The shortage of rental properties has been a growing concern for renters across the country. It has caused frustration and stress among renters, especially those with low incomes and government subsidies. This shortage, coupled with increasing rental prices, is creating a housing crisis that is affecting more and more people every day. In this blog, we will explore the impact of the shortage of rental properties on renters and what needs to be done to address this issue.
The Rental Market: An Increasingly Competitive Space
The rental market has become a fiercely competitive space, leaving renters with fewer options to choose from. As the number of rental properties decreases, more and more renters are competing for the same listings, making it difficult for them to secure a property that meets their needs. This competition has also resulted in increasing rental prices in many areas, making it more challenging for renters to find a property that is within their budget.
The Effect on Renters: Stress and Frustration
The shortage of rental properties and increasing rental prices are causing stress and frustration among renters. Many tenants are finding it difficult to find suitable housing within their budget and preferred location. As a result, some renters are forced to settle for a property that meets fewer needs, while others are compelled to look outside their ideal location. This situation is particularly difficult for low-income renters who rely on government subsidies to afford rent. The lack of suitable housing options may lead to health issues for some renters, making this an urgent issue that needs to be addressed.
A Growing Housing Crisis
The shortage of rental properties and increasing rental prices have created a growing housing crisis for tenants across the country. As rental prices rise, more people are being pushed out of their homes or into overcrowded living conditions as they search for more affordable options. In some areas, tenants are now moving in with friends or renting a room, leading to further complications for both the owner and managing agent.
The Need for Affordable Housing
There is an urgent need for affordable housing options for low-income renters. The shortage of rental properties and increasing rental prices are creating significant challenges for these renters. Without affordable housing, more and more people could be forced into homelessness or unsafe living conditions. Government agencies and non-profit organisations need to work together to provide affordable housing options for those who need it the most.
Conclusion
The shortage of rental properties and increasing rental prices are affecting renters across the country. It is causing stress and frustration for many, particularly those with low incomes and government subsidies. The shortage of affordable housing options is also creating a growing housing crisis that needs to be addressed urgently. More needs to be done to provide affordable housing options for low-income renters to ensure that everyone has a safe and secure place to call home.
The Ten Most Common Challenges of Property Management and How a Coach and Mentor Can Help
As a property manager, you are responsible for the upkeep and maintenance of a property, dealing with tenants, collecting rent, and managing a budget. All these tasks can be challenging, and it’s not uncommon to face some difficulties. In this article, we will discuss the ten most common challenges of property management and how a coach and mentor can help you overcome them.
Introduction:
Being a property manager is a demanding job, and it’s not for the faint of heart. You need to deal with a multitude of tasks, from managing budgets to dealing with tenants, and keeping the property in good condition. It’s a job that requires a lot of skills and expertise, and even the most experienced property managers can struggle with some challenges. In this article, we will look at the ten most common challenges of property management and how a coach and mentor can help you overcome them.
The Ten Most Common Challenges of Property Management:
Finding and Retaining Good Tenants:
One of the most challenging aspects of property management is finding and retaining good tenants. It’s crucial to have a reliable screening process to ensure that you rent to responsible tenants who will pay on time and take good care of the property.
Dealing with Difficult Tenants:
Dealing with difficult tenants is another common challenge for property managers. You may encounter tenants who are always late with their rent or who damage the property. Having a coach and mentor who can provide guidance on how to deal with difficult tenants can be beneficial.
Maintenance and Repairs:
Maintaining a property and addressing repairs is an ongoing responsibility for property managers. It’s crucial to have a plan in place to address maintenance issues promptly and effectively.
Budget Management:
Managing a budget is an essential aspect of property management. You need to balance income and expenses and ensure that you have sufficient funds for maintenance and repairs.
Compliance with Laws and Regulations:
There are various laws and regulations that property managers need to comply with, such as fair housing laws and building codes. Failing to comply with these laws can lead to legal issues and financial penalties.
Communication with Tenants:
Clear and effective communication with tenants is crucial to maintaining a positive relationship. It’s essential to have good communication skills and be able to respond to tenant concerns and questions promptly.
Time Management:
Property managers have to juggle multiple tasks and responsibilities, which can make time management a challenge. Having a coach and mentor who can help you prioritize tasks and manage your time effectively can be beneficial.
