Annual awards recognise the best of our industry
Role of AI in real estate
Understanding the opportunities and challenges
The new constitution Framework set to drive our roadmap for the future
Update on CPD program
Micro-credentials and masterclasses to help enhance your skills
Jacob Caine, REIV President
THE RAPID RISE OF ARTIFICIAL INTELLIGENCE OFFERS A WEALTH OF OPPORTUNITIES FOR OUR INDUSTRY, BUT ALSO CREATES PLENTY OF RISKS AND CHALLENGES
The rapid advancement of artificial intelligence (AI) is reshaping industries worldwide, and real estate is no exception. I recently attended Elite Agent’s “AI-Powered Agent” course, which was thoughtprovoking and illuminating. The course highlighted the immense opportunities AI offers, as well as the challenges and risks we need to manage. Here are my key takeaways and insights from the day:
It seems clear that real estate professionals who make an effort to upskill themselves and effectively utilise AI will have a material advantage over those who stick to traditional working methods. The course showcased a variety of AI tools that can streamline tasks such as client communication, marketing and lead generation. These tools – including ChatGPT, Claude, HeyGen, Crystal and Google NotebookLM – can save time and enhance productivity.
Key opportunities:
• Efficiency and productivity: Automating repetitive tasks allows agents to focus more on relationshipbuilding and strategic decision-making.
• Personalisation: AI can help tailor marketing campaigns and client interactions, making them more relevant and effective.
• Data analysis: AI tools can quickly analyse vast amounts of data to identify trends and opportunities that might not be apparent through traditional analysis.
While AI offers powerful capabilities, its effectiveness in the real world remains intrinsically linked with human input and oversight. The course emphasised that the true potential of AI in real estate will be determined by how we choose to integrate it into our practices.
• Decision-making: AI can provide insights and suggestions, but the final decisions should be made
by experienced professionals who understand the nuances of the market and client needs.
• Building trust: Transparency is crucial. Clients should be informed when AI tools are being used, ensuring that trust is maintained.
• Creativity and problem-solving: While AI can handle data-driven tasks, creative problem-solving and negotiation are areas where human agents excel.
AI is a powerful tool, but it is not without its risks. Understanding these challenges is key to using AI effectively and responsibly.
Potential risks:
• Accuracy issues (“hallucinations”): AI can sometimes generate incorrect or misleading information. It’s crucial to fact-check and validate all AI-generated content before sharing it with clients or using it in decision-making.
AI is a powerful tool, but it is not without its risks
• Quality of input: The outputs of AI tools are only as good as the inputs they receive. Effective use of AI requires asking the right questions and providing clear, precise information.
• Biases and blindspots: AI systems can inherit biases present in their training data, which can lead to skewed results. Always review AI-generated content for potential biases.
• Authenticity in communication: AI-generated copy can often be identified due to its style or lack of nuance. It’s important to edit and personalise AI outputs to ensure they align with your voice and brand.
CONTINUED FROM PAGE 05 >>
• Start small: Experiment with AI tools in areas such as email responses or social media posts before integrating them into larger processes.
• Combine strengths: Use AI for data analysis and initial content creation, then refine and personalise the output based on your expertise and client knowledge.
• Stay informed: AI technology is evolving rapidly.
Keep up with new developments and tools to ensure you’re using the best options available.
• Educate your team: Provide training on how to use AI tools effectively and ethically. Understanding AI’s limitations and strengths is key to successful implementation.
• Will AI replace real estate agents? No. AI is a tool to enhance the capabilities of agents, not replace them. The personal touch and expertise of a human agent are irreplaceable.
• How can I ensure data privacy when using AI? Always use reputable AI tools that comply with data protection regulations, and be transparent with clients about how their data is being used.
The role of AI in real estate is poised to grow, offering new ways to connect with clients, analyse market data and manage operations. However, the future impact of AI will be shaped by how we, as industry professionals, choose to integrate these tools into our practices. By embracing AI thoughtfully and maintaining a strong human element in our work, we can set ourselves up for greater success and innovation.
• What’s the best way to start using AI in my practice? Identify repetitive tasks that can be automated, such as drafting standard emails or generating market reports, and choose an AI tool to help streamline these processes. For more information on Samantha McLean’s fantastic AI Powered Agent course visit: aipoweredagents.com ShapeAI was used to assist in writing this article.
The role of AI in real estate is poised to grow, offering new ways to connect with clients, analyse market data and manage operations
Jacob Caine, REIV President
Kelly Ryan, REIV CEO
Over the past few months, I’ve had the pleasure of meeting and speaking with many of you to gain a deeper understanding of your expectations and needs from the REIV. These conversations have been invaluable, revealing common themes that are critical to our Members. The feedback I received overwhelmingly highlighted two major priorities: the need for strong leadership and a unified voice for the sector, and a demand for comprehensive, accessible and current training programs.
Your concerns and suggestions have shaped the initiatives that the REIV is focusing on, and I am excited to share some important updates regarding our approach to professional development and training in light of recent regulatory changes.
As you’re all aware, mandatory Continuing Professional Development (CPD) was recently announced as part of the government’s Housing Statement. The REIV has been at the forefront of advocating for legislated mandatory CPD for all real estate professionals. We believe that continual learning is essential not only for maintaining professional standards but also to protect our member agencies.
The REIV is well-prepared to lead this effort. We have the infrastructure, systems and expertise necessary to deliver high-quality training programs that meet the needs of real estate professionals across Victoria. Our approach is centred around building a professional development program that aligns with the government’s Housing Statement while addressing the unique requirements of the real estate sector.
In response to your feedback, we are significantly expanding our professional development.
One of the cornerstones of our professional development strategy is the newly launched REIV website. The site features an expanded resource library, designed to be a one-stop shop for members seeking information and training materials. Powered by a robust AI search functionality, the website is proving to be an invaluable tool for our members, allowing you to quickly find relevant content and resources.
We are continually adding to the library, including a variety of formats such as video tutorials, downloadable guides and interactive courses. Our goal is to make learning as accessible and engaging as possible. Whether you’re looking for a quick update on legislative changes or an in-depth course on property management, the new REIV website will be your go-to resource.
