Finally our query is:

Can the Property Manager change the agreement without our approval and without notifying us of this change? If they can change if what, if any, notification do they need to give us?

A: If you would like to move into a property and the tenants are on a periodic tenancy (month to month) as the fixed term agreement has expired then you just need to give the tenants at least 2 months notice in writing by issuing a form 12.

As per page 10 of the management agreement under The Lessor Authorises The Agent:

8.3 to let the Property, and if necessary from time to time to re-let the Property, for a rental that is in accordance with the instructions of the Lessor or in the absence of specific instructions, for a rental which is reasonably obtainable.

The property manager should always seek your instructions first. I would recommend that you speak with the property manager and ask her to try and negotiate with the tenants to vacate in January as per your request as the lease agreement can be terminated if both parties are agreeable. The agency may need to offer the tenants some sort of incentive to vacate early.

A: Under the Residential Tenancies and Rooming Accommodation Act 2008 it just stipulates under section 185 the Lessor’s obligations – the lessor must ensure any law dealing with issues about the health or safety of persons using or entering the premises is complied with.

There is nothing in the legislation which directly relates to installing a temperature control on an exisiting hot water system however it has just been passed that if any hot water system is installed in a new house or relocated from its present position in a Queensland property there must be a tempering valve installed. Hot Water Systems must heat the water to a temperature over 60 degrees celsius to prevent growth of legionnaires bacteria. A tempering valve will reduce the temperature of the water to 50 degrees celsius maximum delivered to your taps. Hot Water at 60 degrees celsius will cause a major burn in 1 second as opposed to hot water at 50 degrees celsius which will cause a major burn in 5 minutes.

My advice would be to notify your landlord or property manager of the situation and request that a tempering valve be installed, generally an arrangement can be made between the two parties. If you are not satisfied with the outcome then you coule try involving the RTA’s Dispute Resolution Service, this service is free of charge. The RTA’s conciliators will try to help resolve the dispute between yourself and the managing agent generally over the phone.  To obtain a Dispute Resolution Request (Form 16) you can collect this from Australia Post outlets in Queensland or from the RTA website.

A: Under the Residential Tenancies and Rooming Accommodation Act 2008 it just stipulates under section 185 the Lessor’s obligations – the lessor must ensure any law dealing with issues about the health or safety of persons using or entering the premises is complied with.

For any major repairs such as plumbing and electrical work you must have a license to complete these repairs. It is against the law for you to attempt these repairs. In regards to minor repairs such as changing light bulbs you are allowed to repair these items yourself if you feel comfortable with completing these repairs but you should investigate your insurance policy to see if you are covered if you were to have an accident and fall off a ladder whilst changing light bulb as you may not be covered. You also need to keep in mind that generally most insurance companies will not cover you for any loss or damage which occurs as a result of the landlord carrying out any repairs at their investment property.  

We recommend using a licensed contractor to repair all maintenance at an investment property as you should be able to claim this as a tax deduction and you will also have a record and copies of all invoices and the contractor must provide your property manager with all of the general liability insurance and worker’s compensation prior to receiving a work order from the property manager to avoid any issues in the case of an accident. 

In regards to smoke alarm inspections  a landlord is able to carry out maintenance within the provisions of the fire detection licence personally to the value of $1100 that is (i.e. clearing off cobwebs, dust etc), testing (press the test button), installing alarms & battery replacements without the need for a Licence. An owner can give compliance under Australian Standards but we always recommend that you appoint the services of a Licensed BSA Contractor or ESO Contractor to perform this service.

Also, the day we moved in the toilet wasnt working which we chased up with a plumber because it took them over 2 days and with no communicationn back to us. Also, a bedroom door was supposed to be repaired and it still has not. What is my next action and what rights do i have?

A: Thank you for your query. You have done the right thing by notifying your agent of any maintenance in writing. This particular issue where water is leaking from the unit above into your unit also involves the body corporate and the owner or managing agent of the unit above. The tenant’s rights pertaining to this issue is that the lessor/agent:

 Provides premises that are fit to live in and in a good state of repair; maintains the property, carrying out repairs as necessary during the tenancy; 

If you are unable to resolve the outstanding maintenance issues directly with you property manager then I would suggest that you involve the RTA’s Dispute Resolution Service, this service is free of charge. The RTA’s conciliators will try to help resolve the dispute between yourself and the managing agent generally over the phone.  To obtain a Dispute Resolution Request (Form 16) you can collect this from Australia Post outlets in Queensland or from the RTA website.

If your attempts at conciliation are unsuccessful another option is to issue your agent with a remedy breach (form 11). The lessor/agent is then responsible for arranging for the repairs to be carried out within a reasonable time.

Matusik Snapshot 455 – Rental outlook

NEW Hot Water System Laws from January 1 20101

Investors should assess the net return and compare it to the average returns available on other properties when deciding whether to proceed.

Too low a return may mean that alternative investments should be reviewed, while a very high relative yield may mean there is an accompanying risk factor that’s higher than normal, PK Property Search and Negotiators advises.

 Areas that produce lower yields predominately have a higher capital gain, which might be the ultimate aim.

 The yield is calculated by starting with the purchase price. This is the denominator. The numerator is your net yearly income.

To figure out the net income you take your yearly gross rent and subtract your outgoings. Outgoings for residential properties include management fees paid to the letting agent, council and water rates for the year, estimated repairs, maintenance and strata levies and land tax if applicable.

You should set aside a yearly amount for repairs and maintenance, since big expenses occur periodically and not necessarily yearly.

When investing in property plan to hold the property a minimum of five years. This accounts for economic cycles and changing conditions.

Written By: PK Property Search and Negotiators

Source : Australian Property Investor (October 2009)

1. Make your property attractive to good tenants

“A rental property that’s well presented and easy to maintain is more likely to attract good quality tenants,” Majda says. “Tenants are also more likely to take pride in a well-presented property and treat it as if it’s their own. Nobody wants to live in a house that has shabby carpets, an unruly garden and is in need of repair.”

2. Appoint a property manager

“Property managers have experience in screening prospective tenants and know which questions to ask them,” Majda advises. “They also have access to databases that list tenants who have defaulted on rental payments, maliciously damaged a property or been evicted.”

3. Inspect the property regularly

“Regular property inspections can help landlords to identify potential issues,” Majda notes.

“If a tenant is causing damage to a property and regular inspections aren’t being held, the damage may go unnoticed and be more costly to fix later on. “The best way to do this is with the help of a property manager who should conduct an inspection around every three to six months and provide you with a written report.”

4. Obtain landlord insurance

“Tailored landlord insurance provides a safety net for landlords if their tenant does the wrong thing and maliciously damages their property or stops paying the rent,” Majda says. “Unfortunately even the best tenant can accidentally damage a property or fall behind in their rent. Landlords should choose a comprehensive and secure policy that covers them against malicious and accidental damage as well as loss of rental income if the tenant absconds or leaves a property unable to be re-let while damages are repaired. “The policy should also provide cover if a court orders a tenant’s eviction or terminates the rental agreement due to tenant hardship. “An insurance policy that covers these specific risks can assist landlords to safeguard their investment and ensure they continue to receive a steady flow of rental income.”

Source : Australian Property Investor (October 2009)