many property managers trade thoroughness for complacency just to get through as quickly as possible and don’t access all rooms inside and all areas outside. This is a prime opportunity to look out for issues like unauthorised pets, suspicious warning signs and concerning repair and damage issues.

Once this habit begins, it is likely to become permanent until a situation blows up when something obvious gets missed. Where does this attitude end? The slippery slope of human nature kicks in.

This becomes the ‘Kitchen Inspection,’ where we walk into the kitchen and say “Well, it’s a waste of time me being here,” and walk out. This then turns into the ‘Front Door Inspection’ (knock, ask for the repair request form, thank the tenant and leave), then to the ‘Kerb-side Inspection’ (park, look and drive off), to the ‘Drive-by Inspection’ (you don’t even stop) and then to the most lazy and negligent inspection of all – the ‘Desk Inspection!’

It happens, I’ve seen this occur too many times! Don’t let it happen to you.

3. Not referring to the ingoing condition report or photos

The property needs to be maintained as it was found (less fair wear and tear) and how can you check this properly without referring to the ingoing condition report and photos?

It is easy to check the outside by looking at the initial inspection photos first. Referring to previous inspections on an iPad makes this process so much easier these days, or simply take the file with you to check the photos on record.

4. Not referring to or being aware of special conditions

When you conduct an inspection without being aware if the property is ‘no pets’, or ‘garage is not for tenant use’ or some other special tenancy condition specific to that property, issues can be overlooked and missed that will blow up later.

This can typically happen when the inspecting property manager is relieving or is a replacement property manager not making themselves aware of the special conditions set at tenancy start.

There’s nothing more incompetent than a property manager complimenting a tenant on their dog when they were not even aware it should not have been there in the first place!

5. Not following up on reported repairs

How many property managers get the sense of ‘deja vu’ at inspections, having reported the very same issue three months before but nothing got done?

When an owner gets an email (with all the other hundreds of emails they get) it can quickly get overlooked. Call the owner several days after the inspection to discuss what should be done and get their instructions.

Using ‘screen recording’ to create a video message from your computer recording what you say and see, and send it to them as a link they can watch (like a YouTube clip, but kept private). See screencast-o-matic.com for this easy-to-use, cheap software.

6. Not inspecting typical outside issues

When the average property manager spends only 20 minutes at a routine inspection, things like eaves, facias, outside sills, guttering/drop pipes, flyscreens and ridge capping don’t even warrant a glimpse.

If you have no time for this, or you say ‘that’s not my job’ you need to ensure you’ve arranged for a tradesperson to go to the property for a repairs and maintenance inspection every 6-12 months. If you don’t, this issue WILL come back and bite you!

7. Not thanking the tenant

Imagine this: the tenant is given notice of inspection and then spends hours and hours cleaning the home and making sure the outside is perfect. As they work during the day, they’re unable to attend the inspection.

The property manager attends, likes what they see and lets the owner know everything is presented really well with NO FEEDBACK to the tenant left in writing or otherwise?

Heard that one before? You now run the risk of the tenant developing a bad attitude towards you and you’re wondering why they’re a little ‘brief’ with you next time you see them.

Give credit where credit is due and thank your good tenants at EVERY opportunity. They make your life that bit easier. Make sure you’re thankful for that!

8. Not giving written feedback to the tenant

Too many property managers leave no written feedback as to how the tenant has performed, good or otherwise. If you do leave a note, make sure you take a photo or picture as a record and place it on file.

9. Not addressing tenant damage or issues

When you’ve noticed tenant damage, don’t ignore it. Present the issue to the tenant. Leaving or ignoring it will come back and bite you later on if the issue goes to tribunal or court later on. The fact that it was overlooked or ignored and not addressed at that inspection could be the very reason why the tenant wasn’t held responsible for it.

10. Not booking in geographic clusters

When you book in an inspection based on the date (for example 6 weeks after or 3 months after the tenancy start) then you might be spending too much time on the road.

Make sure you book all your inspections as close together geographically, to totally minimise drive time between inspections so you can get the maximum number done. The first inspection might not be exactly in line with your traditional time frames but as long as your promise to owners doesn’t stipulate these time frames exactly, then you can fit them in when you’re doing that area next.