I’d also like to congratulate everyone who took the time to enter into the annual REIV Awards for Excellence. It’s important that we recognise and celebrate the hard work of our Members. This is a very competitive industry and it takes resilience and agility to stay ahead.
Thank you for your continued support and engagement. I look forward to seeing you at our new offices soon. We’re excited and enthusiastic about what lies ahead.
Kelly Ryan, REIV CEO
The REIV Continuing Professional Development (CPD) program emphasises the importance of ongoing learning to enhance Members’ skills and maintain industry standards. Members must complete at least 10 CPD hours annually, including the compulsory Ethics Module, to ensure compliance and professional growth. Members can log external activities for recognition via the REIV Hub. The annual Ethics Module for 2024 reinforces the REIV’s commitment to ethics and professionalism in the real estate industry.
For more details, visit REIV CPD.
Is a whole day for training too long out of the office? Can’t make the journey to Melbourne?
Coming in early 2025, we are repackaging several of our full-day courses as short online sessions, delivered live, over a few weeks. The same practical, compliant learning with awesome trainers, all without leaving your desk (or the beach!).
Keep an eye on your email for further details. Places are limited.
The REIV AGM 2024 will be held on Tuesday, 26 November, 2024. Please note: This will be a virtual meeting. Registration for the AGM is essential to enable Zoom meeting links to be sent. There are no items on the AGM Agenda that require decision by Members.
THE 2025 REIV DIARY: AVAILABLE NOW
The premium REIV Diary, with its soft-touch cover and gold accents, is a consolidated, single source of information for real estate professionals.
The 2025 REIV Diary contains handy client information tools such as:
• Stamp duty tables
• Settlement date planner
• Loan repayment indicator
• Metric conversion charts
Industry information resource:
• Real estate conventions
• Relevant government departments
• Shires and councils
• Property-related associations
• Key contact details
REIV Membership information:
• REIA National Principles of Conduct
• REIV Chapters and Divisions
• Historical Lists
And, of course, all the calendar management features you would expect. Get yours today!
$70 for Members and $85 non-Members
To ensure you continue receiving your regular updates and annual Member packs, please log into your Member HUB and verify that your contact details are up to date. Staying connected means you won’t miss out on any important news or exclusive Member benefits.
For more details, visit REIV.
There are often cases where a client may ask a selling or leasing agent to use property pictures that may have been taken previously. Be careful, you may be breaching copyright laws.
Jim Lourandos REIV Information Officer
Agents who download photographs from the internet fail to consider the legal implications of using photos without permission. Copyright is a legal protection that gives exclusive rights to the owner or the creator of the work which among other matters includes photography/videography.
Copyright law also applies to published and unpublished photographs even if a photograph does not have a copyright notice or watermark, it is still protected by copyright law.
If your agency took the photography/videography, then your agency owns the copyright.
The photographer owns the exclusive rights to reproduce, publish, communicate and/or vary the work. The client has paid for the services of the photographer and not the right to reproduce them without the express permission of the photographer.
When using photographs or video that were not initiated by your agency, seek permission from the previous agency, the photographer or their legal representative. This simple act could go a long way in protecting you from any breach claims.
Copyright is covered by the Copyright Act 1968 (Cth)
ANNUAL EVENT CELEBRATES OUTSTANDING COMMITMENT, INNOVATION AND ACHIEVEMENT ACROSS THE REAL ESTATE SECTOR
Jellis Craig Whitehorse took out the top prize at the Real Estate Institute of Victoria’s Awards for Excellence 2024, winning Large Residential Agency of the Year. Topping out finalists Aquire Real Estate, Harcourts Rata & Co, Little Real Estate (VIC & NSW), Noel Jones Box Hill & Mitcham and Ray White Mildura.
In a year that saw steady market conditions and a laser focus on property sector policies, the REIV was proud to celebrate outstanding commitment, innovation and achievement across the real estate industry with 32 real estate award categories at the premier industry event.
Top performing Victorian real estate agencies included:
• Large Residential Agency of the Year:
Jellis Craig Whitehorse
• Medium Residential Agency of the Year: Woodards Manningham
The REIV was proud to celebrate outstanding commitment, innovation and achievement
• Small Residential Agency of the Year: MATTHEWS
• Commercial Agency of the Year: Stonebridge Property Group
• Regional Agency of the Year: Ray White Mildura
• Community Service Award: OBrien Real Estate
Top performing Victorian agents included:
• Residential Salesperson of the Year: Taney Jain, McGrath Estate Agents Werribee
• Senior Auctioneer of the Year: Paul Tzamalis, The Auction Company
• Novice Auctioneer of the Year: Matthew Rossi, Nelson Alexander Pascoe Vale
• Commercial Property manager of the Year: Thuy Nguyen, Biggin Scott Mitcham
• Commercial Salesperson of the Year: Ben Hackworthy, Lemon Baxter
Richard Simpson, a highly esteemed senior agent and past president of the REIV, was awarded the 2024 President’s Award. This accolade acknowledges Richard’s extensive contribution to the real estate industry over decades.
REIV CEO Kelly Ryan said the awards highlighted the exceptional professionalism and talent of all finalists across a range of specialisations in the Victorian real estate industry.
“In what has been a challenging year for the property sector, Victoria’s real estate industry has stood up and excelled,” she said. “It is heartening to see the commitment and dedication of our talented workforce across all levels of experience, and shows the resilience of the sector as a whole. The real estate industry’s growth is underpinned by the hard work Victorian real estate professionals undertake every day, and it’s fantastic to be able to acknowledge this effort.”
Ms Ryan thanked the REIV Awards for Excellence partners and REIV members for their ongoing support
and pointed to the promising outlook ahead. “Our real estate industry has a key role to play in helping more Victorians into homes,” she said. “We’re encouraged by the recent Victorian Government announcements to address housing challenges in our state, and initiatives like stamp duty reform and incentive-based approaches will not only ease housing pressures but also create opportunities for our industry and the growing pipeline of real estate talent.”
