What a difference a year makes!

At the start of 2020, Australia was recovering from the bushfires and preparing for a business-as-usual year. 

Then COVID-19 hit and the real estate industry went into crisis mode. With people losing their jobs left, right and centre, sales agents and property managers alike were forced into a rapid step-change. 

While many areas of our industry have generally been fortunate to recover from the setback, last year taught us the importance of being prepared for anything. 

Take a look at some of the issues a property manager may face and how to be prevent them from causing more trouble than they need to: 

Fire, flood or extreme weather

Rental properties seem to have a knack for being affected by disasters, and always at the worst possible time. From a faulty toaster oven to a tree falling down, such occurrences make life difficult for all involved. 

Of course, prevention is better than cure. Regular inspections will help minimise the risk of major catastrophes caused by faulty electrical wiring or dying trees. It is also essential to follow the law when it comes to things like fire alarm and gas heater safety checks. 

On another note, property managers should maintain a good relationship with tenants so they feel comfortable raising any concerns they may have about the property. An uncaring tenant is more likely to ignore an issue until it becomes a major problem. 

The next step is to prevent major costs if something does go wrong. Double check with property owners to see if they have landlord’s insurance and with tenants to make sure the items they keep in the home are covered. For as little as $50 or $60 per month, they can be insured in the event of fire, flood or storm damage. 

To respond to a disaster, create a protocol for your staff to follow. This will include having access to round-the-clock repair people and quick, shareable access to any necessary forms which will speed up a claims process. There should also be a plan in place if emergency accommodation is required. 

Hardship and domestic violence

The COVID outbreak resulted in an avalanche of desperate phone calls to property managers from renters who had lost their jobs. It reminded everyone how important it is to have policies in place which cover financial difficulty.

Create guidelines for your team to follow which include speaking with property owners about how flexible they can be in order to keep a good tenant. 

Another important aspect is to find a way to keep your staff up to date; regulations change frequently in difficult times and they need to be well-informed. Perhaps designate responsibility to one person and they can filter information to the rest of the team.

When it comes to domestic violence, there are measures in place to help victims feel secure in their homes. For example, according to consumer.vic.gov.au, a renter does not need permission from a property owner to change locks if they have a safety notice or intervention order protecting them. 

Renters may also be able to apply to break a fixed lease early in the event of domestic violence.
There is a lot to take in on this subject so it will pay to ensure your staff are educated about issues like property damage caused by domestic violence and installing alarms on the property. 

Work from home risks

With so many people using their home as an office, renters are looking for wi-fi ready homes with good soundproofing and quiet neighbours. 

Here’s what Consumer Affairs Victoria has to say about telephone and internet connections: 

If the property is new or has been unoccupied for some time, it may not have a line connection. Tenants should check this before they sign the lease. If a line connection is required, tenants and landlords may negotiate who pays for this. In deciding who pays, considerations include whether:

• there were phone outlets in the property when the tenant first inspected it

• the landlord or agent informed tenants that the property did not have a telephone line connection

• a line connection was mentioned in the rental advertisement or is referred to in the lease.

Be clear in your contracts about issues like this so negotiating is easier. 

Another thing to think about is the difference between working from home by sitting at a desk answering emails or running a commercial business which will cause disruptions to neighbours. Again, guidelines and clear explanations of which business-related activities cross the line are important to clarify with prospective tenants. 

With all these issues, the more focused your agency is on prevention and risk management, the less disruption they will cause. What’s more, you will create a more confident team and a more valuable rent roll.

Spend some time each year looking at the ‘what ifs’ so your team and clients aren’t overwhelmed by a difficult situation. 

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