There are a number of issues that arise when Rental Providers conduct their own handyman/repair work on their own investment property, especially when not appropriately qualified, licensed, or insured (which in many cases is now legislated under the Residential Tenancies Act.
Small jobs like cleaning up, gardening, and painting carry less risk, provided that the tasks are completed when the renter is not on the premises.
Maintenance tasks that require specialist skills like carpentry, plumbing, electrical, or even tree removal should all be undertaken by suitably qualified, licensed, and insured tradesmen. Rental Providers who complete some of these tasks themselves are exposed to a series of risks that ‘landlord Insurance’ policies may not cover.
Property Damage and Personal Injury Policies
The liability section of these specialised policies is designed to respond to any claims made against the Rental Provider that result in a third party suffering property damage or personal injury. This section of the policy will exclude any claims arising out of the failure of a Rental Provider to take all reasonable precautions to comply with statutory obligations and regulations.
This is a key exclusion because if the Rental Provider knowingly completes work at a property that they are not qualified or licensed to do, then it is highly likely that any claims arising out of the works completed will not be covered.
In effect, this means that the homeowner will be held personally liable for any claim, and their assets may be put at risk due to no insurance coverage.
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The Benefits of Property Maintenance at Rented Premises
Conducting maintenance and repairs to your investment property not only makes your Renters happy, but proactive maintenance will also help your property retain its value over tenancies to come.
Sometimes the cheapest solution (doing it yourself) is not the best, particularly if the repair requires further attention due to poor workmanship. Remember It’s important to address any initial repairs early and correctly, to avoid them from becoming bigger and more expensive problems down the track.
Responsibility of the Rental Provider
It is your responsibility as a property owner to ensure that the property is in good repair, is clean and fit for renters to live in, is secure, and complies with all laws including those relating to health and safety.
Think carefully about performing maintenance yourself and placing your property, renter, or insurance policy at risk as it can definitely expose you to greater peril.
MAINTENANCE COST CAPPING
The huge volume of home maintenance, repair, and improvement jobs over the past year means many tradespeople have never been busier. With many still catching up from workloads created during Melbourne's COVID lockdowns, tradies have also been hit with compliance safety check work and minimum standard rectifications.
Since air conditioners have been listed as an appliance that attracts urgent repair status, this summer’s hot weather has also increased the demand for swift, decisive repairs in that arena.
Keeping on top of Property Maintenance
When demand for skilled and reputable trade professionals is at an all-time high First National Real Estate Neilson Partners are working diligently with our preferred contractors to get through job orders as quickly and efficiently as possible. Likewise, contractors are having to refine, streamline and simplify processes to ensure they can keep on top of customer interactions and incoming inquiries.
In this vein, there has been a marked and steady decline in recent years of contractors willing to provide free quotations for work. The high demand for many trade services, high petrol prices, building material shortages, and a simple lack of time, has forced many trade professionals to say 'no' to providing quotes. Gone are the days of gaining three of four quotes and then choosing the most competitive. Most tradies understand that in these scenarios, they only have a 25% chance of getting the work, but have spent time and resources for no result. Many just can’t afford to do it anymore.
Monetary Caps on Job Orders and Delays in Job Completion
Some trades are urging owners to provide a monetary cap on each job order so that if necessary, they can effect a repair or replace parts and get things up and running on the spot.
This is a strategy First National Neilson Partners supports as a way to keep things moving, not only for the contractor but also for the Renters who enjoy a swifter response and end result.
When work reaches beyond a standard service call, it is not always practical or possible to speak with a property manager or property owner to gain authority to replace parts or effect actual repairs. When authorisation is not immediately available, contractors must leave a property, await instructions, and ultimately return at a later date to perform the approved work.
Given current workloads, this can delay rectification work for days, sometimes a few weeks. Obviously, this delay and need to return can cause a secondary call-out fee for Rental Providers and a real sense of frustration for Renters who simply want a solution to the problem.
The Way Forward
The Neilson Partners Property Management and Maintenance Teams quite often ask our property investors for capping and will be doing so more often in the future in order to support our tradespeople and encourage speedier results with less cost.
A price cap doesn’t mean the contractor will charge that full amount, it just allows them to work more effectively.
Obviously, it cannot be guaranteed in every instance that repairs can be done on the spot as some jobs will still require more extensive repairs and/or replacement and will only be able to proceed with the assistance of a quote, but if we can minimise many of the unnecessary delays, it will be a certain improvement for everyone.