Marketing Vacant Units:
Marketing vacant units is essential to attract new tenants. You need to have effective marketing strategies in place to ensure that your property is visible to potential renters.
Technology Adoption:
Adopting technology can help property managers streamline their processes and increase efficiency. However, it can be challenging to keep up with the latest technology and identify which tools are best for your property.
Employee Management:
If you have employees, managing them can be a challenge. You need to ensure that they are well-trained, productive, and motivated.
How a Coach and Mentor Can Help:
Working with a coach and mentor can help property managers overcome these challenges. They can provide guidance, support, and advice on how to handle various situations. Here are some ways in which a coach and mentor can help:
Provide expert advice and guidance on best practices in property management
Help you develop skills in areas where you may need improvement
Help you identify and address areas of weakness in your management approach
Offer strategies for dealing with difficult tenants or challenging situations
Provide support and motivation to help you stay focused and on track
Help you identify and adopt the latest technology and tools to improve your management processes
Help you develop a plan for employee training and management.
Working with a coach and mentor can be an invaluable resource for property managers. They can help you overcome challenges, improve your skills, and develop a more effective management approach.
FAQs:
Q: How much does it cost to work with a coach or mentor?
A: The cost of working with a coach or mentor varies depending on their experience and the services offered. Some coaches and mentors may charge an hourly rate, while others may offer packages or programs. It’s important to research different options and find a coach or mentor whose services align with your budget and goals.
Q: Can a coach or mentor help me with specific challenges, such as dealing with difficult tenants?
A: Yes, a coach or mentor can provide guidance and strategies for dealing with specific challenges you may be facing as a property manager. They can offer advice on how to communicate effectively with tenants, address issues promptly, and maintain positive relationships with tenants.
Conclusion:
Property management is a challenging job that requires a diverse set of skills and expertise. The most common challenges of property management, such as finding and retaining good tenants, managing budgets, and dealing with difficult tenants, can be overwhelming for even the most experienced property managers. Working with a coach and mentor can be an effective way to overcome these challenges, develop your skills, and improve your management approach. Whether you are a new or experienced property manager, seeking the guidance and support of a coach or mentor can be a valuable investment in your professional development.
With over 30 years of experience building successful Property Management businesses, Brigitte Stills has overcome every one of these challenges and is now focusing on helping others do the same! Reach out today to secure a spot.
The NSW Government is introducing an interim 60-day stop on landlords seeking to evict tenants due to rental arrears as a result of COVID-19, together with longer six month restrictions on rental arrears evictions for those financially disadvantaged by COVID-19.
New measures Coronavirus (COVID-19) has already had a significant impact on the economy, meaning some tenants are having difficulty keeping up with rent payments. The NSW government is introducing measures to help landlords and tenants work together. The new measures include an interim 60 day stop on landlords issuing termination notices or applying for NSW Civil and Administrative Tribunal (the Tribunal) eviction orders due to rental arrears, where tenants are financially disadvantaged by COVID-19.
“This will allow time for Government financial support to reach those who need it and limit social movement in order to minimise public health risks during the COVID-19 pandemic.”
A landlord is required to negotiate a rent reduction with the tenant in good faith in the first instance, and can only seek to give a termination notice or apply for an eviction after the interim 60-day stop if it is fair and reasonable in the circumstances of the specific case.
Fair Trading will be able to assist landlords and tenants try to reach an agreement if needed.
Along with these restrictions on evictions for rental arrears, the Government will be extending the notice periods for certain other lease termination reasons to 90 days. At any time during the 60 day stop and the longer six month restrictions, landlords can still apply to the Tribunal at any time to take possession of a property if they are suffering undue hardship.
Eligibility To meet the requirements for 60 day stop on evictions and the longer six month restrictions, a household needs to demonstrate they are impacted by COVID-19. A household is COVID-19 impacted if:
1. one or more rent-paying members of a household have lost employment or income (or had a reduction in employment or income) due to COVID-19 business closures or stand-downs, or
2. one or more rent-paying members of a household have had to stop working or reduce work hours due to illness with COVID-19 or due to COVID-19 carer responsibilities for household or family members, and
3. the above factors result in a household income (inclusive of any government assistance) that is reduced by 25% or more.
