$450,000 in Fines for Rental Law Breaches: Key Lessons for Property Managers to Avoid Enforcement Action

In a recent crackdown, Consumer Affairs Victoria (CAV) issued $450,000 in fines to real estate agencies for breaches of rental laws. This significant enforcement action sends a clear message: compliance with rental regulations is not just a requirement but an essential aspect of professional property management. Below, we outline the main issues CAV targeted and provide practical steps property managers can take to ensure compliance and avoid similar pitfalls.

Key Compliance Failures Leading to Fines

1 – Failure to Meet Minimum Standards Many fines stemmed from properties not meeting minimum standards when renters moved in. Victoria’s rental laws specify that properties must adhere to baseline standards to ensure habitability, safety, and comfort. Property managers have a duty to review each property against these standards before a new tenancy begins.

2 – Neglecting Safety Obligations A significant portion of fines resulted from lapses in critical safety checks, particularly concerning gas and electrical safety. In Victoria, these checks are required at regular intervals and must be documented. Property managers are responsible for ensuring that all safety obligations are met, as they are foundational to maintaining a safe and compliant rental property.

3 – Bond Lodgement Mismanagement One of the compliance areas highlighted in this enforcement round was bond lodgement. Victorian law requires that rental bonds be lodged with the Residential Tenancies Bond Authority (RTBA) promptly. Fines were issued to agencies that failed to comply with this timeframe. Timely bond lodgement not only meets legal requirements but also builds trust with tenants and demonstrates a commitment to transparent practices.

4 – Lack of Transparency in Advertising Several fines were due to inaccurate or incomplete property advertisements, particularly regarding rental prices. CAV’s enforcement action underscores the importance of transparency when advertising a property. Prospective renters have a right to clear and accurate information regarding costs, property features, and terms. Misleading advertising can lead to enforcement action and damage an agency’s reputation.

Best Practices for Property Managers to Ensure Compliance
To avoid enforcement action and uphold high standards of professionalism, property managers should implement the following practices:

• • Conduct Regular Audits and Updates: Regularly review each property in your portfolio to ensure it meets Victoria’s minimum standards and safety requirements. Audits should include checks for compliance in all areas, from basic minimum standards to safety certifications and bond lodgement. Set up reminders or workflows to ensure routine checks are completed.
  • Maintain Comprehensive Documentation: Documentation is a property manager’s best defence in the event of an audit or enforcement action. Keep meticulous records of every safety check, bond lodgement, communication with tenants, and property inspection. Documenting these actions not only provides proof of compliance but also helps streamline internal processes.
  • Educate and Communicate: Ensuring compliance is a team effort. Regularly train your team on the importance of each compliance area, including new regulatory updates. Additionally, work closely with rental providers to help them understand and uphold their responsibilities under the law. Educating both your team and rental providers can significantly reduce the risk of non-compliance.
  • Prioritise Transparency in Advertising: Every property advertisement should clearly communicate the rental price and essential property features. Misleading information can erode trust and lead to penalties. When in doubt, transparency is always the best policy, as it reinforces a reputation of integrity and fairness.

The Role of Compliance in Professional Property Management
Property management is about more than just maintaining properties; it’s about creating trust with renters, rental providers, and regulatory bodies. Compliance isn’t merely a box to tick—it reflects a commitment to quality and integrity. By taking proactive steps to meet all legal requirements, property managers can set themselves apart in a competitive industry and build a foundation of trust with all stakeholders.

Wake-up Call for the Real Estate Industry!

Consumer Affairs Victoria has recently taken enforcement action against Ray White Oakleigh for alleged misleading practices, and let me tell you, this is NOT something to take lightly.

As real estate professionals, we have one job: to provide our clients with the highest integrity, trust, and compliance. If we drop the ball, it’s not just about losing business—it’s about facing severe legal consequences. This latest action by Consumer Affairs is a significant reminder that there’s no room for shortcuts.

🏡  Here’s the deal:

It’s our responsibility to stay informed and ensure that every move we make is in accordance with the law. Ignorance is not an excuse; non-compliance can cost you more than your reputation.

If you think these cases are rare or won’t happen to you, think again. Don’t wait until you’re in hot water. Review your processes, train your team, and ensure you’re ticking all the legal boxes. ✔️

Let’s hold ourselves to a higher standard and show our clients that the real estate industry is built on trust, transparency, and doing the right thing. If we don’t, we risk facing similar consequences.

