Estate Agent Magazine April 2021 Issue

The magazine for agents who make a difference.

The Journal of the Real Estate Institute of Victoria / April 2021 / Vol 85 No 1

RENTAL CHANGES The four pillars of the Residential Tenancies Act

Advocacy update The REIV has made several submissions to government this year

Compliance made simpler The REIV VicForms platform has received its biggest technology overhaul

The residential rental market has changed

Moving forward together

The Estate Agent is published by the Real Estate Institute of Victoria.

Publisher REIV 335 Camberwell Rd, Camberwell, Victoria 3124 Editor Sarika Bhalla – sbhalla@reiv.com.au Partnerships & Advertising Emma Burton – eburton@reiv.com.au Established in 1936, the Real Estate Institute of Victoria (REIV) is the peak representative body for real estate professionals in Victoria. Our Mission is “To enhance the professional excellence of our members to the benefit of the communities they work within, and to advocate and represent their interests”.

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Features 8-9 The four pillars of the Residential Tenancies Act Being a landlord or property manager will never be the same again

11-12 Advocacy update While the substantial changes to the rental market will require continued training and review, work in other areas continues unabated

PRODUCTION Pagemasters

13 Strategy helps ensure a strong property sector The REIV has made significant achievements over the three years of the 2018-2021 Strategic Plan

16-17 Disclaimer Unless otherwise specifically expressed, the views or opinions appearing in The Estate Agent (EA) are those of the authors and do not represent the views of The Real Estate Institute of Victoria Ltd (REIV). The REIV gives no warranty about the accuracy, completeness, or reliability of the content of EA. The entire content is general information only. It is not advice or intended as advice and in no circumstances should be relied upon as such. Readers and third parties should verify the content and seek their own independent advice before making any decisions, financial or otherwise, based on what they have seen or read in EA. The REIV and EA do not endorse or take any responsibility for material on third party websites referred to in the EA.

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Compliance made simpler with technology The REIV VicForms platform has received its biggest technology overhaul

Contents

Contents President’s report

Page 4

CEO’s report

Page 6

Policy & Advocacy

23

Senior Auctioneer of the Year calls Good Friday Appeal’s Charity House Auction

The four pillars of the Residential Tenancies Act Advocacy Update

Page 8 Page 11

Strategic plan

Page 13

Bulletin

Page 15

Resources Compliance made simpler with technology Insurance market landscape for the real estate industry What is the gender super pay gap?

Considerations for end of financial year Solar for rental properties – it’s a win-win

Page 16 Page 31 Page 32 Page 34 Page 35

Best practice Page 18

Frequently asked questions

20

Training Education requirements to work in real estate

Page 20

Education requirements to work in real estate

Member feedback

Page 22

People entering the sector must now commit greater time and resources to learn and prepare for work

Good Friday Appeal’s Charity House Auction

Events Page 23

Data insights Page 24

Property amid the pandemic

Membership

35

Professional development Chapter and Division Committees Member milestones New members

Page 27 Page 36 Page 37 Page 38

Solar for rental properties – it’s a win-win The Government offers eligible landlords a rebate of up to $1,850 for the installation of solar panels

The Estate Agent – APRIL 2021 | 3

President’s report

Leah Calnan REIV President

Over 2020 we all worked together, represented by the REIV, and achieved some great outcomes for the real estate sector. With most industries shut down during 2020, real estate in Victoria continued to work albeit with many changes and limitations. It was difficult, but we got through it!

The government continues to throw curveballs at us, the most recent being

We all hoped that after the stroke of midnight this would be a different year. However, 2021 brought with it its own challenges, just fewer lockdowns (so far!).

just 60 days between the release of the final Regulations and the implementation of the new RTA. However, we had started sharing information and educating our Members much earlier, so we already had a foundation to build on. The very first of the REIV information sessions on the new RTA was held way back in mid-2018.

After the challenges of 2020, it was

REIV CEO Gil King, Treasurer Tim Pallas and REIV President Leah Calnan.

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wonderful to see the market kickstart on Saturday, 1 January, 2021. Residential sales results have been outstanding, and the trends look to continue. As exciting as the results have been, it shows that Members are working hard and round the clock. We know many of you haven’t had a proper break for several months so hope Easter brought you some time to rest and relax with your family and friends.

President’s Sectionreport head At the REIV strategy days held earlier this year, we spent a lot of time discussing the vision and key areas where, as the peak representative body of real estate, the REIV could make a difference.

There was universal agreement that REIV must be the voice that works towards a strong and sustainable property sector.

Display your membership with pride, encourage your team to join and participate.

The wider and more diverse the membership, the stronger our voice.

have limited interaction with industry peers and are probably unaware of new opportunities and emerging issues in the sector.

Peta Searle OAM, a woman who has many firsts to her name, presented at the REIV International Women’s Day lunch in March. Peta Leah Calnan is the only female senior – REIV President coach in the AFLW this year and the only female But to achieve this, development coach to we all have a role to coach a men’s team at play. Diversification the senior AFL level. A and collaboration are remark she made, stuck critical elements to with me. She talked about breaking build a stronger voice for the sector. It into the field of footy coaching as one is common for agencies to only have of the first women, she understood that their Director/OIEC as a member of her work and her position meant so the REIV. This inadvertently means much more than a job. She was opening that the most important people in your up a new avenue for women – her business who represent your brand to responsibility was towards all women clients every day, are often relying on who aspired to be part of the AFL. other sources for market information,

Like Peta, it is important that experienced, long-term members play their part in reaching out to the wider real estate sector and the community.

Display your membership with pride, encourage your team to join and participate. The wider and more diverse the membership, the stronger our voice.

The change in education requirements in real estate also means that people coming into real estate will be looking to create a long-term career in the industry. There is likely to be a drop in those who take up a job just to test the waters. Business leaders should really think through their staff retention strategies – what can you do to add value and support your staff in their careers?

The responsibility and the opportunity is much greater than our individual businesses.

Stay safe, stay healthy.

Leah Calnan REIV President

Liberal MP for Higgins Katie Allen addresses a gathering of REIV Members at the International Women’s Day lunch.

The Estate Agent – April 2021 | 5

CEO report

Gil King REIV CEO

The difference between the metro and regional experiences during 2020 were plain to see. However, as we either plodded, stumbled or sprinted through 2020, one certainty was evident and that was the commencement of the delayed Residential Tenancies Act amendments and associated regulations.

The past 12 months have really been one of change and opportunity. For many, 2020 was annus horribilis whereas, for some it was annus mirabilis.

What was remarkable was that even though the Act was supposed to commence mid 2020 – we did not get to see the proposed regulations until late January 2021, some seven months later.

The REIV has been preparing a lot of

material and making a lot of inquiries with government to find out the exact intent of some of the regulations and some of those responses are taking weeks to arrive. And yet we had to get the property management membership up to speed in just two months. Writing the RTA eBook is like painting the Sydney Harbour Bridge; just when you think you have finished you have to start all over again.

We continue to run specialist training for the RTA and in just three sessions we have had more than 1000 attendees/ viewers. What COVID-19 showed us was an effective way to deliver the message to a large group of people from all over the State. I wonder whether we would have been so successful without the pandemic experience and learnings. There are always two elements to this sort of training with the first focusing on what the law says and what it means, and the second being what it means in a practical sense. That is where we have all been so very lucky to have Leah Calnan in this space to help all our members understand the practical and process imperatives.

The RTA will change how property managers do their work. And after such a tough year where being the ‘meat in the sandwich’ has never been more pronounced, to have to cope with these massive changes is daunting. However, we have your back. We are asking government questions, many of them originating from you, our Members, to try and clarify the confusing wording and how it will be applied. We will continue to train and inform our Members long after 29 March, 2021. What we do know is that the resilience that has been shown through the past 12 months will stand you all in good stead to cope with this change. The sky will not fall in and the world will keep on revolving.

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CEO report Section head What we do know is that the resilience that has been shown through the past 12 months will stand you all in good stead to cope with this change. The sky will not fall in and the world will keep on revolving.

Gil King – REIV CEO

Many of the mandated changes that are imposed by this new legislation are already in place in many properties.

Obviously many are not, and that is where we need to focus our attention.

Your experiences and your input will help us keep our Members informed and maintain the high professional standards we know you all hold.