11. Booking in too many inspections

Ever set aside a two or three-hour time block for inspections only to find that you’ve tried to fit too many in or another person has scheduled too many for you?

The number that you can do depends on location, size and structure (2 bedroom apartment as opposed to a 4 bedroom house with a yard/garage), but a good rule to follow is how many can you easily get done in the time slot given, without rushing and compromising on quality and thoroughness, taking into account any properties you need to spend more time at due to unforeseen issues arising that require more attention and inspecting.

12. Not accessing all areas

When a tenant says “sorry, you can’t access the third bedroom because…” or “the garage is locked and my boyfriend has the key and he’s away at the moment” then you need to reschedule and come back to inspect that room or area. Tenants don’t always tell the truth (shock horror!) and they could be disallowing access for devious reasons. Naturally, never walk into a situation that could result in your safety being compromised. Perhaps bring a second person with you next time to look at that area or room if required.

Another tip is to explain at tenant sign-up and have it as a special condition that the tenant is aware that all rooms and areas will be accessed at the inspection, so they’re on notice right from the start.

13. Not ensuring your gadgets are powered up

Ensure that your camera, smart-phone, iPad and other gadgets are adequately charged up for your inspections. A good property manager is prepared at all times.

14. Not re-confirming the inspection beforehand

Just because you’ve advised the tenant that you’re coming with an official notice, you cannot assume that they always remember or that every tenant is aware of the times and dates of inspections at the property.

Send an SMS text a couple of days before to everyone on the lease reminding them of the day and time that you will be there, and even a link to download your checklist again.

15. Being ‘too heavy-handed’

Don’t go on a power trip!

The tenant only needs to keep the property ‘reasonably clean’ and it’s not an army boot camp where everything has to be scrubbed with a toothbrush and shine.

If the house is untidy but generally clean it’s OK, and if the morning dishes are not done or the beds not made don’t trip out. If something is dirty and can affect the rental property in any way then address it with the tenant.

One of the best lines a tenant applying for a property with me once said, “I asked my last property manager how presentable the property should be for a routine inspection, and she replied ‘Just imagine the Queen is coming around!’”. Fail!

16. Sending out an untrained person to do the inspection

Why send a person to do a routine inspection when they’ve received no training in this task? This means that big issues will be missed and poor tenant performance will get overlooked. Recipe for a disaster in the making!

17. Overlooking poor tenant performance

If the carpets are dirty, the walls grubby and other areas unacceptable, don’t think “We can address this when the tenant leaves”. When the tenant vacates, their bond may already be taken up with overdue rent, so you may not even have a bond to use.

Here are a couple of sayings that have stuck with me – ‘If the tenant absconded tomorrow, what will they leave for me to clean up today?’ and ‘Poor routine inspection today, poor vacate inspection tomorrow’. If it isn’t up to scratch, address it today!

18. Not ensuring your keys are up to date

When the tenant is not home and you’re allowed to access the property but you cannot because you haven’t updated the keys or kept a check on them. Big waste of time.

19. Not taking adequate photos

We need to be careful here because no tribunal/court in Australia will be happy with you taking photos of tenant belongings but you can still take photos of the grounds front and back, any repairs required and also other issues and concerns. Your owners want to see not just read what’s going on. Take photos and don’t leave your clients guessing!

20. Not respecting the tenant’s home

Let’s face it, tenants are still treated as second-class citizens in property management (in general). It really hasn’t changed.

It’s not just a rental property to them and it’s definitely not an investment or a money maker. To the tenant, it’s their home, their safe place for them and their family.

Treat them with the respect they deserve, don’t blow them off. Attend to their queries and concerns promptly. The tenant is your partner in the rental property and without them, you don’t have a job!

 

Source: https://www.rent.com.au/agents/blog/inspection-mistakes/

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Neighbourhood Watch Week

October 3rd – 9th is Neighbourhood Watch Week. Many of our owners and tenants are parents, so this October, we thought we’d give you a little more information on this truly great cause.

NHW Week aims to raise public awareness of NHW and the benefits of belonging to a local Neighbourhood Watch group.

