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So you’ve reached the end of your tenancy, you’ve given appropriate notice to your property manager and it is time to move out of your rental property.  What’s next?

At the start of your tenancy, you would have paid a bond as a form of security deposit, to cover the payment of any issues that may be identified at the end of your tenancy. Provided you’ve followed the rules, you should be on your way to receiving your bond in full. But how do we assess how you’ve maintained your rental property throughout your tenancy? It all comes down to the all-important condition report!

What is a condition report?

At the start of every tenancy, as soon as your bond has been paid, your property manager compiles a full report of the condition of the property you are moving into. This is known as the ‘condition report’ and it is an important document that protects both the tenant and the landlord – you want to make sure you’re moving into a property that is up to scratch, and a landlord wants to make sure their investment is being treated with respect and looked after accordingly.

At The Hopkins Group, the condition report is compiled complete with pictures as visual evidence. You should receive two copies of this report, so that you can review its contents and note any differences you observe in your own inspection of the property.

Make sure you take note of anything that your property manager may have missed – you don’t want to be held accountable for something at the end of your lease that you didn’t do. Once you have made any notes and signed to the accuracy of the report on both copies, you will return one copy to your property manager, and keep one for your own records.

How is the condition report used at the end of a tenancy?

When you are vacating the property, your property manager will use your approved condition report from the start of your tenancy as a basis of comparison to inspect your property. Just like when you first signed your lease, we will go through the property to make sure the property matches the condition noted in your signed condition report. We do take into consideration general wear and tear, as a result of everyday life, but our main concerns are that the property is left clean and in good repair for the next tenant.

While living in the property, it’s important to keep your property manager up to date with any maintenance or damage to the property, minimising the need for expensive repairs in between tenancies. Remember, if damage is not reported, you may be held accountable.

What do we mean by reasonably clean?

When discussing the cleanliness of the property, you might hear property managers use the term “reasonably clean” – but what does this mean? Reasonably clean is subjective, right? For example, while one person may not find it necessary to sugar soap the walls, there are others who wouldn’t leave without doing so. As a rule of thumb, while minor scuffs aren’t the end of the world in a rental, general cleanliness is important – when the property clearly has not been dusted or vacuumed, it becomes unreasonable.

To help you prepare your property for your final inspection, we’ve compiled a helpful hint list – so there’s no excuse for letting your rental fall into disarray!

Have any questions? Our property management team is here to help! Please contact us at any time if you have questions about your lease and obligations as a vacating tenant on 1300 726 082.

When disaster strikes at a rental property, an urgent repair may be needed. But what if the landlord is uncontactable and you need to repair a severely broken toilet system or dangerous electrical fault? In cases such as these, the Victorian Residential Tenancies Act gives tenants and managing agents the authority to carry out urgent repairs up to $1,800, without the landlord’s authority. This number has increased from the $1,000 allowed previously.

The change comes as Consumer Affairs Victoria and the Real Estate Institute of Victoria have realised that with the increase in the cost of living, the cost of repairs and maintenance has also increased. This means that in some cases, the previous cap of $1,000 is not enough to cover repairs that are considered urgent so an increase was necessary to ensure prompt response.

What is an urgent repair?

It is important to note that only certain items are considered “urgent repairs” under the Victorian Residential Tenancies Act and there are rules around when these repairs can be carried out without an owner’s authority. The Act is very clear with what it considers an urgent repair, and these items are:

• a burst water service
• blocked or broken toilet system
• serious roof leak
• gas leak
• dangerous electrical fault
• flooding or serious flood damage
• serious storm or fire damage
• failure or breakdown of any essential service or appliance provided by a landlord or agent for hot water, water, cooking, heating, or laundering
• failure or breakdown of the gas, electricity or water supply
• any fault or damage in the premises that makes the premises unsafe or insecure
• an appliance, fitting or fixture that is not working properly and causes a substantial amount of water to be wasted, or
• a serious fault in a lift or staircase.

What happens once an urgent repair has been reported?

Once you (the tenant) report an urgent repair to your agent, the property manager will call the landlord advising of the issue and the options which are available to fix the problem. Property managers should work with their tenants to ensure that the issue is rectified in a timely manner so that you are not forced to take matters into your own hands and engage tradesmen yourself.

In situations where the landlord is not contactable, your property manager will need to make an executive decision and have urgent works approved. Your property manager will only do this in crisis situations – they are trained to know how to handle an urgent maintenance situation should it arise, to ensure that legislation is complied with and potential compensation claims are avoided.

While it is very rare that you would not be able to contact your property manager to report urgent repairs, missed connections can happen outside of business hours, during the Christmas period and on public holidays. In these cases, tenants can arrange works without permission (up to a value of $1, 800) if they are unable to contact their property manager in a crisis.

In an emergency, tenants of The Hopkins Group should always try and call their property manager. Our  property managers try to be contactable for urgent repairs, but sometimes issues arise when least expected. If you cannot get hold of your property manager in an emergency, tenants are given the authority to complete the repair within the threshold without the approval of their property manager and/or landlord.

