Residential Risk Management Report

Has anyone completed a residential risk management report for their IPs? I have been contacted by our PM a couple of times saying we should complete one as:

"As a landlord, you have a duty of care to your tenants. A risk management report provides the solution because it is more than a common condition report. It covers 12 safety hazards and more than 100 safety issues – including balcony, deck and stair safety, as well as slips, trips, falls, gas, moisture, curtain cords and electrical."

Haven't received pricing but just wondering if it is something that should be done?

Thanks in advance,

 

Hey Barry,

It's becoming more and more common for Property Manager's to recommend these inspections. In theory I think they're a great idea and if you value the peace of mind, well worth it. Property Managers are not tradespeople and really aren't qualified to comment on the safety and condition of many components of a property. Our industry has seen a tremendous growth of successful claims against agents and property owners in the past decade, which explains the birth of these sorts of services.

On the other hand, many believe they're a rort and just another way to drill property owners for money. I don't personally recommend them because my area is quite cost sensitive and I'm confident in my ability to identify risks, but I'm not averse to the idea at all.

 

These reports are done because there's a piece of software some property managers use called Maintenance Manager which books in / coordinates maintenance jobs, sends off automatic emails to landlord, tenant and tradespeople advising them of status etc. Part of the deal from the software vendors, in order for the agency to get the software for $0 upfront, is to send out the invites to their landlord list.

As Tom said, there's a couple of different groups on this. I'm of the latter camp, think its a bit of a rort. I think all the risk stuff is there to scare you into accepting the deal, so they can make their money and recommend all their tradesmen to rectify and therefore make more money.

At the end of the day, nearly everyone got an inspection done when they purchased their property. Despite property managers not being tradespeople, we can certainly tell you if it looks like the house is falling over or if there's no hand rail on your set of stairs.

 

I agree with D.T and Tom. If you have an experienced PM in place they should be able to pick up any health and safety issue. But would recommend obviously if the PM draws a problem to your attention then proceed with professional to look into the extent of the issue and have it addressed.