Cap-It-All Building Inspections

Why hire a property manager? Collecting rent is easy and you only need to do inspections once a quarter. But what happens if you find yourself with a trouble tenant? Do you know where you stand legally when a tenant trashes the house or doesn’t pay rent? Do you know your obligations as a landlord? Below we discuss some things you might want to consider before skipping hiring a property manager and attempting to self-manage:

1. All fees paid to your property manager are tax deductible.
2. Time. Take into account how much time you will need to spend doing things like chasing up late rent and utilities, inspecting the property and organising trades for repairs. If you get a problem tenant and need to go to court you will often spend a full day having to wait to attend the courtroom.
3. Property managers often have a portfolio of 80-120 properties; all of which need maintenance and repair works undertaken at some stage. For this reason property managers form good relationships with tradespeople and can often refer them a lot of work – for this reason the tradespeople look after the property manager in return and will often offer them discounts and go out of their way to help them. This can be very beneficial to you as a landlord, especially in emergency situations such as the breakdown of a hot water system or toilet.

Initial Leasing of the Property
Initial leasing of the property, especially in a slow market, can be time consuming and frustrating. It may take a long time to achieve your desired price (every week the property is empty is a week without income) and you may have to show the property to prospective tenants multiple times a week including on weekends. Many property managers offer a “leasing only” service in which they find you a tenant and you manage the property from there. If you have some kind of previous experience in managing property this may be a viable option for you. If you do decide to lease a property privately you must ensure you conduct thorough checks on potential tenants – check the National Tenancy Database to ensure they aren’t blacklisted, call their employer and confirm they have a stable job and are paid what they say they are and ensure a minimum of two references are sought from where the tenants previously lived. It is a lot easier to move someone into your property than to move them out.
Don’t forget that you are paying a property manager for their knowledge. Not only their knowledge of the processes of managing property but their knowledge of their local area and the market/prices within that area. They’re constantly speaking to prospective tenants in the area and can compare prices of rental properties to accurately ensure your property is leased quickly for the best possible price. Say your property is worth $500 per week and you overpriced it by just $10 per week resulting in it taking an extra 4 weeks to lease, you will have lost $2,000 in 1 month in order to achieve an extra $5,200 over the year! A property manager’s local market knowledge should ensure your property is vacant for as little time as possible.

Legal Rights and Obligations
If the proper processes aren’t followed correctly when a property is leased you could put yourself at risk of losing hundreds or thousands of dollars. The following should be considered with regard to the legalities of leasing your property:

1. It is more difficult to obtain landlord’s insurance. Any seasoned investor understands that landlord protection insurance is a must. No matter how well a property manager does their job it is inevitable that if you have a difficult tenant in your property you may need to make a claim on your landlords insurance to recoup costs relating to court, rent and damage to the property.
2. Paperwork and serving the correct notices is one of the most important parts of a property manager’s job. Do you know the correct notices to serve and the timing of when they can be sent? If not it can end up costing you a lot of money should the tenant fall behind on their rent. Additionally you must consider whether you can manage the property with no emotion. If the tenant explained to you that they’d had a family tragedy, illness or had lost their job would you still be able to assert your legal rights unemotionally?
3. Bear in mind that just because you are managing the property privately it does not give you any extra rights to access the property. You can get in trouble for entering the premises more than 4 times a year and you won’t be able to just “pop round” to collect the rent. Ensure you know the tenant’s rights and your obligations as an owner or you be subject to a fine from the Department of Commerce.

So as you can see there is plenty to consider before you make the decision to lease a property privately. If you get a dream tenant everything can go great but as soon as you have some form of conflict with a tenant you can lose control very fast. Additionally the whole process can be very time-consuming – ensure you know the value of your time and whether you’re willing to give that up before you decide to go private. In my opinion the value of the amount of time I would spend managing a property would be much higher than what I pay a property manager but that is a decision you must make personally.