The REIV has been instrumental in achieving many concessions to reduce the impact of the new residential tenancy laws, however the extent of change is immense. What these changes do not recognise are boundaries between metro Melbourne and regional Victoria. As we embark not just on the webinar training we are back out on

the road (restrictions permitting) visiting major centres in regional Victoria to get that face-to-face personal discussion happening. These sessions focus on the Material Fact requirements for sales and the new RTA for property managers.

In between the two topics we are seeking your input into what the REIV does and how we do it. It should never be about us telling you how well we think we are doing. We want to hear from you to tell us where the gaps are, what the opportunities are and how we can do better. Just as we are out there training our Membership in the new laws, you have the opportunity to give us some great advice as well.

A lot of our messaging so far this year has been about property management.

That has been because the new legislation on the back of the rental moratorium has dominated the skyline.

We have not forgotten the rest of our Membership and we continue to make improvements to our service delivery, our Committees and our engagement.

Elsewhere in this edition you will be able to read about some of the other submissions we have been sending through to government. Notwithstanding the magnifying glass is clearly on the RTA, it is business as usual for the REIV. Gil King REIV CEO

The Estate Agent – April 2021 | 7

Policy & advocacy

The four pillars of the Residential Tenancies Act The Residential Tenancies Act 1997 changes commenced on 29 March and being a landlord or property manager will never be the same again.

First, if you were a landlord at the time of the changes you are now known as a ‘residential rental provider’ and your tenant is now known as a renter and your lease is now a rental agreement. But as you know, there was much more to these reforms than simple nomenclature. With all 139 reforms now firmly in place, we estimate that the overall impact on the sector can be calculated at in excess of 350 changes.

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Amid all of this, and without wanting to say one change is more important than another, the four most impactful areas of recent change are around modifications, rental minimum standards, safety related activities and the broad areas of rights of entry and ending a rental agreement.

Modifications Besides the issue of ‘pets in rented premises’, the right of a renter to make

minor modifications was probably the reform that received the most publicity and was seen by government and the renter/tenant side as one of the biggest wins.

In reality, despite the hyperbole around the issue, for most rental providers and property managers the overall effect of the changes will not be that significant.

There are really three types of modifications; those that can be made without consent, those that require consent but for which consent cannot be unreasonably withheld, and those that require unqualified consent. In discussing the topic of modifications, it is often overlooked that many requested modifications will still require consent which can be withheld without qualification. If the modification requested does not fall in either of the first two categories it is at the rental provider’s absolute discretion whether to grant consent or otherwise.

Policy & advocacy Modifications

Consent not required: Most of these could be considered very minor with little impact on the property. While they can be made without consent, the rental agreement available for our Members on VicForms includes a clause that requires the renter to notify the rental provider of their intention to make the modification. This is something that you need to bring to the attention of your renter as this is the only way you will be able to control the issue. The least impactful modifications in this category are the installation of LED light globes, the shower head, blind and chord anchors, wireless doorbell, pressure mounted child safety gates, adhesive child safety locks and a lock on a letter box. Conversely the most impactful are potentially the replacement of curtains (the VicForms rental agreement requires the renter to inform you of how they intend to store the original curtains), non-permanent window film and the various hooks, screws, furniture anchoring devices and hardware mounted child safety gates. The one which has the most potential to go wrong or incorrectly applied is the installation of security lights alarms and cameras. There is the risk that the three conditions of installing these security features will be ignored and correction will be required.

Rental Minimum Standards This is a hotly debated topic and does raise significant concerns as to the impact on the property and the cost of maintaining the rental provider’s investment. Rental Minimum Standards are detailed in Schedule 4 of the Residential Tenancies Regulations 2021. In reality, most properties will easily meet all or the majority of these ‘standards’ without need for any work to be carried out. The challenge is that many older or neglected properties at the lower end of the market will require some work. Firstly, in relations to locks on doors and windows, it must be

Consent required but cannot be unreasonably withheld: The key to managing these modification requests is remembering that consent is still required; it just cannot be unreasonably withheld. As such it is vitally important that property managers are across the grounds for withholding consent and where necessary, imposing certain conditions for approval of the modification. Furthermore, two methods of dissuading a renter from making the modification, is to point out the requirement to reverse the modification before the end of the rental agreement, and if applicable, impose the requirement for a modification bond. One of the most fundamental grounds for refusing to consent to the modification is that it would not be reasonably practicable to reverse the modification or the impact the modification would have on the property and its maintenance costs. You should also be looking to get as much information about the renter’s intention up front so that you can make a properly informed decision as to consent. For example, painting the premises could significantly impact on the property and be difficult to reverse depending on the quality of the work (you may require a suitably qualified person to carry out the work) and the type and colour of the paint. Likewise, with the installation of a herb garden (how big and where is it to be located?)

remembered that the requirement for locks on doors and windows is not part of the rental minimum standards and are requirements under the Act. It is only if locks are not able to be installed on the doors or windows do the standards ‘kick in’. The areas that concern us the most, are around the assessment of structural soundness and ventilation, and the heating requirements. In relation to the two areas of assessment, the rule of thumb is that if in doubt get it checked by an expert. An appropriate and effective risk management strategy around structural soundness is required.

The heating provisions will have an

impact on those older properties. A common question is whether an electric panel heater meets the standard. The simple answer is that they do not as they do not fall within the definition of an energy efficient fixed heater. Owners corporations have an ‘escape clause’ if the installation in a class 2 building is unreasonable on certain grounds.

Safety Related Activities The requirement for electrical and gas safety checks every two years is probably the most significant requirement.

In particular, the gas safety check is substantial and probably ‘mirrors’ the risk around gas appliances. These will come at a substantial cost and communication with, and education of, your rental providers will be essential at the earliest point. The rules around swimming pool barrier checks are already a requirement under building legislation and the bushfire water tank requirements are fairly benign. Smoke alarm checking has been with us for some time and only slight variation to these requirements have been made. Once you can get into the routine of the biennial electrical and gas safety checks the impact of these requirements will lessen.

Rights of Entry/Ending a Rental Agreement The 120-day ‘no reason’ notice is gone, and compensation is now payable for sales inspections. These are two biggest changes. Just to confuse us even more, the reasons to end a rental agreement have been moved around and now have new section numbers in the Act from section 91I to 91ZZG. Most remain unchanged however new provisions relate to keeping a pet without consent and threats and intimidation breaches. Those that have changed relate to non-payment of rent and damage and danger. In terms of rights of entry into a rental property, the biggest change is around showing properties to prospective renters and buyers. With the latter, compensation is required to be paid to the current renter and entry is limited (outside of an alternative agreement with the renter) to twice a week and only for an hour on each occasion.

The REIV has produced a number of training resources in relation to the Residential Tenancies reforms. Stay up to date at reiv.com.au/rta-changes The Estate Agent – April 2021 | 9

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Policy & advocacy

Advocacy update There is more going on than just the commencement of the Residential Tenancies Act reforms. While the changes to the rental market have been substantial and will require continued training and review, work in other areas continues unabated.

The REIV has made several submissions to government in the first three months of 2021. We would like to thank the input that we have received from some of the newly formed Chapter Committees in the preparation of these submissions.

Automatic Mutual Recognition This is simply National Licensing revisited (with a twist) and is not supported by the REIV, nor for that matter any other REI around the country and headlined by the REIA as unworkable. In effect, it would allow the ease of transferability of skills and licensing from one state or territory jurisdiction to another. The proposal for an automatic mutual recognition framework would lead to agents practising in Victoria who simply have never operated under the same rules, governance, legal requirements or scrutiny as existing licensed agents in this state. Among other arguments

against the proposal, the notion that economic recovery or even economic stimulus is in anyway dependent upon the transportability of skills of real estate agents between jurisdictions is fundamentally flawed. The real estate sector is extremely competitive and there are sufficient numbers of skilled and accustomed real estate agents in Victoria to meet the needs of consumers. The risk is that unskilled and unaccustomed agents operating in an unfamiliar environment will actually cause economic detriment.

Land Acquisition and Compensation Regulations The Land Acquisition and Compensation Regulations 2010 will sunset on 22 June 2021. These Regulations prescribe a number of things that are necessary or convenient for carrying out or giving effect to the operation of the Land Acquisition and Compensation Act 1986.

The REIV has responded to a number of questions posed by the Regulatory Impact Statement and has variously supported and questioned various aspects of the proposed changes. The REIV noted that the acquisition process is often a ‘David and Goliath’ battle between a less informed (regarding process) property owner and a very experienced public authority over substantial differences in compensation amounts. Often the property is the landowner’s prime asset.

Regardless of the quantum of the claim, the legislation should contain as many safety nets for the dispossessed/affected owner as possible.

