Talking Property Management
Welcome to Talking Property Management the podcast that dives into the untold stories and challenges of property management in Brisbane. Hosted by Samantha Eason, Principal and Licensee of Exclusively Managed, this show peels back the curtain on the not-so-pretty side of managing investment properties and mistakes made in the business.
From tricky tenants, untrained property managers, to unexpected maintenance disasters, Samantha brings her expertise and unfiltered insights to the table, offering listeners a behind-the-scenes look at the realities of property management.
Whether you're an investor, a landlord, or just curious about the industry, Talking Property Manager delivers honest conversations, practical advice, and a touch of humor to navigate the ups and downs of property management in Brisbane's unique market.
Join Samantha as she shares stories, tips, and solutions to help you tackle the challenges and make the most of your property investments.
And who knows, she could be talking about your property manager on the next episode.
Talking Property Management
Misguided Advice That Led to a $2,000 Weekly Bill for a Brisbane Landlord.
We’re kicking off 2025 with a real eye-opener!
In this episode, we share a jaw-dropping story of a Brisbane landlord who suffered a huge financial loss due to poor property management advice over a plumbing issue.
Understanding tenancy legislation and keeping communication clear are absolutely essential to avoid costly mistakes like this.
Stick around until the end to hear what the property manager in this situation believes the landlord should be covering—spoiler alert, it’s not what you might expect!
If you have any questions or scenarios you would like us to discuss on an upcoming episode, please email samantha.eason@exclusivelymanaged.com.au or visit https://www.exclusivelymanaged.com.au/
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Hello and welcome back to Talking Property Management. I'm Samantha Eason and this is the podcast where I basically talk all things property management. I'll throw in some landlord tips and industry insights and, of course, what goes wrong when you are with the wrong property manager. And there is a massive kicker at the end of this episode. Today I'm jumping straight into a massive issue that cost one Brisbane landlord a hefty $2,000 a week, which was easily unnecessary and avoidable. So what started as a simple plumbing issue quickly escalated due to poor advice from an inexperienced property manager. So buckle up as we explore how this situation could have been handled differently and why understanding tenancy legislation is crucial to preventing costly mistakes.
Speaker 1:Now you might be wondering how could a plumbing issue and an unqualified property manager cost someone $20,000 a week? So here I am, let's break it down. So here I am, let's break it down. So what's happened? And you couldn't make this up, even if you tried.
Speaker 1:A property in Brisbane unfortunately experienced a massive plumbing issue that made the property uninhabitable right before Christmas. I'm not too sure of the full details. Maybe it was a flood, burst pipe or some other plumbing disaster, and I don't of the full details. Maybe it was a flood, burst pipe or some other plumbing disaster and I don't know the full situation, but what I do know it's absolutely ridiculous. The tenants were paying $7.50 a week and obviously no one wants to live in a property that's unsafe or unlivable. So the property manager and the landlord decide they need to end the tenancy based on non-livability, which is a same-day notice. And here's where the confusion begins. The property manager, who isn't obviously fully familiar with the legislation, advised the landlord that they would need to cover the tenant's accommodation costs while the property was being repaired. And have you heard this before from your property manager? If you have, I'm sorry, but they're not guiding you correctly. This advice unfortunately led to the tenants securing a two thousand dollar per week property, most likely a unit or somewhat, and based around, you know, christmas. Those prices would have been extreme and, as you can imagine, the landlord is now facing a huge unexpected expense and he now has a very upset tenant. But what went wrong? And was the property manager giving the right advice? Could this have been avoided? So here's the critical piece that the property manager missed. So here's the critical piece that the property manager missed.
Speaker 1:Under the Queensland tenancy laws, if a property becomes unlivable due to an accident incident like flooding or major plumbing situations, mould, you name it a landlord is allowed to terminate the tenancy, and that is where it gets crucial. When a property is deemed unhabitable, the notice to terminate the tenancy is effective immediately. That means that the tenant is not responsible for paying the rent to the property that is unlivable from the day that the notice is given. This is meant to compensate the tenant for the loss of their living space, their house, allowing them time typically a week or two to find alternative housing. And in this case, the property manager didn't fully grasp the legal implications and mistakenly advised the landlord and the tenants that they were responsible for covering the tenants' accommodation costs, which, unfortunately, is not accurate. So let me clarify this when a property is deemed unlivable, the tenants are responsible for finding their own alternative accommodation. The legislation doesn't require the landlord to cover these costs. Depending on what the situation is, it may include covering the cost of moving, but in fact, the tenants should have and looked into their contents insurance to cover temporary housing costs. It's bad luck for everyone involved if they don't have insurance. That's not the landlord's responsibility. The tenants had every right to leave, but the onus of finding housing is unfortunately on them. They should not expect the landlord to pay for their new place, especially when the issue wasn't the landlord's fault. Whether it comes from an act of God or bad luck, it isn't something that the landlord caused.
