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The REIV has written to the State Treasurer, requesting an urgent change to the process that is currently in place for a commercial landlord to receive the Coronavirus land tax relief.
REIV President Leah Calnan said the current method is overly bureaucratic and greatly disadvantages commercial property owners who have negotiated a rent relief in good faith.
Currently, once commercial rent relief negotiations are completed, the tenant must complete an online form to enable the landlord to apply for land tax relief. Only the tenant can complete this form for the landlord.
Our primary concern is that there are no incentives or consequences for the tenant if they fail or refuse to do this.
The commercial property owner is at the mercy of their tenant to apply for the tax relief promised by the government.
The process is not fair for the landlord and their agent who have, in good faith, negotiated rent reduction for the tenant as per government guidelines but are unable to claim the promised land tax relief because their tenant fails to complete the form.
Ms Calnan emphasised that all stakeholders must be equally supported during this time. It is important to remember that the majority of landlords are mum and dad investors who are doing their best to support tenants impacted by the coronavirus.
 An illustration of the bureaucracy around the process is evidenced by this extract from the State Revenue Office’s website: 
Once you have completed the form online, you need to send it to your landlord. You can download a copy, or email a copy to yourself, which you can then email to your landlord, or send it to them directly by entering their email address on the final page, titled ‘Form Complete’.
The Real Estate Institute of Victoria urgently requests that an alternative process be enabled to ensure landlords are not unduly disadvantaged.
In order to manage the financial impact for both the landlord and the tenant, the rent relief could be only initiated after the form has been submitted or even better, the process scrapped.
Similar process issues are also present in residential rent negotiations. A rent “agreement” should only be submitted when all impacted parties – landlord, tenant and agent have agreed.
The CAV website permits submission by one party where a true agreement may not be in place.
LEAH CALNAN is the REIV President 
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Coronavirus Land Tax relief system not working: REIV's Leah Calnan

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Suppose you have now decided on your property manager, but in the final discussions you find out that the agency hands out keys to prospective tenants.  This would mean for a $50/$100 deposit and a copy of someone’s driver’s licence, that person is entitled to take a set of keys and inspect the property on their own. 
This process has been around for many, many years.  It was around when I first started my career some 18 years ago, and it’s still around now.  Agencies elect to hand out keys for their own reasons, and I am assuming one would be to free up the property manager to do other things. Furthermore, as agencies have always run this procedure – why would they change?
However, isn’t it part of the role of the leasing specialist or property manager to meet prospective tenants and show them through properties? A leasing specialist is a great advantage to a property manager, as he or she is able to meet and greet prospective tenants on behalf of both the property manager and real estate agency, which is truly a fantastic time saver. Plus it’s all a leasing specialist does, so this alone assists with the reduction of an owner’s vacancy period, which can sometimes be rather stressful for an owner. 
Remember anyone can make themselves look fantastic on a tenancy application form – but isn’t it important to meet people? In my opinion, processing tenancy applications is no different to the interview process that businesses operate.  You want to ensure you do everything possible to secure the right person. 
I can certainly appreciate we all lead busy lives, and many people would appreciate the opportunity to meet someone at the property, whether it’s at a private inspection or a general open for inspection. 
Wouldn’t it be much easier to meet the prospective tenant, rather than have them drive to the agent’s office, collect the keys, drive to the property and then drive back to the agent’s office to return the keys and receive  their money back? A 15-minute inspection could turn into an hour round trip – now who has time for that? 
My advice for owners is to consider the “what ifs” about handing out keys?
<ul>
<li>What happens if the keys are not returned?</li>
<li>Who pays for a change of locks on the entire house? Will insurance cover you?</li>
<li>What happens if the new tenant is broken into after they move in due to the intruder using a set of keys?</li>
<li>Does your landlord insurance cover you to hand out keys?</li>
<li>What happens if <a href="https://www.propertyobserver.com.au/residential/absentee-investor-alert-nigerian-scammers-sell-%24410000-house-they-didnt-own/2011081751195" title="Nigerian scammers sell house they didn't own" target="_blank">Nigerian scammers sell your house and whisk the money away to a Chinese bank account</a>? </li>
</ul>
While handing out keys has always been around, perhaps it’s time to see that procedure disappear.
Leah Calnan is the director of <a href="https://www.metropm.com.au/" title="Metro Property Management homepage" target="_blank">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
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Why you should not hand out keys to prospective tenants

