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REAL ESTATE INSTITUTE OF NEW SOUTH WALES | JUL/AUG 2018 VOL 69/04

JOURNAL

TECHNOLOGY IN ACTIONDriving tech innovation in our industry

LANDLORDS’ INSURANCEBest practice and a win-win for all

SHORT STAY CRACKDOWNTough new laws ahead for the sector

Going the extra country mileHow Sam Triggs turned his rural passion into career success

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REAL ESTATE JOURNALThe Real Estate Journal is the official magazine of the Real Estate Institute of New South Wales.

30-32 Wentworth AvenueSydney NSW 2000(02) 9264 [email protected]

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Advertising(02) 9264 [email protected]

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The Real Estate Journal is provided for general purposes only. REINSW gives no warranty and makes no representation with respect to the accuracy, applicability, legal correctness or completeness of any of the contents of the Journal. To the extent permitted by law, REINSW excludes responsibility and liability in respect of any loss arising in any way (including by way of negligence) from reliance on the information contained in the Journal. The opinions expressed in the Journal are those of the respective authors and do not necessarily reflect those of REINSW.

CONTENTS

Partners

Major Partners

UPFRONT5 A word from the President

6 In brief

PERSPECTIVES9 Local heroes

How members are challenging themselves and making a difference in their local communities.

10 Going the extra country mileSam Triggs has turned his passion for agriculture into a diverse and successful real estate career – and he wouldn’t have it any other way.

14 In their own wordsThree commercial property agents talk about their career paths, the highs and lows, and what’s next for them on their professional journey.

16 Forging a specialised pathA ‘tree change’ saw Lesley Rattenbury move from banking to real estate and she’s never looked back.

FOCUS18 Where there’s a will, there’s a way

Mark and Lisa Novak reveal how they’ve positioned their agency, Novak Properties, as one of Sydney’s finest with their out-of-the-box thinking.

22 Technology in actionAs the real estate industry moves towards professionalism, here’s why we must adapt by embracing technology or be left behind.

26 Drive service levels with new techJosh Phegan explains why technology plays a pivotal role in the customer experience.

28 Landlords’ insurance: A win-win for everyoneWhy property managers should encourage landlords to take out the right insurance.

30 Short stay crackdownThe NSW Government’s new framework for short-term holiday letting.

35 Spotlight on underquotingA timely reminder about the importance of understanding the law and your obligations when it comes to underquoting.

36 Are you a fit and proper person?Sounds straightforward, right? But failure to pass the test can result in your licence being cancelled.

TRAINING AND EVENTS38 Traineeships

39 Training calendar

LAST WORD41 New members

42 In the media

REAL ESTATE JOURNAL / Jul–Aug 2018 / 3

INSIDE

After 10 years of committed lobbying from REINSW, landmark real estate reforms have been passed and changes to CPD, qualifications and duties are expected to start later this year.

REINSW partnered with NSW Fair Trading to develop the reforms, which will see agents deliver an enhanced standard of service.

Are you ready? We’ve got you covered with everything you need to know about these industry reforms.

Find out more at reinsw.com.au/reforms

REAL ESTATE REFORMS

ARE COMING! ARE YOU READY?

Paving the road to professionalismAfter travelling the length and breadth of New South Wales over the last few months, the REINSW Roadshow is over for another year. Visiting 20 locations and meeting more than 1600 of our members, it was undoubtedly our most successful Roadshow to date.

Now in its eighth year, the Roadshow gives us the opportunity to talk to you and gain an understanding of the real issues you’re confronted with every day in your market. It also gives you, our members, the ability and chance to hear about what we’re working towards, how we’re representing you and what matters in our industry.

A stellar line-upThis year, we were joined again by NSW Fair Trading who presented on the upcoming real estate industry reforms.

With the biggest reform package our industry has ever seen about to become a reality, attendees received a detailed rundown of the reforms and took the opportunity to ask their burning questions. How will the changes impact their agency? What does it mean for qualifications and training standards? Is there anything agents can do now to get ready ahead of the reforms commencing?