Open Flued Gas Space Heaters and Carbon Monoxide Alarms Three deaths from carbon monoxide poisoning led the Victorian Government to consider the phasing out of open flued gas space heaters (OFGSH) and the mandatory installation of carbon monoxide alarms in all homes with such heaters already installed. Two options were proposed and REIV supported one of these options. In the supported option, amendments would be introduced to the relevant Australian Standards to require that these appliances to shut down safely in a negative pressure environment. The amended standards would apply to all Australian jurisdictions that recognise CONTINUED ON PAGE 12

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Policy & advocacy

CONTINUED FROM PAGE 11

those standards, not just Victoria. Any amendments to the Australian Standard would only apply to newly manufactured appliances and would not apply to appliances already installed. Any OFGSH that meets the requirements could be sold, supplied, and installed. While still regulatory in nature, this option has the benefit of similar outcomes to a full regulatory approach albeit in a longer timeframe without an additional layer of red-tape. REIV supported the government’s proposal to not introduce the mandatory installation of carbon monoxide alarms in the absence of an appropriate Australian Standard for such devices.

VCAT jurisdiction The decision of the Victorian Court of Appeal in Meringnage v Interstate Enterprises Pty Ltd [2020] VSCA 30 in early 2020 determined that VCAT was not a court of a State for the purposes of section 77 of the Commonwealth of Australia Constitution Act 1901. The consequences of this decision, which has since been restated in Bennett v Depke (Residential Tenancies) [2020] VCAT 942 as recently as August 2020, has grave consequences for certain parties, particularly for landlords and tenants in the residential tenancies jurisdiction. In 12 | The Estate Agent – April 2021

effect, VCAT has no jurisdiction to hear a matter where one of the parties to the dispute resides in another Australian State. Curiously, the same exclusion does not apply if they reside in an Australian Territory (ACT or NT) or overseas. The REIV has been advocating strongly to the Office of the Attorney General to have the jurisdictional matter resolved.

COVID-19 The transition out of the rental moratorium for both residential and commercial properties has been a focus of the REIV and in particular, the resourcing of VCAT to hear disputes in the residential sector. The REIV provided feedback on the regulations to facilitate the transition and raised concerns about the potential for VCAT to see the transition provisions as a means to relieving its woes in relation to the extensive backlog of cases that has emerged over the past 12 months.

Section 55 The REIV is currently lobbying government to amend section 55 of the Estate Agents Act 1980 which prohibits a person who is an estate agent, agent’s representative, agency employee or relative of the estate agent or agent’s representative from obtaining a beneficial interest in (that is, buying) any real estate or business the estate agent has

been commissioned to sell unless certain conditions apply. In our view this section has the potential for negative outcomes for purchaser, vendor and agent. Section 55 has a particularly negative impact in regional Victoria for agents selling property in smaller communities.

Owners Corporations and Other Acts Amendment Bill 2019 The Owners Corporations and Other Acts Amendment Bill 2019 was passed on 18 February, 2021 after an extended period of consultation and delays due to COVID-19 and other matters.

The REIV provided input and comment to help shape this legislation. The REIV is pleased to see some of the Owners Corporation Laws reviewed and updated, however there are still many areas to be addressed. The Act does not address the need for appropriate training and qualification in Owners Corporation Management. Following the extensive review of the Estate Agents Education Regulations, the Owners Corporation sector should have also been addressed.

As apartment and other higher density living becomes increasingly popular in cities, Owners Corporation Management will continue to see significant growth. It is important that professional qualifications become mandatory in this sector.

Strategic Plan

Strategy helps ensure a strong, sustainable property sector The REIV has made significant achievements over the three years of the 2018-2021 Strategic Plan. The outgoing strategy was firmly focused on delivering fundamental improvements for the benefit of Members, including making essential changes to governance and internal operations to make the Institute more efficient and effective.

The REIV is now in good operational shape, and, among many other things: • Has enhanced its position with Government and the media as the peak body for real estate; • Was instrumental in securing higher educational standards to operate as real estate agents and agents’ representatives; • Is actively supporting continuing professional development through a refreshed CPD scheme and vibrant events programme; • Revitalised the Chapter Committee network with more Members than ever before keen to be involved; • Introduced a robust disciplinary procedure and a simplified Member to Member Disputes process; and • Enabled Valuers and Owners Corporation Managers who satisfy REIV eligibility criteria to be Members.

While all these improvements are delivering tangible results, including enabling the REIV to adapt successfully at speed to the challenges thrown up by the pandemic, it is by no means the end of the journey. In developing the new REIV Strategy, the Board was very mindful of the business challenges presented in 2020, the pace of technological and social change, the political environment in which the REIV and our Members operate and the power of collaboration, co-operation and evidence-based advocacy.

The REIV vision statement will be “A Strong and Sustainable Victorian Property Sector” and the areas on which the REIV will focus attention over the next two years are to Unite the Sector, Be the Voice, Deliver Valuable Content and Build Strong Foundations.

The REIV vision statement will be “A Strong and Sustainable Victorian Property Sector”.

There will be considerable benefit for our Members and the sector as a whole in strengthening and harnessing connections with kindred and other Associations to generate critical mass on matters of shared interest. Although already a respected advocate with a strong media presence there remains work to do for the REIV to become the Go To. The need for easily accessible, trusted, quality, and up to date

information, training, education and development opportunities continues to grow and really strong operational and governance foundations are essential for delivery.

The CEO has been charged with developing a plan to deliver the strategy which will be considered with the 2021/22 budget and adopted by the Board by the end of this financial year.

The Estate Agent – April 2021 | 13

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Bulletin

Resources for Members

Shop Online

Online Member Listing

The REIV Information Officers address many questions and issues from Members. During their interactions they come across matters that many Members may be finding challenging or confusing.

You can now order a range of office supplies including printed REIV forms and authorities at the click of a button. The REIV sells a range of sector specific resources like auction bells, flags etc. that can be delivered straight to your door.

The REIV Choose a Member platform has been effective in creating higher online visibility for Members.

Please login with your personal Membership Number and Password.

Make sure you add a link from your online collateral to your REIV profile page giving your clients greater confidence in you and your business.

Members can now login to access simple Information Sheets on a range of matters like: • Who has the right to negotiate if the last bid is a vendor bid?

• When is a lease a retail lease?

• Information which residential rental provider must not require rental applicant • What needs to be disclosed about real estate when it is being bought or sold You will find these and more under Member Resources at reiv.com.au

You can also manage your CPD, log requests for CPD points for external training and stay up to date with your REIV account with an online gateway to pay renewals and other invoices.

Please contact the Membership team on membership@reiv.com.au for any queries or assistance.

Make sure you add a link from your online collateral to your REIV profile page giving your clients greater confidence in you and your business.

Each REIV Member – individual and office, has a dedicated profile page on reiv.com.au

The platform now includes an All Member listing providing another alternative to search for an REIV Member.

The service areas have also been refined to include Owners Corporation Management and Valuation services.

Find out more information by visiting reiv.com.au/members The REIV will continue to work with the government to provide feedback and help shape the future of this critical part of the real estate sector.

REIA National Awards For Excellence 2021 – Tickets On Sale Now The annual REIA National Awards for Excellence will be held in Darwin on 10 June, 2021. With 17 awards up for grabs by the best of the best in the real estate game it is sure to be a great night and opportunity to network.

The NAE21 is proudly hosted by REIA’s top end member the Real Estate Institute of the Northern Territory. Tickets on sale now at reint.com.au/events/2021-reianational-awards-for-excellence

The Estate Agent – APRIL 2021 | 15

Resources

Compliance made simpler with technology The REIV VicForms platform has received its biggest technology overhaul, making it the simplest way to ensure you always use fully compliant Forms and Authorities.

We are evolving VicForms to deliver a best-in-class digital journey for your brand that’s designed to meet your clients wherever they are for faster, more positive contract execution.

The new VicForms gives you a fully compliant next-generation client experience that supports growth in residential and commercial outcomes without adding noise and friction into the process.

In a recent survey, you told us that the top 5 features that you want from a digital contracts’ solution are: 1. Simple to use – 98.3% 2. Ability to track a contract at various stages – 91.0% 3. Digital Signatures – 88.5% 4. Accessible on the go – 88.5% 5. Access to historical forms – 85% The REIV has partnered with fastgrowing Australian tech company Hutly, to accelerate and optimise the digital transformation of the VicForms platform, to deliver on this and much more. The enhancements include: • New technology for extra security: Two-Factor Authentication (2FA) • Let signees digitally ‘sign’ a contract with a single click using Hutly One Touch on select Residential forms, including two-factor authentication to verify their identity.