A full list of winners and finalists across the 32 awards can be found here
Ben Hackworthy is a proven commercial real estate professional with a track record of driving growth and achieving exceptional results. Over the past year, he has closed 68 deals across retail, industrial and office properties, increasing from 42 the previous year. Ben combines in-depth market analysis with personalised client service and comprehensive risk management to deliver outstanding outcomes. His achievements over the past year have been recognised with the 2024 REIV Commercial Salesperson of the Year award.
Notable achievements include the $22 million sale of a prime Laverton North industrial site, where Ben navigated complex zoning and stakeholder challenges. Ben leveraged technology for an innovative campaign to successfully sell the site. This complements his abilities in risk management, including his decisive
action to implement a full environmental check on a contamination issue on another sale listing with environmental and legal experts. The buyer appreciated this proactive approach, resulting in the deal being closed within six months.
Committed to continuous improvement, Ben actively participates in industry events and leads mentorship programs, equipping colleagues with the skills to excel. His focus on educating and guiding first-time buyers indicates a commitment to clients that ensures they feel supported and valued, with a reputation for proactive problem-solving and strategic planning. Ben has further integrated new processes and data management systems in his position, driving operational efficiency and business growth across the agency. Congratulations to Ben on his achievement.
This year, the Community Service Award category was a close race, an outcome that indicates how committed our Members are to their communities. For 2024, OBrien Real Estate stood out as a cut above the rest for their contribution to their local community.
OBrien had become frustrated over the disconnect between corporate-level charitable giving and the causes that were important to their local community. With that principle in hand, Stavros Ambatzidis and his family proposed the structure for the OBrien Foundation, a different model for real estate social responsibility where community-level organisations could apply for quarterly grants from the funds raised across various activities within the group.
With a group focus on distributing funds to smaller organisations that often don’t have access to corporate giving, generating funds across various activities to gather donations rather than rely on one key event, and ensuring that funds raised directly contributed to causes rather than organisational costs, OBrien thought outside the box. Inspired by Starvos’ personal family experiences with MND, it started with understanding the challenges that smaller community groups are subject to.
With initiatives ranging from CEO sleepouts to golf days to gala charity nights, the broader council of OBrien employees contributes extensively to the OBrien Foundation. Through hours of hard work, clear goals, and strategic setup and delivery, Stavros and the team raised more than $203,090 for 17 community organisations.
The program officially launched in April 2018, and as of 1 July, 2024, it is transitioning to a community giving program from a registered DGR status. OBrien Real Estate’s commitment to lifting both
communities and the small organisations that support them has been exceptional, and we look forward to their future events and contributions.
REIV would like further to commend McKean McGregor’s outstanding efforts within their community. Through their direct contributions to Bendigo Health cancer wellness services, McKean McGregor has excelled as both a regional independent agency and a member of their community. Their commitment to giving is to be applauded, and we are excited to see what’s next in store for their agency.
In a fast-moving industry with plenty of moving parts, Thuy Nguyen has developed into an emerging talent as a commercial property manager. With a focus on maximising rental income and leasing, Thuy was appointed as Commercial Assets Manager at BigginScott Mitcham in December 2022, overseeing commercial management, leasing, and sales. Together with her Director, Peng Chung, she has made significant strides, expanding the portfolio from 75 to 88 properties whilst increasing the agency’s monthly rental income by 32.5%. This award acknowledges Thuy’s progress in the challenging commercial space.
After approximately six years of experience in residential sales and property management, Thuy has brought a unique perspective to the commercial sector, driving impressive rental income growth through expert negotiation and market insights. Notable achievements include securing rent increases and successfully leasing properties that had been vacant for years. This reflects her competence in rent determinations and market rent reviews, both critical
skills in commercial property management.
Thuy’s commitment to innovation has modernised department operations, from digitising records to implementing digital signatures for streamlined processes. Her risk management skills are also evident in initiatives such as revising and restructuring fee schedules and handling challenging tenancy disputes, including insolvencies and liquidations.
Thuy’s leadership, abilities to coordinate between stakeholders, client-focused approach, and passion for continuous improvement are instrumental in the department’s ongoing growth and success. Thuy has advised us that she focuses on “managing and growing the portfolio, improving our quality of service to clients and growing our business.” That attitude stands out as one that landlords and tenants can get behind. Congratulations, Thuy, on all your achievements thus far, and we look forward to what you do in the commercial property management sector next.