🚨 Take Action Now Before It’s Too Late! 🚨

Don’t wait until you face legal consequences—ensure your team is fully equipped with the knowledge and skills to stay compliant and protect your business.

Ready to take your business to the next level? Contact our team, and let’s get started.”

Please email us at jacinta@apexhr.com.au or call us at 03 8736 7119 to get started!

Christopher Paul Kontossis is facing serious allegations at VCAT for allegedly mishandling rental bond funds. Between Sept 2022 and Mar 2023, he redirected $21,540 from 26 bond claims into unrelated accounts. Consumer Affairs Victoria is looking to revoke his license and ban him from the industry. This case is a stark reminder of why overseeing trust monies is critical.

Here’s why you need to be on top of this:

• • • Legal Compliance: Handling rental bonds properly is a legal requirement. Non-compliance can lead to severe penalties and legal actions.
    • Financial Responsibility: Trust monies aren’t your agency’s funds. They must be managed with utmost care and accountability.
    • Reputation Management: Mishandling trust monies can severely damage your agency’s reputation and erode client trust.
    • Risk Mitigation: Proper oversight can help spot and fix issues before they escalate into legal problems.
    • Operational Integrity: Properly managing trust monies shows professionalism and a commitment to ethical business practices.
    • Avoiding Penalties: Good management practices help avoid financial penalties and potential loss of license.

To stay compliant and protect your business, you should:

• • • Implement robust systems for tracking and lodging rental bonds.
    • Provide regular training to staff on handling trust money procedures.
    • Conduct internal audits to ensure compliance.
    • Stay informed about relevant legislation and regulatory changes.

Prioritising oversight of trust monies is crucial to safeguarding your business, maintaining legal compliance, and upholding industry standards.

Full article here: Consumer Affairs Victoria

Reclaiming Efficiency: Rethinking Meeting Culture in Real Estate

Meetings are vital for collaboration and communication in the dynamic realm of real estate. However, an excess of meetings can hamper productivity and escalate stress. To combat this, it’s crucial to reassess and refine our approach to meetings.

Understanding the Current Meeting Culture

Real estate professionals often have calendars filled with numerous meetings, from client calls to strategy sessions. This default scheduling of lengthy video calls without considering individual work preferences disrupts workflow and limits time for focused, productive work. Constant switching between tasks reduces efficiency, leading to burnout and decreased job satisfaction.

Strategies to Reclaim Your Calendar

1 – Evaluate and Optimise Your Schedule

• • • Analyse your work patterns to identify when you’re most productive. Whether you’re more effective in the morning or evening, align your schedule accordingly.
    • Implement “themed time blocking” to allocate specific times for different tasks, ensuring dedicated blocks for uninterrupted work on meaningful projects.

2 – Set Meeting Standards

• • Establish rules for accepting meetings, limiting the number of meetings you attend each day or week. Opt for shorter durations and voice-only calls where possible.
  • Be discerning about the meetings you attend. Ask if the meeting is essential, if the information can be communicated more efficiently through other means, and if you are the right person to attend.

3 – Prioritise Deep Work

• • • Deep work is essential for high-quality output and innovation. Schedule deep work blocks in your calendar and treat them as non-negotiable.
    • Turn off notifications and find a quiet workspace to minimise distractions. Regular breaks can help maintain focus and productivity.

4 – Embrace Asynchronous Communication

• • Utilise email, messaging apps, and project management tools to communicate asynchronously. This approach allows team members to respond conveniently, reducing workflow interruptions.
  • Encourage asynchronous communication to promote focused work, better decision-making, and reduced meeting fatigue.

5 – Foster a Culture of Respect

• • • Cultivate a culture that respects focus time and promotes asynchronous communication—set guidelines for when to send messages or schedule meetings.
    • Respecting each other’s deep work blocks helps maintain productivity and work-life balance.

Benefits of Reclaiming Your Calendar

By rethinking meeting culture and taking control of your calendar, real estate professionals can experience numerous benefits:

• • Enhanced Productivity: More time for focused, high-quality work.
  • Improved Job Satisfaction: Greater control over work and less stress.
  • Better Work-Life Balance: More time for personal activities and interests.
  • Increased Innovation: Deep work fosters creative ideas and problem-solving.

In summary, real estate professionals can reclaim control of their calendars by challenging the default meeting culture and adopting a mindful approach to scheduling. This will lead to a more productive, fulfilling, and balanced work life. Meetings should enhance our work, not hinder it. It’s time to make meetings work for us, not the other way around.

The big news this week!

