Take a look at some practical steps you can take to ensure your real estate agency is compliant with the new residential tenancy laws.
If your real estate agency manages property, you will be impacted by the new residential tenancy laws which have been introduced in 2021.
Every property on your rent roll needs to be 100% compliant with the new legislation or you and the property owners you represent face penalties.
The changes will affect the way tenancies are started and ended and the requirements of condition reports. Amongst the new regulations are updated rental minimum standards and clarification of the timeframes for urgent repairs.
Even the terminology which should now be used has been updated. For example, a landlord is now a rental provider, tenants are now renters, tenancy agreements are referred to as rental agreements, and rooming house owners are called rooming house operators.
You can see the full list of changes here: https://www.consumer.vic.gov.au/housing/renting/changes-to-renting-laws/all-changes-in-place-from-july-2020
As a busy real estate agency, it can be tempting to try to accommodate all these changes and ensure compliance ‘on the fly’ in order to save time and money. However, taking this approach is risky for three reasons:
You and your team may not fully understand the legislation and the impacts of not being compliant
You may lack the resources you need to fully educate your property owner clients
Your property managers may end up being completely swamped because they are trying to keep up with the new requirements but not equipped to do so
All these could result in not only a lack of compliance but in damage to your agency’s reputation. You face the loss of clients and revenue as well as good staff.
Residential tenancy compliance: avoid the DIY approach
Now is not the time for a ‘she’ll be right’ attitude.
If you want to give your clients the best so your agency thrives, spend some time to create a clear strategy to manage this transition. Some ideas to make life easier for you, your clients and your team include:
Outsource to an expert
Companies including Property Compliance Victoria have been established to help real estate agencies deal with this year’s new regulations.
These businesses provide education, templates and support so you can communicate with your clients, upskill your team and implement the necessary changes.
With the help of templates and checklists, your team will find it easier to absorb the changes to their workflow. Your business will have better records and if something does go wrong there will be evidence of your team’s efforts to be as compliant as possible.
2. Put someone in charge
Nominate a rental legislation expert on your team. Give them the time and resources they need to understand all the changes and create an effective communication plan.
This person will need to educate your property managers and create materials such as checklists and progress report templates. They can establish a workflow which will make the process more seamless.
Structure this person’s KPIs around compliance so they are able to focus and help set the right standards for your property management team.
3. Make time for learning
It will definitely help to have someone take ownership of compliance within your agency but you do need everyone to be equally informed.
An in-person information day or a series of pre-recorded webinars can help bring everyone up to speed. This can include a session for your property owner clients. The new laws provide a good opportunity to engage with them and strengthen personal connections.
If you don’t want to have insurance voided, to risk a large fine or to have an agency which has been blacklisted, it is important to give the new renting laws the right amount of time and attention. However, by doing so, you are creating a more efficient and robust business which has excellent growth potential.
BDH Solutions are rent-roll agents with over 40 years experience in connecting the right vendor with the right purchaser. Download our information booklet on the new Victorian Minimum Living Standards Legislation