BUYERS’ AGENT OF THE YEAR
Winner
Tonya Davidson | Davidson Property Advocates
Finalists
Antony Bucello | National Property Buyers (Victoria)
Aife Raveche | Raveche Property
Jenny Jia | JL Property Buyers Agent
Lou Lihari | LP Advisory
Eddie van Pamelen | Etica
MARKETER OF THE YEAR
Winner
Nadia Polzella | LINK Business Brokers Melbourne
Finalists
Nadia Yamma | Lemon Baxter
OWNERS CORPORATION MANAGER OF THE YEAR
Winner
Andrew Dawson | Engine Owners Corporation Management
Finalists
Stephen Briffa | Network Pacific
Simon Saint-John | Melb OC
SENIOR AUCTIONEER OF THE YEAR
Winner
Paul Tzamalis | The Auction Company
Runner-up
Luke Banitsiotis | Woodards Blackburn
Finalists
Anthony Molinaro | OBrien Real Estate Blackburn
Tim Solly | The Auction Company Kenneth Kong | Ray White Burwood
Luke Banitsiotis | Woodards Blackburn
NOVICE AUCTIONEER OF THE YEAR
Winner
Matthew Rossi | Nelson Alexander Pascoe Vale
Runner-up
Andrew Melilli | Nelson Alexander
Finalists
Tristan Andreula | Woodards Sunbury
Khala Gatt | Woodards Sunbury
James McCulloch | Nelson Alexander
OPERATIONAL SUPPORT AWARD
Winner
Ellayne Lim | Little Real Estate (VIC & NSW)
Finalists
Rose Hellingman | Nicholson Real Estate
Harneet Johal | McGrath Estate Agents Werribee
Jocelyn Loong | Ironfish Real Estate Melbourne
RESIDENTIAL MARKETING AWARD
(BUDGET UNDER $10K)
Winner
615 Glenroy Road, Merrijig | McGrath Mansfield
Finalists
42 Davis Avenue, South Yarra | Castran Gilbert
6 Pear Court, Burwood East | Jellis Craig Whitehorse
RESIDENTIAL MARKETING AWARD (BUDGET OVER $10K)
Winner
146 Domain Street, South Yarra | Castran Gilbert
Finalists
91 Rose Street Fitzroy | Nicholson Real Estate
C&I MARKETING - BEST CAMPAIGN BY A SMALL AGENCY
Winner
The Tote Hotel | Miglic Dean
Finalists
22-36 Corio Quay Road, North Geelong | Colliers Geelong
56-58 Capital Link Drive, Campbellfield | Zest Property
Partners with NSL Property Group
C&I MARKETINGBEST CAMPAIGN BY A MEDIUM AGENCY
Winner
11 Monterey Road, Dandenong
South | Nichols Crowder (Moorabbin)
Finalists
30 Brasser Ave, Dromana | Nichols Crowder (Carrum Downs)
591 Glen Huntly Road, Elsternwick | Nichols Crowder (Moorabbin)
Kingsley, 9-11 Garden Avenue, East Melbourne | Stonebridge Property Group
12 Apostles Hot Springs & Resort | Stonebridge Property Group
C&I MARKETING - BEST CAMPAIGN BY A LARGE AGENCY
Winner
Melbourne Metro Tunnel | Colliers International (Victoria)
Finalists
Mitchell & Milledge House | Cushman & Wakefield
109-111 Toorak Road & 1a-1c Murphy Street, South Yarra | Fitzroys
263-265 Centre Road, Bentleigh | Fitzroys
35 Church Street, Brighton | Fitzroys
OPERATIONAL LEADERSHIP AWARD Winner
Stephen Briffa | Network Pacific
Finalists
Alicia Lecky | LongView
Catherine Rogers | Stockdale & Leggo Corporate
Damian Portaro | Ray White Mildura
Olivia Spiridonos | Compton Green
Yolanda Tirta | Little Real Estate (VIC & NSW)
REGIONAL PROPERTY MANAGER OF THE YEAR
Winner
Charlotte McKendrick | Ray White Mildura
Finalists
Romni Feltwell | Elite Property Management Agency
Bryce Riches | OBrien Real Estate Bairnsdale
BUSINESS DEVELOPMENT MANAGER OF THE YEAR
Winner
Alex Gale | Elite Property Management Agency
Finalists
Melissa Hickson | Prime Residential Property Management
COMMERCIAL SALESPERSON OF THE YEAR
Winner
Ben Hackworthy | Lemon Baxter
Finalists
Tim McIntosh | Colliers International (Victoria)
Daniel Wolman | Cushman & Wakefield
| LINK Business Brokers Melbourne
COMMUNITY SERVICE AWARD
Finalists
McKean McGregor
RT Edgar Mount Eliza | Mount
REGIONAL AGENCY OF THE YEAR
Ray White Mildura
Finalists
Bendigo Real Estate
Wilson Property RCI
Colliers Bendigo
Gleeson Real Estate
McGrath Mansfield
COMMERCIAL PROPERTY MANAGER OF THE YEAR
Thuy Nguyen | Biggin Scott Mitcham
Finalists
Justin Ammitzboll | MMJ Real Estate (Melbourne)
Silvana Di Camillo | Network Pacific
RESIDENTIAL PROPERTY MANAGEMENT TEAM OF THE YEAR
LongView
Finalists
Aurora Estate Agents
Dynamic Residential Elite Property Management Agency
Harcourts Rata & Co
Prime Residential Property Management
INNOVATION AWARD
Network Pacific
Finalists
Flynn Estate Agents
Leap Real Estate
OBrien Real Estate
Stockdale & Leggo
RESIDENTIAL SALESPERSON OF THE YEAR Winner
Taney Jain | McGrath Estate Agents Werribee
Finalists
Mike Muncey | Noel Jones
Box Hill & Mitcham
Damian Portaro | Ray White Mildura
Alec Stefanoski | Woodards Manningham
Michelle Stephens | OBrien Real Estate Carrum Downs
Shawn White | Little Real Estate (VIC & NSW)
LARGE RESIDENTIAL AGENCY OF THE YEAR
Jellis Craig Whitehorse
Finalists
Aquire Real Estate
Harcourts Rata & Co
Little Real Estate (VIC & NSW)
Noel Jones Box Hill & Mitcham
Ray White Mildura
THE NEW REIV CONSTITUTION WAS ADOPTED AT A SPECIAL GENERAL MEETING HELD ON 21 OCTOBER, 2024 WITH 87.61 PER CENT OF VOTES IN FAVOUR OF THE CHANGE
This is a landmark development for the REIV and the entire Victorian real estate sector. It will drive the REIV roadmap for the future, providing us the right framework to respond to dynamic market conditions.
A constitution lays the ground rules and sets out a roadmap for the future, playing a fundamental role in the future of an organisation.
This constitutional update lays the foundation for an REIV that is well equipped to remain at the helm of the Victorian real estate sector.
Fair and equitable towards all Members
One person, one vote is a fundamental principle of fairness and equal opportunity. The new Constitution gives each eligible member an equal vote. Equal voting rights will ensure:
• A democratic and fairer process for individual voting Members; and
• Resolutions that better reflect the interests of all core voting Members.
Well-articulated to provide a clear strategic direction
A simplification of language to modernise terminology and reflect current processes.
Agile to ensure the REIV is responsive and progressive
To allow for a nimble response to changing market trends and sector dynamics, the details of various engagement and participation channels such as categories of membership and related matters, in addition to the details of various engagement and participation channels such as chapters etc., will be detailed in the by-laws. This allows the Board to proactively seek opportunities that help deliver the REIV purpose.
Transitional arrangements
Clause 53 lays out arrangements to provide certainty to the Board and Members regarding the transition from the current membership and board structure to the new structures.
