Ensure you never miss an issue of the
real estate business bulletin
PMs should be preparing for the worst

PMs should be preparing for the worst

by Elyse Perrau 0 comments

Property managers have been told they are doing themselves a disservice if they don’t charge extra for disaster management work.

Real Estate Institute of NSW trainer Jo Hamilton said PMs should be revisiting disaster management plans after the devastation caused by the NSW storms last month. 

“Ensure your management agency agreement includes a disaster management fee,” Ms Hamilton said.

“After all, if your area does suffer a natural disaster, your management resources will be stretched to the limit and you may need to hire more staff or pay existing staff overtime.”

Ms Hamilton said many PMs mistakenly think a tenancy automatically ends if a property is destroyed or becomes uninhabitable. 

“This is not true,” she said. In fact, either the tenant or the landlord must still serve a termination notice in writing to end the tenancy.

“The notice, once served, can take effect immediately or at a specified later date.” 

Ms Hamilton said a landlord is not obliged to compensate a tenant for any damage to their furniture or personal belongings arising from a natural disaster. 

“The tenant should be advised at the beginning of the tenancy that they should organise their own insurance cover for such situations.” 

[Related: ‘Blind leading the blind’ for PM in natural disaster zone]


PMs should be preparing for the worst
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?