The aim is to increase membership of and encourage participation in Neighbourhood Watch programs throughout Australia.

NHW’s aims are:

  • To strengthen our resilience against crime
  • To work together with Police and the community
  • To feel safer in our homes and within our local communities and;
  • To make our communities better places to live

If you are interested in participating in your local Neighbourhood Watch and ensuring your kids can run around your neighbourhood safely this summer, you might be interested in NHW Connect Digital.

NHW Connect Digital

NHW Connect is a digital, community lead safety and awareness program, run by everyday people in their immediate communities. People just like you!

Neighbourhood Watch groups work together to learn how to reduce crime as well as to increase the safety, security and quality of life for everyone in your local neighbourhood.

Join NHW Connect’s online community app can allow you to:

  • Connect with your local neighbourhood groups and chat to one another
  • Feel more connected within your community
  • Prevent crime and reduce fear of crime
  • Work together for safer, connected and inclusive communities

 

For more information visit https://nhwa.com.au/ and  https://nhwconnect.com.au/ to join the online safety community.

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The Best Type of House in Rain-Heavy Areas in Australia

The impact of heavy rains and its subsequent flooding can be devastating to human life and property. With climate change, flood disasters have now become common more than ever. This is why it is wise to factor in the location and the type of house when buying. But what if the location where your house is sitting in had been flooded in recent years?

It could turn out to be more expensive to relocate than to rebuild to make your home flood-proof. Australia has a recurring problem with flooding because people are still building in the path of floods and population growth continues unabated in low-lying floodplains.

Houses for flood-prone areas

Homeowners living in flood zone can either flood-proof their homes or build their properties high on stilts or stumps.

Many houses across Australia – from colonial homes to Queensland bungalows – are elevated off the ground. There are many practical reasons to build off the ground: to allow houses to be built on uneven or hilly ground and to counter flooding in flood-prone areas.

Houses on stilts were common until 1980s. Thereafter, there was a population boom that prompted for bigger houses. The stilts were removed to build below – additional bedrooms, new living areas, etc. At the same time, climate change happened and the rains seem not so heavy anymore.

Australians forgot that they live in a subtropical climate and that rains and monsoons are part of the landscape. They got used to living in dry conditions that they’d forgotten to build for wet conditions. Buildings, home and shops built close to the ground sprouted and more and more dwellings were being constructed on worst lands.

If you are building a house from scratch, it is worth considering a resilient house design. This requires resilient materials and construction. This type of house can still be occupied during a flood event, when utilities such as water, gas and electricity may be cut off. The house design is conceived to be self-sufficient in electricity, water and food. Food would be the responsibility of the occupants, obviously, but the house itself should be a passive solar design featuring potable water and bottled gas storage facilities.

Flood-proofing your house

If either elevating your home off the ground or building a flood-resilient house aren’t options you can consider at the moment, you can still do minor works to make your house flood-proof.

Dry flood-proofing: This involves installing floodgates to keep water out of your house. The base of doors and vents in brickwork will be sealed using these removable barriers.

Wet flood-proofing: This method requires allowing water in and out as easily as possible using tiled floors and water-resistant plaster boards. This would be helpful especially during massive floods where walls can be damaged by water buildup.

Buy the right electrical appliances: As much as possible pick electrical appliances that can easily be lifted to higher locations, or can be kept in high locations. For example, choosing a front-loading washing machine over a top-loader as the former can be installed on a shelf.

One major storm, or one major downpour, can easily cause damage to property. And in light of major floodings in Brisbane and other parts of Australia, building or re-building on wet conditions is worthy of a serious consideration.

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Mould In A Rental Property: Whose Responsibility?

It’s a grey area (or black or green) and the cause of mould is a commonly asked question when it comes to maintenance of a rental property.

Mould comes in all shapes, forms, and places in a house or unit, and it can be more wide spread depending on the season and where you are located in Queensland.

Mould in the home can usually be found in damp, dark or steamy areas, e.g. bathrooms or kitchens, cluttered storage areas, recently flooded or wet areas, and areas with poor ventilation.

