Failing to meet minimum rental standards could leave property management businesses with rent rolls buyers won’t touch. Marshall White’s Anthony Wiseman reveals how agencies can protect their portfolios before compliance failures hit their value.
As Victoria’s rental compliance regulations have tightened over the years, property management businesses have adapted to the shifting landscape by leveraging the right resources and connections.
According to Marshall White property management compliance and legislation lead, Anthony Wiseman, staying ahead of repairs and maintenance issues was critical, particularly in the prestige property space.
He said fixing issues as soon as they arose not only meant agencies were compliant, but could ensure the property’s value remained intact.
According to Wiseman, compliance failures had been weighing on the value of some Victorian rent rolls, with properties that fail to meet minimum rental standards proving difficult to sell.
“There’s heaps of those rent rolls for sale in Victoria at the moment because those properties don’t meet compliance,” he said on a recent episode of the PMX Podcast.
“They don’t meet minimum standards, and no one wants them. So they’re actually of zip, hardly any value.”
To ensure compliance, he said businesses should build trusted networks of tradesmen to ensure the work was carried out effectively, form close, trusted relationships with tenants and educate them on the issues that could occur.
Here’s what that looks like:
Building a trusted network of professionals
To make compliance easier, Wiseman said it was important to hire trusted and professional tradesmen with expertise in their fields.
He said that, rather than simply getting anyone on the job, he had specific connections that he contacted to make sure the tasks were done right.
“I’ve got plumbers that I’ve worked with for the last close to 20 years, and some of them were actually with the business before I joined, so it’s been in excess of 20 years,” he said.
“So it’s not just about getting anyone and everyone on board. It’s getting quality people that we can trust. They know that they’re going to continually get good work, referral work referred to them.
Wiseman also said that apart from doing the job right, his team of professionals also treated clients with respect and ensured they weren’t being overcharged.
“Don’t go quoting me for a job that’s worth $200 and tell me it’s going to be $400 because it will cut off the work very, very quickly. It’s really important that we’ve got that team.”
Forming relationships with renters
To ensure the property always met minimum standards, Wiseman said it was important to build a positive relationship with renters so they always felt comfortable raising issues and concerns.
He said having a solid two-way connection with renters meant any problems with the property were less likely to go unnoticed and could be addressed in a timely manner.
“Have a relationship with your renters where if they’ve got a concern at the property, they feel comfortable enough to invite you into the home at any random time,” he said.
“It’s not just about collecting rent; it’s having that relationship where the renter can ring you up and say, ‘This is what’s happening at the property. Can you pop past and have a look’?
Education
According to Wiseman, property managers should educate tenants on how certain issues and damage can occur so renters can either avoid them or deal with them in the best way possible.
“So if there’s mould in a property, is it a structural issue? Is it the way that the person resides in the home or is it just something they’re not aware of?”, he said.
“Having cross-flow ventilation in properties is paramount. So many brand new modern apartments are airtight and sealed up for fire safety that the renter can easily create a mouldy situation just through normal living.”
Wiseman said that by leaving the fan running 10 minutes after they have had a shower, or leaving their windows open while they’re out for the day, the tenant can avoid mould building up.
“Sometimes it’s not the renter doing anything sinister, but it’s just the way the property is built,” he said.
“So it’s just having that knowledge, the education and being able to communicate with all parties so that everyone understands how to make things right.”
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