We are all aware that litigation is common in our society today, being influenced by the litigious attitudes.

With newspaper, television and internet media commonly making us aware of litigation cases for the purposes of maximising readership and selling advertising space, the result of that exposure is that litigation has become more commonplace.

Property management is in no way immune to litigation and one area of concern is injury to tenants and/or their visitors or damage to property caused by tradespeople. As professional agents, it is our duty to ensure that all tradespeople are screened not only for their qualifications, but also to ensure that they have adequate public liability insurance.

However, we do come across landlords from time to time who wish to contract their own tradespeople, not being aware if they have adequate qualifications or the right insurance cover should something go wrong. Where a landlord chooses to do this, we are unable to deal with these preferred tradespeople directly because we have no way of knowing they are qualified or insured to perform the work required, leaving us exposed to risk.

So, because of this we insist with our clients that all work be performed by OUR qualified tradespeople, specially selected for their quality and reasonable rates.

Have you ever answered a call from your Property Manager or Renter with “How much this time? What’s next?”

You’re not alone!

Imagine the renter’s side… “Another call to report another thing broken down!” That may not be the case for your property but this is how some renters feel.

We encourage you to be proactive with maintenance. Between tenancies is the perfect time. Have a tradesperson inspect your property to repair and report on what may need fixing in the future. A friendly call to your renter to see if there is something you can do, instead of them phoning can make a big difference. A little forward planning can help alleviate stress of another call and keep your renters happy.

Naturally we can assist with any of these tasks, so please let us know should you want us to contract a tradesperson to give you a detailed report of what might need repairing and renovating.

A Fixed Term Tenancy Agreement is an agreement that has a set or fixed expiry date and cannot be extended past that date. There are no continuation or carry over provisions on such agreements.

A Fixed Term Agreement occurs commonly when a property is on the market for sale or the owner intends to re-occupy the property at a specified date.

It is vital that all parties remain aware that notice is required to deliver vacant possession at the end of the fixed term.

Please be assured that we will act accordingly to ensure that the tenancy is ended on the specified date.

What happens when the fixed term of the tenancy agreement ends?

There is a common misconception regarding the expiration of a fixed term tenancy agreement that the renter can vacate without notice or the renter provider can gain possession on that date.

For a tenancy to be legally ended the tenancy is to be terminated in accordance with tenancy legislation.

In order for a tenancy to be terminated by either party the following needs to occur:

1) The agent/renter provider gives the renter notice.
2) The renter gives the agent notice.
3) The property is abandoned.
4) The Tribunal orders vacant possession.

Tenancy legislation clearly details the notice required by either party to end the tenancy depending on the reason, such as the end of a fixed term, periodic agreement, property sold or renter provider moving into the property.

If you require vacant possession it is important that you discuss this with us. Please do not assume that as the agreement has expired or is about to expire that you can get immediate possession of the property. Proper notice is to be served upon the renter to ensure that you can legally gain possession of the property with undue delay.

Now is the time to check the extent of insurance cover that you have on your investment property. Does your policy include building, contents, strata (in the case of a unit), legal liability, loss of rent and malicious damage?

It is wise to insure your investment in the event of a natural disaster, storm damage, defaulting renter or fire. Most investment unit owners are under the impression that the owners corporation insures their unit. This is not the case!

The body corporate insurance extends to common areas only, therefore you should insure all contents such as paint, window coverings and light fittings.

We highly recommend to purchase renter provider contents & public liability insurance as a separate policy to the Owners Corporation insurance cover. Renter Provider contents insurance includes carpets, curtains, blinds, light fittings and electrical appliances not actually wired into your apartments & any furniture you may provide.

The policy also provides legal liability protection for any third party property which may occur at your apartment & for which you may be legally responsible. Loss of rent through the Strata cover is available only if there is an insurable event and hence do not rely on the loss of rent within the Owners Corporation policy.

As your managing agent we can assist you in sourcing a renter provider insurance policy that suits your needs. For a modest premium, renter provider insurance cover gives you peace of mind that your investment property is adequately insured.

