Sell audit your property management files

We rarely see agency operators regularly sell auditing the property managed files to check if the files are up to date and information in the files complies with the industry regulations and Acts.

A quick check of the following may safeguard you against a government audit or check;

·         Are all your managing agency authorities current and signed?

o   Some agencies update their managing agency authorise annually.

 

·         Are all leases in the files and signed by landlords and tenants?

o   Most agencies operators are backing up on servers, filing services or the cloud.

·         Do you have a current completed routine/condition & inspection report?

o   Do you have adequate back up of photos to support the condition reports?

·         Are all the bonds lodged with the Bond board and do you have reconciled records?

o   Make sure when you transfer management to and from an agent you have informed the RTBA.

·         Ensure that what is in the file matches with the computer records?

o   Often agents negotiate or adjust their rates of commission without updating the agency authority in the file

It’s too late to do update your property management files if you have embarked on the sale of the property management portfolio or worst still after you have sold your rent roll. We often see vendors having to tidy up their property management files after the rent roll sale  due to the requirement of a buyer post due diligence. The landlord will be easier to obtain information if it becomes your normal annual practice to maintain these records.

Restraint of Trade- Social Media Platforms

The use of social media in the workplace is dramatically changing how we go about business, bringing both significant opportunities as well as potential threats.

Without adequate safeguards, the contacts made by employees on social networking platforms, such as LinkedIn, could be retained by the employee and used to the detriment of the previous employer.

 There are a number of actions that your business should definitely consider to help safeguard itself against potential loss and damage, in terms of client relationships, confidential information and intellectual property:

1. ensure your contracts of employment include the most thorough protection possible;
2. introduce  policies and procedures that cover the use of information in a social media context and set rules around how employees can and cannot use social media to network with customers and prospective customers;
3. matters to address with new employees on commencement of the employment relationship, so that the expectations in relation to the use of, and rights associated with, social media contacts both during and after employment are clearly set out; and
4. how other measures (such as paying for "premium accounts" on LinkedIn) can demonstrate professional networks created in the course of employment as distinct from social networks that may fall outside the bounds of employment and remain unprotected.

   

 

 

 

 

Vacant Rates in Victoria

New data shows rental vacancy rates across one state are stable or falling, while some regional markets are offering healthy yields of up to 5.4 per cent.

Real Estate Institute of Victoria said recent vacancy data showed that in Geelong, the regional centre with the highest rate; there was a 0.1 per cent fall to 4.4 per cent in October, based on the six-month average trend to 31 October.  

In East Gippsland and Wellington Shire, there was a fall from 3.4 to 3.1 per cent.

In many regional centres, such as Ballarat, the vacancy rate was already low, with housing agencies often struggling to find sufficient accommodation for tenants.  

So, while a further fall in the vacancy rate is unwelcome news for those looking for a place to live, for investors it means continuity of tenancy and the likelihood of a pool of would-be tenants from which to choose?

In Ballarat and the Central Highlands, the vacancy rate fell from 2.8 to 2.7 per cent, while in Shepparton and Goulburn, Warrnambool and the Western District; it was down to 2.7 per cent from 2.9 per cent. In the Wimmera it was stable at 2.2 per cent.

Median house rents were up in Geelong, Ballarat and Bendigo in October, while across the state the median rent for a house remained stable at $300 a week.

The median apartment rental rate was also stable at $250 a week, but in Ballarat, where the housing market is tight, it rose from $240 to $255 a week.

 

Source; REIV

Contractor Management

Contractor management can be a very challenging area for organisations to manage and your obligations under Occupational Health and Safety legislation are not absolved because you have engaged the services of a contractor. It is important that contractors have a clear understanding of what is required while on site at your workplace and that they have their own robust safety policy and safety procedures in place.

If your organisation engages contractors or sub-contractors, contractor risk management should be integrated into your safety management system. A safety induction which is relevant to the site should be completed before commencing work. The complexity of the contractor management process will depend on how a contractor is engaged, the type of work, where and under what circumstances the work is being conducted.

Designated workplace health & safety consultants with experience in your particular industry will work with you to develop a contractor management program that demonstrates due diligence and gives you a practical tool to systematically manage contractors.

A Consultant can provide you with a gap analysis to ensure your current safety policy and safety procedures are up to date with current Occupational Health and Safety legislation.

Contractor management safety services should include:

·    Review the current contractor safety management process and make recommendations

·    Development of a contractor safety management program for your business including safety policy, safety procedures, safety checklists, safety induction and/or safety training

·    Mentoring and training program to give your staff the skills to manage contractor safety

Source; Safety Australia; safetyaustraliagroup.com.au

Why do I need a Section 52 Statement?

In Victoria you are legally required to provide a prospective buyer with a Vendor’s Statement (also known as a 'Section 52 Statement') if the goodwill, plant, equipment or fittings of the business are being sold for a total price of $350,000 or less. Failure to provide this statement or satisfactorily complete it will give the buyer the right to terminate the sale contract. You must give the purchaser or their representative a completed and signed copy of the statement before they either sign the contract or pay the deposit.

The sale of small businesses is regulated by provisions of the Estate Agents Act 1980 and the Estate Agents (General, Accounts and Audit) Regulations 1997.

Your accountants will make sure you have this document is available to prospective purchasers prior marketing the business.

Why buy an existing business?

If you buy an existing business, you can analyse the profit and loss statements and balance sheet of the Company you are buying. This is an advantage because you see firsthand what you are getting in, particular the income streams of the business and the individual expenses of the business.

In addition to this you have a going concern producing revenue, with staff, brand, systems and an infrastructure in place. In essence you are making money from the day you settle.

When you start a business from scratch, you must secure and fit out a premise, build the systems, web site, arrange plant & equipment, hire and train staff- all of this before you begin to earn an income.

Statically most start up businesses struggle to make a profit and in some cases fail within 3 years from commencing. Experience would say that starting up a business require an enormous and of persistence & resilience but above all a bullet proof business plan.

What items to be included in the sale of a rent roll?

The followings items that possibly could be included in the Contract of Sale to purchase a rent roll;

 1.            Telephone numbers and Facsimile numbers- In some cases the franchisor may   reserve/own these numbers and this is reflected in the franchise agreement.

2.            The agency’s web site URL.

3.            The agency’s Trading Name.

4.            Any mobile phone numbers of staff where the business pays for or provides a mobile phone as part of the employees work agreement.