The Sale of Land (Public Auctions) Regulations 2014 have officially been revoked and replaced with the new Sale of Land (Public Auctions) Regulations 2024, effective as of June 24, 2024.

Here’s what you need to know:
These new regulations set the standard rules for public land auctions, specify the written information statement required for these auctions, and outline the obligations of auctioneers. While the core auction rules remain unchanged, we’ve got some tweaks in the formatting of the schedules:
•    Regulation numbers are now placed under the document heading.
•    Numbers are used in the body of some schedules instead of words.

Real estate offices take note: Make sure the correct auction rules (Schedules 1-4) and information about the conduct of public auctions (Schedule 5) are displayed at least 30 minutes before any auction starts.

Stay sharp, stay compliant, and let’s keep pushing forward!

In the bustling world of real estate transactions, two key concepts hold sway: prescribed forms and prescribed terms. For real estate agents in Victoria, understanding and adhering to these standards is essential for seamless operations and regulatory compliance. Let’s delve into what these entail and the critical considerations associated with their use.

Understanding Prescribed Forms:
Prescribed forms are standardised documents mandated by legislation, such as the Estate Agents Act 1980, the Sale of Land Act 1962, and the Residential Tenancies Act 1997. They cover a wide range of transactions, from residential and commercial sales to leases and property management agreements. These forms provide a consistent framework for capturing vital information, rights, obligations, and disclosures in real estate dealings.

The Importance of Compliance:
Agents must strictly adhere to legislation regarding prescribed forms. Using the correct form and providing accurate information is crucial to avoid legal repercussions and uphold the validity of the transaction. Staying updated on any revisions or amendments to prescribed forms is essential to maintain compliance with evolving regulations. A list of all real estate forms can be located on the Consumer Affairs Victoria website. Forms that reference the legislation on the top of the document are either a prescribed form or term.
Accuracy and Completeness:
Prescribed forms demand meticulous attention to detail. Agents must ensure all sections of the form are accurately completed, providing comprehensive and unambiguous information. Any discrepancies or omissions could compromise the transaction’s integrity and expose agents to legal liabilities.

Disclosure Requirements:
Prescribed forms often include disclosure obligations aimed at safeguarding the interests of all parties involved. Agents must diligently fulfil these requirements, ensuring clients are fully informed about any material facts or risks associated with the property. Tampering with prescribed information can undermine transparency and lead to potential disputes.

Efficient Documentation Management:
Organised documentation management is vital for handling prescribed forms effectively. Agents should maintain organised records of completed forms, including digital copies for easy retrieval and reference. This practice not only facilitates compliance audits but also enhances operational efficiency and client service.

Understanding Prescribed Terms:
Prescribed terms are specific clauses or provisions within contractual agreements, such as sales or managing authorities. These terms are predetermined by legislation or regulatory authorities and must be included in the contract to ensure legal compliance. They cover critical aspects like price representation, commissions, complaints, rebates, and disclosure obligations.

Conclusion:
Real estate agents must familiarise themselves with prescribed forms and terms to ensure compliance, accuracy, and timeliness in their operations. By prioritising these considerations, agents can navigate regulatory requirements effectively, mitigate risks, and deliver exceptional service to their clients. It’s crucial to seek guidance or review your forms with regulatory experts like Apex HR if unsure about compliance to avoid potential pitfalls.

Colouring competitions are not only fun but also foster creativity and community engagement. If you’re considering hosting one in Victoria there are several key factors to consider ensuring its success.

Rules and Guidelines
Clearly outline the rules of the competition, including eligibility criteria (age groups, residency requirements, etc.), submission guidelines (format, size, medium), and deadlines. Specify any restrictions or requirements regarding colouring materials to ensure fairness and uniformity.

Promotion and Outreach
Utilise various channels to promote your competition, including social media, local newspapers, community notice boards, schools, and online forums.
Create eye-catching posters and digital graphics to attract participants’ attention and generate interest.

Prizes and Recognition
Offer attractive prizes that appeal to your target audience, such as art supplies, gift vouchers, or experiences related to the theme. Consider recognising multiple winners across different age categories to encourage participation from a diverse range of participants. Go the next step and showcase winning entries in your office, online galleries, or local media coverage to acknowledge participants’ efforts and inspire others.

Judging Process
Establish transparent judging criteria based on creativity, originality, adherence to the theme, and overall artistic merit. Consider assembling a panel of impartial judges with expertise in art or relevant fields to evaluate the entries objectively.

Entry Fee
An entry fee can’t be charged for entry.

