New regulations in Victoria are set to impact all stakeholders, from renters and investors to real estate agents and property managers.
The new legislation and residential tenancies regulations which come into effect in Victoria on March 29th 2021 are causing consternation in the property management sector of the industry.
Anecdotally, 1 in 5 property managers are considering leaving or have left the industry. Meanwhile, real estate agency leaders are struggling to understand what needs to be done, how and by when.
While the legislation itself is relatively clear cut, how the changes will be managed, who will be monitoring non-compliance and what the impact might be are all up in the air for many Agencies.
If you are an agency principle, you need to be proactive to ensure you don’t end up with a rent roll which is healthy in numbers but unstable when it comes to property managers.
Here are some tips to help you keep your rent roll profitable as the industry recovers from COVID and adapts to the new legislation.
Stay informed
As an agency principal, you don’t need to be across every detail but you do need to be aware of what is happening when it comes to rental reform.
Take a look at Consumer Affairs Victoria to see a summary of the changes as a starting point. You’ll find it here: https://www.consumer.vic.gov.au/housing/renting/changes-to-renting-laws/all-changes-in-place-from-july-2020
Make an appointment to catch up with your Head of Property Management or your senior PMs to go over the reforms together. If you haven’t already, ask them to start creating checklists and reviewing the properties on your rent roll.
You may wish to find an external provider who specialises in this area. For a small fee, they can streamline the process for your agency to be up to date and compliant. They are also completely across the changes and will be able to explain everything to you.
Educate your team
Now you have an idea of the changes, you need to make sure your entire team is up to date. You could do this through documentation, information sessions or even a video training course, if you have the time and resources to put into making one.
Incorporating this learning into KPIs is one way to ensure your team is motivated to understand the new legislation.
Once your team is up to speed, you will need to educate the clients whose properties you manage. They need to be aware not only of the changes but the implications if they are not compliant, for example ending up on a blacklist of landlords.
Sending letters and emails, and making phone calls will be essential so property owners don’t claim you failed to keep them informed.
Take a systematic approach
New rules such as providing free keys for each renter, paying excessive utility bills which are attributable to a hidden fault (such as a leaking water pipe), and no longer being able to issue a ‘no specified reason’ notice to vacate could all impact your clients’ approach to their rental property.
There are dozens of i’s to dot and t’s to cross. Some changes could involve upgrading a rental property, and some may require updates to paperwork. For example, rental providers must comply with prescribed requirements for keeping and producing records of gas and electrical safety checks conducted at the property.
It is impossible to be clear on everything and stay compliant without a checklist. Having your staff work through a list and keep records on what is up to date, what is ‘in progress’ and what is yet to be compliant is essential.
When you have records, if things don’t meet the new requirements you will at least have better evidence of why this is the case.
Being up to date with legislative changes will help you and your property owner clients as you will collectively avoid fines, penalties and damage to your reputation.
Helping your staff by taking the time to educate yourself and them will give them more confidence. If they have the right paperwork and systems you will minimise the risk of losing them to another agency or leaving the industry entirely as a result of this transition.
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