It’s no understatement to say that these reforms will reshape agency practice in NSW, and represent a once-in-a-generation opportunity to lift practice standards and future proof our profession. Those in attendance had the benefit of hearing the details directly from the regulator.

realestate.com.au, our Major Partner for the Roadshow this year, discussed the latest and greatest when it comes to marketing, and how to use social media to improve your personal and agency brand.

And rounding out our line-up were our friends from the Real Estate Employers’ Federation, who talked about the recent changes to the Real Estate Industry Award and outlined what employers need to do to incorporate the changes into their business.

Pathway to professionalismImportantly, each session at the Roadshow this year was directly relevant to REINSW’s push toward professionalism. The industry we find ourselves working in today is very different to the industry as it was just a few short years ago. That’s why it’s vital for us to keep asking ourselves what changes we need to make to ensure our survival.

REINSW CEO Tim McKibbin and I took the opportunity to update attendees about the professionalism project. What does professionalism entail? What steps do agents need to take?

I’m pleased to report that the enthusiasm for this pathway was palpable at each Roadshow session. What started as a kernel of an idea at the 2016 REINSW Industry Summit has now become a movement, and I’m extremely proud to have witnessed the growing momentum around this move toward professionalism.

Thanks for your supportOur Roadshow gets bigger and better each year and we’re proud of the support we receive from not only you, our members, but from our key stakeholders. Without you, REINSW would not exist.

I’d like to say a big thank you to those who took the time to attend a Roadshow session this year and look forward to seeing you there next year when we hit the road again.

I’m extremely proud to have witnessed the growing momentum around this move toward professionalism.

Leanne PilkingtonREINSW President


A WORD FROM THE PRESIDENT / UPFRONT

Stamp duty: Government refuses reformIn the lead up to the NSW Budget on 19 June 2018, REINSW renewed its calls for stamp duty reform, but the NSW Government has again decided to hold tight to the revenue windfall.

“It’s disappointing that the government has once again missed the opportunity to review stamp duty brackets,” REINSW President Leanne Pilkington said.

“Stamp duty brackets haven’t been reviewed since 1986, when the median house price was $80,675. The median house price is now in excess of $1 million – a more than 1000 per cent increase.

“To put this in context, NSW Treasurer Dominic Perrottet was just three years old in 1986. A lot has happened since then.”

Ms Pilkington said the government’s refusal to act is outrageous.“The numbers speak for themselves. Consumers should be angry

about this huge injustice and the government needs to start listening. It’s completely disingenuous for the government to express sympathy for our first-time buyers and other property consumers, and then rip them off with outdated stamp duty rates.

“Importantly, there’s empirical evidence that supports the fact that reducing stamp duty rates will create greater transactional volume, which in turn will generate more revenue for the government.

“A full review is needed and it must be undertaken now.”

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Staying up to date with everything going on in the industry takes time and effort, but Property Realm does all the heavy lifting for you. Built in consultation with industry leaders, including REINSW and REIA, you choose the content you want to receive. Choose from industry hot topics, market trends and data, research, training tips, advocacy information, industry legislation, expert commentary and more – all from the most respected industry sources.

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LANDLORDS AND TENANTS LEFT EXPOSEDThe High Court of Australia has ruled that the NSW Civil and Administrative Tribunal doesn’t have jurisdiction where one or more of the parties to the dispute are located interstate.

In early 2017, the NSW Supreme Court of Appeal declared that NCAT had no jurisdiction in such cases. As a result, interstate parties had to commence proceedings in the Local Court or District Court. A clearly untenable situation, REINSW lobbied the NSW Government to replicate legislation in other states, where the problems created by the NSW legislation don’t exist.

REINSW President Leanne Pilkington said the NSW Attorney General’s failure to act ahead of the High Court’s decision was completely inappropriate.

