Investment Property Repairs

Discussion in 'Property Management' started by Property101, 14th Apr, 2020.

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  1. Property101

    Property101 Well-Known Member

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    Hi Guys

    Hoping you can help me.

    If repairs to a IP are over $500 does this then become the owners job to execute.

    Thanks in Advance
     
  2. Dan Wood

    Dan Wood Well-Known Member

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    To be honest I feel like this is an odd question.. I thought most repairs if no fault of the tenant were to be done by the owner if reported. Regardless of pricing?

    What's the context because I'm not following.
     
  3. Merrywest

    Merrywest Member

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    Is this regular maintenance or a bond dispute?
     
  4. Hetty

    Hetty Well-Known Member

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    Maybe as opposed to the PM organising repairs? Iā€™m confused too.
     
  5. Property101

    Property101 Well-Known Member

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    I had read that Property Managers only have to organize repairs to the value of $500 as this comes under there care.

    So if a Repair issue comes in at $2,000 to $3,000 this would then be left for the owner to handle.

    Example obtain various quotes etc...

    From what little I know it is not up to PM to perform what would/ could be seen as renovation/building maintenance.

    PM's may do this but they don't have too nor would they have the time.
     
  6. KayTea

    KayTea Well-Known Member

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    It's usually a case of - if repairs fall under a certain amount eg. $500, or whatever you have authorised on your contract with the PM, then the PM can organise and authorise maintenance/repairs without having to wait for your approval/authorisation. This can be very useful for emergency repairs to be dealt with immediately, especially if the PM can't get ahold of you.

    However, if the repairs required are above the agreed amount, they need to get the LL approval before proceeding. It doesn't mean that the PM can't be involved with organising the work etc., and I certainly think that you can ask them to do that.

    Both of my PMs have been great at organising big-ticket repairs, and I've relied upon their knowledge of local contacts etc to get the work done. eg. A property in Melbourne has had problems on an annual basis with its central heating - for the first few years we had it repaired, but it was suggested that we get it replaced last year. Being based in QLD, it's something I have absolutely no knowledge of (wouldn't even know where to start...) - but the local PM in Melbourne got the whole thing sorted for us - got us the quotes from a number of providers, the details and recommendations etc and sent them through for us to check, and then approve. She then organised the installation etc. That was a lot more than a $500 job, but the PM was brilliant in dealing with all of it.
     
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  7. Property101

    Property101 Well-Known Member

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    KayTea thank you so much for sharing your knowledge.

    My concern is:

    The repair request came at the same time as the current situation was unfolding.

    We were only able to contact tenant once for the first quote.

    Other repairers were suggested for quoting.

    I told my contractor that I am contactable 24/7 to have this repair done...i.e. instead of just quoting I will approve the repair straight away.

    I worry that the tenant may be afraid to have this repair done?

    My main concern is for the tenants health and want to provide a home that meets all the criteria for there safety and wellbeing.

    Also I will like to finalize this matter so I absolve myself of any "Failure to exercise a reasonable request".

    Thank you for any help it is greatly appreciated.
     
    Last edited: 14th Apr, 2020
  8. TMNT

    TMNT Well-Known Member

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    If my tenant decided to scratch all the floors beyond wear and tear, it's their fault regardless of whether it's $2k or not
     
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    No
    There is no such rule
     
  10. KayTea

    KayTea Well-Known Member

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    It's great that you've got your tenants health and wellbeing at the forefront of your decision making.

    Is the repair/request urgent? (ie. likely to impact on their health, or cause long-term damage to the property), if not dealt with immediately?

    I would ask the PM to work with the tenant - ie. if the tenant wants it done now (or you need it done now), then see if that can be organised. Otherwise, if the tenant is able to wait a few months, then maybe it can be done then (it would very much depend on the nature of the repair, I'm sure).

    Just ensure that you have everything in writing. ie. make it clear that you approved the work to be done, and if it is not able to be completed, it is due to other circumstances (ie. repairer unable to access property due to COVID-19 restrictions, tenant unwilling to grant access etc). That way, if it is ever questioned why the work wasn't done in a 'timely manner' or 'created a safety hazard', you have covered yourself.