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Resources

• No additional set up for digital signing: No need for creating Docusign licences, simply create the contract and send.

• Edit and resend One Touch contracts that have gone out with typos/wrong information without incurring additional envelope fees • Automatic event recording: all edits, signatures are automatically saved for a complete record • Tiered subscription plans with credit card payment • Automatically send utility connection referrals to your chosen partner (e.g., MovingHub, Direct Connect or Compare & Connect)

The technology will be rolled out progressively across all forms, starting with the new residential tenancy forms.

model. There are four pricing tiers available, with plans starting from $39.95 a month.

VicForms subscribers are the first to have access to the new Residential Rental Agreement from Day One i.e., 29 March, 2021.

• Light: 10 downloads/envelopes for $39.95/month • Medium: 30 downloads/envelopes for $99.95/month • Large: 100 downloads/envelopes for $199.95/month • Enterprise: 750 downloads/envelopes $399.95/month

The REIV worked with the government, lawyers and Hutly to ensure that our Members have the correct documentation on the day that the new RTA comes into effect.

The REIV worked with the government, lawyers and Hutly to ensure that our Members have the correct documentation on the day that the new RTA comes into effect. This new form has the Hutly TwoFactor Authentication so members can sign new agreements straight away.

Pricing Tiers From 29 March, 2021, VicForms has moved to a monthly subscription

When you create a form on or after the 29 March, 2021, you will be asked to select a subscription tier. A valid credit card will be required to set up your account.

Any current forms, historical data etc. will continue to be available.

You can continue to use your current login credentials to access VicForms.

Learn more on vicforms.com.au

The Estate Agent – APRIL 2021 | 17

Best practice

What are we talking about?

Jim Lourandos & David Dundas REIV Information Officers

REIV Information Officers David Dundas and Jim Lourandos address some of the current common questions from Members.

Salespeople and the Residential Tenancies Act changes If you are selling residential properties, a knowledge of many of the changes to the Residential Tenancies Act is essential.

Some relevant changes effective from 29 March, 2021 are: Terminology Landlords will be known as Residential Rental Providers or Rental Providers.

Tenants will be known as Renters.

18 | The Estate Agent – APRIL 2021

Access • By agreement Entry to the property can be by agreement with the renter, provided the agreement was not more than seven days before the entry. In other circumstances there is right of entry under the Act and these rights have been expanded.

• To produce advertising images and videos Previously there was no right of entry for this purpose, but there now is, although it comes with significant limitations:

The renter must be given at least seven days’ notice.

There must be a reasonable attempt to agree on a suitable time.

The renter may object in writing if images show a possession of the renter that: • Identifies them or another occupant; or • Reveals sensitive information about them or another occupant; or • Is valuable and would increase the risk of theft; or

Best practice Section head • Would be unreasonable to expect the renter to remove or conceal; or • May identify an occupant at risk of family or personal violence.

Further detail about the limitations can be found in Section 89A. • For open for inspections Contrary to popular belief there has not been a right for the selling agent to conduct an open for inspection of a rented property, it could only be done with the permission of the renter, but the new provisions grant this as a right, provided that certain processes are followed.

At least 14 days before the access the renter must be given the prescribed form to notify them of the intention to sell.

The agent must make all reasonable efforts to agree with the renter on days and times.

At least 48 hours before the intended access the agent must provide the tenant with a notice of entry.

A ccess can be no more than twice a week and for no longer than one hour, unless agreed otherwise with the renter. The Act is not clear whether this is one hour per access or one hour in total for any seven-day period. If it is one hour in total this could present a problem, as for two half-hour OFIs the agent needs to be at the property slightly longer for set-up and pack-up.

The renter must be paid compensation for each sales inspection at the rate of half a day’s rent or $30.00, whichever is the greater. Currently, it is assumed that one open for inspection counts as one sales inspection.

If the renter is a protected person under a family violence or personal safety order, they may require that inspections be by private appointment only.

Agent Safety Occasionally things can turn very nasty when attempting to sell a rented property.

In recognition of this, a new provision in the Act allows for the renter to be given a 14-day notice to vacate if they or any other person occupying the rented premises has seriously threatened or intimidated the rental provider, the agent, or contractors or employees of the rental provider or agent.

Selling • To an investor A higher level of care will usually be needed if advising an investor about the suitability of a residential property for letting.

The Act has required a rental provider to maintain the property in good repair and low rent has not allowed them to avoid this responsibility. The responsibility continues, but in addition there must be compliance with Rental Minimum Standards which have been introduced, some

from 29 March, 2021 and others as late 29 March, 2023. The standards relate to locks, bins, toilets, bathroom facilities, kitchen facilities, laundry facilities, structural soundness, mould and dampness, electrical safety, window coverings, windows, lighting, ventilation, and heating. Compliance with some of the standards, particularly electrical safety in old buildings, may require significant expenditure. A comprehensive description of the standards is in Schedule 4 of the Residential Tenancies Regulations 2021.

In addition, rental providers must ensure that prescribed Safety Related Activities are carried out. These include electrical and gas safety checks every two years and smoke alarm checks every 12 months. Where there is a swimming pool, either in-ground or relocatable, barriers must be checked, and for those properties in bushfire prone areas, required firefighting facilities must be checked.

• With vacant possession With ending of the COVID-19 provisions in the Act, it is once again possible to give a 60-day notice to a renter to vacate on the grounds that the property has been sold or is to be offered for sale with vacant possession, provided that the date by which they are required to vacate is not before the end of a fixed term rental agreement, if they have one.

Please note: This is general information and should not be treated as a substitute for reading legislation, regulations and official guidelines, or for seeking legal advice where necessary.

The Estate Agent – APRIL 2021 | 19

Training

Education requirements to work in real estate Late last year the education requirements to work in real estate changed significantly. The new requirements mean that people entering the sector will need to commit greater time and resources to learn and prepare for work. This will mean better trained and qualified people looking for a long-term career in real estate.

Agent’s representative– starting work in real estate The entry level education required to work in real estate is now a Certificate IV level course (CPP41419 Certificate IV in Real Estate Practice). The course includes 18 units of competency; 5 core units and 13 elective units.

The CPP41419 Certificate IV in Real Estate Practice can be completed through a workplace traineeship program or online blended learning.

Both learning methods are available at the REIV. Federal government incentives are in place for Traineeships (Workplace training). Businesses looking to hire new entrants should reach out to the REIV training team to find out more.

20 | The Estate Agent – APRIL 2021

Eligible students can also apply for State funding to complete the course through our online blended learning program.

All applications for government funding can be completed as part of the REIV enrolment process.

AND • CPP51119 Diploma of Property - 12 Units (currently not government funded) It is important to note that the majority of these units are not directly equivalent to units in the superseded CPP40307 Certificate IV in Property Services (Real Estate).

This means that an individual currently registered as an Agent’s Representative who has NOT completed the new CPP41419 Certificate IV in Real Estate Practice – 18 Units, will be required to complete both the new Certificate IV and the Diploma if they wish to apply for an Estate Agent’s Licence.

Some recognition of work experience may be available. The REIV training team can assist with any queries.

Businesses looking to hire new entrants should reach out to the REIV training team to find out more. The REIV has commenced teaching this course.

Becoming a licensed estate agent The minimum education qualifications required to apply for an Estate Agent’s Licence are: • CPP41419 Certificate IV in Real Estate Practice – 18 Units (New Agent’s Representative Course)

The changes do not impact individuals who are qualified and registered as licensed estate agents.

85%+

91%

80%

84%

80%

Events Section head

Senior Auctioneer of the Year calls Good Friday Appeal’s Charity House Auction After 13 years of setting records, REIV Master Auctioneer and fourtime winner of the Senior Auctioneering competition Adrian Butera passed the hammer for this year’s Good Friday Appeal Charity Home auction.

Commencing in 2021, the top job will be manned by the winner of REIV’s annual Senior Auctioneering competition, with 2020 winner, Andy Reid stepping up to the plate on Friday, 2 April.

On the block this year was the beautiful Henley Vogue 34 home at Villawood The 2021 Charity Properties’ Rathdowne House Auction estate in Wollert.

The 2021 Charity House Auction marked 28 years donating homes and raising more than $16 million or for the Good Friday Appeal to date.

marked 28 years donating homes and raising more than $16 million or for the Good Friday Appeal to date.

