Australian Run Property Manager to Serve 15 Months in Prison for Maintenance Fraud

When you are undertaking repairs to your rental property are you certain that the works are being completed satisfactorily on your behalf. You might be wise to seek some proof from your property manager if you are in doubt about the work or uncomfortable with the financial deductions from your rental statements. 

A former property manager from the Run Property Group in Melbourne has been found guilty of jailed after stealing $580,000 through a web of fake invoices and contractors.

Between 2005 and 2011, Leigh Aizen fabricated more than 400 fake maintenance work invoices through the Run Property agency where he was employed mostly for uncompleted maintenance on behalf of property investors and home owners of rental property under his care. At times, no work was ever undertaken.

Such was the sophistication of his underground operation, Mr Aizen created false maintenance companies and paid himself by sending the payments through a web of international banks and offshore accounts.

The court heard that the "elaborate" and "sophisticated" scheme was set up due to pressure from Mr Aizen’s then-partner to maintain her extravagant lifestyle. But the breach of trust of his employers and clients led County Court judge Gabriele Cannon to sentence Mr Aizen to a minimum of 15 months' prison.

"At the end of the day it was your decision to remain in the relationship with your [then] partner and commit the offences which I now sentence you," the judge said. "This was no spur of the moment offending ... but a lengthy course of conduct which you continued until you were discovered," Judge Cannon said.

The property manager has also since repaid $450,000 of the $580,000, and intends to pay back the remaining balance - Thankfully for the victims of this unsavory breach of trust! 

When you are authorizing substantial maintenance works and repairs on your rental property be sure to sight proper quotation documents and supportive photographic evidence of the subject repairs before you instruct your property manager to proceed with the works. If you are being asked to spend considerable amounts of money then you are wise to seek a second quotation from another contractor. I also recommend that if you are in a position to talk with the contractors directly before approving quotes inn order to satisfy yourself that the work is necessary and that all repair options have been taken into consideration. 

When the works are complete your property manager should confirm same with you and confirm the payment amounts that are due to the contractor. You should ensure that your property manager has personally inspected the works on your behalf and can send you some photographs of their inspection. For substantial and costly repairs you should seek to inspect the work yourself if you are able. 

Article Modified by Chris Snell, Property Manager, Australia, 

Article sourced by Written by Steven Cross  Friday, 06 June 2014

http://www.rpmonline.com.au/news/12470-15-months-jail-for-pm-who-stole-over-half-a-million?utm_source=Residential+Property+Manager&utm_campaign=Residential_Property_Manager_Bulletin06_06_2014&utm_medium=email

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Rental Property Renovation Educational Video

Property improvements may be obvious to the trained eye and inexpensive. The challenge is to take the time to observe and identify the tasks to be undertaken. First impressions are a first principal for any marketing and leasing your rental property should be no different. In this very simple video clip you can identify areas that will improve the first impression of any tenancy prospect. See if you can pick them?

 

Submitted by Chris Snell, Property Manager Melbourne, Rental Success Blog

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The Cost Of Being A Landlord - Can You Afford It?

The Cost Of Being A Landlord - Can You Afford It?

Property Managers more often than not bear the brunt of the ugly landlord who can't afford to keep up with the daily costs of owning an investment property. 

This relationship tension is further tested when the tenant reports a need for urgent repairs at the rental property. How will these immediate repairs be carried out when the landlord cannot afford to pay for the tradespeople and the materials. 

As a property investor it is critical that the landlord has a buffer funds account to meet the urgent repairs. For instance, a burst hot water system that is irreparable and must be treated as an urgent repair can cost anywhere within the vicinity of $2,000 - $5,000 to supply and install a replacement system.  

Before you jump into the thrill of becoming a property investor do some due diligence and be sure that you can afford to meet your responsibilities as a landlord. Click on the link to get your free report, The 5 Costly Mistakes Landlords Make With Their Investment Properties

Written by Chris Snell, Property Manager Australia, Rental Success Blog

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Bushfire Risks Can Be Reduced With Good Garden Design

As the season continues to sizzle the country and the suburbs home owners can do much to manage and offset the risks of fire running havoc across their home and investments properties. The Country Fire Authority promotes some simple and effective steps that you can implement with your gardens.

Landscaping for bushfire is much the same as any type of gardening. It involves planning, designing, planting and managing the area around your house. Design and plant selection for bushfire can reduce the effects of direct flame contact and radiant heat on a house.  

Landscaping for Bushfire: Garden Design and Plant Selection provides information on garden design and plant selection which can be used for new or existing gardens in high bushfire risk areas.

• Use the online Plant Selection Key to help choose plants for a garden in a high bushfire risk area.

Garden design 

When modifying an existing garden or designing a new one, you need to consider the placement of garden beds, trees and other flammable objects.

