I spent a great part of my early real estate career focused on sales because I enjoyed helping people sell their home and move on in their life, as well as a great deal of pleasure from the negotiations around sale price, settlement dates and inclusions in the sale, but as I started to take a greater interest in the property management side of business I realised that there was an equal amount of negotiation skill required when it came to resolving issues between landlords and tenants.

Because we all have a different levels of expectation and we can all look at the same thing very differently.  This business can be more about people management than property management and no matter how hard we try to get two sides to agree on a mutually beneficial outcome sometimes the only alternative can be a hearing at the tribunal.

In years gone by the word tribunal (NSW Civil & Administrative Tribunal or NCAT for short) would send shivers down the spine of any experienced property manager and that wasn’t only because it meant hours of file preparation, email compilation and double checking the T’s are crossed and dotting the I’s, it was because in days gone by it appeared that the tribunal often made decisions that seemed to favour the tenant over the landlord regardless of the application of common sense.

Thankfully (from experience) I can report those days are gone and although we will still try our best to negotiate a satisfactory outcome for all parties in a dispute, tribunal it is no longer the domain of victorious tenants. In our experience sitting members at NCAT now look at each case on its merits and use an enormous amount of common sense when interpreting the relevant legislation and how their orders will impact both landlord and tenant.

A wise saying worth remembering -

“The court makes an amazing amount of decisions that ought to be made by people”

We manage a diverse range of property, from cosy studio apartments in Baulkham Hills, family homes in Pennant Hills to sprawling acreage estates in Maroota and everything in between, and they all require vastly different levels of management. You could be forgiven for thinking that the smaller the property is, the easier it is to manage. But it’s not just the size of a property that indicates the size of challenges we face as property managers, but it’s the overall condition of the property that has a greater impact on the workload we expect.

It’s about 30 years ago that Meg and I first moved to the area and rented in Dural. With a nudge and a wink we were approved to rent a cute little old run down timber shack on acres and we loved it (we kept the oven on and the door open for heat!) But If that cute “run down” shack was still standing today it could be a property managers nightmare because continuing legislative changes have turned many of these older rentals into a management minefield.

And the days of “She’ll be right mate” being the common response to a tenants complaint when “the old shack” is falling down around them are long gone because one wrong move can have the owner requiring the services of an expensive barrister if prudent steps are not taken by the property manager to protect the tenant from harm, and the landlord from litigation. A good property manager should be more than just a rent collector, they should be a wealth of simple and affordable advice to ensure both landlords and tenants are protected as a property ages. My Mum always used to say “a stitch in time saves nine” as a kid I had no idea what she was talking about but it’s a great saying in relation to property management.

This year, changes to the standard ingoing inspection report have put even more focus on the requirement for property managers to have a thorough understanding of construction, electrical safety and foreseeable hazards. Plus Covid-19 laws in relation to rentals continue to evolve. In one day I can be reading updated legislation, helping tenants dealing with domestic violence, attending Tribunal, trying to work out why a sever is blocked, helping change a light bulb and being threatened for chasing late rent.

Property management isn’t just an addition to the sales division It’s a profession and one we get a lot of joy from.

I think both Federal and State Governments are doing their best to address a fast changing environment, and I can only imagine the many long hours that have been spent conceiving, writing and rebuilding a whole stack of rental Legislation that had taken decades to evolve. Meg and I manage a large and varied portfolio of property covering most of the Hills District. Because we are actively involved with all our tenants and landlords, we have a good insight into how the Covid-19 pandemic is generally affecting tenants, so if I convert our information on the impact of Covid-19 into statistics it looks a bit like this:

Tenants who have requested a rent reduction: 6%. Tenants who currently cannot afford to pay any rent: 1%. Thankfully with the governments updating of legislation, there is now a frame work under which we can operate but, unfortunately for tenants, there is not much relief for their landlords to pass on, because it's built around Land Tax. For example, If we look at an average Hills District property worth $1.3 million that’s rented at $850 a week. The owners Land Tax bill may be around $4,000. 25% of which (being $1,000) can be credited to the landlord to be passed back to ‘Covid-19 Impacted tenants’ as rent relief. In most cases, that converts to a week or two’s rent.

That’s it… all other negotiations must be done in ‘good faith’ and tenants can still be liable to repay reduced rent and ultimately evicted for non-payment of rent. I don’t know any of our landlords that want to see their tenants lose their home because of Covid-19. That’s why we encourage open and transparent negotiation, because every situation is different, and it’s the best way to navigate a path that works for both landlords and tenants. And, just as landlords need to be mindful that not all tenants are trying to take advantage of the situation, tenants need to be mindful that not all landlords are heartless rich people. Fortunately, we have a great group of landlords and tenants and for landlords who don’t receive rent, we don’t charge. And, for tenants who can’t afford rent, we’ll help guide you toward the best outcome. If you need some helpful advice just call us and we’ll do our best to help, even if you’re not a Mode client (yet)