It is intended that all Directors will serve out the remainder of their terms.
Directors appointed as Additional Directors will continue serving their terms as Appointed Directors.
The reduction from eight Metropolitan Elected Directors to six Metropolitan Elected Directors will commence from
This constitutional update lays the foundation for an REIV that is well equipped to remain at the helm of the real estate sector
the 2026 AGM. The Director serving as President will continue until otherwise replaced.
At the first Board meeting after adoption of the new constitution, the Board will appoint one Vice President from amongst the Directors. The position of Senior Vice President will cease.
Learn more
A COMPREHENSIVE NEW REIV CPD PROGRAM THAT WILL ALSO MEET THE HOUSING STATEMENT’S REQUIREMENTS AND PROVIDE ADDITIONAL VALUE TO MEMBERS
Key elements of REIV CPD program include:
• A Masterclass Series: Bringing together industry experts, government representatives and thought leaders to discuss the latest trends, challenges and opportunities in the real estate sector.
• Micro-credentials: Recognising the need for specialised skills in the real estate sector, REIV is developing micro-credential programs focused on key areas such as auctioneering or commercial property management etc. These short, intensive courses will provide agents with targeted skills development, allowing them to excel in specific areas of their profession.
• On-demand webinars and courses: To ensure accessibility for all Members, REIV will offer a wider range of on-demand webinars and self-paced courses, allowing Members to complete their CPD at a time that suits them. Topics include the annual Ethics Module as well as compliance in both residential and commercial property real estate, ensuring that agents have access to a well-rounded suite of professional development options.
• In-person training and workshops: REIV will continue to offer in-person training sessions and workshops across Victoria, providing agents with the opportunity to engage in interactive learning experiences and network with their peers.
One of the key elements of REIV’s professional development strategy is the collaboration with Consumer Affairs Victoria (CAV). We are focused on developing training that addresses industry best practice and ensures compliance with the latest regulatory requirements. REIV proposes working closely with CAV to:
• Deliver up-to-date training on legislative changes and current compliance issues, such as trust account management, underquoting, and minimum standards.
• Provide real-world case studies and insights from CAV’s oversight activities to highlight common pitfalls and best practices.
• Ensure that all real estate professionals have access to timely, relevant training that enhances their ability to comply with regulatory requirements while delivering high-quality service.
REIV’s CPD program is designed to help agents comply with any mandatory requirements and improve the sector’s overall capability.
Our comprehensive professional development program will relaunch in early 2025 from the new office location. As the industry leader, REIV is committed to supporting agents throughout their careers, ensuring they have the knowledge and skills they need to succeed in an increasingly complex market.
Stay tuned for more details on REIV’s 2025 professional development program, including the official launch and information on how to register for upcoming courses and workshops.
Understand the most common misinterpretations and mistakes surrounding Victoria’s Underquoting Legislation.
THURSDAY, 28 NOVEMBER | 10AM-11AM Register here
THE RETAIL LEASES ACT 2003 WAS UPDATED FOLLOWING THE INTRODUCTION OF THE RETAIL LEASES AMENDMENT ACT 2020 IN OCTOBER OF THAT YEAR
Author - Bill Di Donna CEA (REIV)
One of the key changes that was introduced concerned the additional information to be provided to a tenant at least three months prior to the last date for a tenant to exercise an option. A landlord must provide a notice to the tenant in accordance with Section 28(1A) of the Act setting out the following:
(a) The date by which the option to renew the lease may be exercised by the tenant; and
(b) The rent payable for the first 12 months under any renewed term of the lease; and
(c) the availability of an early rent review under section 28A; and (d) the availability of a cooling off period under section 28B; and
(d) The availability of a cooling off period under section 28B; and
(e) Any changes to the most recent disclosure statement provided to the tenant, other than any changes in relation to rent.
In the recent case, also the first to take place under the changes, Pagica Pty Ltd atf the Oscinah Trust v Inlet Property Pty Ltd (Building and Property) [2024] VCAT 830 (2 September 2024) has challenged a Section 28 notice issued by a landlord. In the notice below cited in the case, Acting Senior Member Nash held that it was deficient in relation to the following:
1. The notice stated a fixed amount of rent rather than the current market rent.
2. Sufficient detail was not provided concerning the right of the tenant to an early rent review under S28A and needed to be more substantive to include details contained in S28A(2) for example:
The tenant may request an early rent review by giving the landlord written notice of the request within 28 days after the landlord gives notice under section 28(1A).
Whilst not explicitly mentioned, particulars of the cooling off period in S28B were also not sufficient in referring to the 14 day period within which a tenant may not wish to not extend the lease.
The tenant had also claimed to have exercised the option which was disputed by the landlord.
As the Section 28 notice was not compliant, the landlord then had to issue a new notice allowing the tenant up to three months to exercise the option.
This case highlights some of the issues with Section 28 notices. The notice listed has reproduced the sections of the Act literally and briefly wherein VCAT has sought a higher standard where greater detail is provided to the tenant such as required by S37(3) when provided the landlords opinion of the current market rent:
If the landlord and tenant do not agree on what the amount of that rent is to be, it is to be determined by a valuation carried out by a specialist retail valuer.
Further details of the case can be found
VCAT has also recently heard a further case concerning a maximum and minimum rent review mechanism also known as a cap and collar provision which does not comply with Section 35(2) of the Act. This is the latest in a series that are worth revisiting as this is an issue which keeps appearing.
CONTINUED ON PAGE 24 >>
This is the latest in a series that are worth revisiting as this is an issue which keeps appearing
CONTINUED FROM PAGE 23 >>
Section 35(2) of the Retail Leases Act 2003 provides that rent reviews are as follows:
(2) The basis or formula on which a rent review is to be made must be one of the following—
(a) A fixed percentage;
(b) An independently published index of prices or wages;
(c) A fixed annual amount;
(d) The current market rent of the retail premises;
(e) a basis or formula prescribed by the regulations.