Written by: Charlotte Flatt
Cap-It-All Building Inspections Perth

With more than 210,000 small businesses in WA, these hard working, committed people employ nearly 50% of the public and contribute 43% of all exported goods. Small businesses must work very hard to ensure their business is both viable and sustainable, with many businesses failing within the first 12 months. A lot of people perceive smaller businesses to have higher prices than large chains and franchises – this is often a misconception and other benefits of employing a small business (which can often save you money in the long term) are overlooked. Check out some of the benefits of engaging a small business below:

Unique & Personalised
Small businesses work very hard to create their own unique brand to attract customers and keep them. Distinctive character is a huge advantage in an economy that is so standardised. Even if a product becomes popular it always feels great to know you contributed to starting the trend. Similarly if you deal with a certain employee or contractor within a business they will work to build a strong relationship with you. If they are successful in doing a good job and building a strong relationship you’ll find yourself never wanting to deal with anyone else.
An important factor to take into consideration when choosing a business is whether you can continue to work with the same person throughout the process – for example have you ever dealt with a telephone/internet provider and found that each time you contact them you’re dealing with a different person who is unaware of the discussions you had with the last person? This can be frustrating when dealing with a larger business; dealing with one or a couple of people throughout a process means everyone is better informed and can make the process a lot more hassle-free.

Support of Local Community & Infrastructure
Locally owned businesses create strong communities, utilise local infrastructure and build good social relationships. Most small businesses will partner with related businesses, referring each other work. By building a good relationship with another small business and realising which local businesses do their job well, these small businesses take the leg work out of researching who you need to employ for a service and can vouch for the credibility of another business. Locally owned businesses are also much more likely to reinvest profits into the local economy which strengthens and enriches the whole community. Small businesses within local town centres also require less space and infrastructure than large chain stores, making more efficient use of public services and infrastructure.

Product Diversity & Innovation
As previously mentioned a small business must work hard to ensure you, the customer, receive the best and newest product or service. They must separate themselves from the competition to show you that their business is unique and they have a point of difference strong enough for you to use them over another business. Competition doesn’t just ensure small businesses become innovative, it also warrants lower prices over the long term disproving the common misconception that bigger chains offer lower prices.
Product diversity is usually common within small business compared to larger chains since they’re basing their products purely on their customer’s needs.

So have a chat with a few local businesses next time your require good service and if they value their customers as much as most small businesses, they will blow you away with their great service, unique products, support of community and other local businesses, reasonable pricing and diversity of products and services.

This article was written by Charlotte Flatt
Cap-It-All Building Inspections Perth

Many Australians feel with unemployment on the rise, stagnant wages and standards of living receding, that we are in a recession. In WA with the end of the mining boom, construction has been considered as the necessary activity to keep our economy strong. But with decreasing construction, property and rental statistics, we are yet to see a boost in economic activity.
Various property groups are welcoming our recent change in prime minister and hoping government will step in and fix some of the issues within the property industry that are having a detrimental effect on Aussies.
So what does the introduction of Malcolm Turnbull as Prime Minister mean for Perth property?

Although no changes have actually been implemented by our new Prime Minister and his cabinet, big things are expected from property professionals. Turnbull is great at giving Australians a positive outlook; something Abbott was not good at. The government need to step in and create long-standing solutions to poor planning systems that have hindered property development. By opposing Joe Hockey’s idea to allow first home buyers to access their superannuation to invest in property Malcolm Turnbull has proven that he isn’t going to implement “band-aid solutions” and is dedicated to recognise and fix systemic issues surrounding property. Over the coming months our new leader is expected to announce some big, positive changes to our industry and we welcome them with open arms.

Negative Gearing
As a multi-millionaire and the second richest politician in Australia, Malcolm Turnbull is a prolific investor of property. His harbourside mansion of a home was way too good to give up for Kirribilli House (Prime Ministerial accommodation).
The abolishment or scaling back of negative gearing has instilled doubt in many property investors, lessening the enticements of investing in property to reduce tax.
Joe Hockey ruled out any change on tax policy relating to negative gearing but now Turnbull is in power the issue is potentially back on the table.
Some countries only allow losses generated from negative gearing to be carried forward until they offset income from investment properties rather than being to offset against wages or business income as we can in Australia. Chinese people are avid investors in the Australian property market, probably because their Government have much stricter taxation laws on property investment.

Negative gearing is a complex and highly political issue. The Reserve Bank of Australia have already stated that the policy relating to negative gearing should not unduly advantage investors at the expense of prospective owner-occupiers. As an experienced property investor it could be assumed that Malcolm Turnbull should be able to assist in making an informed decision on this issue that should benefit Australians.

Urban Planning and Sustainability
South Australian MP Jamie Briggs has been appointed as Minister for Cities and the Built Environment – a decision that has been met with positivity. Joondalup’s own mayor Troy Pickard, also the President of the Australian Local Government Association has expressed his delight in the appointment of both Malcolm Turnbull and Jamie Briggs.