Important All tenants who are not impacted by COVID-19 are expected to honour their existing tenancy agreements including paying all rent and charges in full.
Flowcharts To understand how the ban on evictions due to COVID-19 may affect your tenancy, see the first flowchart. If you are a landlord and you want to understand how the new measures affect all types of residential tenancy terminations, use the second flowchart. Flowchart: Can a tenancy be terminated during COVID-19 Flowchart for landlords – termination of tenancy options Template letters For tenants We have created a template letter for tenants to help them when approaching landlords to request rent reduction. We have also created an example. To help with your request, your letter should also include:
1. your original household income 2. your change in circumstances due to COVID-19 and how this has impacted on your household income 3. the rent payment you would be able to meet under your new household income 4. any income support you receive
For landlords when responding to a tenant All landlords must be prepared to negotiate rent payments with tenants experiencing financial hardship due to the COVID-19.
To help you, we have created a template you can use when responding to rent reduction requests. We have also created an example. Your response letter should also include:
1. your financial situation – be open and honest about your financial situation, including whether you rely on the rental income to cover mortgage repayments or other expenses.
2. your conversations with your lender – outline the result of conversations you’ve had with your lender about waiving or reducing your own mortgage repayments.
3. the rent payment that you would be able to accept
4. clarify whether the rent payment loss (arrears) will be waived or repaid
For landlords when talking to their financial institution Landlords are encouraged to approach their financial institutions to seek a mortgage freeze or reduced repayments as part of the negotiation discussions with their tenant/s. We have created a template you can use when approaching your lender. We have also created an example.
Your letter should include:
1. your financial situation be open and honest about your financial status if you rely on the income from your rental property to help pay for the mortgage, and are negotiating with your tenant about rent payment, this should be outlined and evidenced in your request.
2. the mortgage waiver or reduced payment you are seeking until you or your tenant resumes normal employment arrangements.
3. clarify whether your rental payment losses (arrears) will be waived or repaid under a repayment plan with your tenant once the COVID-19 emergency is over
Can a tenant and landlord still end a tenancy if they agree? Yes. A tenant and landlord can agree to end a tenancy and decide when and how this is to happen.
What proof does a tenant need to show they are impacted by COVID-19? The tenant can provide simple documents to show that they are impacted by COVID-19, for example: proof of job termination/stand-down, or loss of work hours proof of Government income support proof of prior income.
What do the changes mean for tenants who are impacted by COVID-19? The new rules put an immediate 60 day stop on termination notices and Tribunal applications for terminations based on rental arrears where a tenant is unable to meet their rental obligations due to being impacted by COVID-19.
This will allow time for tenants to receive Government income support and for landlords to negotiate a reduction or waiver of mortgage repayments with their lender.
It will also allow time for tenants and landlords to negotiate possible reductions in rent if needed. A dispute resolution process is available through NSW Fair Trading if no agreement can be reached or where the landlord or tenant would prefer to use this option.
Does the tenant need to pay back the rental arrears or will the amount be waived? The amount of rent arrears accrued by a tenant who has negotiated reduced rent will not automatically be waived. Whether rental arrears will be waived is subject to negotiation between the tenant and the landlord (with assistance from Fair Trading’s dispute resolution process as required).
Are sub-tenants covered by the stop on evictions? The stop on evictions applies to sub-tenants who are unable to meet their rental obligations and who are covered by the Residential Tenancies Act 2010. These are tenants where the property is subject to a written residential tenancy agreement and:
are a sub-tenant under a written residential tenancy agreement with the tenant named in the main tenancy agreement, or
a tenant under the main written tenancy agreement has transferred the tenancy to them.
Can I still end my tenancy using the required notice periods and not negotiate with my landlord? Yes. Tenants who do not wish to stay in their premises can terminate using the existing notice period required for their specific agreement. Tenants seeking to end a fixed term agreement early may be required to pay break fees under their agreement. Details about ending a fixed term agreement early are outlined on the Fair Trading website.
Why are we not protected from eviction for six months as was announced following the National Cabinet meeting recently? The package announced is designed to support tenancies to continue wherever possible. The new laws will provide a six month moratorium on landlords giving termination notices, or making applications for forced evictions, due to rental arrears for tenants who are impacted by COVID-19, provided both parties seek to find a mutually workable solution.