All of these cases were found to be contrary to the Act and were then subject to a market review
Cases that did not comply with S35(2) are noted below:
Q St Kilda Tenancy Pty Ltd v Kane (Building and Property) [2023] VCAT 75 (24 January 2023)
In this case the annual CPI rent review was capped at 4 per cent.
Roberts Family Enterprises Pty Ltd v Meddles Bekirofski and Reshat Bekirofski (Building and Property) [2023] VCAT 121 (7 February 2023)
This case also involved an annual CPI rent review which was to be a minimum of 3 per cent and a maximum of 5 per cent.
Christopher v Lemanda Pty Ltd (Building and Property) [2023] VCAT 1101 (22 September 2023)
This case involved a medical clinic where the ratio of practitioners on site or the CPI formed two methods of review. This case had the added complexity of going back in time over 10 years to reassess the market value.
Northcote Shopping Centre Pty Ltd v Aldi Foods Pty Ltd [2024] VCAT 641 (10 July 2024)
In this example, the annual CPI rent increases were limited to 6 per cent and 10 per cent upon a market review.
This case is also subject to an appeal in the Supreme Court of Victoria.
We now arrive at the latest case being:
Cote Noire Pty Ltd v Roberts Family Enterprises Pty Ltd (Building and Property) [2024] VCAT 810 (5 September 2024)
This case dealt with an annual CPI rent review where the minimum increase was 1.5 per cent and the maximum increase would be 5 per cent. The details of the case can be reviewed here
All of these cases were found to be contrary to the Act and were then subject to a market review in accordance with Section 37. The question may then be asked as to why were the reviews structured in a way that was not compliant?
Often it was done to provide some form of regular increase for a landlord and to soften the impact that a significant increase in the CPI or market rent may have on a tenant.
It was also offered as an inducement by a landlord to a tenant to finalise a new lease.
Until early 2023, the concept of a cap on rent increases had been untested at VCAT. Minimum rent increases however, had long been illegal. The effect of minimum and maximum rent increases has now been challenged by both tenants and landlords at VCAT. In the tenant’s case, where the rent has over time increased to a level above market, challenging the level of increase is a way to reduce the rent in the event of a market review. Likewise, where there is a cap on the rent increase which results in a rent below the market
The effect of minimum and maximum rent increases has now been challenged by both tenants and landlords at VCAT
level, a landlord too may challenge the review mechanism.
A cap on the rent payable, especially during a market review, is still a regular feature in leasing. With a nonretail lease, this is not an issue. With a retail lease, however, the failure to correct an offer to lease at the beginning can lead to a costly dispute in years to come.
In the September edition of REIV’s Real Estate Matters podcast, Nicole Rich, Executive Director – Regulatory Services at Consumer Affairs Victoria (“CAV”) spoke with Jacob Caine, REIV President, about the focus of the Victorian Rental Taskforce. In it, Ms Rich dispelled the myth that agencies and their directors can avoid liability where they rent properties that fail to meet minimum standards or fulfil safety check obligations.
Even where owners have taken responsibility for these duties, the agency can still be liable where they knew or ought to have known of the failings. With the potential for fines of between $11,000+ and $59,000+, the importance of comprehensive compliance management has never been greater.
Listen to the podcast here: bit.ly/REIVpodcast
Detector Inspector has made a range of significant enhancements to its compliance platform to make it easier for directors, heads of department, and property managers to know with confidence that their portfolios are compliant and risks are mitigated.
The DIgest is a once-a-week email summary that provides property managers with a summary of all the actions required to keep their portfolios compliant.
Scan the QR code to learn more about these updates. We’re continuously working to make compliance management easier for our clients and we’ve got even more improvements coming soon.
Service Reports and Quotes have been redesigned to simplify the findings and required actions, make more prominent any urgent repairs required and clearly set out the compliance status arising from the safety check.
PODCAST EPISODE 6
REIV PRESIDENT JACOB CAINE WELCOMES CONSUMER AFFAIRS
VICTORIA DIRECTOR NICOLE RICH AND BARRY PLANT GROUP HEAD OF PROPERTY MANAGEMENT AND TRAINING EMMA GORDON FOR AN IN-DEPTH DISCUSSION ABOUT THE NEW GOVERNMENT BODY
Episode 6 of the REIV’s Real Estate Matters podcast is now available. REIV President Jacob Caine welcomed Consumer Affairs Victoria Director Nicole Rich and Barry Plant Group Head of Property Management and Training Emma Gordon.
With a primary focus on the Victorian Government’s new rental taskforce, they went in-depth on the taskforce’s objectives, provided insights on the knowledge gaps that property managers are experiencing that could
cause issues with compliance, and discussed how to improve the rental experience for all participants. They further discussed the underquoting taskforce, which was recently announced as a permanent body
Have you listened to the latest episode of Real Estate Matters? Listen now to episode 6
Contributed by Aon
Professional Indemnity (PI) Insurance is designed to help cover you and your business in the event a client alleges that you have been professionally negligent or that you have breached a duty owed to them while providing your professional services and they take legal action against you. Understanding the basics of PI Insurance may assist you with meeting your obligations under the policy.
PI Insurance is usually a claims-made policy. A claimsmade policy responds to claims that are made against you during the policy period that is in force, regardless of when the incident that gave rise to the claim took place, subject to the retroactive date. It is very important that you notify your insurer or broker of any circumstances or incidents which may give rise to a claim, or any claim itself as soon as possible after they occur. For example, if a client complains to you about the advice you provided, your insurer should be notified at that time, rather than wait until a formal claim is made. If your client does decide to take legal action against you at a later date, you may not be covered if the insurer wasn’t notified previously.
This is why you require a current policy when it comes to PI exposures. If you forget to renew and your policy lapses and then a claim is made against you, there may not be an insurance policy to cover the claim, even if you did have a PI policy in place when the services were provided.
Understanding your obligations under a PI Insurance policy is important because the responsibility of those obligations sits with you. If you don’t understand your obligations, you may miss something that could ultimately impact indemnity under your policy.
