Tuesday, February 28, 2012

A usual day in Property Management

9:00am - Get into work and start computer up. Check to see what has appeared in your in tray since you were last here. Sort out the crap and put the important stuff somewhere where you can deal with it later. Do all this while taking phone calls that come in and seeing people who have come to the office to see you.

9:10am - Delete all the spam from your inbox, and start making your way through the real emails. Responding where required and making notes of things you need to get to later. Do all this while taking phone calls that come in and seeing people who have come to the office to see you.

9:30am - Return phone calls that you missed while you were out of the office. Make notes of any jobs that this creates. Do all this while taking phone calls that come in and seeing people who have come to the office to see you.

10:00am - check to see who's behind on their rent and text, email, send letters our call them to find out when it should be coming in. If there's any one who is substantially behind, call the landlord to update them on what's happening. Do all this while taking phone calls that come in and seeing people who have come to the office to see you.

10:30am - Go through applications that have come in and either call, email our fax for reference requests. Give all applications that are either incomplete or have been filled out incorrectly back to the receptionist so she can call the applicants back and tell them that we do need answers for all of the questions on the forms, not just some of them. If there are any suitable applicants try and contact the landlord to get them approved. Send text messages or call any of the dodgy applications to let them know they've been declined. Put aside any applications that are waiting on return phone calls. Do all this while taking phone calls that come in and seeing people who have come to the office to see you.

11:30am - Call landlords about repairs that need to be done on their properties, argue with them that while TV is not considered an essential service, the tenant rented a property with television reception, and therefore they need to get the antenna fixed so it works again. Also explain to them that you use your tradespeople because you've found that they are reliable and reasonably priced, and no you don't feel comfortable getting their nephew to do it for half the price. Agree with them that owning a rental property is supposed to be an investment, but point out that most investments also cost money, and they should have expected repairs when they bought it. Tell them you really don't have time to go over to the property to check to make sure the leaking tap they've reported hasn't been intentionally damaged, but your plumber would let you know that anyway. Enforce that just because their neighbour once stopped their hose from leaking, doesn't make him a licensed plumber, and he's really no better then the nephew. Agree to call them back to let them know how much the repair cost and what the problem was.

Action all repairs that you can by calling emailing or faxing the trades people. Do all this while taking phone calls that come in and seeing people who have come to the office to see you.

12:00pm - Check through all final inspections that were carried out the previous day and call the tenant to inform them what needs to be done, such as cleaning, carpet cleaning, lawns and gardens, damage, outstanding water accounts, missing keys and outstanding rent. Explain that you're sorry they believe the place looks better now then when they moved in, but according to the condition report that they had for 7 days back when they first moved in, there were no stains on the carpets, the walls weren't all grubby, the kitchen was clean, the lawns and gardens were done, and there were no holes in the walls. Email them copies of photos you took from the beginning of the tenancy proving this to be the case. Agree to meet them at the property to show them what cleaning was missed. Schedule it for later in the week. Calk the landlord to keep them updated. Do all this while taking phone calls that come in and seeing people who have come to the office to see you.

12:30pm - Print off your calender, and collect the required keys for all afternoon appointments. Do all this while taking phone calls that come in and seeing people who have come to the office to see you.

12:45pm - Leave the office for your afternoon appointments, first one is at 1:00pm.

1:00pm - Your appointments usually start around this time, and you try and spend only 10-15 minutes at each property, using the last 15-20 minutes of the half hour to get to the next property, which is usually over the other side of town. Answer all the same questions at each property; Q - "What do I do now?" A - "If you're interested in applying for the property pop into the office to pick up an application form, answer all questions and include copies of ID and proof of income, then we'll process it for you." Q - "does the property allow pets?" A - "if you have a good application, the landlord will be less likely to say no to a dog or cat." Q - "how long does the application process take?" A - "that depends, if your references are easy to get in touch with then it can take maybe 3 business days, but if we have trouble getting in touch with any one, it takes a lot longer." Q - "Is the owner planning on putting the property up for sale?" A - "They haven't said anything to me about it, but peoples conditions can change at any time, so I'm not sure what could happen down the track." Q - "What happens if I move in and the house sells?" A - "You would still have the property for the length of your lease, regardless of whether the property sells, after your lease is up they would either give you 30 days notice to vacate, or if the new owners are investors then you wood stay on at the property." Etc.

