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The maximum amount for repairs which the agent can authorise is $1,800

Discussion in 'Property Management' started by nambis, 18th Dec, 2015.

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What is the maximum you authorise your PM to spend on repairs without being notified?

  1. $500 or less

    30 vote(s)
    93.8%
  2. $501 to $1,000

    2 vote(s)
    6.3%
  3. $1,001 to $1,500

    0 vote(s)
    0.0%
  4. $1,501 to $2,000

    0 vote(s)
    0.0%
  1. nambis

    nambis Member

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    Just got a new lease (Melbourne) and noticed this part which says:

    The maximum amount for repairs which the agent can authorise is $1,800.

    I assume this is what the agent can spend in an emergency situation without notifying me? Maybe to repair a HWS but I think $1,800 is a bit over the top for a unit getting $310pw?

    In QLD my lease says not more than 2 weeks rent can be spent by the agent without prior approval by the landlord.

    So I'll request the $1,800 to be amended to $500.. or is that too low?

    What do others think is a fair amount to insert here?
     
  2. EN710

    EN710 Well-Known Member

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    You'll need to specify how much you're willing to let go without notice.

    Mine is $300. Above that means the repair might be significant and I need to know. Back then with property manager I have not trust yet, the limit is $0.
     
  3. Davothegreat

    Davothegreat Well-Known Member

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    Mine are all set to $0 - it's my money that's invested in my IPs, why would I want someone else to have the ability to spend my money without my authority. You only have to read some of the stories on here of mismanaging or lazy/incompetent PMs running up horrid bills for unsuspecting landlords. I'm lucky enough to now have a good relationship with my PMs but it'll always remain at $0.
     
    JacM likes this.
  4. Magnet

    Magnet Well-Known Member

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    Ours is $500 on a property with $625/wk rent. $300 on our properties which are $315 & $350. We make a point of telling the agent from the outset that we are ALWAYS contactable by ph & email so they don't really need to authorise anything without contacting first.
     
  5. Chilliblue

    Chilliblue Well-Known Member

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    Ours is also set at $300 but for several properties also have a group of tradesmen that can go higher as there is a relationship with them.
     
  6. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    I have all mine set to $100. I might get more calls and emails asking me to authorise expenditure, but I don't get any bill shock when I get my EOM statement.
     
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    That would probably be a bad assumption. Unless the contract specifies you would be giving them permission to order non-urgent repairs.
     
    Travelbug likes this.
  8. citystar

    citystar Well-Known Member

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    All repairs must be approved unless they are emergency repairs as per the legislation. Therefore in the agreement I have put $0 as the authorised amount however... I live and work close to all of my IP's so it is easy for me to organise quotes and negotiate on repairs that are required. I have tradies I have used for a decade who know me well and do a good job on budget each time that are always cheaper then the quotes the property manager offers.
     
  9. Handyandy

    Handyandy Well-Known Member

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    Mine are all $0. I want to know anything that I am spending money on. I don't want to spend $ on useless (or pointless) repairs when a more substantial approach is required to fix the issue. Example which is frequently discussed - leaking shower where PM could decide to get Megaseal in to 'fix' the leaking shower when the real fix is to rip out the tiles and redo the undelying waterproofing.
     
  10. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    What if the toilet explodes while you are on holiday?
     
  11. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    For an emergency repair I'm pretty sure the legislation allows them to spend above the limit specified.
    For all non emergency repairs my limit is set to around $300 for places which range from $400-700pw. Anything above that needs to be approved by me.
     
    Travelbug likes this.
  12. nambis

    nambis Member

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    Thanks everyone, I'll email the agent Monday and get her to revise this $1,800 figure down to $500.
     
  13. nambis

    nambis Member

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    So I emailed the PM to reduce the $1,800 to $500 and got this reply:

    The urgent repair amount of $1800 is set out in the Residential Tenancy Act and cannot be amended. This amount was specified as it covers the cost of a hot water system in the case of an emergency. Having hot water is deemed an “urgent repair” in Victoria.

    I wondered if she was legit so I googled and found this which confirms both agents and tenants can authorise up to $1,800 for "urgent repairs" which I should've mentioned in my OP.

    I got confused between urgent and non urgent repairs and think others did too when they mentioned figures of $100-$300 which would be for non urgent repairs.

    So if you have an IP in Victoria, be aware this $1,800 figure for non urgent repairs is in your lease and can't be amended.



    Urgent repairs - Consumer Affairs Victoria

    Advice for tenants requesting urgent repairs
    If you request urgent repairs, your landlord or agent must respond immediately. If they do not, there are a number of steps you can take to have an item repaired:
    • If a repair is urgent and you are not getting a prompt response from your landlord or agent, you can authorise the repair for up to $1800.
    • Keep all receipts and a record of your attempts to arrange the urgent repairs.
    • You can then give your landlord or agent a notice asking them to pay you back for the cost of the urgent repairs. They have 14 days to pay from the date they receive the notice.
    Urgent repairs are:
    • burst water service
    • blocked or broken toilet system
    • serious roof leak
    • gas leak
    • dangerous electrical fault
    • flooding or serious flood damage
    • serious storm or fire damage
    • failure or breakdown of any essential service or appliance provided by a landlord or agent for hot water, water, cooking, heating, or laundering
    • failure or breakdown of the gas, electricity or water supply
    • any fault or damage in the premises that makes the premises unsafe or insecure
    • an appliance, fitting or fixture that is not working properly and causes a substantial amount of water to be wasted
    • a serious fault in a lift or staircase.
     
  14. Travelbug

    Travelbug Well-Known Member

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    Yes. You did not state is as emergency repairs.

    I have a $0 limit but of course emergency repairs are just that- an emergency and need to be done regardless. I still want to be contacted but if I'm not contactable they need to go ahead in an emergency.

    Does your contract say Emergency repairs or Repairs? Because I certainly would not give an agent permission to do blanket repairs to $1800. Check the wording.
     
  15. Marg4000

    Marg4000 Well-Known Member

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    Our limit was always $200 without referral to us.

    Of course emergency repairs as defined by legislation were not bound by this limit.
    Marg
     
  16. nambis

    nambis Member

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    The management agreement between myself and the agent states the max amount the agent can authorise for "non urgent" repairs without notifying me is $300.

    The lease between myself, the agent and tenant doesn't mention anything about "non urgent" repairs but mentions "urgent repairs" using this wording in section 5 of the "Residential Lease Agreement".

    URGENT REPAIRS:
    The agent can authorise urgent repairs.
    The maximum amount for repairs which the agent can authorise is $1800.
    The agents telephone number for urgent repairs is 9685 1234 or refer to the Tenant brochure provided.


    Notice they use the term "urgent repairs" for point #1 and #3 but not for #2. This is what confused me because it looks like they're saying any repair can be authorised in point #2 for $1,800... they should use the same terminology for all 3 points.
     
    Travelbug likes this.