Local government can better understand the housing problems we face at the ground level, including liveability, sustainability and productivity. A closer relationship between all three levels of government should mean stronger coordination to rectify issues relating to infrastructure, transport, natural & built environments and housing. It should mean that issues in different regions can be focussed on rather than taking a national approach to fixing issues that may be occurring to a higher extent in certain regions. Allowing local government to step up and play its role in solving economic problems will assist Malcolm Turnbull in achieving his vision for Australia.

In conclusion the change in our leader appears to be a positive one from a property professional’s point of view but as with all politics, the proof will be in the pudding and we hope to see some constructive changes to our industry soon.

Written by: Charlotte Flatt of Cap-It-All Building Inspections Perth

Small or fine cracks identified on a concrete slab are generally deemed acceptable as part of minor settlement, weathering, or poor finishing of its surface. However, a competent building inspector should be able to not only classify the severity of the cracking, but also appropriately investigate the cause of the cracking. The following blog focuses on cracks that form as a result of what is known as plastic settlement cracking.

What causes plastic settlement cracking?

As the name suggests, the cause of plastic settlement cracking is the settlement of the solid particles whilst the concrete slab is curing.

The amount that a slab settles tends to be proportionate to the depth of the concrete i.e the deeper the concrete the greater the settlement. Due to this, cracking may also be identified at areas where concrete pours are greater in one particular area, such as beams. This is known as differential settlement.

How can plastic settlement cracking be avoided?

• A good quality concrete mix with lower bleeding characteristics will minimise the risk of plastic settlement cracking.
• A slump test should be undertaken to ensure the quality of the concrete mix prior to pouring. More cohesive mixes minimise the risk of bleeding.
• Increasing the cover of concrete to reinforcement mesh minimises the likelihood of cracks forming at the surface.
• When pouring footings, wetting the soil prior to the pour avoids excessive water loss from the base of the concrete.
• Ensuring that the formwork around the slab is rigid will avoid cracks forming as the formwork will not move during placement.
• Placing the concrete in deep sections first, such as beams, reduces the likelihood of differential settlement. Care should be taken when adopting this practice however, as the development of ‘cold joints’ may occur. As a general rule, no longer than 45 minutes should elapse before placing fresh concrete against concrete previously placed, although this is obviously dependent upon conditions such as the site and weather conditions.
• The concrete should be fully compacted, vibrated and cured.

How is plastic settlement cracking assessed when a building inspection is carried out?

Cracking should be clearly identified and assessed by a trained and appropriately qualified building inspector. All cracking should be classified in accordance with AS 2870, and advice should be given accordingly. In instances where the impaired cracking is deemed not defective, a qualified building inspector may still recommend the affected area be remedied at the expense of the builder.

For example, as plastic settlement cracking may expose areas of the slab reinforcement mesh, the probability of concrete cancer is greatly increased. Also, as the creation of a void underneath the reinforcement mesh is also associated with plastic settlement cracking, any subsequent drying shrinkage may result in cracking through the full depth of the concrete member. The cost of the builder rectifying the crack in the first instance would therefore be insignificant in comparison to allowing the crack to potentially develop.

Author – Lewis Flatt Cap-It-All Building Inspections Perth

Re-pointing mortar joints can be a relatively inexpensive task given the structural damage that may result from leaving the job too late.

What is fretting mortar?
Fretting mortar is essentially when the mortar between the bricks begins to crumble or fall away. Visit our technical information on fretting mortar for more information on the causes, as this blog will focus on the repair itself. Repair is usually inexpensive and can be undertaken by a competent bricklayer.How do I re-point mortar joints?
It should first be noted that although re-pointing of mortar is a relatively straight-forward process, a competent professional should always be engaged. Additionally, if the mortar is found to have deteriorated right-through the brick joint or defective cement products were used, re-laying may be required. The following steps should be taken to ensure complete repair of mortar joints:Firstly all damaged mortar joints should be suitably ‘raked out’. This process involves the use of a raking tool, or mechanical means such as a grinder. If a grinder must be used ensure that PPE is worn and all Occupational Health and Safety requirements are fulfilled. The depth of damaged mortar that has to be removed is dependent upon the severity of the damage, although as a guide a minimum of 50mm should be removed. This allows for re-adhesion of the new mortar to the old, and prevents discolouration with the existing.