Andy Reid facilitated the Good Friday Appeal’s Charity House Auction.

Some of the very best Victorian auctioneers have been discovered through REIV’s competition and this is a great opportunity to work with Henley and Villawood and put forward Victoria’s top talent to facilitate the Good Friday Appeal’s Charity House Auction each year.

Following the trend of hybrid auctions to accommodate COVID-19 restrictions, the auction was also streamed live through REIV Partner Anywhere Auctions allowing bidders from across the country to throw their hat in the ring.

Key dates for 2021 Entries close

Competition date

Senior Auctioneering Competition

Friday, 2 July

eats - Tuesday, 27 July H Final - Wednesday, 28 July

Novice Auctioneering Competition

Friday, 23 July

eats – Tuesday, 17 August H Semi-Final – Tuesday, 24 August (if required)* Final – Tuesday, 31 August*

* Should a Semi-Final not be required, the Final will be held on Tuesday, 24 August The Estate Agent – APRIL 2021 | 23

Data insights

Property amid the pandemic As we look back at 2020 and consider the impact on the property market, some areas fared better than others.

Victorians voted with the investment dollar, many moving away from Metro Melbourne that experienced some of the strictest lockdown measures.

In this article we take a closer look at the statistics to understand the COVID-19 impact on markets across Victoria.

The December 2020 quarter median prices recorded significant growth across Victoria. Coming after the Stage 4 lockdown over the September quarter, pent-up demand, government incentives, low interest rates and a smaller number of properties on the market, are all considered to be important factors in the record-breaking results.

Units Vs Houses Although the property market saw strong growth across property types, house prices recorded the highest quarterly jump in more than a decade.

Areas with a higher proportion of houses vs units, performed better than areas that have a concentration of higher density residences.

Inner Melbourne (up to 10km from the CBD) is dominated by units and apartments and recorded a 0.8 per cent increase over the December quarter 2020. While it is still 2.7 per cent stronger than December 2019, the annual growth is weaker compared to other parts of Victoria.

The latest population data from Australian Bureau of Statistics show that there was a net loss of 5,900 people in June quarter 2020 from the capital city to the rest of the state, doubling the previous quarter’s loss. The second lockdown resulted in a further net loss of 4,700 people in the September 2020 quarter.

Table 1

Seasonally adjusted median prices in Victoria (Source: REIV)

Dec-20 Quarter

Sep-20 Quarter

Quarterly Change

Annual Change

House

$941,000

$859,500

9.5%

8.4%

Unit and Apartment

$639,500

$624,000

2.5%

3.8%

House

$485,500

$444,500

9.2%

7.5%

Unit and Apartment

$342,500

$331,000

3.5%

10.3%

House

$1,533,500

$1,513,000

1.4%

6.3%

Unit and Apartment

$629,500

$624,500

0.8%

2.7%

House

$1,066,500

$987,500

8.0%

7.3%

Unit and Apartment

$715,000

$690,000

3.6%

3.5%

House

$723,500

$688,000

5.2%

6.9%

Unit and Apartment

$570,500

$539,000

5.8%

6.9%

Metropolitan Melbourne

Regional Victoria

Inner Melbourne

Middle Melbourne

Outer Melbourne

Table 2

Intrastate movement in Greater Melbourne (Source: ABS).

Population movement The pandemic gave rise to a more flexible workplace culture that has become one of the factors driving renewed interest in regional Victoria.

As working from home became more commonplace, people have taken the opportunity to move out for a “sea-change/ tree-change”.

24 | The Estate Agent – APRIL 2021

The regional internal migration has helped to boost the median prices across property types in regional Victoria. Houses reached a new benchmark at $485,500 with 9.2 per cent increase over December quarter 2020 while regional units rose to $342,500 with 10.3 per cent increase over the year.

Arrivals

Departures

Net

Sep-19

6,168

9,122

-2,954

Dec-19

7,254

9,903

-2,649

Mar-20

6,149

9,122

-2,973

Jun-20

5,843

11,746

-5,903

Sep-20

5,024

9,725

-4,701

Data insights Section head

Figure 1 Transaction Numbers - A comparison 2019 & 2020 INNER

MIDDLE

OUTER

Transaction numbers METRO

REGIONAL

VICTORIA

0.0%

-5.0%

Overall, the Victorian property market recorded an 18.4 per cent drop in transaction volume in 2020 when compared to 2019.

-10.0%

-15.0%

While Metropolitan Melbourne area saw a decrease of 22.3 per cent in transaction numbers, regional Victoria only recorded 7.8 per cent fall. This was due to stricter restrictions in the metro area.

-20.0%

-25.0%

-30.0%

-35.0%

House

Unit

Total

Table 3

Most increase in unit sales (min 50 sales in 2020)

Suburb

Region

2020 Unit Sales

% Change

ENDEAVOUR HILLS

outer

60

100.0%

WOLLERT

outer

50

85.2%

TRARALGON

Regional

112

75.0%

WARRAGUL

Regional

59

63.9%

HEIDELBERG WEST

middle

51

59.4%

MILDURA

Regional

166

38.3%

OAKLEIGH

middle

104

35.1%

LILYDALE

outer

107

33.8%

MACLEOD

middle

65

27.5%

GLEN HUNTLY

middle

113

27.0%

Table 4

Most increase in house sales (min 50 sales in 2020)

Suburb

The obvious outcome of the pandemic was much lower number of transactions throughout the year. Two lockdowns and restrictions impacted all industries including real estate.

Region

2020 House Sales

% Change

LUCAS

Regional

101

106.1%

VENUS BAY

Regional

123

83.6%

WOORI YALLOCK

outer

54

74.2%

CLUNES

Regional

51

59.4%

MONBULK

outer

75

56.3%

MALDON

Regional

71

42.0%

HAMPTON EAST

middle

53

39.5%

CRESWICK

Regional

79

38.6%

PRAHRAN

inner

130

36.8%

HEYFIELD

Regional

53

32.5%

Looking at the property type, the impact on units and apartments was greater than that on house sales. Unit sales dropped by 24.4 per cent in the Metro Melbourne led by inner Melbourne with almost 30 per cent, followed by middle Melbourne (21.5 per cent) and outer Melbourne (17.4 per cent).

Units and apartments were still favored outside the inner ring especially 20 km from CBD with Endeavour Hills in the south-east and Wollert in the north doubling the number of unit and apartment sales.

More affordable prices and larger land area are likely to be factors that kept the property market in regional Victoria strong in 2020 with only 6.6 per cent drop in house sales, in line with the population shift reported by ABS. Few outperformers like Lucas in Ballarat doubled their house sales over the year.

Defying the trend was Prahran with a 36.8 per cent increase in house sales despite being close to the CBD. The Victorian residential property market is well positioned for another stellar result in the first quarter of 2021. The pandemic may have impacted property types and regions differently to some extent but the overall picture is of a strong resilient market.

The Estate Agent – APRIL 2021 | 25

26 | The Estate Agent – APRIL 2021

Members Section head

Professional development To truly build and maintain the REIV Difference, it is important that Members continually dedicate time and effort to staying a cut above the rest.

The REIV Professional Development Program is designed to be simple, accessible, and flexible. The objective is to raise the standard of our members over and above those who are not REIV members. A well informed, skilled, and responsible Membership will help further establish the REIV Difference, giving consumers even more reason to always Choose a Member.

The REIV CPD program provides a framework to ensure ongoing emphasis on professionalism and expertise.

Members are required to undertake professional development activities to achieve at least 12 REIV CPD Points each year. At least 8 of these points must be from REIV activities and initiatives including a compulsory Ethics Module (2 points).

Add your external professional development activity to your REIV CPD record by simply uploading details to your REIV online dashboard. Examples include formal training such as a business qualification training, and events provided

by AICD, API, AVI, RICS, Victorian.

All REIV Licensed and Representative

Following the launch of a successful partnership with the AFL Coaches Association, we bring you a unique video series “Masterclass on Building High Performance Culture”. Featuring indepth discussions with four Senior AFL Coaches, these videos are a “must watch”. Long term members, Adrian Butera and Harry Li, interviewed Alastair Clarkson, Simon Goodwin, Brett Ratten and Chris Scott to help real estate professionals learn from some highly accomplished leaders in sport.

