All Topics / Help Needed! / non-essential maintenance to satisfy tenant worth it?

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  • Profile photo of scullywaggsscullywaggs
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    @scullywaggs
    Join Date: 2010
    Post Count: 11

    Hi everyone,

    I am new to this game and I have one IP (small 3BR brick veneer) which is managed by an agency.  Its only been tenanted for 6 weeks and so far we have had IMO way too many phone calls from the agent. 

    Today I got a call from the agent that the tenant has complained about the verandah; she says it is leaking onto the concrete floor below, growing moss which is a danger to her and her family.  She is also complaining about the pipe leading from the roof to the rainwater tank wich is 'drooping'.   Now I know the pipe droops; it has for many years and it is fine.  And the verandah does have a slightly dodgy drainage thing happening but that is how it was when she rented it.  My husband wants to do the repairs and be done with it.   The verandah does leak and to repair it will provide a much nicer home for the tenants, especially with winter coming on.  Plus these tenants indicated that they would like to stay on for a number of years and we'd to keep them happy. 

    My question is this:  since neither of these issues are urgent, or arguably even necessary, would you upgrade them?  The verandah would simply require new fibreglass sheeting installed at a cost of somewhere around $1000, and the pipe is more a hassle than anything… maybe $100 tops?  BTW the agents have proven to be utterley useless in advising me as to what I am legally obilgated to do….. I am going to look into breaking my management contract with them and change agents.

    Any thoughts would be appreciated :)

    Profile photo of LalibellaLalibella
    Participant
    @lalibella
    Join Date: 2007
    Post Count: 116

    Yes as much as it hurts, its still probably worth it.
    If you keep the place tidy and in good repair it helps when you want to bump the rent up.
    The joys of owning an older property.
    If they continue to find minor faults then suggest they move to a more suitable place of a higher standard. They will hopefully get the hint and relax a bit.
    As for the PM, hang in there. I'm convinced most take on too many IP's and spend most of their time 'putting out fires' as one informed me. Ask for frequent updates / txts/ emails. Do you have a lots of choice in your area?

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi scullywags

    It’s a frustrating situation and one that I’ve experienced first hand.

    If your prepared to keep the tenants on long-term, it doesn’t hurt to keep them happy. However, keeping these particular tenants happy is going to be an expensive exercise.

    I’d have a chat with the PM and see if you can reach some sort of compromise. Ask him/her to investigate other options for fixing the issues at a lower cost.

    If they seem useless and you’re not happy with the service, you should look at getting another one on board. Since you already have tenants in place, you shouldn’t have to pay the usual one week rent for finding you a tenant.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of scullywaggsscullywaggs
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    @scullywaggs
    Join Date: 2010
    Post Count: 11

    Thanks for your comments :).  I am going to make an appointment with the rental manager and talk about how they are not meeting my expectations.  We had to sign a 2 year Management contract with the agency and looking through it last night I am unsure how I could get out it if I wanted to. 

    The funny thing is the tenant herself: she is the receptionist for a real estate company in the area so she knows (probably better than me!) all the rules and regs!  I suspect she is pushing to test me and see how much she can get done for nothing. 

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Personally, I would not want my concrete slab to be kept damp due to a dodgy pipe.  I'd be fixing that… unless you are planning to bulldoze the house soon anyway?

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Andrew_AAndrew_A
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    @andrew_a
    Join Date: 2003
    Post Count: 392

    If I was advised about a possible safety issue I would get it sorted quick smart, don't mess with the legal implications.

    Profile photo of scullywaggsscullywaggs
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    @scullywaggs
    Join Date: 2010
    Post Count: 11

    Yes Andrew, I've just emailed the agent to ask them to arrange a quote, plus I am arranging my own builder to quote on the upgrade.  I am usure about the safety issue though.  I've lived in a lot of rentals before, most of them period homes and there were always items there that would today be considered safety issues.  It never occurred to me, nor anyone else I knew, to ever complain about those things.  I guess we live in a far more litigious society today :)

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    If the cost of eliminating the safety issue is say $1,000, and the value of the property (ie what you stand to lose in a lawsuit) is say $300,000, the decision is not difficult.  The property goes up in value more than $1,000 a year anyhow, so in equity growth you are still winning

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
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    safety issue? It is not a place of work! If it complies with the building standard applicable eg pool fencing or AS1288 glazing where safety is paramount, fine but otherwise make the PM do some work.