“The verdict delivered by the High Court means that interstate parties will continue to experience problems because of their inability to have their disputes resolved by NCAT,” she said.

“Amending the legislation with a section similar to that used in Queensland would have quickly and effectively solved the problem. This should have been done last year when the problem was first identified.

“The failure by the government to act exposes both tenants and landlords, and they must now act swiftly to make the appropriate amendments.”

DOWNLOAD the app at propertyrealm.com.au/download

6 / REAL ESTATE JOURNAL / Jul–Aug 2018

UPFRONT / IN BRIEF

REAL ESTATE’S WHITE KNIGHT CELEBRATES 25 YEARSIn June 2018, Greg Paterson marked 25 years with the Real Estate Employers’ Federation.

“Over this time, he’s worked tirelessly for the benefit of all real estate employers and continues to distinguish himself as one of our industry’s true leaders,” REEF CEO Bryan Wilcox said. “There are very few people who know more about workplace relations in the real estate space than Greg.”

Greg was appointed as REEF’s Executive Director in 1993 and for 23 years guided and shaped the success of the organisation. He stepped down as Executive Director in 2016 and moved into the newly created position of Membership Services Director.

“His passion has always been to work directly with real estate employers and assist them with their workplace issues, and moving into the new position allowed Greg to focus more directly on membership growth, as well guiding and protecting the workplace interests of employers,” Bryan said.

“Today Greg is, without doubt, the white knight of the real estate industry. He’s recognised not only as NSW’s, but also Australia’s, leading and most dominant expert in industrial matters affecting the real estate industry. There wouldn’t be a real estate agency in the state that hasn’t benefited from his 25-year passion for creating an industrial workplace environment built around fairness and professionalism.

“On behalf of REEF and the wider real estate industry, I’d like to extend my most sincere and heartfelt thanks to Greg for his decades long contribution. Without him, our industry would be vastly different.”

realestate.com.au launches pet profilesrealestate.com.au’s Pet Profiles is a feature on 1form that allows tenants to present their pet in the best possible light and saves property managers time when reviewing rental applications.

Tenants, landlords and property managers were surveyed as part of a national study on pet ownership. The study found that 48 per cent of property managers are spending considerable time researching animal breeds, temperament and personality when reviewing applications. However, it also revealed a large number of tenants aren’t being completely honest about owning a pet when applying for a rental property.

In an effort to help make the rental market more transparent, realestate.com.au worked closely with customers to create the Pet Profile feature, allowing tenants to include a bio and picture of their pet when applying for a property.

“Since launching Pet Profiles, we’ve already seen more than 57,500 people add their pet to the 1form application, and we’ve had a really positive response from property managers and landlords,” Kul Singh, realestate.com.au’s Executive Manager – Rent, said.

There wouldn’t be a real estate agency in the state that hasn’t benefited from his 25-year passion for creating an industrial workplace environment built around fairness and professionalism.

Source: realestate.com.au’s pet ownership survey

Australians renting with pets who have struggled to find a rental property

People who believe landlords favour people

without pets when choosing tenants

Property managers who believe landlords fear pets will damage their property

People who have hidden a pet during a rental inspection

50% 94%

93%27%

of people have lied about owning a pet when applying for a rental property1/4


IT’S A MINEFIELD.DON’T LET ITBLOW UP.

REAL ESTATE EMPLOYERS’ FEDERATIONThe real estate employment specialists since 1966

We’ll help you navigate the real estate employment minefield.

By joining REEF, you’ll have free access to our award-winning People Management System to help your agency better manage its most important asset – it’s people. Available online 24 hours a day, seven days a week, the People Management System allows you to access critical advice and effectively manage your employees.

You can access more than 100 employment documents, including contracts, commission structures, job descriptions, fact sheets, rates of pay, workflows and more for every stage of the employment lifecycle.

Join REEF todayCall 1300 616 170 or email [email protected]. Download an application form at www.reef.org.au.