Written Consent
Written consent must be obtained from the person whose trade or business is to be promoted by the competition.

Winner Publication
The names of winners of all prizes over $1,000 must be published by one of the following methods:

• in a newspaper circulating generally in Victoria;
• on the internet, for a minimum period of 28 days; or
• if the competition was advertised solely through a trade journal, promotional magazine or similar publication, in that publication.

Cost to Accept Prize
The winner of a prize must not incur a cost to accept a prize.

Entrant Presence at Draw
You cannot require an entrant to be present at the judging of the competition to be eligible to win a prize (unless the entry and draw are to occur on the same day and in the same place).

Prize Delivery
The prize must be paid or transferred to the winner within 28 days after the draw.

Re-Draw
A redraw is not mandatory in Victoria. The Promoter must take “reasonable efforts” to award the prize. Otherwise, the prize may be disposed of in accordance with any provisions in the Terms & Conditions prepared by the promoter (e.g. to another randomly drawn entry).

Prize substitution
A prize may only be substituted if the substituted prize is of the same or greater value than the original prize and the winner either agrees in writing, or the original prize is unavailable due to circumstances beyond the control of the person conducting the competition and reasonable attempts are made to reach an agreement with the winner that are unsuccessful.

Prizes awarded
The promotion must not be offensive or against public interest, and therefore prizes that could be seen as such may be prohibited. Examples of prohibited prizes include: tobacco, weapons, surgery, etc.

Record-Keeping Requirements
Certain records must be kept for three years after the finalisation of the competition which provides an:

• accurate financial accounting of the competition
• accurate accounting for all entries
• accurate report of the distribution of prizes.

Privacy Disclosure

Where relevant, Full disclosure that entrants are to be placed in the agency’s database and link to the Privacy Collection Statement.

By following these guidelines and putting careful thought into the planning and execution of your colouring competition, you can create a memorable and impactful event that brings joy to participants and strengthens community bonds.

The Fair Work Commission has implemented changes to provide clarity regarding the compensation of employees for excess travel time under the Real Estate Award. Excess travel time refers to the additional time spent travelling from an employee’s home to a location other than their employer’s business premises.

The key provisions include:

• • If an employer mandates that an employee starts or finishes work at a location away from the business or office premises, the employees are entitled to payment for the time spent travelling that exceeds their normal commute to the employer’s usual place of business.
  • This extra time is considered as time worked, and employees receive compensation at either ordinary rates or applicable overtime rates.
  • Employees who are required to utilize their personal vehicles for work are also entitled to receive the relevant motor vehicle allowance.

What is meant by the term “excess travelling”?

The term “excess travelling” encompasses the time and expenses incurred by an employee when obliged by the employer to commence or conclude work at a location other than the employer’s business premises.

This is best explained through the Fair Work scenario:

Alex is a real estate agent who holds home inspections every Saturday. They have an inspection on the other side of town and the employer requires Alex to travel to the client’s home which is 40 minutes away.

Alex’s commute to the real estate agency’s office typically takes 15 minutes. Alex is entitled to be paid for the excess travel time to the client’s house. This is paid for any travel time that’s in addition to the time it would usually take them to commute to the office.

The trip to the client’s home takes 40 minutes and Alex’s usual trip to the office takes 15 minutes, so Alex is entitled to be paid for the additional 25 minutes of travel time.

If Alex is required to use their own vehicle, they also receive the applicable motor vehicle allowance.

Summary of Key Changes

• • The amendments to the Award mentioned earlier took effect on March 1, 2024.
  • It is important to note that only employees covered by the Real Estate Industry Award 2020 are impacted by this decision, with commission-only salespeople remaining unaffected.
  • Excess travel time is now considered part of working hours and must be treated as either ordinary hours or overtime if the excess travel was specifically directed by the employer.

Practical Implications for Your Agency

Given that the Award changes primarily aim to clarify existing obligations, most employers will likely experience minimal practical impact. This is due to the following reasons:

• • According to Clause 19 of the Award, employees are not entitled to compensation for work conducted outside their regular working hours unless explicitly directed by the employer.
  • The majority of employers already provide a lump sum as a motor vehicle allowance, covering all employee travel expenses.

Employers must recognise their authority in determining where employees start and finish work. If employees operate from the office, there is typically no excess travel involved. However, the new provisions emphasise that employers should understand where their employees commence or conclude work outside the employer’s office with the employer’s knowledge, direction, or consent, the work and excess travel time should be considered part of the employee’s ordinary working hours.