Look out for more information coming soon

CONTINUED ON PAGE 28

Additional Attribution to Business Leadership**

Individual Members Per Instance

Maximum Per CPD Year

Per instance per staff member

Maximum Per CPD Year

- under 3 hours

2

Unlimited

1

5

- over 3 hours

3 or as advertised

Unlimited

1

5

- under 3 hours

2

Unlimited

- over 3 hours

3 or as advertised

Unlimited

3

Unlimited

1

Unlimited

1

Unlimited

ONGOING DEVELOPMENT & TRAINING REIV Events, Division Events and Short Courses Attend in person or online

Present/ MC/ Train

Accredited Training/ Course Completing an Accredited Course that qualifies the person to be a Licensed Member - through the REIV

12

12

- outside the REIV

4

4

Delivering Accredited Training or Professional Development course for the REIV

5

5

Completing an Accredited Course that qualifies the person to be a Representative Member - through the REIV

6

6

- outside the REIV

2

2

1

Unlimited

REIV Awards & Competitions Making a submission for an REIV Award in an Individual category Making a submission for an REIV Award in an Agency category Competing in an REIV Auction Competition

3

3

Serving as a judge or bidder at an REIV Auction Competition

3

6

The Estate Agent – APRIL 2021 | 27

Members CONTINUED FROM PAGE 27

Serving as a judge or bidder at the REIA & REINZ 3 Australasian Auctioneering Championship

3

Serving as a judge at any REIV Awards

3

3

Serving as a judge at any other REI Awards

2

2

CONTRIBUTING TO THE INSTITUTE AND THE PROPERTY SECTOR REIV Board & Committees Service as an REIV Board Director (no additional points for representation on Board appointed committees)

8

8

Service on a Board Committee

3

3

Appointed by the Board to the list of Members who may be invited to serve on the Disciplinary Committee and adequate participation in committee development sessions

1

1

3

3

Acting as a Mentor for a specific purpose (such as Auctioneering) with prior notification to and approval of the REIV

3

Unlimited

Have an article published in the REIV EA magazine

1

2

Participating in REIV surveys

1 per survey

Unlimited

Contributing at the request of REIV to consult on Policy matters (excludes as part of Chapter, Division and Board Committee participation)

1

2

Undertaking Mediations or Arbitrations for Member Disputes referred to the REIV in accordance with the By Laws

1 per event

Unlimited

Providing media commentary at the request of the REIV (excludes REIV Directors)

1

2

Serving on an external Committee or other forum at the request of the REIV and as a representative of the REIV (eg EAC, REV, REISuper, or government body.

1 per forum

Unlimited

REIV Chapter and Division Committees Service on an REIV Division or Chapter Committee for at least 9 months (Committee Chair is eligible for an additional 2 points) Sharing your expertise and experience

RUNNING COMPLIANT BUSINESSES REIV ethical behaviour module - MANDATORY Must be successfully completed annually

2

2

Staff membership of the REIV Employees are individual members of the REIV accessing the latest information, data and tools

1

Unlimited

Office reporting timely and accurate data to the REIV/ PropertyData

2

2

Office subscribing to PropertyData

2

2

As assessed

4

2

2

Accurate Data

Compliant Documentation Office accessing REIV Forms & Authorities Employee Management Office subscribing to realestateHR

**Points available to all members who make up the Business Leadership team of an Office member are eligible for the below points. This includes Directors, Officers in Effective Control, Chief Executive Officer and Partners 28 | The Estate Agent – APRIL 2021

Section head

The Estate Agent – April 2021 | 29

Resources

Insurance market landscape for the real estate industry With record-breaking performance and significant legislative change, all coming at the back of a very unusual year, businesses may not have had an opportunity to review their business risk exposure.

Like most other industries, the uncertain economic conditions have also impacted the business insurance market. The impact of increasing frequency of natural disasters, costly litigation and claims and COVID-19 is starting to be felt by some agents and their brokers.

Here are some of the emerging trends within the real estate insurance market, and how agents can make sure they’re taking the right steps to best protect their business.

Professional indemnity Allegations of professional negligence continue to be a prominent risk in the real estate industry. Legislation changes across real estate, rental reforms and government stipulations such as eviction moratoriums have added a further layer 30 | The Estate Agent – April 2021

of complexity. Real estate businesses need to carefully assess their risk exposure.

These factors, combined with economic uncertainty and a rise in unemployment, have led insurers to anticipate an increase in claims activity under Professional Indemnity. Insurers have become more scrutinous of businesses before issuing cover. If you haven’t felt this, it’s likely that you will in the coming 12 months as brokers start to feel the change in approach from Insurers.

business case to the insurer, is more likely to secure the right protection for you.

Cyber crime In March last year, online scams increased by over 400% compared with previous months. Cyber crime is not only increasing in frequency, but the complexity of the breaches, and severity of the damage being caused also continues to increase.

Agents need to keep in mind that when considering PI cover, the coverage outcome can depend on a broker’s relationship with the insurer.

Damage to reputation amongst other risks is very real – and the increasing digitisation of the industry has made real estate businesses a very appealing (and relatively easy) target for cyber criminals.

A broker who has a strong relationship with insurers and is willing to take the time to present a clear and concise

The application process for Cyber Insurance is becoming more challenging and there is more pressure on premiums

Resources Section head

as insurers start to react to this increasing risk.

Natural disasters Looking at the impact of weather disasters – which cost Australia $35 billion in 10 years, climate experts have predicted that the bushfires during the summer of 2019-20 were just the beginning of the effects of climate change.

Frequent weather events lead to increased claims costs. This ultimately results in increased premiums as insurers are faced with rising reinsurance costs and are required to safeguard their pool of funds to ensure future claims can still be paid. This is why sometimes agents might find their premiums increase at renewal even if they haven’t made a claim.

Be sure by working with your broker Increasing scrutiny in the Insurance market can be difficult for real estate businesses to understand, it’s also highlighted the importance of having access to an experienced insurance broker with Real Estate Industry specialisation. By selecting a broker who has a deep understanding of the property industry and its risks, you can leverage their relationship with insurers

About Aon Aon is proud to be the new Platinum Partner of the Real Estate Institute of Victoria. Access a range of competitively priced insurance options arranged by Aon today. We’ll work through your industry’s risk and insurance needs – complex or simple, and scan the market to offer you a solution aimed at offering a superior combination of cover, price and service. Get a quote online or speak to an experienced insurance adviser today. Learn more at aon.com.au/reiv © 2021 Aon Risk Services Australia Limited ABN 17 000 434 720 AFSL no. 241141 (Aon)

Please note: The information contained in this article is general in nature and should not be relied on as advice (personal or otherwise) because your personal needs, objectives and financial situation have not been considered. Before deciding whether a particular product is right for you, please consider your personal circumstances, as well as the relevant Product Disclosure Statement (if applicable) and full policy terms and conditions available from Aon on request. All representations on this website in relation to the insurance products we arrange are subject to the full terms and conditions of the relevant policy.

Aon has taken care in the production of this document and the information contained in it has been obtained from sources that Aon believes to be reliable. Aon does not make any representation as to the accuracy of the information received from third parties and is unable to accept liability for any loss incurred by anyone who relies on it. The recipient of this document is responsible for their use of it.

within the market. Choose a broker that is committed to going the extra mile in securing the right protection for you, and willing to be your advocate if you

need to make a claim, and you’ll have the confidence they’re acting to protect your business’s livelihood now and into the future. – Aon The Estate Agent – April 2021 | 31

Resources

What is the gender super gap?

Did you know that more than 80 per cent of women are currently retiring with insufficient super savings to fund a comfortable lifestyle?

In fact, the average superannuation account balance for women when they retire is around $80,000 less than the average for men*.

There are a number of reasons why the super gap is so large, but it doesn’t have to be this way. By taking control of personal finances and pursuing greater financial independence, this may help women feel more confident to enjoy financial wellbeing today as well as in retirement.

Why is the superannuation gap so large?

As we are constantly reminded in the media, there still remains gender inequality when it comes to full-time earnings, with women earning 18% less than men~. This results in further disparity when it comes to employer 32 | The Estate Agent – April 2021

superannuation contributions, known as super guarantee. Currently, employees receive a super guarantee contribution of 9.5% of their total salary earnings.

If women are already earning 18% less than men, this gap is also reflected in the super contributed by employers.

(before tax) from one employer, as many women work more than one part-time job~.