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A property manager should be competent to look after all the day-to-day running of the property, from assisting the owner with the review of a tenancy application and subsequent tenant selection to co-ordinating maintenance. The property manager needs to make suggestions on property improvements and updates, pay the outgoings such as council, water and owner corporation accounts, collect the rent and to transfer rent money to the owner. 
He or she should have a good understanding of what the owner expects and be proactive and responsive with clients, not simply pass the problem onto the owner to make a decision. Owners appoint the services of a property manager for advice, experience and to provide direction and recommendations when it comes to making the tough decisions.  As an owner myself, I love nothing more when my property manager emails me with both the problem and solution relating to one of my investment properties – it provides me with confidence. I lead a crazy busy life, so being presented with such solutions ensures this is one less thing I need to think about in my day. 
An example of a good property manager would be someone who regularly completes routine inspections of the property, not only to see what maintenance is currently required but also to suggest what the owner needs to think about for the future. For example, when the current tenants vacate the carpet will likely need to be replaced, or perhaps the gutters need to be cleaned and window frames need repainting in the future. Forward planning is very important for owners because it allows them to budget and therefore they won’t be surprised when the tenants give their notice to vacate and all of a sudden need to find $3,000 to $5,000 to re-carpet the house. 
When looking for a property manager, I recommend investors take a few minutes to speak with someone they are looking at employing and not to base their decision on fees or location alone. Times have changed, and a property manager no longer needs to be around the corner from the property. If you don’t have the time to call, then email them and review the timeframe it takes for a reply. This will give you an excellent indication on a property manager’s communication and time management skills, which are both very important skill sets. 
In regards to qualifications and experience a property manager needs to know a lot of information – which includes the legislation requirements in your state, assisting owners and tenants with budgeting, insurance policies, an understanding of owner corporations, building requirements (which is especially important with so many people buying off the plan) and how to communicate with tradespeople to address maintenance and/or renovation issues. 
Finally in my experience I don’t believe “x” number of years makes a good property manager, as there are some who have been in the industry for 20 years and haven’t attended any type of training since the dawn of time. So when it comes to appointing a property manager to look after your property, look for someone who can think outside the square, who will go the extra mile for you when things go pear-shaped, has a passion for the industry, someone who regularly updates his or her skills and knowledge and is not afraid of technology or change.
Leah Calnan is the director of <a href="https://www.metropm.com.au/" title="Metro Property Management homepage" target="_blank" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
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What to look for in a property manager

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Landlord insurance is like all the other insurance policies we have in our lives, and if you are like me when it comes to renewal time, you always wonder – do I really need it?
Well, as an investor myself I believe it’s a must. Circumstances can change, and the best tenancy can go pear-shaped. Combine that with the crazy weather the country has experienced during the past six to 12 months, and you would be mad not to have the right coverage in place.
Many owners often misunderstand the difference between landlord insurance and building insurance.  A building insurance policy covers the outside of the property and generally it includes public liability for common areas, such as the driveway, etc.
So the outside is covered, but what about the inside?
Landlord insurance has many aspects of cover.  Firstly it has contents, which includes the carpet, light fittings, blinds/curtains, the property’s appliances etc. (Now this "contents" is not to be confused with the contents owned by the tenant, of which they are responsible to cover if they so choose).
Contents is extremely important – remember the Queensland and Victorian floods?  Some of those investors didn’t have a policy in place and the out of pocket expenses will be enormous depending on the severity of the flood or water damage.
Or what about storm damage? Think about if a large gum tree falls in on your roof and the rain ruins the carpet throughout the house.  That's another example of where a landlord insurance policy would cover you.
The other major aspect of cover is loss of rent.  This provides owners with rental income up to X number of weeks.  The best policies on the market allow for 15 weeks loss of rent.  Loss of rent is payable to an owner when tenants stop paying the rent and are subsequently evicted from the property, when they up and leave overnight, in the event the property is not tenantable (i.e. due to flood, fire, etc.) or in the event your tenant dies.
Policies will also provide cover for malicious damage (not fair wear and tear), accidental damage, public liability and legal fees.
Like anything nowadays there are many different policies on the market to choose from. I have worked with some fantastic policies, but I have seen owners incur considerably out-of-pocket expenses due to taking out the wrong policy.
Now don’t forget to look at the excess payable on the policy you are looking at.  Watch out for those policies who charge anything greater than $300 for an excess.
Lastly, talk to your property manager – they work with these policies every day. They know how to lodge the claims, what documents to include, the questions the insurance company will ask and what the anticipated settlement and timeframe will be.
Leah Calnan is the director of <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="https://www.metropm.com.au" title="Metro Property Management homepage" target="_blank">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
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Yes, you really need landlord insurance