For employers directing employees to undertake excess travel time or additional hours beyond their regular work hours, overtime provisions will continue to apply. Employers utilising per-kilometre or standing charge plus kilometre allowances should ensure reimbursement aligns with the recent change, covering any excess travel.

The Fair Work Legislation Amendment (Closing Loopholes No.2) 2023 Bill successfully passed through Parliament on February 8, 2024, and is on track to soon receive Royal Assent.

Regarding the “Right to Disconnect,” a recent addition to the Bill aims to modify the Fair Work Act, prohibiting employers from reaching out to employees beyond their designated work hours, unless such contact is deemed ‘reasonable’. The amendments also grant employees the right to decline monitoring, reading, or responding to work-related communication outside their regular work hours, except in cases where the refusal is considered ‘unreasonable’. Various factors, including the purpose of the contact, the method of communication, the level of disruption caused, compensation for additional work (including non-monetary benefits), the employee’s role and responsibilities, and personal circumstances (such as family or caregiving responsibilities), are to be taken into account when determining the reasonableness of a refusal.

The Fair Work Commission (FWC) will be entrusted with the authority to adjudicate applications for orders requiring employers to cease out-of-hours contact. Anticipating potential debates on defining ‘reasonable contact,’ the uncharted territory is expected to generate discussions.

Of note, the Bill, in its current form, introduces criminal penalties for employers failing to comply with the FWC’s right to disconnect orders. Despite the government’s attempt to have these criminal penalties removed in the Senate, the proposal was rejected due to its late introduction. The government, acknowledging that the inclusion of criminal penalties was unintended, has expressed its intention to legislate for their removal. This incident underscores the perception that the Bill may not have undergone thorough consideration before its introduction.

These amendments are slated to become effective six months after the Bill receives Royal Assent, which is imminent.

Where to from Here?

Recognising the challenges of being an employer in the present political context, we understand the confusion, stress, and difficulty that often accompany this role. The introduced reforms only serve to deepen the complexities of industrial relations, adding bureaucratic hurdles that are likely to impact both productivity and business costs.

Should you seek more information on how these changes might affect your business or require assistance in ensuring compliance with the new legislative landscape, please feel free to reach out to Apex HR.

Despite the increased attention in recent years, a third of individuals still report experiencing sexual harassment in their workplace over the past five years, according to findings from the Human Rights Commission.

As of December 12, 2023, new “positive duty” laws have been implemented, requiring employers to proactively prevent sexual and sex-based harassment rather than merely responding to incidents. The Human Rights Commission is now empowered to enforce this “positive duty,” which aims to enhance the systems employers have in place, regardless of whether harassment has been encountered.
To meet the obligations of positive duty, here are six steps that can help navigate this challenging terrain:

1. Demonstrate Knowledge and Leadership: Management should exemplify exemplary behaviour, familiarize themselves with the legislation and associated policies, and engage in effective communication with staff. Small businesses, despite their size, must convey a serious commitment to addressing the issue.

2. Conduct a Risk Assessment: Similar to addressing health and safety concerns, businesses must identify potential risks. Conversations with staff about their comfort levels with customers, late-night work, or office banter can help pinpoint specific risks.

The risk of sexual harassment happening at your workplace could be higher if you have:

• low worker diversity
• low worker diversity
• power imbalances
• a workplace culture that supports or tolerates sexual and other types of harassment
• alcohol and social duties as part of work
• workers in locations where they can’t get help and support
• leaders who don’t understand sexual harassment, its nature, drivers and impacts.

3. Update Policies: Ensure the presence of a standalone policy that incorporates the new rules. The regulatory preference is for a distinct sexual harassment policy rather than it being part of a broader harassment/bullying policy. Communicate and enforce the policy consistently.

4. Communicate and Train: After implementing policies, it is crucial to provide specific, accessible training for staff. Communication should be explicit and not buried in handbooks, and templates for emails and training courses can simplify the process, especially for small businesses. The goal is to send a clear message that sexual harassment is unacceptable

5. Handle Complaints: Prepare the business to respond effectively to complaints. Employees should be aware of the procedures for reporting harassment, and there should be a clear investigation process in place.

6. Maintain Records: Establish a prevention plan by keeping detailed records of all actions taken. While this may seem overwhelming, in practice, it involves documenting each step to demonstrate commitment to prevention.

By following these six steps, employers can proactively address and mitigate the risks associated with sexual harassment in the workplace, fostering a safer and more respectful environment for all employees.