Mould in a regular shower recess could result from a persistent leak or be a matter of domestic hygiene on the tenant’s part, whereas mould on the living room ceiling might indicate a structural problem or lack of ventilation, and therefore be a matter for the dwelling’s property manager or owner.

In the aftermath of severe weather events there’s ample opportunity for mould to take hold of water-damaged properties.

With winter here, hot showers become the norm so tenants are advised to ensure proper ventilation to prevent the mould from blooming.

What Should I Do If I Find Mould?

If mould occurs, it should be dealt with thoroughly before it becomes a bigger issue.

When mould spores are present in large quantities, they can present a health hazard to humans, potentially causing allergic reactions and respiratory problems.

Because there’s no hard and fast rule about mould, keeping an open mind about the source and cause should help lead to a satisfactory conclusion.

If need be, a mould specialist should be called to the property to ascertain the cause.

Although the Residential Tenancies and Rooming Accommodation Act 2008 does not make specific reference to mould, it does refer to the general standard of the property at the start and end of the tenancy, and how it should be maintained throughout the tenancy.

If mould is a problem at a rental property, all parties should be willing to communicate and find a mutually agreeable approach to deal with the issue in a timely manner.

For questions about your rental property, or tips, advice and other enquiries about property management, you can head over to our blog section or contact the Arrive team on 61 733 473 737.

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New Smoke Alarm Legislation: What Does It Mean For You?

After many deaths and house fires the government has decided to put in place legislation to help home owners with early detection of fires in their house.  The new legislation comes into play at three vital dates:

  1. 1st January 2017 all new houses and signifigantly renovated houses with building approvals after 1st January 2017 must comply.
  2. 1st January 2022 all sold houses and rental properties must comply
  3. 1st January 2027 all other domestic residence

What’s Required

Smoke alarms are required on each level of the house, in each bedroom and located in egress paths.  The smoke alarms must be 240V photo electric and interconnected with all other smoke alarms.  There is an exception with existing houses they can be battery operated as long as it is a photo electric smoke alarm with 10yr sealed lithium battery and still interlinked.

Are All Smoke Alarms the Same?

Glad you asked you asked, it’s the same as usual here you get what you pay for in most circumstances.  The way we look at it is that you are buying a smoke alarm that you want to last 10years (max life of any detector) so it pays to get quality over price.  We generally use Brooks smoke alarms as they have a long history in the market, quality manufacturing and support and are also widely used in Europe.

If you want to book one of our trained technicians to take a look at your alarms contact your specialist property management company in Brisbane at ARRIVE  – hello@arrivehome.com.au  1300 913 820.

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Why Now Is The Best Time To Be A Renter In Brisbane

NOW is the best time to rent in Brisbane with the city fast becoming a renter’s paradise, according to the latest REA Group Property Demand Index.

While southern capitals saw record rental demand in March, Brisbane’s housing oversupply has seen it become a renter’s paradise with the number of tenants unable to keep up with the growth in homes available for rent.

(Image source: REA Group)

Among the freebies being thrown in by owners to sweeten the deal for potential tenants were one to four weeks worth of free rent in some properties with others offering things like free gym membership.

The Index named Queensland as “the country’s most concerning market” after buyer demand declined slightly over the month (-0.2 per cent for all dwellings) but there was “a larger drop in rental demand on realestate.com.au” (-1.7 per cent).

Somewhat surprisingly given the publicity surrounding the supply of units in the market, the rent index for houses saw a higher drop in Queensland (-1.8 per cent) than units (-1.5 per cent).

“Brisbane in particular is seeing high levels of development and dropping rental demand suggests that the market in Queensland will continue to take some time to absorb the supply,” the report said.

High levels of unit supply, particularly in Brisbane, was having a more negative impact on the market but there was some reason for investors to still hope, given developers had slowed down on the rollout of planned developments.

“On the positive side, the pipeline of new apartments in Brisbane remains low, which will give the market time to absorb current stock.”

Nerida Conisbee, REA Group Chief Economist said cooling measures pushed through by APRA and banks continuing to increase rates independently of the RBA had so far failed to stem skyrocketing prices in Sydney and Melbourne.

She said there was yet to be any impact on consumer demand for property on realestate.com.au.