Do all this while taking and returning phone calls that you've missed.

5:30pm - Go home. Remember to leave your work behind you at this time so you can get some rest and prepare to do it all again tomorrow.

**note** On top of your daily calendar, you also need to include a 2 hour meeting once a week, 3 hours of routine inspections twice a week, and any ingoing or outgoing inspections that are required, which take approximately 1 hour each.

Thursday, December 8, 2011

Carpet Cleaning Misconceptions

Under the new NSW Residential Tenancies Act terms requiring a tenant to have the carpet professionally cleaned or to pay for the cost of having the carpet cleaned are prohibited  unless of course the tenant has been allowed to keep a pet at the property.

These requirements came into effect on 31 January 2011, as part of the new tenancy laws. Before that, many tenancy agreements stated that the tenant had to pay for professional carpet cleaning, even though this was not supported by the law. The new laws have made the situation a lot clearer.

However, this does not mean that the tenant cannot be made to pay for cleaning of stained or dirtied carpet.

Tenants are required to keep the premises reasonably clean and to leave the premises in the same condition as they were at the start of the tenancy, other than fair wear and tear. Where a tenant moves out leaving the carpet dirty, for example by spilling red wine, or high traffic areas, the landlord can ask the tenant to pay for cleaning or can make a claim on the tenant’s bond. However, where a tenant regularly vacuums and looks after the carpet and leaves it clean, there is no automatic right to ask the tenant to pay for professional cleaning.

Also, while trying not to go all religious on you, the Catholic's Golden Rule - Do unto others, as you would have done to yourself - I feel applies in this instance. Personally I like to know that the carpets have been professionally steam cleaned before I move into a property - you know, hygene and all that?? - So I will always make sure the carpets are professionally steam cleaned when I leave a property.

It's just a nice thing to do...

"Don’t let your tenancy go away with you"

As an added note to my last post here is an excerpt from the most recent Office of Fair Trading Newsletter;


With the holiday season fast approaching, many tenants may be planning to visit friends or relatives or go on an extended holiday. It is good practice to notify the landlord or agent if you are going to be away for an extended period. This ensures that the landlord or agent does not think you have abandoned the premises if they can’t contact you or if your rent payments stop for some reason.

In a recent case, a tenant did not advise the agent that she would be away for several months. There was a banking problem with the tenant’s automatic rent payments and her rent fell behind without her knowledge. The landlord thought she had abandoned the premises and considered terminating the tenancy.

In this case it was simply a misunderstanding that fortunately was able to be sorted out, but it could have resulted in the tenancy being ended while the tenant was away. Just like you might tell the neighbour to keep an eye on your place and empty the mail while you are away, it is a good idea to let the landlord or agent know when you will be absent from your rental property for several weeks or months. It is also good practice to regularly check your bank statements while you are away to make sure your rent payments are continuing to be made.

The full newsletter can be found here; http://node3.enews.fairtrading.nsw.gov.au/online/18209992-33.html

Tuesday, December 6, 2011

In case you didn't realise - Christmas is on again!

Every year it's not uncommon to hear the phrase 'I couldn't pay my rent, I had to buy the kids presents'.

Now I love Christmas. I love giving gifts and receiving gifts and absolutely everything that goes with Christmas, so please don't think me a Scrooge when I say what I'm about to say...

If you can't afford both rent and Christmas presents then maybe you should have a 'home made' Christmas this year. Seriously, what's more important? A dozen more cheap plastic toys or a roof over the kid's heads?

Christmas comes every year. Every year! I know this year has just flown by, but when we started it, you knew at the end of it there would be a Christmas. If there's any possibility that it's going to be a choice between Christmas and rent then you really should be putting a little money away every week to help out. It doesn't sneak up on you, it's the same day every year, it should not come as a surprise. Be prepared!

As a side note, your car registration/insurance comes every year too. Expect it!

Wednesday, October 5, 2011

Busy, busy, busy...

Holy dooley, I can't believe I let this blog fall so behind!

I'm going to try and get some more content as soon as possible.

Thursday, August 18, 2011

Kyle Sandilands and his rented mansion

Do I have to say out loud what I really think of Kyle Sandilands?




