Non-Negotiables for property to be leased (Property in Melbourne)

Discussion in 'Property Management' started by whiteknight, 14th May, 2020.

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  1. whiteknight

    whiteknight Well-Known Member

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    Hi all,

    I have recently purchased a property in Melbourne where the original owner has moved on and property is vacant. My plan is to get the property up to rental standard but the property will be demolished in 3-5 years as I will develop it.

    I've seen some photos and know that I will need some painting and new carpets to be laid to get it up to scratch.

    However, I don't know what else COMPULSORY for me to do / provide as the owner.

    Do I need to pay for:
    - an electrician to inspect all power sockets/points?
    - someone to inspect and to service all heating / cooling appliances throughout?

    What else have I missed that I must do before the property is ready to be leased?

    All help would be much appreciated.

    (Admin, please move to different part of the forum if I have not opened this thread in the right spot)
     
  2. Melbourne_guy

    Melbourne_guy Well-Known Member

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    You have no idea so appoint a professional PM and take guidance from them. It's the best decision I made once upon a time. Saves wasting your time, spending money needlessly and ensures you won't get fined for beaching tenancy and safety laws.
     
    MTR likes this.
  3. Lil Skater

    Lil Skater Well-Known Member Business Member

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    The answer to both those first two questions is not yet. The final legislative changes were due to be announced at the start of this month to come in on the 1st July - but due to Covid have been delayed. It is likely you will need to do both before the 1st January 2021.

    There’s not really anything much that is compulsory (unless there’s a pool) but I’d recommend smoke alarm servicing or at least having them replaced, ensure everything in the property is working and if not you either need to be prepared to fix it or remove it if you’re not looking to repair.

    Good tenants like well presented properties, they don’t need to be modern - but at minimum beat and tidy.
     
    Tom Rivera and whiteknight like this.
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Did you not have a building report done which would have tested all the electrical points and appliances when you purchased it???

    If you did then that report should tell you if there is anything that needs attending to.
     
  5. bunkai

    bunkai Well-Known Member

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    Really?
     
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  6. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Really what?
    My building inspector goes around with a little gadget he plugs into all electrical outlets that says if they are working or not. It's not part of a structural report but it is part of the service which I get and especially of use if it's an interstate purchase.
     
  7. wylie

    wylie Moderator Staff Member

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    If this property needs painting and new carpets (just visual), and ignoring for the moment if the power needs to be checked (worth doing I guess if the house is in bad condition)... then how bad is "bad"?

    Every house we've bought has been in need of painting, updating original 1930s kitchens and bathrooms. We did those things for long term hold.

    If the plan was to demolish within five years, I likely would have not painted through or put in new carpets.

    How much rent would you get "as is" compared to with fresh paint and carpets? Is it worth doing?
     
  8. Tony3008

    Tony3008 Well-Known Member

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    Those gizmos provide a very basic check for things like reversed polarity, no ground etc. For a newly acquired property of any age I'd get a proper electrician's check.
     
  9. whiteknight

    whiteknight Well-Known Member

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    No building report done. Property was purchased (in a bit of a rush) for investment purchases. Intention is to knock this down in the next 3 years.
     
  10. whiteknight

    whiteknight Well-Known Member

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    It looks as thought it's general wear and tear, plus what you would expect when an elderly individual has lived in there and subsequently gone to a nursing home.

    PM has indicated what the property would lease for if the carpets / paint was done. The recommendation was for the work to be performed. However, I am not satisfied at the lack of attention to detail this PM has given me so will appoint a new one who will give me better advice as I feel they are able to "put themselves in a landlord's shoes" more.
     
    Lil Skater likes this.
  11. wylie

    wylie Moderator Staff Member

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    What was the rental amount this PM suggested, and how much more if painted and with new carpets? I just think for a knock down within three years, I'd take the lower rent.
     
  12. My House QLD

    My House QLD Well-Known Member Business Member

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    I've never seen that done once and I've attended a LOT of B&P inspections. Most if not all reports will state they don't test electrical.
     
  13. My House QLD

    My House QLD Well-Known Member Business Member

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    Interview at least three PM's before you make a decision, get lots of feedback on rental estimates before spending your $$$.
     
  14. Michelle Evans

    Michelle Evans Well-Known Member

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    If you post some photos we could have a look and let you know what we think. Generally speaking though, low quality properties attract low quality tenants and sometimes they cost more than it’s worth.