We’ll defuse your potential workplace explosions.

LOCAL HEROES / PERSPECTIVES

RIDING THE RACE OF HIS LIFEForty riders. 10 days. 1000 kilometres. 25 stations. 1000 horses. The Mongol Derby is the longest and toughest horse race in the world.

Held each year in Mongolia, the treacherous course recreates Chinggis Khaan’s legendary empire-building postal system. Riders change horses every 40km and stay with local herders or camp under the stars. To stand a chance of finishing, they must balance survival skills and horsemanship. They need to endure the elements, semi-wild horses, as well as unfamiliar food and terrain.

Completing the world’s longest horse race is an achievement few can boast, but it’s one that William Gunning, Director at Gunning Commercial, has set his sights on.

“I rode horses as a kid on the family farm,” William said. “But, to be honest, when I applied to participate in the Mongol Derby it had been years since I’d ridden much at all.

“So, since my entry application was accepted a few months ago, I’ve been spending as much time as possible in the saddle and have been hitting the gym at 4.30am most days to drop a few kilos!”

The starting gun fires on 8 August and William has 10 days to complete the course.

“I’m hoping to finish in eight days, but we’ll see how I go,” he laughed.

As well as the extreme physical challenge the race poses, William has also set himself the goal of raising $10,000 for the Black Dog Institute.

“Anxiety, depression and suicide are, unfortunately, becoming more and more prevalent,” he said. “I think all of us know someone who’s been affected by these issues – a family member, friend or work colleague. And, looking around the real estate industry, it’s clear that mental health and wellbeing are issues we need to tackle head on.

“This is a chance for me to raise money and awareness to help do this.”

To find out more about William’s race or to contribute to his fundraising target, go to everydayhero.com and search for ‘mongoal derby’.

LAUGHTER IS THE BEST MEDICINEImagine being a sick child in hospital, in need of a friend to play, laugh and smile with. That’s the magic of Clown Doctors – and the team at Di Jones is committed to helping this magic happen.

“The Di Jones team is a family and we’re proud to support other families going through tough times via our partnership with the Clown Doctors,” Di Jones General Manager Kylie Walsh said. “Many members of our team have children, so this cause really resonates with them.”

Clown Doctors are specially trained by The Humour Foundation to work in a hospital setting. They provide an environment where children and their families can smile, laugh and play while undergoing treatment and facing very difficult challenges.

“Since partnering with Clown Doctors in mid 2016, our team has provided support in a variety of ways,” Kylie said.

“Our Christmas gift appeal last year was a smashing success. We were overwhelmed by the generous response, with donations of gifts for not only children, but also teenagers and parents who are often forgotten at that time of year.

“We’re also now raffling a brand new Hyundai i30, with all proceeds going directly to keeping the Clown Doctors program running.

“And the Annual Ball is coming up next month on Thursday, 30 August 2018. This is The Humour Foundation’s major fundraising event for the year and the money raised will ensure the Clown Doctors program continues to bring smiles and laughter to sick children and their families.

“The Annual Ball is being held at the iconic Luna Park and tickets are $220 per person, plus a small booking fee.”

If you’re interested in supporting the Clown Doctors by attending the Annual Ball or buying a ticket in the draw for the Hyundai i30, give the team at Di Jones a call on (02) 8356 7878 or email [email protected]

Is there a cause that’s close to your heart? Are you working in your community to support local charities? Let us know by emailing [email protected]


Sam Triggs has always loved everything about life in regional Australia. From breathtaking outback scenery to the rich

farming history of the people who call the country home, there’s simply nowhere Sam would rather spend his days.

No two days are ever the same for this accomplished rural property marketing and sales expert. Although his daily routine may be quite different to a residential sales agent, Sam is just as focused and results-driven as his city-based peers. Whether he’s driving hundreds of kilometres to meet with a client, using a drone to create compelling marketing videos, compiling detailed data on a farm’s productivity or organising a brochure mailout – Sam thrives on the variety of his specialised role.