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During the leasing period of your property it is extremely important to always be reviewing the marketing, and also your asking rent. Little things can make a big difference, such as having good-quality photographs, including lifestyle photos. Showing prospective tenants the lifestyle a suburb or building can offer them can be a great selling factor. It is best to include a floor plan whenever possible. It’s no longer acceptable to have one photo as your marketing – people expect more nowadays, and how are you ever going to secure a tenant with minimal vacancy without implementing these simple ideas?
Your asking rent too must be reviewed and regularly. Look at what has become available in the area, what other styles of properties are you competing with – are they new, old, etc. Does your property manager make follow-up calls to all prospective tenants who attend their open for inspections or private inspections? What did they like about the property? What didn’t they like? This simple feedback is imperative information for all owners and property managers. If you don’t know there is a problem, how can you fix it?
After all your research you may realise the rent needs to be reduced. This can sometimes be a difficult conversation for some property managers to have, however you need to outline the true cost in the long term.
Isn’t it better to receive some rent rather than no rent? For example, if you are asking $400 per week but the going rate for similar properties appears to be $380 to $390 per week, by reducing your asking rent by $10 per week you will get $390 a week, a much better situation than receiving no income at all.
When you break it up further, that $10 per week equates to $44 per month, which in turn equates to $528 per year. The property would only need to remain vacant for another two weeks, and there goes another $800.As a Property Investor myself I know what I would do.
Leah Calnan is the director of <a title="Metro Property Management homepage" target="_blank" href="https://www.metropm.com.au">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
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Market your property well, and review your asking rent regularly

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Property management is a highly legislated industry, and in order to maintain your own professional credibility and that of the industry, all aspects need to be adhered to at all times.
The current legislation has been in force since 1997 and as times change, technology advances, the legislation too must keep up. In the coming 12 months, we should see a review to Victoria’s Residential Tenancies Act.
That being said, one aspect of the act still astounds me that is not followed and that relates to the refund of bond money.
When a tenant provides 28 days’ notice to vacate and vacates the property, a final inspection must be completed and the bond must be either refunded or an application made to VCAT (Victorian Civil and Administrative Tribunal) within 10 working days.
The normal practice should go something along the following lines:
<ul>
<li>Keys returned</li>
<li>Final inspection completed</li>
<li>Tenant advised of any concerns</li>
<li>Owner advised of any maintenance, repairs, etc.</li>
<li>Opportunity provided to the tenant to return to attend to any matters of concern</li>
<li>If the matter cannot be resolved then an application is made to VCAT to retain the tenants bond under section S417,418 &amp; 419 of the Residential Tenancies Act. </li>
<li>The property manager/agent/landlord is required to provide evidence of any damage, repairs, arrears that should be deducted from the tenants bond. Evidence means photographs, reports from tradespeople, invoices, quotes, condition report (entry and exit) and any other communication or documentation that may be relevant.</li>
</ul>
All this must be arranged and attended to within 10 working days of receiving possession of the property. Communication is the key. Don’t stop talking to the other party, because nine times out of 10 the matter can be negotiated before the VCAT hearing.
Failing to adhere to the legislation could result in fines.
It’s also extremely important that owners understand and receive education on things such as depreciation (and how it’s calculated), the length of a tenancy and most important of all “wear and tear”.  It’s unrealistic for either a property manager or landlord to go to VCAT seeking replacement or compensation of a carpet in a house when the carpet may be 15 years old – depreciation of the carpet must be taken into consideration.
It is not only our legal obligation as property managers, but it is also in everyone’s best interest to ensure that bond is dealt with as soon as possible.
Leah Calnan is the director of <a target="_blank" title="Metro Property Management homepage" href="https://www.metropm.com.au" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
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Bond refunds can be a sticking point