He’s in the public eye, and seems to be constantly doing stupid things. Maybe it’s time he stepped back from the lime light, so if he wants to continue acting the way he does no one needs to know about it.

I won’t go in to all of the acts he’s done that leave me shaking my head, but naturally being the topic of this blog, I will talk about his latest performance.

Kyle has just vacated this $20,000 odd a month property, citing that there were ongoing repairs that weren’t being attended to. The main repair in question being that the septic tank is blocked.





Maintenance is definitely something that all landlords need to take care of as quickly as possible, and if what Mr. Sandilands is saying is correct, then he absolutely has every right to complain. However he has gone down the wrong – and immature – pathway of stopping the rent.


You must always pay your rent for your property. Always. Regardless of what else may be going on, the rent should be constant. It is not up to you to decide whether you deserve a rent reduction, it is up to a Tribunal Member, or even before that you might be able to negotiate a deduction with your landlord, but it’s not something you can just decide.


What Mr. Sandilands is claiming though, is that the property is no longer livable, so he handed the keys back in. Now there is such a thing as a frustrated lease, which literally means if the house is not livable, then there really can’t be a lease on it. So he may have something here, but all the time that you’re living in a property you need to be paying rent for it. According to the landlord Mr. Sandilands owes over $70,000, that’s a lot of unpaid rent, but could also include cleaning or damages that needed to be fixed up after he vacated.


Mr. Symington, the landlord agreed that there had been maintenance issues at the property – what property doesn’t? He also went as far as saying "There were problems with the septic system and its pump - but they were also contributed to because items such as tampons and baby wipes had been put down the toilet which they shouldn't have been.'' I sure hope he can prove that, as that will not only mean that Mr. Sandilands is responsible for the remainder of his lease, but also for the repair to the septic system.


I don’t have all the facts, however I hope that when this matter goes to tribunal next week that he is required to pay his back rent. He should be let out of his lease if the problems he’s reported exist, however he needs to learn that all the while he was in possession of the property, he owes money for it.

Wednesday, August 17, 2011

NSW Water Efficiency

As of January 31st 2011, a new set of legislation came into place in NSW. One main part to the new legislation was the requirement that houses be water efficient, if the landlord wanted the tenant to pay for their water usage.

Below is an excerpt from the NSW office of fair trading's newsletter The LetterBox which details these changes.

Paying for water charges

Landlords can pass on water usage charges to tenants provided all the following minimum criteria have been met:

The rental premises must be individually metered (or water is delivered by vehicle, such as those with water tanks on rural properties) and the charges must not exceed the amount billed for water usage by the water supplier and the rental premises must meet required 'water efficiency' standards.

A rental property is considered water efficient if it meets these standards:

Internal cold water taps and single mixer taps for kitchen sinks and bathroom hand basins must have a maximum flow rate of nine litres per minute.

Showerheads must have a maximum flow rate of nine litres per minute.

No leaking taps anywhere on the premises at the start of the tenancy or when the other water efficiency measures are installed.

If a landlord and tenant are entering a new agreement after 31 January 2011 the landlord needs to ensure the premises are water efficient in order to pass on water usage charges.

For all tenancies in place before 31 January 2011, the landlord has 12 months to make the premises water efficient. Tenants can continue to be asked to pay water usage charges during the transitional period even if the premises are not water efficient. After 31 January 2012, tenants can only be asked to pay if the premises have been made water efficient.


Answers to your water efficiency questions

Do I have to install water efficiency devices?

No. The installation of water efficiency devices is optional, however the Residential Tenancies Act 2010 states that if you wish to pass water usage charges on to tenants in a rental property, the property must be water efficient which includes the installation of water saving devices.

Are all water efficiency devices the same?

No. Water efficiency devices are given a WELS star rating based on the average flow rate that the device produces as defined in AS/NZS 6400. More information can be found on the WELS website (www.waterrating.gov.au).

How much notice do I need to give to my tenant to access the property to install the water efficiency measures?

You can access the premises at any time with the tenant’s consent. Otherwise, the law requires you to give the tenant at least 2 days notice to have access to carry out maintenance, such as installing water saving devices.

How often do I need to check the water efficiency measures?

The water efficiency measures should be installed at the start of the tenancy and noted on the ingoing condition report for the premises. You do not need to check the water efficiency devices during the tenancy.