The new laws allow landlords, after the 60-day stop, to seek to terminate a COVID-19 impacted tenancies for rental arrears but this can only occur if they have tried to negotiate a rent reduction with the tenant in good faith and seeking a termination is fair and reasonable in the circumstances of the specific case.
What if the landlord refuses to negotiate and we can’t reach an agreement? The landlord and tenant should both attempt in good faith to negotiate a reduction in rent.
NSW Fair Trading provides a dispute resolution process that landlords and tenants can use if they can’t reach an agreement themselves. Fair Trading will request evidence from the tenant about their previous income and current income from all sources, including any Government income support. Information will also be sought about any application the tenant has made for income support.
Tenants need to have an idea of how much rent they can pay when considering negotiations. Fair Trading will then contact the landlord to seek a mutual agreement on a temporary arrangement for the payment of rent.
Is income calculated before or after tax? When determining whether a tenant meets the COVID-19 impact test, the income received is the money coming into the tenant’s bank account after tax. How does the test apply to group houses where not all rent paying tenants have been affected by COVID-19? The COVID-19 impact test applies to the total household income, inclusive of any government assistance, such as the new job keeper payments.
Will my landlord insurance cover my rental losses? Landlords should check their insurance policy to see whether they are covered for rental default. Different policies will have different limits and requirements. Many insurers are adopting new procedures to deal with the impacts of COVID-19, and may require evidence that the landlord has attempted to negotiate with the tenant.
I am a landlord, but I can’t afford to provide a reduction in rent Landlords should seek to negotiate with their lender to try to obtain an agreement to waive or reduce mortgage repayments. Many lenders are offering to reduce or waive payments at this time.
If this is possible, landlords should have a greater capacity to agree to a reduced rent or charges for a period of time. The immediate 60-day stop on evictions will also allow time for the tenants to access Government income support and may allow tenants to resume paying existing rent.
Can tenants be encouraged to look at accessing their super to pay rental arrears? Agents and landlords must not encourage tenants to access their super early to cover any rental arrears. This could constitute unlicensed financial advice and may not be in the best interests of the tenant. Financial advice must only be provided by qualified and licensed financial advisers or counsellors, not by agents or landlords.
What happens once the interim 60 day stop ends? Once the intermin 60 day stop has ended, a tenant(s) who is still unable to meet their rental obligations due to COVID-19 can only have their tenancy terminated on the basis of rental arrears if the landlord has attempted to negotiate reduced rent in good faith but the tenant has failed to do so.
I am a tenant in social housing – does the stop on evictions apply to me? I am a tenant in social housing – does the stop on evictions apply to me? Social housing providers have their own processes for dealing with rental arrears and are not covered by the new provisions.
Example scenarios
Reduced income together with income support resulting in less than 25% loss of income
A tenant pays $300 per week in rent under their tenancy agreement
The tenant earned $800 per week but lost their income as a sole trader due to the impacts of COVID-19 business closures on their business, following public health orders
The tenant now receives income support of around $1,500 per fortnight, or $750 per week, paid through their employer*
The tenant’s lost income per week is $50 per week, which is less than 25% of the tenant’s original income.
The stop on termination notices and applications for eviction orders due to rental arrears does not apply to this tenant.
Increase in income due to government support payments
A tenant pays $300 per week in rent under their tenancy agreement
The tenant earned $650 per week but lost their job due to business closures following public health orders
The tenant now receives income support of around $1,400 per fortnight, or $700 per week, paid through their employer
The tenant’s income has now increased as a result of the Commonwealth payment: instead of $1,300 per fortnight, they now earn $1,400 per fortnight*
The stop on termination notices and applications for eviction due to rental arrears does not apply to this tenant, because there has been no reduction in their total income.
Tenant and co-tenant in a family household. The tenant loses income and gets income support
A family pays $750 per week in rent in total and the adults are co-tenants under their tenancy agreement
Tenant A earns $1,000 per week, while their partner tenant B earns $500 per week
Tenant A loses their job due to business closures, but is receiving a government payment of around $1,100 per fortnight or $550 per week*
There is no impact on tenants B’s income
The lost household income is equal to $450, which is equal to 30% of the original household income
The stop on termination notices and applications for eviction orders due to rental arrears applies to this household.
