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WEEKLY PROPERTY UPDATE #013 – NEWS FOR INVESTORS

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19 December 2014

Four tips for new unit owners over the Christmas season

Four tips for new unit owners over the Christmas season

Jennifer Duke – Property Observer

Everyone wants Christmas to go smoothly – but unit and apartment owners and residents may face a bit of a surprise if they don’t watch their mounting bills.

Archers Body Corporate Management’s partner Grant Mifsud has warned about the price of power over summer as some apartments see bills increase by up to a third.

Here are four tips for apartment residents and bodies corporate to consider:

  1. Adjust timers on common area lighting – as the days get longer, lights can switch on later at night and off earlier in the morning.
  2. Review the body corporate’s tariff allocation as detailed on each bill to ensure it is the most efficient tariff for your scheme’s needs.
  3. Consider a bulk energy purchase agreement – this is especially effective for large schemes or schemes that have commercial elements with high energy consumption.
  4. Talk to an expert consultancy about conducting a full scale energy audit to identify cost saving initiatives to meet your building’s specific needs.Source: Archers Body Corporate Management

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What is “fair wear and tear” in a rental? Investment terms explained

What is “fair wear and tear” in a rental? Investment terms explained

Jennifer Duke – Property Observer

When it comes to owning a rental property, of course there will be some wear and tear from tenants who pay to live in the home and use the facilities.

This is usually an issue that arises at the end of the tenancy when undertaking a thorough inspection.

A certain degree of wear and tear is said to be acceptable – and this is “fair” wear and tear.

Unfortunately, the law doesn’t provide a clear cut explanation as to what fair wear and tear entails. It’s not surprising that landlords will regularly argue what falls under this banner and what instead counts as ‘damage’.

If what you consider ‘damage’ is an inevitable result of daily living and use, then it is not damage for the purposes of claiming money from your tenant. Things do get scuffed, carpets do fray around the edges, seals and taps and handles do come loose.

Investors must be prepared to expect this type of wear and tear in any property. Similarly, carpets, doors and other items do become worn over time and through exposure to the sun or elements.

You would be unable to claim that a tenant had caused the damage of broken guttering in a hailstorm, however you may be able to claim that they should have let you know of the damage, if it later causes bigger problems from lack of maintenance.

Avoidable damage, such as cigarette burns in the carpet or stains, cracked toilet cisterns, broken mirrors, significant scratches, holes in the walls and similar, would certainly be worth looking at and discussing a claim from the tenant’s bond.

Tenants’ Union of ACT explains that ‘fair’ relates to the cause, while ‘wear and tear’ is the damage that occurs. Some items may be more difficult to ascertain – such as a wine spill, that occurs in the general and fair use of the area – they note that this would likely not be considered fair wear and tear, while carpet deterioration in high traffic areas would be.

Tenants do have a responsibility to keep the premises clean and to tell of maintenance required when it occurs. It can be argued that if a tenant has not been responsible with these two matters then the wear is greater than it should have been or that damage has occurred. The condition report and photographs taken during regular inspections should assist in these discussions.

Issues around wear and tear should initially be discussed between the tenant and the property manager to come to a mutually acceptable conclusion before taking it to tribunal.

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FAVOURITE PICS OF THE WEEK

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Credit: @architecture_hunter

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Credit: @kevin Vaughan

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Credit: @homeadore

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Credit: @revistaformas

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Credit: @_architect_

photo 9

Credit: @homeadore

photo 6

Credit: @boss_homes

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Credit: @innovatives

photo 2

Credit: @massivewoodmosaic

photo 3

Credit: @inandoutdecor

photo 5

Credit: @worldwide_luxury

photo 15

Credit: @architecturaldigest.com

photo 12

Credit: @archi7interior

 

 

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HAPPY WEEKEND EVERYONE!

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I am a mother of 2 living in the Eastern Suburbs of Sydney. My two passions are Interior Design and Real Estate. I have been fortunate to have had the opportunity to work in both industries. I started off working in Interior Design assisting Interior Designer Darren Palmer which was amazing and a great experience. What I loved most was working with such a creative sole as Darren and having the opportunity to source and work with gorgeous products. From there I continued with my other passion in Real Estate. I am now a licenced Real Estate Agent with Raine and Horne Double Bay/Bondi Beach working within the Goldman team (Mark and Barry Goldman). As the saying goes:- "It's a beautiful thing when a career and a passion come together" So very true for me and I feel very fortunate to be doing something that I love everyday around my kids and that's also rewarding.

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