18 March 2020
We understand that in the real estate industry, you deal with a wide range of people on a daily basis.
Part of this is conducting inspections of properties, which is a fundamental aspect of completing real estate transactions.
Times have quickly changed and with an increasing number of occupants refusing to allow service providers into their home, real estate agencies are faced with new scenarios and now must give consideration to how they will proceed with inspections. Such
considerations would include the health of their own employees.
While the tenant has a statutory obligation to permit the owner and their representatives to enter the premises for prescribed reasons, the tenants conduct may make it impossible to enforce the owner’s rights.
We would not recommend any person placing themselves in a position of harm. While the owner could seek a court order for entry, the time delay factor may make this course of action impractical. Most owners will also want to reduce the risks faced by their
family and should appreciate the tenant’s position of limiting entry to unknown people.
Some common inspection scenarios are discussed below.
Routine inspections for property managers
Communication is key. Normal routine inspections may occur in properties where tenants are at work and staff are taking all the necessary health and hygiene precautions such as wearing gloves, washing hands, using hand sanitiser and minimising contact
with surface areas.
Agencies could consider:
Discontinuing routine inspections for a period of time.
Suggesting that tenants send a video of the premises or send photographs.
Contacting tenants immediately prior to scheduled inspections to determine if there are any concerns with attending the property.
Initiating a video call (e.g Facetime, What's App) where the tenant could show the property manager through the premises in real time (avoid pre-recorded videos)
Providing protective gloves for staff while inspecting the premises.
Providing a method for staff to clean their hands after leaving an inspection.
Repairs and maintenance
Ask tenants to ensure any outstanding maintenance is reported immediately. Agencies should touch base with their key tradesman to re-assure them that you will do your best to protect their health during the next few months and ask them to make sensible decisions about the safety of tenants when entering homes.
Tenants will have to appreciate that in some instances service providers will not be able to attend to undertake repairs or emergency repairs in the expected timeframe or may even decline to enter some premises.
Home opens where the property is for sale
Agencies could consider:
Limiting inspections to small groups.
Displaying signage to restrict entry of specified groups.
Ensuring that there are adequate photographs and videos of the property so that prospective buyer and tenants can fully appreciate the property.
Suggesting to owners that they fully clean all surfaces to the property after inspections.
Hope opens for tenanted properties (sales or leasing)
Pre-qualified tenants and purchases only via private appointments.
Final bond inspections
You can advise tenants to ensure properties are left clean and sanitised prior to the final bond inspection. Tenants will have to clean themselves as cleaning contractors will
be in limited supply or unavailable in a lockdown. Where necessary, preliminary bond inspections can also be conducted via live video streaming with
tenants.
Inspections to satisfy contractual conditions where the property is rented
If tenants refuse entry, then this could place the buyer in a position of not being able to satisfy their conditions- such as timber pest inspections or structural faults inspections.
Rather than applying for a court order, the buyer and seller may be able to negotiate a seller warranty that provides for a financial cap associated with any issues that the buyer may find at a latter time through an inspector.