General responsibilities
Landlords Under the Residential Tenancies and Rooming Accommodation Act 2008 (Qld), Queensland property owners or Landlords have a statutory obligation to ensure that premises are fit to live in, maintained and in good repair.
Property managers are often engaged to assist landlords to meet these obligations and may, in some circumstances, also be held responsible for any failure of the landlord to meet these obligations.
Property managers
It is a requirement of the Property Agents and Motor Dealers Act 2000 (Qld) for property managers to obtain a certificate of registration. They are able to do this by completing an industry recognised property management training package.
Property managers are also required, under the Property Agents and Motor Dealers (Real Estate Agency Practice Code of Conduct) Regulation 2001 (Qld), to respond to maintenance and repair requests in a timely manner.
The Queensland Government Office of Fair Trading states that a property manager must:
• Respond to requests for maintenance or repairs promptly;
• Act in tenants’ best interests, including getting quotes for repairs;
• Employ only licensed tradespeople for any repair or maintenance work;
• Develop and comply with a complaint handling procedure;
• Complete an inspection report and inventory;
• Accompany prospective tenants on all property inspections (unless otherwise instructed in writing).
Isabella Diefenbach – Coroner’s inquest
In May 2010, seven week old Isabella Diefenbach, was thrown from her father’s arms after his foot went through a piece of rotten wood on the veranda of the family’s rented home in Yeppoon.
Isabella suffered a fractured skull and died a few hours later in hospital, prompting a Coronial inquest into the Queensland rental industry.
Prior to the incident, Isabella’s parents had made numerous complaints about the rotting veranda to the property manager, and inspections by three independent tradespeople had been carried out.
While each inspection determined that there was extensive termite damage to the veranda which required repair, the reports provided by the tradespeople were not read by the property manager, but forwarded to the Landlord, and ultimately the veranda was not fixed.
Coroner’s recommendations
The Coroner, Annette Hennessy, made several recommendations in relation to the Isabella Diefenbach inquest:
• That the Office of Fair Trading and other relevant authorities review the current training program for property managers, and incorporate a component on conducting inspections of decks, verandas and stairs;
• That mandatory inspections by independent licensed builders should be undertaken of residential rental properties with decks, verandas or stairs, that are 10 or more years old, prior to the property being listed on the rental market, and then at least every three years while the property is being rented out;
• That the Property Agents and Motor Dealers Act 2000 (Qld) and the Residential Tenancies and Rooming Accommodation Act 2008 (Qld) be amended to require property managers to keep a register of all maintenance or repair requests by tenants, and any instructions received from the property owner in relation to these;
• That the Property Agents and Motor Dealers (Real Estate Agency Practice Code of Conduct) Regulation 2011 (Qld) include specific obligations of property managers in relation to reading building, pest or termite inspection reports, and communicating the outcomes and recommendations to the property owner.
Best Practice Guidelines
At this stage the recommendations of the Coroner have not been implemented and it remains to be seen if the Government will amend the legislation as recommended.
While there are no industry-wide guidelines or standards in relation to building, pest or termite inspection reports for property management, the Real Estate Institute of Queensland (“REIQ”) provided the following steps for best practice when asked to comment in relation to the Isabella Diefenbach inquest:
• Property managers should carefully read reports to determine whether any defects in the property have been identified and whether any repair works or maintenance are recommended;
• Property managers should forward reports to the Landlord highlighting any relevant repair and maintenance issues identified and seek the Landlord’s written instructions in relation to those issues;
• In circumstances where reports identify serious repair and maintenance issues which pose an immediate risk to Tenants and visitors, property managers should seek urgent instructions from the Landlord to enable them to arrange for the necessary repairs and maintenance as soon as possible; and
• Property managers should implement a diary or reminder system for following up instructions from the Landlord for all outstanding repair or maintenance issues. All follow up attempts and communication with the Landlord in relation to such matters should be recorded in writing and retained on file.