    Profile photo of Jacqui MiddletonJacqui Middleton
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    @jacm
    Join Date: 2009
    Post Count: 2,539

    Wrong.  If the tenant has whinged about something they could slip on, and you as the owner is made aware, and then the tenant does slip and hurt themselves and takes you to court over it, you can absolutely lose.  I've definitely read precendent cases on very similar matters.  One that springs to mind was outdoor tiles that were quite slippery.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of scullywaggsscullywaggs
    Member
    @scullywaggs
    Join Date: 2010
    Post Count: 11

    I am surprised to hear that JacM.  I don't suppose you could provide any links to said cases?  I'd be very interested to read the particulars.

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Not sure I can find the same case now.  Here are some alternatives.  Make no mistake, it's seriously important to have liability insurance!

    ======================================================================================

    A case a few years ago involved a unit owner who laid paving on “his” patio which was part of the common area. A tenant tripped on the paving and sued the body corporate and the owner separately.

    The body corporate insurer defended the body corporate and left the unit owner to fend for himself. Fortunately, the owner had a Landlord Protection policy covering the contents of the unit which had a liability insurance included, so he was OK.

    http://www.realestateguide.com.au/resources/property_insurance/

    ======================================================================================

     

    QLD – Tenant awarded $1.2m payout for back injury
    A woman who injured her back when she tripped on a hole in a carpet sued her landlady and won $1.2 million in damages

    http://www.chu.com.au/index.php?option=com_content&view=article&id=307:qld-tenant-awarded-12m-payout-for-back-injury&catid=89:common-ground-23&Itemid=191

    ======================================================================================

     

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of scullywaggsscullywaggs
    Member
    @scullywaggs
    Join Date: 2010
    Post Count: 11

    Geez – 1.2million!!!  I do have landlords insurance and building insurance too…. but I am going to double check the policy for PL inclusion.  

    Thanks

    Profile photo of eilatan28eilatan28
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    @eilatan28
    Join Date: 2010
    Post Count: 44

    I'd fix it. The point of having a veradah /pergola, is to have a dry / undercover area. and it doesnt sound like it is that. Plus, its a safety issue. If you lived there, would you put up with it ?? 

    Profile photo of scullywaggsscullywaggs
    Member
    @scullywaggs
    Join Date: 2010
    Post Count: 11

    I did live there and didn't think it was a big deal, nor did I think it was dangerous.  Thats why I've been surprised by the agents take on this.

    Profile photo of emptyvesselemptyvessel
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    @emptyvessel
    Join Date: 2008
    Post Count: 170
    scullywaggs wrote:
    Thanks for your comments :).  I am going to make an appointment with the rental manager and talk about how they are not meeting my expectations.  We had to sign a 2 year Management contract with the agency and looking through it last night I am unsure how I could get out it if I wanted to. 

    The funny thing is the tenant herself: she is the receptionist for a real estate company in the area so she knows (probably better than me!) all the rules and regs!  I suspect she is pushing to test me and see how much she can get done for nothing. 

    Am I the only person that finds a 2 year management contract a tad unacceptable? Especially if there are no clauses in there about termination. The PM agreements I have seen all have 4-6 weeks termination clauses. I remember reading that Margaret Lomas recommended negotiating this down to 2 weeks. Essentially any high quality PM would not see this as a problem because they know they can and do deliver high quality service for their landlords.

    Profile photo of OryxOryx
    Member
    @oryx
    Join Date: 2009
    Post Count: 14

    I’d fix it. Keep your hand on your property. Preventative maintenance. It might cost you more in the future. Don’t let the maintenance stack up and then in 5 years time you might not have the cash to do all the required maintenance………

    If you don’t look after your property, why would the tenant?

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    JacM wrote:
    Wrong.  If the tenant has whinged about something they could slip on, and you as the owner is made aware, and then the tenant does slip and hurt themselves and takes you to court over it, you can absolutely lose.  I've definitely read precendent cases on very similar matters.  One that springs to mind was outdoor tiles that were quite slippery.

    Jac, it depends entirely on the circumstances…. if you have laid interior floor tiles (or glossy wall tiles) ie the wrong material for the application, of course you can be found to be liable for not having taken due care with the installation. Likewise, if you fail to maintain something (whether it be the carpet which has been worn through or repair of leaking downpipes causing a slippery surface if it isn't mopped up/cleaned which may be a reasonable expecation), then you may well be liable.

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