Regardless of the type of hot water system you use, here is a number of common-sense ways to reduce the amount of hot water you use and pay for:

• Install a low-flow shower head for a satisfying shower using the minimum amount of water.
• Take shorter showers. Use a shower timer to encourage your household to take four-minute showers.
• Wash your clothes in cold water where possible.
• Fix dripping taps.
• Insulate exposed hot water pipes with closed-cell rubber insulation, available from hardware stores.
• Service and maintain your hot water system using a licensed tradesperson according to the manufacturer’s instructions.
• Plan for your hot water system’s replacement, especially if it’s more than ten years old. Choose a hot water system to suit your household’s needs.

Choose an energy efficient hot water system

The type of hot water system you have makes a big difference to your energy bills. There are a range of energy efficient hot water heaters to choose from, depending on your fuel source, household size, budget and preference for instantaneous or storage systems. Choose the right hot water system for your needs and use it wisely, and you can save energy and lower your hot water costs.

Electric hot water systems

Electric storage hot water systems – the most common type in Victoria – heat water with an element in the bottom of the unit and store it in an insulated tank, ready for use throughout the day. Electric hot water systems are the cheapest to buy but the most expensive to run.

Gas hot water systems

A high efficiency gas hot water system is one of the most economical types of water heaters, when operated on natural gas. Gas and electricity prices are rising, so if you have a conventional gas or electric hot water system that needs replacing, consider a more efficient gas or solar hot water system.

Solar hot water systems

A solar hot water system is more expensive to buy and install, but the running costs will be significantly lower. The cheapest and most environmentally friendly type of water heating to run is natural gas-boosted solar.

Heat-pump water heaters

A heat-pump water heater uses heat from the surrounding air to heat water in a storage tank. A heat-pump water heater uses much less electricity than an electric storage water heater, but are generally better suited to warmer climates.

When it comes to property management, it is good to have the right understanding and expectation. Here are some common areas that can cause conflict and upset with property owners and investors:

General ‘Wear and Tear’- Understand that every person who rents your property will live differently to you. ‘Wear and Tear’ is the allowance of some ‘bumps and scratches’ to paintwork, woodwork and other items. We also must be aware of the lifespan given to several key items in the property. For example, carpets are seen to have a 10 year lifespan, requiring replacement after this time. Paintwork is given 5 years and so on. If these items are damaged, the age of the item is taken into account at the time the damage occurs.

The Rent Arrears Process – we believe in a zero tolerance approach to unpaid rent! Tough, early intervention is the key to ensure that rent arrears do not get out of hand. However, every now and then, despite all our best efforts a renter may for whatever reason not pay and the situation is headed for eviction. In most of these cases, the outstanding rent & associated expenses, is greater than the bond amount and Renter Providers can incur substantial financial loss. For this reason, we strongly urge renter providers to be covered by quality renter provider insurance (speak to your property manager for more details).

Repairs and Maintenance – everything that is provided as part of the tenancy, whether inside or outside, on the grounds or in a shed, should be provided in good working order. If one of these items breaks down, it must be repaired within a reasonable time frame. If it cannot be repaired, it must be replaced quickly. By acting quickly, you are saving yourself from drawn out and expensive court proceedings, should a renter have a case against you.

To minimise the time to get repairs/replacements, we do recommend a limit be authorised to allow us to get the repair sorted as soon as possible. Only contacting you if the likely expense exceeds your written limit authority.

These factors allow you, as the property owner and investor to have the right expectations from the start, helping you to enjoy your valuable property investment more!

While you may be tempted to manage your Geelong investment property yourself, here are a few reasons why you should hire a property manager instead:
 
(1) We find you thoroughly screened renters. We have access to databases and strict screening processes in place to help find renters who take care of your property and pay their rent on time.
 
(2) Our goal is the shortest vacancy period possible for your property. We monitor your renter’s lease and their possible end date, communicating with them to see if they’ll renew or if we need to start marketing the property to new potential renters.
 
(3) We save you from lots of stress. That’s right – we shoulder all the worry so you don’t have to. From vetting a renter to ensuring your property stays in top condition, your investment is our focus at all times.
 
These are only a few reasons why a property manager is the right choice for your investment property. You can learn more about what we offer our renter providers here.