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So you own an investment property or you are just about to buy one, and your friend says: “You don’t need a property manager – save yourself the money and do it yourself. Seriously, how hard can it be?”
It always makes me laugh when I hear such comments. I wonder if these people also do things such as change the brakes on their cars, or give themselves an annual health check-up. Property management is a professional field, and doing it yourself can cost you money, in addition to countless frustrating hours.
Let me give you a run-down of what a property manager might do in a typical week.
<ul>
<li>Photograph and market properties</li>
<li>Negotiate new leases and lease renewals between tenants and owners</li>
<li>Negotiate rent reviews and rent increases between tenants and owners</li>
<li>Counsel tenants who fall into arrears</li>
<li>Counsel owners during the tougher times of owning an investment property</li>
<li>Plan maintenance now and into the future</li>
<li>Understand the many different aspects of maintenance, including general repairs, insurance claims, warranty issues, building maintenance, etc.</li>
<li>Prepare and lodge landlord insurance claims</li>
<li>Understand the terms relating to landlord and building insurance policies</li>
<li>Offer financial assistance and planning for owners and tenants </li>
<li>Evict tenants who have failed to pay rent</li>
<li>Understand all relevant legislation – for example, you must know the Residential Tenancies Act 1997 and the VCAT Act &amp; Owners Corporation Act 2010 in Vicroria</li>
<li>Prepare notices and applications and present documents and cases within a tribunal or courtroom should disputes arise</li>
</ul>
I don’t know about you, but I think that’s a lot to know and deal with on a day-to-day basis. And after being in the industry for 17 years, I know there are some really poor property managers out there who would be lucky to return a telephone call let alone attend to half the items on the list above – but there are also some amazing property managers.
 
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So the next time you are out looking at employing a new property manager, find a great one. Don’t haggle over the difference in management fees, which is no more than the price of a cup of coffee a week. You will always find people who will do it for a cheaper price, and at the end of the day you get what you pay for.
Funnily enough, in the past two weeks, I have been referred clients who have been paying low management fees and are unhappy and frustrated with the lack of service they have been receiving
A great property manager will not only save you money in the long run, but will also make you money. Isn’t it worth paying that little bit extra?
 
Leah Calnan is the director of <a href="https://www.metropm.com.au" title="Metro Property Management homepage" target="_blank">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.  
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No, you can't manage it yourself – or at least not well

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Being a property manager is about much more than knowing the law and taking care of administration tasks. Property managers sometimes have to deal with uncomfortable, confronting scenarios, such as: what happens when one of your long-term tenants dies of old age and you are the one who finds him or her?  Whom do you notify? Is there a next of kin? What happens when there isn’t? What do you do with their belongings? Once the property is ready to be released, what are your legal obligations to the next prospective tenants? There are a lot of questions, and many of those answers are not covered by any act of government.
 Or perhaps a tenant has fallen so far behind on rent that an eviction is required. Although we have empathy for the tenants’ situation, we also have an understanding on the financial impact that late or no rent can bring to an owner's personal situation. Remember that although the rent is late, the bank is still looking for its mortgage payment.
 Both scenarios are situations confronted by property managers all the time, and you need to learn to deal with such stresses if you want to stay in the industry.
 Property management is a difficult industry to work in with its day-to-day challenges, so the key for owners is to find a property manager who has passion and enthusiasm and isn't afraid to say, "I love my job".
 Passion for property management is a must, and without it you might as well go and find another role. There are much less stressful and challenging careers out there. It’s a tough gig and does not suit everyone, but I must say – I love my career and wouldn’t do anything else!
Leah Calnan is the director of <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" target="_blank" title="Metro Property Management homepage" href="https://www.metropm.com.au">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
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It's not all by the book