If the existing tenant moves out, you will need to ensure the premises are water efficient when a new tenant moves in if you want to keep charging for water usage. If the previous tenant has removed the water efficiency devices, landlords are able to make a claim on their bond to recover the cost of reinstalling the devices.

My tenant does not want flow restrictors and is happy to sign a document saying they will pay for water. Can I do that?

No. Under the tenancy laws, a landlord cannot pass on water usage charges directly to their tenant unless the property has the required water efficiency measures in place for showerheads and certain taps. It may be useful to discuss the water efficiency requirements with your tenant and highlight the water and energy savings they will benefit from, once the property is water efficient. There are also many different types of flow restrictors you can install on your showerheads so that the quality of the water flow is not reduced.

Will water saving devices work with all hot water heaters?

No. Older style gravity fed hot water heaters (generally in the roof) do not provide adequate water pressure to enable a water saving shower device to work at its optimum and some instantaneous hot water heaters are also not compatible. Newer continuous flow models may work with water saving shower devices as most work with lower minimum flow requirements. If you are unsure, it is recommended that a plumber be consulted to advise whether a water saving device is suitable for each application before installation.

What if a water saving device doesn’t work with my hot water heater?

You are not required to install the water saving device. However, you are not able to pass on any water usage charges to a tenant if the property is not water efficient in accordance with the Residential Tenancies Act 2010.

How can I make the premises water efficient if the water saving device doesn’t work with my hot water heater?

You should consult a qualified plumber for advice. Options may include exchanging the hot water heater to a unit that is compatible with water saving devices.

If a landlord decides not to make their property water efficient, is the agent acting unlawfully in sending water invoices to the tenant knowing the property does not comply?

The agent in these circumstances may be in breach of the professional rules of conduct under the Property, Stock and Business Agents Regulation 2003. The rules state that an agent must deal honestly, fairly and professionally with all parties involved in a property transaction. Failing to comply with the rules of conduct can attract penalties and result in disciplinary action against the agent.

I was told I would have to pay for water usage but to date, have not been given a bill. Where do I stand if in nine months’ time I am handed a bill that is six months old?

You only have to pay the water usage if the landlord or agent gives you a copy of the part of the water bill setting out the water usage charges payable - or some other evidence showing how your usage was calculated - within 3 months of getting the bill.

Is the landlord able to install water efficient taps by themselves?

Yes. The landlord can install the water efficiency measures themselves or use a licensed plumber.

Do the premises have to be certified water efficient by a licensed plumber?

No. There is no requirement to provide a report from a plumber or the water supply authority certifying that the property is water efficient. The presence of the water efficiency measures needs to be noted on the ingoing condition report for the premises. It may also help to keep:

Invoices or file notes of work done
Receipts for any items bought
Packaging, warranties or instruction manuals.

Are there any rebates or Government bodies that offer a reduced rate for installing water efficiency measures?

Some local councils and water authorities offer rebates or other assistance to people who install devices which save on water and energy consumption and assist the environment. Some local councils run free showerhead exchange days and distribute Do-It-Yourself Water saving kits which include flow regulators and tap aerators. Contact your local council or water authority to inquire about assistance available in your area.

If the property has a bath, but no shower, do the bath taps have to be changed?

No. The water efficiency measures do not apply to bathtub taps.

Do the water efficiency measures apply to all internal taps, or only to some taps? Do they apply to external taps?

The water efficiency measures apply to showerheads and to internal cold water taps for the kitchen sink and bathroom hand basin. The requirements do not apply to other taps in the premises such as bathtub taps, laundry taps, outside taps for the garden, or taps for washing machines and dishwashers.

Who pays for the cost of installing water efficient taps? The tenant or the landlord?

The landlord is responsible for the cost of making the premises water efficient.


I think on the whole that this is a good idea, however there are a few issues I feel are a bit rough. For example, if your property has a gravity fed hot water system, but still lets out more then 9L per minute through the shower head, then you either need to install a new hot water system, or you can't charge for water, because flow restrictors can not be fitted to shower heads that feed from a gravity fed HWS...

I know this isn't much of an issue, as it is rare that gravity fed systems will have enough pressure to produce more then 9 litres of water per minute, however it does seem like it's a bit unreasonable.

What are your thoughts?