Tenant is sole breadwinner, tenant loses income and gets income support
A tenant pays $600 per week in rent under their tenancy agreement and is the sole breadwinner for the family
The tenant loses their job due to the business closures following the public health order announcements. The tenant’s income was previously $1,000 per week
The tenant receives income support payments from the government of around $1,500 per fortnight, which equals $750 per week*
The loss in household income is equal to $250 per week which is 25% of the original household income
The stop on termination notices and applications for eviction orders due to rental arrears applies to this household.
Share household where all tenants are on the main lease
Two friends share a house and are named on the lease.
The rent is $1000 per week
Tenant A earns $1200 per week and tenant B earns $800 per week, making a combined household income of $2000 per week
Tenant A loses their job and now receives $1115 per fortnight which is around $557 per week.
The combined income of the household is now $1357 per week
The loss in income is $643 per week, which is 32% of the original household income.
The stop on termination notices and applications for eviction orders due to rental arrears applies to this household
Share household with head tenant and sub-tenant on a written lease with head tenant
Two friends share a house and the rent payable on the main lease is $1000 per week
Tenant A is the head tenant and has a written sub-tenancy agreement with Tenant B
Tenant A earns $1200 per week and tenant B earns $800 per week, making a combined household income of $2000 per week
Tenant A loses their job and now receives $1115 per fortnight which is around $557 per week.
The combined income of the household is now $1357 per week
The loss in income is $643 per week, which is 32% of the original household income
The stop on eviction orders being issued due to rental arrears applies to Tenant A’s agreement with the landlord
As Tenant B’s income has not changed, the stop on notices for termination and eviction does not apply to Tenant B’s sub tenancy agreement with tenant A.
I need more support and information Trained dispute resolution officers in Fair Trading are available to help landlords, managing agents and tenants to negotiate temporary changes in rental arrangements, if agreement cannot be reached between parties.
When you seek assistance with negotiations, we may need to obtain some initial information before it can schedule a time to discuss the matter with both parties.
How to seek help If you have attempted to negotiate a rental plan without success you can apply for assistance by completing the Tenancy Complaint Form.
Apply for assistance Tenants will be asked to provide evidence that they are experiencing financial hardship, such as:
proof of temporary or permanent job loss (eg, employer separation letter, evidence of reduced shifts)
proof that your business has suffered due to COVID-19 (eg, type of business – noting that some are now the subject of a government ban and cannot operate)
proof of previous employment income and current income (eg, bank statement, payslip)
proof of Government income support payments or applications made (eg, statement or advice/acknowledgement from Centrelink)
Tenants will need to assess the amount of rent that they are able to pay and the type of rental arrangement requested, for example:
Reduce my rent by $100 a week for a period of six weeks, or
Reduce my rent by $200 a week until employment resumes
Copies of your evidence can be uploaded from your mobile device and attached to the complaint form.
How long is the process? We will be treating negotiation requests as a matter of priority and will respond as quickly as possible.
The timing for each negotiation process will be largely influenced by the demand for the service as well as whether parties can provide the requested information in a timely manner.
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Everyone has heard nightmarish tales of bad landlords. But what about nightmare tenants?
Today, there are more people renting for longer
periods than ever before. As property prices continue to rise, fewer people can
afford to buy, which creates a large pool of long-term renters.
With more people renting for
longer periods, it’s inevitable that landlords and property managers will
encounter more problem tenants.
Thorough and proper tenant screening helps to stamp out problem tenants.
Avoiding Nightmare Tenants
Take Landlord A, for example, husband and wife
investors. They liked the sound of Tenant A until they realised the tenant
hoped to lease the property for his second wife, who had not yet been
granted a Visa into the country.
Landlord B is a long-time investor with multiple properties. He rescinded Tenant B’s application only when he learned the tenant’s plan to advertise the other bedroom as short-term rental accommodation.
And Landlord C, based interstate, rejected
Tenant C once their employment history and financial statements showed
they couldn’t pay the rent.