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As the rental market changes and the demand for properties reduces in some parts of the country, there must be consideration given to both the price and the presentation of the property. 
Price is always important for most investors, but what is sometimes overlooked is how much money an owner looses during a vacancy period when owners refuse to listen to the property manager and review (and reduce) the asking rent of the property. 
If the property is being marketed at $400 per week and has been vacant for four weeks with minimal enquiry or applications, isn’t it a smarter choice to reduce the asking rent to $380 per week.  As an owner of investment properties I know the $20 per week may feel like a loss, but isn’t it better to receive $380 per week rather than zero per week? 
The rental market changes from month to month , year to year and from suburb to suburb. So while you may have received $400 per week last year and the neighbour’s property is achieving a rent of $410 per week most owners would assume that their property MUST be worth between those two figures. 
Right? 
Well, no. 
It’s actually irrelevant what you achieved last year or what the house next door is achieving or because of CPI you believe you should receive a 5% rent increase this year.  What is important is what the market is doing today and what the market is telling you your property is worth today. 
We always want to believe our property is worth more.  However, when the market changes both the owner and property managers need to work together and change with it.  Together they must face the truth and yes it may hurt a little but again I ask you – isn’t some money better than no money? 
So what should you do? 
Here are some ideas:
<ul>
<li>Review your asking rent within 72 hours after the property is placed on the market and continue to review the asking rent at least once a week.</li>
<li>Have a minimum of five photographs as part of your marketing (and make sure they are current and correct).</li>
<li>Look at what demographic is best suited for your property and sell those features within your marketing description. </li>
<li>If you cannot inspect the property, ask your property manager to email you some current photographs.  Then you need to ask yourself what you can do to make your property stand out.</li>
<li>What improvements can you do? </li>
<li>Could the property do with a fresh coat of paint?  What about a feature wall?  How is the carpet?  Do the window coverings need updating? </li>
<li>What about the garden – when was the last time the lawns were cut or tided up? </li>
</ul>
So remember, be proactive and good luck!
Leah Calnan is the director of <a href="https://www.metropm.com.au/" title="Metro Property Management homepage" target="_blank">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
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You must meet the current rental market, or your property will sit empty

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After years and years of the battle, finally we see consumer affairs and the tenant’s union get their own way.
On September 1, 2011, new legislation commenced that has changed the way tenancy databases in Victoria will operate forever. For years now we have seen on media portals such as A Current Affair and Today Tonight all the terrible stories of real estate agents and how they “blacklist” tenants from obtaining another rental property in the future.  When in fact before September 1, 2011, the databases were not “blacklists” – they were actual databases. They contained records of millions of people who have rented over the last 20 years, and the databases allowed a property manager to record one of the following;
<ul>
<li>Current tenants</li>
<li>Previous tenants</li>
<li>Recommended tenants</li>
<li>Judgment / court order</li>
<li>Left owing in excess of the bond</li>
<li>Irregular payments</li>
<li>Broke conditions of lease</li>
<li>Abandonment </li>
<li>Unclaimed monies</li>
</ul>
But now things have changed.
The databases now only allow us to place a listing against a tenant for the following reason:
<ul>
<li>The tenancy has ended AND
</li>
<li>A possession order has been granted OR
</li>
<li>An order of a breach that includes the words “rent arrears” OR
</li>
<li>The person owes the landlord an amount that is more than the bond OR
</li>
<li>An order of a breach that includes the words “damage to premises” or “malicious damage”</li>
</ul>
Furthermore, the listing is only valid for a maximum period of three years.  Previously the listing would remain for seven years.
Like with all new legislation it will be monitored over the next six to 12 months and perhaps reviewed, and in the world of property management we will learn to work with the changes to the legislation accordingly.
I suppose the most disappointing part is for years the media and public have pushed for the removal or banning of these so-called “blacklists”. As property managers we no longer have the opportunity to create a positive listing on a wonderful tenant, or make a listing on someone who made irregular payments throughout their tenancy, or someone broke their lease conditions yet received a full bond refund. This was the whole point of having a tenancy database, yet what has now been created is a database of people who owners and property managers probably won’t want to rent to.
Leah Calnan is the director of <a href="https://www.metropm.com.au/" title="Metro Property Management homepage" target="_blank">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
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Leah Calnan

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