An estimated 220,000 women miss out on $125 million of superannuation contributions as they do not meet the requirement to earn $450 per month

With many working remotely throughout 2020, employers are starting to adopt a position in which roles can continue to be worked remotely and flexibly,

The future of the working environment

REI Super’s insurance provider MetLife’s Employee Benefit Trends Study 2020 Many women take an average of five investigates the changing face of the years out of the workforce Australian workplace to care for children or landscape. Understanding Many women take family members, which how to improve can cause their super employee wellbeing is an average of five savings to stagnate and key to helping employers years out of the begin to fall behind~. navigate this new workworkforce to care When women return to life reality. The study for children or work, they are more likely highlights that while to be in part-time or lowemployers are prioritising family members, paid employment. There the mental aspect of their which can cause are an estimated 43% employee wellbeing, right their super savings of women in part-time now, financial health to stagnate work~. The current 9.5% is the top concern for super guarantee does not employees, and plays an enable most women to especially important role accrue sufficient savings in their overall wellbeing, for a comfortable retirement. and mental health in particular.

Resources Section head which could benefit women in the workforce who have family or caring responsibilities. Some employers are also offering expanded parental leave schemes.

These types of workplace changes will help create a positive culture where employees can confidently access these initiatives to maintain a work-life balance, increase productivity and without compromising their careers and finances, thus alleviating a superannuation gap.

What next?

Take control of your finances by following our simple steps and join our community of financially empowered women in real estate. It’s easy to get started.

Manage your super, anytime, anywhere Staying on top of your REI Super account is now even easier using the new mobile app.

Get the app in three easy steps 1. Set up your online account at reisuper. com.au 2. Download the mobile app from the App Store or Google Play.

3. Login with the username and password from your online account.

Employers are starting to adopt a position in which roles can continue to be worked remotely and flexibly.

Learn more about Women and Super at www.reisuper.com.au/women-and-super *https://www.superguru.com.au/about-super/women-and-super ~https://www.womeninsuper.com.au/content/the-facts-about-women-and-super/gjumzs Disclaimer: The information contained in this article does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation. Members should obtain and read the Product Disclosure Statement for REI Super before making any decisions. REI Superannuation Fund Pty Ltd ABN 68 056 044 770 AFSL 240569. RSE L 0000314 REI Super ABN 76 641 658 449 RSE R1000412 MySuper unique identifier 76641658449129. January 2021.

Women generally retire with 47% less super than men*.

Empower yourself.

It’s time to take control of your future. As an industry super fund with a majority female membership, we’re here to help our members achieve the retirement they dream of. *

Find out how at reisuper.com.au/women-and-super

REI Superannuation Fund Pty Ltd ABN 68 056 044 770 RSE L0000314 AFSL 240569. REI Super ABN 76 641 658 449 and RSE R1000412 MySuper unique identifier 76641658449129 for the general information of members of REI Super. It does not take into account any member’s individual financial objectives, financial situation or needs REIS 6360

The Estate Agent – April 2021 | 33

Resources

End of financial year – considerations for individuals and agencies

MVA Bennett YOUR FUTURE, OUR BUSINESS MVA BENNETT is a Chartered Accounting firm in Melbourne and an REIV strategic partner.

Our belief is that YOUR FUTURE is OUR BUSINESS, arising from rich history that dates back to our founding in 1941. Our capabilities are delivered by a team of seven partners and 50 staff governed by the profession’s quality controls.

Tax planning should not only be considered in June of each year – it should be ongoing, focusing on both short and long term goals. If you start with the end in mind there can be clarity on the goals and buy in from the key stakeholders.

Below are some key considerations for both individuals and agencies before 30 June, 2021. Tax planning is not about a scheme or avoidance it is legitimately playing within the boundaries.

The State and Federal Governments have spent about $200 billion to support the economy in response to the COVID-19 pandemic, with more money committed. Now is not the time to push the boundaries as the Governments will be increasing their tax collections via audits and reviews.

INDIVIDUALS

Superannuation As cashflow allows, consider if a personal deductible superannuation contribution can reduce your personal tax obligations.

Keep in mind the effect of Division 293 tax on contributions for high income earners.

Realise any capital losses and reduce gains Did you sell one of your own properties in 2021? Neutralise the tax effect of any capital gains you have made by realising any capital losses – that is, sell the asset and lock in the capital loss. (Must be genuine transactions to be effective for tax purposes).

Motor vehicle logbooks As an agent your motor vehicle deductions each year maybe significant.

A logbook is only valid for five years; ensure it is up to date.

34 | The Estate Agent – April 2021

Why engage MVA BENNETT? We strive to differentiate ourselves from other accounting firms by seeking to: • Develop agreed wealth goals, by identifying and aligning mutual values and obligations that will underwrite our relationship • Continually meet expectations, with strong communications throughout our engagement • Use cutting edge skills and tools to achieve our deliverables, and • Practise what we preach

AGENCIES

Review your year to date management reports Prudently review your management reports regularly so there are no surprises six plus months after year end.

Note non-taxable amounts that were received, i.e. PAYG CashFlow Boost and some State Government Grants, also noted that the corporate tax rate has reduced to 26% for operating entities with turnover less than $50 million.

Bring forward deductions where possible Acting before 30 June, 2021 to get a tax deduction will assist your cashflow more quickly than waiting until the next year.

Actions • Ensure directors’ fees and employee bonuses are definitely committed to allow the tax deduction • Write-off any bad debts • Bring forward repairs, consumables, gifts or donations • Pay June quarter employee super contributions now – as a courtesy, check with your staff that this does not cause them an excess contribution

For further information, please contact Nicholas Rodier Partner, MVA BENNETT Chartered Accountants nicholas@mvabennett.com.au 03 9642 8000.

Level 5, North Tower, 485 La Trobe Street, Melbourne mvabennett.com.au

Your professional advisers can assist you with all the above and more – assisting with planning, education, reviewing and implementation.

Trust structures A trust needs to resolve who is to benefit from the annual income, generally before 30 June each year. Trustees should consider any changes of circumstances – particularly minors turning eighteen who can then be taxed as adults, ensuring timely TFN reporting.

– MVA Bennett

Please note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their circumstances.

Resources Section head

Solar for rental properties – it’s a win-win The Victorian Government offers eligible landlords a rebate of up to $1,850 for the installation of solar panels, slashing upfront costs while increasing value and amenity for tenants.

When Matthew Katakam installed solar panels on his Point Cook home a decade ago, the savings on his energy bills were substantial.

“Ten years ago, it cost me about $10,000 to put the panels on, but our bills went down to around $50 to $60 a month.

Before we installed the solar, they used to be around $300 in winter, so it worked out pretty well for us,” he says.

Since then, the price of solar has dropped dramatically. So much so, Matthew decided to take the plunge and install solar on his tenanted investment property in Altona Meadows.

To help cover the cost, he accessed the solar for rentals rebate through the Victorian Government’s Solar Homes Program.

On offer is a rebate of up to $1,850 for eligible landlords, plus the option of an interest free loan matching the rebate amount.

Krpan says the rebate is a win-win for landlords and tenants.

“The fact eligible landlords can get an interest-free loan with the rebate means that for many landlords, there is no upfront cost,” Krpan says.

“Lower bills can be a big incentive to attract long-term tenants, not to mention increasing the overall value of the rental property for the landlord.

“Eligible landlords can apply for the entire solar system and loan themselves, or work with their renters for a loan repayment co-contribution of up to $19.27 a month, equivalent to the cost of a takeaway coffee each week.

“The Solar Homes Program has already installed over 130,000 solar systems on Victorian roofs. With rebates for rental properties, even more homes

can access cheaper electricity, and play their part in the transition to cleaner, renewable energy.”

To date more than 1,300 Victorian landlords have accessed the rebates, with over 1,000 rebates still available this financial year.

For Matthew, installing solar on his rental property has had no downside.

“The main thing is you’re passing on savings for the tenants,” he says.

“The tenants save money on their electricity bills and if they are happy, they are more likely to stay. You look after them and then they look after your property. These days, solar panels are affordable, and they can be installed pretty quickly as well, and I don’t see any reason why you wouldn’t do it. It can be only a good thing for the landlord, the tenant, the environment and your finances.”

For more information on the Victorian Government’s solar for rentals rebate, visit solar.vic.gov.au/solar-rental-properties

For Matthew, it was a nobrainer.

“I’m paying about $35 per month out of pocket. It’s a great deal,” he says. “If I decide to sell it’ll add value and for my tenant, it means cheaper energy.”

Through the rebate, eligible landlords can reduce the cost of installing a solar panel system on a maximum of two rental properties each financial year.