“Borrowers are shrugging off rising interest rates and restrictions to lending, continuing to search for property on realestate.com.au,” she said.

“With the impacts from these measures likely to take some time to flow through, people can expect to see continued property price increases throughout April.

“On realestate.com.au we’ve seen a 25 per cent increase in demand year-on-year from consumers looking for property. Increasing demand in the market is driving record property prices.

“Concerns about affordability will continue to gather pace in 2017, with the record price growth in 2016 set to continue.”

Article originally from Real Estate Australia

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My First-Time Renting Guide

Two women takling

All you need to know when renting your first property

After making the decision it’s time to move out of home, there are some important things that you need to know.

What do I need to apply for my first rental property?

So, you’ve never rented before.  But don’t worry, everyone must start somewhere.  There are a few things that you can do to make this step a little easier.

Property Managers have a duty to ensure that you can afford the rent and that the property is the right one for you.

You will be required to provide verification of income and photo ID, along with proof of address and most likely personal references and professional referees.

In most newcomer’s circumstances, you may need to ask Mum, Dad or a relative, to go guarantor or co-sign the lease.
Talk to the property manager should you have any queries or concerns.

Man writing

What happens when my application is approved?

Congratulations, your application is approved.  There are several steps you will need to get through prior to being handed the keys.   The first step will require you to sign documentation.

The Tenancy Agreement

Your Tenancy Agreement is an important document.  It is a legal contract between you as the Tenant and the Lessor/Rental Agency.

By signing the lease agreement, you are legally committing to what is stated on the agreement, including any special terms which should be agreed to in advance.

Make sure you read and understand the agreement before signing and always keep a copy of it in a safe place.

The Bond Lodgement

In most states a rental bond is a compulsory requirement by the Lessor/Agent at the commencement of a tenancy agreement.

Your rental bond is lodged with the legislative Authorities and acts as security for the landlord or owner in case you don’t meet the terms of your lease agreement.

At the end of your agreement the bond amount will be refunded, however, if the property needs cleaning or repairs or if items need to be replaced the landlord or owner may claim some or all the bond.

The amount of the bond is specified in the Tenancy Agreement document.

Woman in front of a computer

What documents should I receive before moving in?

The documentation required to be given to you at the time of sign-up differs slightly from state to state, however, in most cases, the following should apply;

  •  Information booklet relating to renting in your state or territory:
  • Copy of the General Tenancy Agreement
  • Copy of the bond lodgement form
  • Original and copies of the condition report – to be checked, completed and signed, then returned to the office in the required time frame
  • Receipt for initial rent amount, lease fees and bond
  • Photocopy of all keys and remote controls (if any)
  • Emergency contact details

Girl Packing

What is an Entry Condition Report?

The Entry Condition Report is provided to the ingoing resident/lease holders at the beginning of their tenancy start date.  This report outlines the condition of the property at the beginning of your Tenancy.

It is important that you carefully check the condition report and make sure it includes all existing damage or issues with the property.  We suggest taking photos of the property before your move in and provide a copy of these photos to your agent / landlord as record of the properties original condition.

Legislation allows tenants a certain amount of days to check the details completed by the agent/owner on the condition report, to confirm or disagree with those details.

As the condition report, can be used as evidence if there is a dispute about who should pay for cleaning, damage or replacement of missing items at the end of the agreement –make sure you go through it thoroughly.

Make sure both you and the landlord/Agent agree on the contents of the condition report before signing it.

Man and woman talking

How do I prepare for a Routine Inspection?

Couple discussng with real etate agent

Your landlord or real estate agent may carry out a periodic inspection of the property to ensure it is being well cared for and any routine repairs are made. This inspection may include the following:

  • The property is being maintained in a clean and tidy condition.
  • The grounds are being maintained in a clean and tidy condition.
  • The property is not being damaged in any way.
  • There are no more than the number of people specified on the tenancy agreement living at the property.
  • No pets are housed at the property, unless otherwise agreed to.
  • Any maintenance issues identified can be attended to.

There are minimum notice requirements to be given to a tenant prior to a scheduled routine.   This will ensure that you have plenty of time to have a good tidy up beforehand.