Speaker 1:This situation ultimately comes down to you guessed it poor communication. The property manager was unaware of the legal requirements and failed to set clear parameters for the tenants. What happened next was that the tenants found a $2,000 per week property, while they were within their rights to find alternative housing. The amount was far beyond what the landlord had anticipated covering. So let's assume the landlord wants to help someone out and this family, this tenancy and goes look, I'm happy to cover the rent you know for your house or your new location. Then, yeah, that is that you could communicate with, advising it's up to $750, but at the end of the day, the landlord's not required to cover anything. We'll quickly take a step back.
Speaker 1:What should the property manager have told the landlord in this situation? Well, first and foremost, the property manager should have understood and explained the legislation clearly, and here's how this should have played out. You provide the immediate notice of termination. The property manager should have informed the landlord that, per the Residential Tenancies and Rooming Accommodation Act, if the property is unhabitable, the landlord can immediately give notice to terminate the tenancy. There's no need for negotiation here. This is a legal right of the landlord and it's for the tenants. There is no responsibility for accommodation costs.
Speaker 1:It's essential that the property manager makes it clear that it is not the landlord's responsibility to cover the cost of the tenant's new housing. The tenant can look to their insurance for alternative accommodation if needed. If they don't have it, that's bad luck. Communication with the tenants, the property manager bad luck. Communication with the tenants. The property manager should have communicated clearly with the tenants as well. Yes, the tenants are in a difficult situation, but they are not entitled to demand expensive accommodation from the landlord. The property manager should have let them know about their rights, should have let them know about their rights, which include contacting their insurance company to cover any accommodation costs. If they didn't have insurance, it would be up to the tenants to find a solution. And if the property manager could have gone a step further by providing the tenants with information on where they could find temporary housing, that would also be a more proactive, service orientated approach to managing this obviously very difficult situation.
Speaker 1:So now let's talk about the bigger picture. What happens when a property manager doesn't understand the legislation and gives incorrect advice? In this case, the landlord is now stuck with a $2,000 per week accommodation bill. That's $2,000 a week that they didn't plan for and certainly shouldn't have had to cover. Beyond the financial strain, the landlord is upset and frustrated, completely understandable. They trusted their property manager to handle things correctly, but now they feel obviously misled. The situation could harm the relationship between the landlord and the property manager, leading to potential loss of business, and could even result in a lawsuit if the landlord and the property manager, leading to potential loss of business and could even result in a lawsuit if the landlord feels that the advice was negligent, which you know, between our listeners and me, it seems to me why is it important to have the right property manager looking after your investment?
Speaker 1:First and foremost, they need to have the right property manager looking after your investment. First and foremost, they need to know the legislation. Property managers must stay up to date on the latest tenancy laws and understand the details that could impact both their clients and their customers, the tenants. For instance, the rules around unliveability and properties that become unlivable. It's, you know, very crucial. It is also very important to have clear communication. Property managers need to communicate clearly with both the landlords and the tenants, setting expectations properly In situations like this. For, for example, it's essential to make sure the tenant knows their responsibilities to finding alternate accommodation and that the landlord is aware of their responsibilities and rights. Also, the right property manager is prepared. The right property manager is prepared. Best property managers have systems in place to handle emergencies. This includes knowing the appropriate steps for dealing with unlivable properties and managing tenant expectations in these situations. The office they work with will also focus on the processes and quality training and education. Ongoing education is vital.
Speaker 1:It is important your property manager is well-versed in the legislation that governs tenancies, especially around issues like this, to avoid costly mistakes like this. To avoid costly mistakes, I promised you a little bit of a kicker, all right, when this property manager shared this issue on our property management forum, an incredibly experienced professional in our industry pointed out the relevant legislation. You know that it isn't the owner's responsibility to pay anything. The property manager responded with I don't see how it's the tenant's responsibility to pay anything. And, on a separate comment, the PM is still going back to the owner to ask them to contribute really makes you wonder who is hiring and training these property managers. And well, that's it for today's episode. We hope you've learned something valuable that will help you avoid costly mistakes in the future, whether you're a property manager, a tenant or an owner a tenant or an owner knowing the law and clear communication is incredibly vital, and it's key for a smooth experience for everyone involved. I am Samantha Eason, and thank you for listening to another episode of Talking Property Management.