Run-Off cover provides insurance cover for your past Professional Services after you have permanently ceased work, retired or left your profession. This is particularly important for policies that operate on a “claims made” basis, as claims or complaints can be received years after the Professional Services are provided. If you have a claims-made policy and retire or leave the profession without arranging run-off cover then it’s likely you will not be covered for claims made against you which relate to your previous work – even if you had a policy in place at the time the relevant service was provided.
Because your current claims made PI policy is the policy which can respond to an insured incident, the retroactive date is important.
If your policy has an unlimited retroactive date, it means your policy can provide cover for a claim, regardless of when the alleged wrongful act, error or omission was committed, including if the relevant professional services were conducted before the commencement of the current policy.
PI Insurance policies require you to notify your broker of incidents that may lead to a claim as soon as possible in case the incident results in legal action at a later date. An example of incidents that may lead to a claim could be someone threating to make a complaint or threatening legal action or realising there has been a breach of confidentiality.
In some instances, claims can be notified years later. If you don’t advise of a known incident before the policy expires, and if legal action is taken at a later time, it is possible that the claim could be denied by the Insurer because you may have failed to meet your obligations under the policy.
If you don’t understand your obligations, you may miss something that could impact indemnity under your policy
This may also be referred to as the Sum Insured. It shows the level of cover provided by a policy, subject to its terms and conditions, including any applicable exclusions. Your policy may have a limit of liability, sub-limits, and an aggregate limit. The limit of liability is typically the amount you are covered for any ONE claim, although sub-limits may apply to certain liabilities. The aggregate limit is the
Taking the time to understand your obligations under your PI Insurance policy should form part of your risk-management strategy
maximum amount the policy will cover if there are multiple (unrelated) claims, in any one period of insurance.
Certificate of Currency:
This is a document which confirms the details of an insurance policy. It may include details of the policy type, sums insured, professional services or business description, the policy period, and importantly, the entity or insured name.
Insurance policies often apply exclusions for liability that you agree to accept by signing a contact if that liability did not already apply at law. This is sometimes called an assumed liability, as you are assuming responsibility for the risk when this would not have been the case in the absence of the contractual agreement. Often, assumed liability arises by agreeing to an indemnity clause in a contract. Therefore, it is always recommended that legal advice be obtained before signing a contract.
Taking the time to understand your obligations under your PI Insurance policy and being sure you have the level of protection you’re comfortable with should form part of your risk-management strategy. Speaking to a broker who understands the risks of your industry in detail can also be a valuable exercise in making sure you’ve ticked all the boxes regarding your PI cover.
WE TAKE A CLOSE LOOK AT WHAT IT TAKES TO MAINTAIN AN INVESTMENT PROPERTY TO GET AN IDEA OF THE FACTORS IMPACTING VICTORIA’S DELICATE RENTAL ECOSYSTEM
It would be reasonable to assume that property prices and rents rise in tandem, reflecting similar supply challenges across the sales and rental markets. However, despite the handwringing over the outsized impacts of negative gearing on the housing market and the benefits reaped by private investors, it has become clear that rental prices have not risen at the same rate as purchase costs. In fact, rental providers have often absorbed the rising cost of ownership, shielding the rental market from an equivalent surge in rents. Here, we’ll examine the costs of an investment property to get an idea of the multiple factors impacting Victoria’s delicate rental ecosystem.
First, let’s address a misconception about negative gearing. At its simplest, negative gearing occurs when an asset’s expenses outweigh the income generated. Individuals can deduct an investment loss against their personal taxable income. At the very core, investors don’t buy property to run it at a loss, so negative gearing is not the objective of a property purchase decision. However, as 71.8% of rental providers own only one investment property, it is practical to support them to ensure that supply remains stable in the rental market.
Before examining the external drivers impacting the continuous climb in rental prices, let’s first survey the climb in property values. Real estate is one of the most expensive asset classes per unit. REIV data shows, between 2000 and 2024, house prices more than tripled, jumping 255.8% from $224,000 to $797,000. This annual growth rate outstrips rent increases over the same period, which rose by 211.8% from $170 per week to $530 per week according to Homes Victoria’s latest rental report.
1 ANNUAL CHANGE IN HOUSE PRICES AND RENTS
CHART 1 TRENDS IN HOUSE PRICES AND RENTS
$1,2000,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
CONTINUED FROM PAGE 33 >>
Land tax has continued to climb in recent years, expanding three times since 2022. Further, the threshold for eligibility has decreased from $300,000 to $50,000, while the flat surcharges and tax rates have increased. The recent example below compares the changes in land tax for a median-price property in regional and metropolitan areas between the 2023 and 2024 tax years.
Starting in May 2022, thirteen rate rises have been handed down, leading to an RBA cash rate of 4.35% as of November 2024. Inflation is still not at its target level, and there is no guarantee of a drop in the cash rate in the immediate future. Rental providers are not immune to inflation and rate rises. Despite this, the RBA indicated in a recent report that rental providers have stood resistant to raising rents with interest rates.
(September 2024)
Metropolitan House
Metropolitan Unit
Regional House
Regional Unit
$916,000
$628,000
$601,500
$418,000
Significant changes to legislation over the last few years, including changes to the Residential Tenancies Act in 2021 and the proposed regulatory changes to come through in 2025, have increased rental provider obligations costs. This has impacted investor sentiment and increased pressure on the market.
There are multiple factors impacting the market. Ongoing financial constraints across the rental ecosystem have fostered an increasingly challenging environment for all participants. Rental providers remain the crucial backbone of the rental market’s viability, and balancing their interests with other stakeholders will ensure that Victoria’s rental supply remains fair and sustainable.
$2,555 – $975 plus 0.5% of the amount > $600,000
$1,115 - $975 plus 0.5% of the amount > $600,000
$982.50 - $975 plus 0.5% of the amount > $600,000
$611 - $375 plus 0.2% of the amount > $300,000
$4,146 – $2,250 plus 0.6% of the amount > $600,000
$2,418 - $2,250 plus 0.6% of the amount > $600,000
$2,259 - $2,250 plus 0.6% of the amount > $600,000
$1,704 - $1,350 plus 0.3% of the amount > $300,000
FROM 1 JULY, 2024 TO 30 SEPTEMBER, 2024 WE WELCOMED 131 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.