Secondly, the affected area should be cleaned free of dust. This is also to ensure that the new mortar does not separate from the old. Dependent upon the weather conditions, the existing affected area may also require a gentle ‘wetting down’.

Thirdly is to mix the mortar. The cement manufacturer’s recommendations for the right mix ratio should be followed, and sand should be well graded and free of any material harmful to the mortar. Water should also be free of any material harmful to the mortar, with potable (drinkable) water recommended. If water thickener is to be used it should be methylcellulose-based water thickener specifically designed and packaged for use in masonry. Additives may also be required to achieve the correct colour of the existing mortar. In this instance these additives should also be used in accordance with manufacturer’s instructions. A bucket should be used to measure the correct mixing ratio, as often the use of a shovel promotes greater sand content within the mix.

Lastly is to apply the mortar into the area, which is commonly known as ‘pointing’. The tool and technique you will use to do this will vary upon the finish of the brickwork. Some common joints are discussed in further detail below.

Cleaning brickwork
Cleaning brickwork is a specialist subject that may involve the use of hydrochloric acid. As a result, a suitably qualified person should be engaged and appropriate PPE should be worn. For more information, view our blog on cleaning brickwork.Will fretting mortar be identified by my building inspector?
Your Perth building inspector should identify fretting mortar and make an informed decision as to the structural damage caused by the fretting. Your Perth building inspector should also conduct investigations as to the reason for the fretting. For example, if reticulation is found to be discharging against the dwelling then you may wish to rectify this issue as well as repairing the fretting mortar to save you time re-pointing in the future, and money should the issue continue to deteriorate.As brickwork is considered a primary structural element of a house, your building inspector should advise that significant fretting of mortar is a structural defect if you are purchasing an established property. As such fretting of masonry will be included in both of our pre-purchase building inspections.

At Cap-It-All building inspections we wish to not only inform our clients of the defects around their potential purchase, but also advise on the actions that are required to be taken to rectify the issue. We are also happy to liaise with your settlement agent where necessary to ensure that the areas which we believe are deemed structural defects are rectified, saving you money and making your home safe.

Author: Lewis Flatt of Cap-It-All Building Inspections – Servicing the Perth Metro Area

A lintel is a structural support over an opening, allowing loads to be transferred to the foundations without unnecessary stress placed upon frames such as windows or doors. A lintel should have sufficient strength and stiffness and be made of a material that is compatible with the masonry it supports. Commonly, lintels are made from the following materials:

• Galvanised or stainless steel
• Reinforced or prestressed concrete
• Reinforced or prestressed masonry stone

Lintels are required for all openings over timber frames greater than 600mm in width, & for all openings over steel frames greater than 900mm. Often the specifications on the building plans will also state additional reinforcing measures such as steel rod through bed joints in subsequent courses of masonry above openings. This is to ensure that the masonry above becomes a solid mass, and adequately transfers load either side of the opening.

Lintels are lifted into position whilst constructing brickwork, which may be done manually or by assistance of a crane. Usually a small gap is left above a window or door frame, to ensure that the lintel is supporting the load, as well as allowing for minor movements such as settlement of foundations or swelling of the frame itself. This is particularly applicable if timber frames are installed, as timber tends to swell or contract depending upon environmental factors such as moisture content or temperature.

When installing a lintel it is important to adhere to the following good practices:

• Be careful not to chip the lintels coating – Corrosion protection is an essential component in ensuring that the lintel installed does not cause structural damage in the future. Moisture needs only the smallest of exposed area to penetrate, creating areas of rust and causing the lintel to expand.
• The vertical leg of a steel lintel should always be the highest – Careful calculations are made off-site to ensure that the lintel provided is adequate to support the load above it. If the lintel is incorrectly installed, the lintel may no longer be able to support the load and may visibly deflect over time, causing loads to be place upon frames.

Cap-It-All Building Inspections will check compliance of lintel installation at every plate height inspection.

Unfortunately at practical completion it is not possible to check all of the items above, as a building inspector will be unable to look down the cavity once the roof cover has been installed. Additionally, lintels are also required internally over certain openings, which will be unable to be assessed if all of your internal walls have already been plastered.

We have witnessed lintel non-compliance both internally and externally, so it is important to consider inspections at every stage of the building process. To view our building inspection prices as well as the savings that you can make by combining inspections, please visit our building inspection prices page.

Author: Lewis Flatt of Cap-It-All Building Inspections – Servicing the Perth Metro Area