What is the maximum repair cost a landlord will be required to reimburse for an urgent repair undertaken without authority?

The maximum amount that a landlord or property owner will have to reimburse a tenant or resident who pays for urgent repairs is $1800, including GST. This maximum will also apply when a tenant or resident seeks a Victorian Civil and Administrative Tribunal order for urgent repairs.

Who can I call if I have any questions?

Our property management team is available to answer any questions you might have about urgent repairs and changes made to the Residential Tenancies Act. Please call 1300 726 082 to speak with one of property managers today, or email your property manager directly.

At the end of every tenancy, our property managers conduct a final inspection to ensure the property is left in the same condition as it was given to the tenants at the start of their lease. This is an important step in the vacate process, as it helps us determine how much, if not all, of the bond will be refunded to the exiting tenants.

Our aim at this inspection is not to “nit-pick” or grab at your bond – we always take wear and tear into consideration – but we need to make sure that the property is presented in a reasonable condition to the next tenants. If for some reason we need to deduct from the bond, we will only take what is needed to bring the property up to this reasonable condition.

To help you avoid any unnecessary deductions, I have come up with a few hints and tips to help ensure you pass your final inspection and make the process of moving out a smooth and stress-free experience. I’ve highlighted a few areas below that your property manager will always pay close attention to, as in the hustle and bustle of vacating, they are often overlooked by even the most discerning tenants.

Showers, screens and base
Make sure you scrub! Check to ensure that any soap scum has been removed and shower screens are clear. Your bathroom should sparkle.

Kitchen stove top and oven

Like the bathroom, a little bit of elbow grease goes a long way in the kitchen. Wipe down the stove top and splash back, and ensure the oven is thoroughly cleaned. Don’t forget to clean the range hood, there can often be a build up of oil in the mesh so make sure you pull it out and rinse it!

Walls and minor scuff markings

Sugar soap works a treat when cleaning walls of minor scuff marks. Wipe down the walls as you would any other surface, and watch the scuffs disappear!

Carpets

Ensure your carpets are professionally steam cleaned, and receipt is provided when you return your keys. Have a chat with your property manager before you book in a carpet clean, as they’ll often have a preferred cleaner that they can recommend.

Light globes

Don’t leave the next tenants in the dark! Check to all the light globes to ensure they are in working order, and replace any that have blown.

There is an old adage that says “treat others how you want to be treated”, and I am a strong believer that the same sentiment should apply to your rental property. You wouldn’t want to move into a neglected property, so it makes sense that you leave your property in tip-top condition for the next tenant. By watching out for the items above and following our helpful tips, hopefully we can make your vacate a dream and refund your bond in full.

For more tips on how to master a vacate clean and complete all those annoying tasks like scrubbing the walls, cleaning the range hood or getting your shower screens to sparkle, try YouTube for some helpful video tutorials. In the meantime, download a copy of The Hopkins Group Vacating Checklist that might prompt some things you hadn’t thought of.

To discuss any of your vacate concerns as a tenant or if you have any questions about preferred suppliers, don’t hesitate to contact a member of The Hopkins Group Property Management team.

The National Rental Affordability Scheme (NRAS) was introduced by the Federal Government in 2008 as a way of creating affordable housing and stimulating the building industry. The incentive was to supply new properties in Australia that would be leased at 20% under the market rate to-low to moderate income earners.

As an owner of a NRAS dwelling, the property must be brand new or not have been lived in before in order to qualify for the NRAS dwelling ID.

To qualify as an NRAS tenant, the household must meet a gross income limit. For 2015/16, a single tenant would have to earn $47,904 or less to be able to participate in the scheme.

The investor, although receiving 20% less market rent for their property, receives a healthy annual tax free incentive (indexed annually) from the government for being involved in the initiative. The incentive for 2015/16 is made up of $8,187.78 (Federal Government contribution) and $2,729.26 (State Government contribution). Although NRAS property management costs are slightly higher, the investor is not charged re-leasing or advertising charges over the term of the NRAS agreement.

The incentive is paid for 10 years whilst the property is still operating under NRAS, unless at any stage the investor decides to owner occupy the property or remove the NRAS dwelling ID attached to the property at any time.

As a property manager at The Hopkins Group, it has been interesting to see the calibre of tenants who apply for properties within the scheme. Open for inspections are conducted as normal and there is a general pre-screening of the applicant done in the office whilst income declaring documents are completed and reviewed by the housing provider.

Having leased over 60 NRAS properties, the application process for NRAS tenants can be quite lengthy, given there is a large amount of accompanying paperwork that is required, including obtaining tenant bank statements, NOA’s, payslips etc. Given the work involved from both the property manager and the tenant, I’ve found that tenants who have successfully applied for an NRAS property are very appreciative of securing a tenancy and generally become good tenants, given the incentives in place for them to remain in the property and work involved to get approved.

If you are a landlord or tenant interested in NRAS, or would like to speak with someone with relation to any NRAS enquiry, please feel free to call our office on 1300 726 082 and ask to speak with a property investment adviser or property manager who will be able to assist.

Source: www.dss.gov.au