Naveen Naveen
Anthony Micale
Todd Clark
Daguang Sun
Hope King
Kirti Singla
Robert Stanley-Turner
Maximillian Ruttner
Semsa Osmancevic
Rowan Liew
Con Pedis
Michael Hingston
Anil Amaravathi
Howard Feilding
Golam Zahur Haque
Paul McIver
Thomas Dwyer
Jason Hodges
Smiley Sandhu
Daniella Weissbacher
Gurumukh Singh Mehra
Daniel Lee
Jaspreet Bhandari
Wee Sern Peh
Timothy Dark
Matthew Hughes
Nathan Eades
Lucy Crehan
Hui Huang
Ramandeep Arora
Rupesh Lal
Sinea Ring
Harmandeep Dhillon
Andrew Welsh
Marguerite Foxall
Daniel Peer
Craig Currie
Kulwinder Raj
Lorraine Russell
Jianing Li
Amira Maghnie
Jeffrey Begg
Leman Djemal
Sharryn Dawes
Robert Cincotta
Jagroop Singh
Kamal Anand
Rachael Fabbro
Paul O’Sullivan
Carolyn Purnell-Webb
Ben Hackworthy
Ricardo Cappelletti
Tze Wei Ah Loong
Joshua Shenouda
Leanne Garrett
Achilles Mantsos
Andy Dawson
Kate Hobbs
Alex Gale
Christos Savva
Sherif Ahmed
Benjamin Williams
Cody Effrett
Levi Turner
Daniel Wright
Craig Weightman
Michelle Lee
Ye Tian
Antoinette Barnet
Kun Hou
James Brown
Jake Peters
Darcie Reynolds
Jason McCall
Alexander Andrews
Bimal Karki
Pardeep Sagwal
George Errichiello
Rahul Ripin Maan
Judith Celin
Vineet
WE CONGRATULATE THE MEMBERS WHO REACHED IMPORTANT MILESTONE MEMBERSHIP ANNIVERSARIES
40 YEARS
Charles Kearnan
Ronald Morrison
Allan Thompson
Andrew Chisholm
30 YEARS
Christopher Ewart Jason Sassine
20 YEARS
Ruth Roberts
Kou Peng Chung
Craig Williamson
Nicholas Lord
Tony Skrekovski
Susan Weston
Jonathan Sher
David Cortous
Stephen Le Get
Olivia Triandos
Carol Robertson Cedric Newbond
Dianne Smith
Binh Cong Nguyen
Brett Waller
Benjamin Reed
Susan Jackson
Alan Holmes
Nicholas Del Giudice
Brian Cusack
Nicole Frazer
Sarah Pick
Nicholas Walker
Michael De Stefano
Andrew Pearce
Joseph Cimino
Russell Cambridge
Darryn O’Keefe
Brett Gorman
Jason Garlick
Ann Beattie
Ruth Stafford
Jennifer Milne
Christa Zirknitzer
Thomas Egan
Paul Walker Hayley Mitchell Tristan Messerle
Catherine Stella-Groves
Phillip Apelbaum
Adam Docking
Stuart Kyle
10 YEARS
William Branthwaite
Eric Brandau-Stranks
Michael Hocking Dylan Emmett
Julian Vautin
Simon Cvetkoski
Geneiveve Hill
Stephen Hill
David Maher
Carly Susic
John Matthews
David Baliviera
Meaghan Nichols
Paul Borovac
Benjamin Foster
David Johnson
Qi Zhao
Stewart Oldmeadow
Vickie Ramon
Many of you will remember John Mitchell, REIV Membership Manager, who was at the Institute for more than 30 years.
We are pleased to advise that John has been inducted into the Associations Hall of Fame™ as a recognition of his commitment to the REIV.
Inductees are individuals who have made an outstanding high-level contribution and commitment to an association or associations over a long period of time, i.e. 30 or more years.
John started as the Manager of the Stationery Department and soon took on the Office Manager’s role. It didn’t take long for him to progress to a Training Co-ordinator, eventually retiring as Membership Manager. Over time, John served as Secretary to all the Chapter Committees and was instrumental in some key developments at the Institute.
We thank John for his commitment and immense contribution to the REIV and its Members.
Richard Simpson, an REIV Member for almost 20 years, was recognised for his service to the Institute and the sector with the President’s Award at the 2024 REIV Awards for Excellence.
Richard is a highly respected real estate professional and a partner at W.B. Simpson & Son, a family-owned real estate business in North Melbourne. With a genuine passion for real estate, Richard excels in auctioneering, residential and commercial sales, and property management.
Richard has been an active member serving in various leadership roles, including REIV President, REIV Senior Vice President, REIA Director, Chair of the REIV Commercial and Industrial Chapter Committee, and serving on the REIV Board for nine years.
In the most recent times, Richard has been instrumental in the sale of the REIV Camberwell office and upcoming move to Abbotsford.
We thank Richard for his commitment and look forward to his continued support.
VALE
Well-known and highly respected REIV Member for 38 years, Tim Dwyer passed away recently. Our condolences to his family and friends. Tim was Director of Tim Dwyer Real Estate which first opened its doors for business in High Street, Ashburton in 2003.
The exciting move to our new office is almost here. The fit-out works have commenced and are expected to be completed by March 2025. The Camberwell building sale is complete and we will hand over the property in December 2024. The REIV team will work from an interim location over the transition period. Please note our contact details during this time.
MAIL TO:
PO Box 443, Camberwell VIC 3124
PHYSICAL LOCATION:
12 November 2024 - 15 March 2025
Training
Face to face training classes to be held at Corporate Living, 611 Victoria Street, Abbotsford, VIC, 3067, unless otherwise advised.
Member services and corporate office
Watermans. Level 1, 678 Victoria St Richmond, by appointment only
16 March 2025 onwards
All services at 617 Victoria Street, Abbotsford VIC 3067
There will be no interruption to services or access to the REIV team. Please contact us at reiv@reiv.com.au for any queries.
www.reiv.com.au