Solar Victoria CEO Stan The Estate Agent – APRIL 2021 | 35

Members

Connecting members with each other and the REIV Chapter and Division Committees play an important role in ensuring that the REIV is aware of the opportunities and challenges affecting all facets of the real estate industry across Victoria, and in supporting the development of REIV services and policy that make a real difference for all Members.

Chapter Committees are appointed by the REIV Board following calls for expressions of interest from Licensed and Representative Members every two years.

Chapter Committees are made up of Members with active involvement in that area of special interest. Other members can be appointed to the Committees at the discretion of the REIV Board. The role of Chapter Committees is to: Contribute to the development and relevance of REIV product and service offerings by:

• Highlighting issues and opportunities of particular interest to their Chapter • Identifying topics and participants for REIV Chapter specific and wider events and Provide Subject Matter Expertise (SME) in support of REIV: • Advocacy and representation • Training and professional development • Good practice • Documentation

Chapter Committees Auction Luke Banitsiotis Jane Caulfield Harry Li (Chair) Alisha Pitts Andy Reid Raoul Salter Jeremy Tyrell Paul Tzamalis Stephen Zervas

Business Brokers Gloria Ammerlaan (Chair) Grita Angelucci Kevin Conolly

Jamal Dabab Denise Hall Robert Hurst Ian Wollermann

Buyers Agents Bernard Corser Tonya Davidson Mark Errichiello Richard Kerr Paul Murphy Melissa Opie Janet Spencer Eddie Van Pamelen (Chair)

Division Committees are elected by the members of their Division every two years. Their purpose is to: • Represent their Divisional Members’ interests to the REIV • Provide the conduit for REIV policy and practice consultations and the dissemination of information and advice • Identify issues and opportunities specifically affecting their geographical area and alert and liaise with the REIV in addressing them • Actively consult with their Division members on local and REIV matters • Organise Division events, whether debates, seminars, workshops, training, CPD, social and philanthropic • Promote REIV products and services • Encourage REIV membership Congratulations to the 2021/2022 REIV Chapter and Division committee members.

Commercial & Industrial

Property Management

Michael Di Carlo William Di Donna Chris James Marni Lawson Tim Mitchell (Chair)

Sabina Aldouby Amy Blackburn Amanda Bury Cynthia Hartnett Sam Hatzistamatis (Chair) Kirsty Patterson Wendy Steele Courtney Thursfield

Owners Corporation David Gluck Norman Mermelstein Michael Nardella John Ross Neville Sanders Daniel Shields Alex Starr Lucas Taylor Kate Yeowart (Chair)

Division Committees There are 10 Divisions of which all but the Metropolitan Division can be served by a Division Committee. The Metropolitan Division covers the Melbourne CBD and all inner and outer Melbourne suburbs and is serviced directly by the REIV.

Valuers Warwick Burnham Milton Cations Simon Eishold Martin Fallon Jan Hancock Peter Lawrence Damian Lynch Steve Miles (Chair) Darrell Simpson Nicholas Walsh

Sales

New Members

Janet Fleet (John) Peter Hannon Christine Henderson Adam Joske Anthony Molinaro (Chair) Evan Lykourinos

Toby Campbell (Chair) Megan Kimpton Jatinder Singh Bailey White

Bendigo Division Committee – Matthew Bowles – Tom Maher – Paul Byrne – Jacinta McIvor – Bradley Hinton – Andrew Murphy – John Keating

For more information about Chapters, Divisions and their Committees or to provide input to any of the committees, please contact the REIV Membership Team membership@reiv.com.au 36 | The Estate Agent – April 2021

Members Section head

George Thomson celebrated 70 years as an REIV member.

Maurice Pitard celebrated 60 years as an REIV member.

John Lawson celebrated 50 years as an REIV member.

Milestones We congratulate the Members who completed important milestone Membership Anniversaries during January - April, 2021.

70 years George Thomson

60 years Maurice Pitard

50 years John Lawson David Marshall John Pratt Bill Rush

40 years Max Gibson Tim Lynch John Mills Grant Williams

30 years Steve Cropley Ken Grech Jim Hatzimoisis Stella Kyriakou Tom Moschoyiannis Sam Newton Michael Robinson Ion Teska David Tunbridge Antony Woodley Danny Zanella

20 years Tom Aylward Frank Colicchia Richard Linton Cristina Longano Julian Maccora Michael Major Sharon Quirk Mino Stronghilis Charles Vraca

10 years Bev Adam Mark Adams Anthony Barbounis Craig Bennie Heidi Bourke Mark Brilliant Stefan Deffert Robert Di Vita Bill Diamantopoulos Geordie Dixon Shaun Doyle Tim Etchells Layton Gale Sonja Goldby Simone Graafmans Barbara Hale Steve Hobson Andrea Ivermee Barry Jan Gina Kantzas Con Lazogas Michelle Liberman Daniel Loh

Jason Mantello Jesse Marinas Sally Matthews John Matthews Russell Meerkin Blasi Mulholland Steve Nicoll Kathie Pollock Leanne Powers Neil Quirk Jonathan Rizzo Adam Rossi Fadi Saad Steven Shaw Andrew Skubel Nathan Smith Peddy Telo Junius Tjetje Ingrid Ward Dale Wilcox Anthea Wood Mark Wridgway

The Estate Agent – April 2021 | 37

Members

New members From 1 October, 2020 to 31 January, 2021 we welcomed 152 members to the REIV community. Building new relationships through networking is an important aspect of REIV membership. Please find the time to reach out to the new members.

Luke Abbey John Abraham Adeeb Ahmad Rodric Anderson Gareth Apswoude Sachin Arora Ahmad Azimi Jennifer Ballintyne Melanie Barry Harinder Bedi Luke Bennett Joanne Bertuna Nitin Bhatia Kulvinder Bhatia Pardeep Bhatti Sippy Bholla Amandeep Bindra David Black Heliberto Blanco Stephen Boyle Sean Brickley Nafizah Buksh Samantha Buxton Kristen Carlyle Mackenzie Kairu Chan Thomas Kah Hou Chan Anand Chauhan Peter Chen Robert Clements Andrew Cull Kristy Davidson James Davis Anthony De Iesi Rita De Marchi Clemente DeRosa Courtney DiGregorio Chau Ngoc Do Percy Eccles

38 | The Estate Agent – April 2021

James Edmundson Darren Eichenberger Talal El-Hassan James Fagan Yuhui Fang Min Feng Lisa Fitzgerald Sahra Floratos Daniel Flynn Adam Frauman Gurinderbir Gill Frances Gill Michael Griffiths Aman Gupta Pierre Hadchiti Paul Hayward Christine Henderson Jared Hodge Christy Holt Mohammad Honarvar Kieron Hunter Ashley Hutson Yolena Hutton James Hyndman Richard Imbesi Praveen Jaiswar Christopher James Andrew Johnson Ian Johnson Rajvir Kalkat Sharanjeet Kaur Jasmin Kelly Yun Jeong Kim Ebony Koenig Andrea Kollosche Alexander Krnjeta Frank Ktenas Dhirendra Kunwar Nicholas Lacarruba

Prabhjot Lamba Van Le Cynthia Lee David Lee Poh Leong Matthew Lewison Dongye Li Chao Liu Bojan Lojanica Con Lonigro Kin Ho Lui Eric Mancini Tess Maxwell James McDonald Lisa McNiven Melinda McVeigh Tai Menahem John Metaxas Ashfaq Mohammed Jonathon Moloney John Moyle Brett Neilson Thanh Nguyen Tamara O’Keefe Sarah Ottoson Crossling Karen Parkes Steven Petsinis Jeffrey Phillips Nichole Pickering Jacquie Prentice Scott Prosser Elizabeth Ristevski Max Ruttner John Ryan Luke Ryan Ajay Sachdeva Danielle Schneider Monja Schoeman

Daniel Schoeman Amandeep Singh Sardeep Singh Ravinder Singh Bhupinder Singh Georgina Smith Robert Stait Di Su Zbigniew Szelag Tony Tai Chenmei Tao Simone Taylor Mathew Taylor Julia Tikhanov Amit Tulsiani Belinda Van Suylen Snezana Varrica Carlton Vaz Francesco Verduci Fernando Viapiana Bhupinder Virk Rishi Vohra Glenn White Jaycen Willox Ericka Wong Dahli Woosnam Graeme Worthington Eiri Wu Bo Xiang Sudheer Yallamcharuvu Zichen Yu Rujia Zang Giuseppina Zanin Brian Zeeman Yun Zhang Yu Zhao Zheng Zhou