Luckily, these landlords averted potentially
nightmare tenant problems because they used the expert guidance of a qualified
property manager.
While the Rental Application form gives the
landlord some indication of whether the applicant is a worthy choice, it
doesn’t tell the whole story. Stringent tenant screening and reference checking
are the best defences against a nightmare tenant.
In the case of the above examples, the property
manager’s thorough tenant screening process tells the rest of the story:
Tenant A – an in-person interview with the applicant quickly uncovered his true intentions.
Tenant B – previous rental history revealed prior evictions for similar conduct.
Tenant C – a quick call with current and previous employer’s and a review of recent bills and statement showed the applicant couldn’t afford the rent.
Professional tenant screening can save landlords untold anguish, both emotional and financial. Appoint an experienced property manager to ensure you avoid nightmare tenants and find the right tenant for your property.
The NSW
Parliament recently passed a number of amendments to the Residential
Tenancies Act 2010. With over 30% of the NSW population renting, these changes
are designed to make it easier for tenants to make a rental property feel like
home.
For landlords,
it creates an opportunity to attract and retain high quality, long term tenants
– providing greater income certainty on their investments.
The new
laws also improve protections for victims of domestic violence.
The
implementation date for the Residential Tenancies Amendment (Review) Bill
2018, is expected to begin in the first half of 2020 so it’s important all
landlords start planning now.
The
Reforms in summary
A. Minimum standards identified
At the
beginning of any tenancy, all properties will need to meet 7 minimum standards
to be deemed fit for habitation. These standards will also need to be
maintained throughout the tenancy (by way of repairs). While not an exhaustive
list, these standards are considered the minimum baseline.
The 7
minimum standards are:
The property must be structurally sound
Each room must have adequate natural or artificial lighting (the exceptions are storage rooms or garages)
There must be adequate ventilation throughout the property
It must have an electricity and/or gas supply with adequate electricity and gas outlets for lighting, heating and appliances
The property must have bathroom facilities (including toilet and bathing facilities) which provide user privacy
The property must be connected to water supply infrastructure for the supply of hot and cold water for drinking, washing and cleaning
The plumbing and drainage must be satisfactory
B. New resolution powers & rectification orders
The
property management industry is plagued by disputes over repairs and
maintenance issues along with claims of property damage caused by tenants. The
new legislation is designed to reduce these problems by providing NSW Fair
Trading with greater powers – including the ability to issue rectification
orders.
C. Rent increases limited for periodic leases
Rent
increases for periodic leases (that is, where the tenancy has no specified time
limit) will be restricted to once every 12 months under the new laws.
D. Protections for victims of domestic violence
Tenants
who need to escape a violent partner will be able to terminate their tenancy
immediately and without penalty. In addition:
The
victim/s will not be held accountable for any property damage that occurred
during a domestic violence incident
The same
is true if they are a co-tenant who is not the perpetrator
If a
tenant terminates a lease because they are a victim of domestic violence, the
landlord or their agent are prohibited from adding their name to the tenancy
database
E. Separate meters for granny flats etc.
With the
rise of dual occupancies, granny flats and the like, the Residential Tenancy
Amendments include a new definition for “separately metered premises”. The
purpose of this amendment is to reduce the number of disputes between landlords
and tenants over who pays for water, electricity and gas.
F. Other changes
The
amendments are quite comprehensive and include a number of other changes including:
The
introduction of penalties for landlords or agents if they fail to provide the
tenant with a property condition report at the beginning of the tenancy
Mandatory
set fees for breaking a fixed-term lease
Penalties
for landlords who fail to repair smoke alarms
Clarification
on taking photos and videos during inspections and publishing them to advertise
the property for re-lease or sale
Stopping
database operators charging tenants to access their own information
Take care
of your tenants and they’ll take care of your property
Your
investment property is a valuable asset so it’s only natural you want to ensure
it’s providing a great return on investment, with tenants that will take care
of it.
This new
legislation is designed to help you do that by providing tighter guidelines on
what’s acceptable from both a landlord’s and tenant’s point of view.
For an
informed and conscientious property manager to look after your investment
needs, call
Brigitte Stills on 1300 091 638 or email propertymanager@stillsproperties.com.au
She’s been looking after landlords and their properties for over 30 years.