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Water Charging

Owners can pass on the full cost of water consumption, provided:

  • the rental property is individually metered and
  • the rental property is water efficient, and
  • the tenancy agreement states the tenant must pay for water consumption

Image of water flowing

Download: RTA Water Fact Sheet

Is my property water compliant?

Rental properties are considered water efficient if certain water fixtures meet the standards listed below.

water fixture standards

The requirement for taps applies only to internal cold water taps that are installed over a hand basin, kitchen sink or laundry trough (including single mixer taps). The requirement does not apply to other taps in the property such as bath tub taps, outside taps for the garden, or taps which supply washing machines or dishwashers. These taps are not required to be water efficient.

Property managers/owners should be able to demonstrate the presence of water efficient fittings with a water compliance certificate, plumbers report or receipts.

What can the tenant be charged for?

the Act*

Fast Facts

  • Rental properties are considered water efficient if certain water fixtures meet standards listed above in the Water efficient property tab.
  • At the start of the tenancy agreement, the property manager/owner and tenant should negotiate arrangements for water charging and the frequency of charges.
  • Property owners or landlords will receive the water bill and should provide their tenants with a copy of water bills or evidence of water consumption to verify the amount to be charged.
  • Tenants must be given 1 month to pay any water bill after receiving the notice from the property manager/owner.

Download: RTA Water Fact Sheet

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Rentvesting: The Secret to Getting into the Property Market

signs for rent or buying

A long-term renter and happy about it.  Have you discovered the secret investing back door – Rentvesting?

There’s nothing more frustrating than to build a dream of owning your own home, get excited when you find a property you fell in love with, only to have your finance specialist utter those heartbreaking words – ‘You can’t afford it!’

Many are left feeling deflated and resigned to renting for the rest of their lives.

However, many others determined to get into the property market are not accepting no for an answer and have discovered a so-called secret back-door to getting into the property market.

It’s called Rentvesting.

Rentvesting is a scenario whereby you remain renting your place of residence and purchase an investment property instead.

Whilst this is not necessarily a solution for everyone, depending on your circumstances, this could be just the ticket you need to get into the property market sooner.

I’m not going to go through all the pros and cons of rentvesting in this article. You can find plenty of articles on this topic if you deem it one worthy of further research. You might also like to add some of your favourite Pro’s or Con’s in the comment below – I welcome your input and experiences. My intention is to introduce this concept to those who desperately want to own their home and have been turned away due to lack of finance affordability. In some cases, by literally a bee’s whisker! If you’re at a loss as to how you could ever own your own home, this could be the answer.

The Advantages of Rentvesting

Let’s look at a few reasons this could be for you…

  1. It could get you into the market sooner. Maybe you have a decent deposit saved up yet, your finance specialist has said you still can’t afford your dream home. By re-jigging the numbers, you could remain renting and purchase a lower priced property receiving healthy rent. This could make all the difference to go from a decline to a bright green approval.
  2. Live where you want to, in the nicest suburbs. Ok, so maybe the dream home is a bit out of your reach for now. Maybe you need to live close to the City for work and travel reasons. This enables you to be figuratively ‘living beyond your means’ without the price-tag.   Still try to keep the costs down, you don’t want to over-commit yourself.
  3. Live and purchase in two different States. Depending on your life-style choices, you might need to live in one State for work purposes but want to buy in another State, maybe because that’s where your family are and where you want to end up in the future or vice versa. Purchase prices and rents are vastly different in each State and in different regions. This can enable you to map out the perfect plan for your current and future situations.
  4. Chase the higher rental yields. When buying an investment property many will tell you to buy without emotion and look at the numbers – you may never ever live there. If you’re happy living in the right suburb whilst renting, now you’re not limited to where you might buy as an investor. Your property expert will be more than excited to show you where the best rental returns are happening on their stock lists. By achieving top rental income, this could push your affordability over the line and start you on your journey as a property owner.
  5. Property investors receive tax benefits. Now that you’re an investor, you are eligible for tax benefits such as depreciation, deductible interest, investment property expense deductions on your tax return. Make sure you engage an excellent accountant (if you haven’t already) so they can set you up to maximise your benefits – the difference can be thousands of dollars each year.

John J Maxwell

 

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