You should aim to keep the area around your house and other structures (such as carports and sheds) free of plants that can easily catch fire and then ignite the buildings. You should also separate the flammable elements from each other and the house itself.

Garden design should incorporate the following four principles:

Create defendable space
Remove flammable objects from around the house
Break up fuel continuity (keep plants separate)
Carefully select, locate and maintain trees.

Choosing suitable plants

Although all plants will burn under the right conditions, some plants are less likely to catch fire than others. Choosing plants with low flammability and locating them correctly will help reduce bushfire risk within a garden.

Use the Plant Selection Key to help choose firewise plants for your garden.

Make a list of the plants you want to use in your garden and work through the questions in the Key to find out the flammability rating of each plant.

Remember: While a well planned garden is important, it is only one aspect of preparing for bushfire. A holistic approach to bushfire preparation is critical. Appropriate water supply, access, house construction and general property maintenance are all important. On Severe, Code Red and Extreme days, leaving early is always the safest option.

Sourced by Chris Snell, Property Manager Melbourne Australia 
See more at: http://www.cfa.vic.gov.au/plan-prepare/landscaping/#sthash.BcAEs28j.dpuf

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Going Green with Your Rental Property - Energy Efficient Investment Properties

Going Green with Your Rental Property - Energy Efficient Investment Properties

If you are planning any renovations to your investment or rental properties in the near future you should consider going as green as possible. Improving your investment property's Eco Performance has monetary and intangible benefits as well. You can ask your property management to help you along with using some of the helpful information in this quick guide.  

http://www.rentalsuccess.blogspot.com.au

Solar Panels

First and foremost there is no quicker way to reap the rewards of eco-friendly construction then with the installation of solar panels on your investment property's roof. There are dozens of programs available in all parts of the country which could help you improve the overall return-on-investment of your property. Additionally, the installation of solar panels sends an eco-friendly message to your tenants, your neighbors, and the investment property community. Don't hesitate to start working on a solution for this improvement. All Solar companies will come to your property and give free estimates and also provide a thorough array of options for your individual situation.

Roofing

There are so many new eco-friendly roofing materials available now that it boggles the mind. They include slate, metal, composite, and recycled plastic and/or rubber. These new eco-friendly materials offer superior fire and impact resistance and come in various colors and textures. There are a number of manufacturers are selling roofing shingles made from 100 percent recycled vinyl and cellulose fiber that resist fading and are fire retardant. Other products include shingles made from 98 percent post-consumer metals - some of which look just like a wood shingle or shake but don't warp, crack or mold.

Insulation

Eco-friendly manufacturing has now penetrated the insulation market. There are several eco and health-friendly options in each insulation category. One of the most recent products is a soy-based polyurethane spray-in foam that expands to fill-in cracks, crevices, and hard to get to places which will provide an airtight seal with extremely high thermal resistance. There are also new batt-type insulation products constructed from post-industrial cotton and denim fibers that contain virtually no chemicals. There are several products that are now odor and formaldehyde free. One manufacturer offers an alternative insulation that resists mold.

Windows and Doors

When replacing windows and doors, look for low U-factor ratings - which is the measurement of a window's heat flow. An average U-factor rating is.25 to 1.25. An easy and cost effective way to help improve the air leaks around doors and windows is to use caulking around the entire perimeters of each opening, the trim, the window housing, and the framing (if exposed).

When replacing windows consider dual-paned glazing with Argon chambers; patio doors with double or triple pane glass to improve energy efficiency. To be really eco-friendly consider installing new windows and doors manufactured using a water-based treatment that decreases Volatile Organic Compounds (VOC's), which are a key cause to indoor air pollution.

Tenants Can Help You

Implement a plan with your property management team to talk with tenants about being eco-friendly partners with you. Have your property management team put together a list of eco-friendly energy saving hints and tips that will not only save your tenants cash each month, but will improve the overall energy efficiency of the property for the long-haul. It is a good practice to print the list and display it at various locations on each of your investment properties, including posting it on your company website. Some ideas for the list include but are not limited to:

1) Install thick drapes or shades at all large windows. This reduces heat loss in winter, improves heat gain controllability in summer, and also provides the tenants with privacy.

2) Only use washing machines and dishwashers when they are full.

3) Install auto-thermostats as a difference of 2-3 degrees could be hundreds of dollars spent on unnecessary energy costs with little or no comfort level increase.

4) Unplug cellphone chargers, appliances, etc., when not in use.

5) Install faucet filters to avoid using plastic bottles for water.

Conclusion

Each and every eco-friendly improvement or addition can collectively make a big difference in the bottom line of your rental property. Make sure to get your property management team involved in this process as they should be fully prepared to help you in this endeavor. If they are not you can easily use this guide along with some quick research and you will be well on your way to having a more eco-friendly rental property business.

http://www.siliconvalleypropertymanagementgroup.com

Article Source: http://EzineArticles.com/8293516

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