Raised on his family’s beef cattle and sheep farm in southern NSW, Sam always knew he wanted his career to involve agriculture. When he finished school, Sam spent his gap year on a remote cattle station in northern Australia. While living and working on the two-million-acre station with 50,000 cattle isn’t for everyone, it was a year Sam will never forget.

“It was a great year – probably one of my most memorable,” Sam recalled. “It was hard and very physical work, but it was rewarding. There was a group of about eight of us living and working closely together, so you had

to learn pretty quickly how to be patient, cooperate and get along with people.”

Returning to NSW, Sam studied agricultural economics at Sydney University. As part of his studies, he did work experience with Meares & Associates and realised how rewarding a career in rural real estate could be. Landing a role at the agency after completing his studies, he stayed for a decade.

“It was a great start to my career,” Sam explained. “I’d always loved agriculture, but I also wanted to work in a profession, so working as a rural property agent was perfect.

“Chris Meares ran a successful business and I learnt a lot from him in the time I worked there. I already had a good work ethic and integrity, but working with Chris really showed me why these are so important if you want to be successful in the long term. It was a great experience.”

Ready to take the next step in his career, Sam took up a role as Rural Property Sales Manager with Inglis Rural Property, where he’s been for the past four years. Established in 1867, Inglis Property specialises in the sale and marketing of cropping, grazing and pastoral properties, including beef cattle, prime lambs, wool, thoroughbred studs, as well as almond, walnut, citrus, viticulture, cotton and dairy farms.

“It’s a rural business that understands rural people,” Sam said. “Inglis has the history

Spending hours traversing regional NSW’s vast open spaces isn’t for everyone, but rural property agent Sam Triggs has turned his passion for agriculture into a diverse and successful real estate career – and he wouldn’t have it any other way.

By TINA LIPTAI

I think service excellence means different things for different agents. For me, it means always being honest and straightforward, which is a strength for a rural agent.

Going the extra

country mile


PERSPECTIVES / COVER PROFILE

and experience, but it’s also a very innovative, progressive company. Jamie Inglis understands the importance of staying relevant for our clients. We’re always looking at better ways of doing things to ensure our service is second to none.”

Service excellenceAs a general rule, rural agencies don’t have the same volume of transactions that suburban or city agencies do, which means excellent client service is paramount.

“Service is incredibly important,” Sam said. “We invest a lot of time getting to know our clients and developing a deep understanding of their property and business.

“I think service excellence means different things for different agents. For me, it means always being honest and straightforward, which is a strength for a rural agent. In the bush, people respect this and you do have to protect your reputation. It works well for you in terms of good word of mouth if you’re acting with honesty and integrity, but if you aren’t doing the right thing it won’t take much for word to get around.”

While great client relationships and sound local knowledge is essential for any agent, Sam explains that in rural property strong networks and an interest in agriculture are imperative to ongoing success.

“I’ve been very fortunate because over the years I’ve worked for and with great people, which has helped me to create strong networks,” he said.

“I think you do have to have some affinity with the bush or at least enjoy spending a lot of time in regional Australia if you want to be a rural agent. Every farm is slightly different, so you need to be genuinely interested in and willing to learn about the business side of the farm. I’m fortunate to have a wide general base knowledge of a lot of different areas of agriculture. But I think if you have good communication skills, can meet deadlines and do what you say you’re going to do, then even if you don’t have that background knowledge you can still be a successful rural agent.

“If you have a long-term view of your career and what you’re trying to achieve, and you work hard, then things will go your way. I’ve always believed the harder you work, the luckier you get.”

Selling lifestyle and livelihoodsOne of the key differences in selling a rural property, as opposed to residential or commercial, is that each farm is not only a home, it’s often also a business.

“Sometimes these farms have been in a family for generations,” he explained. “There’s often a lot of history that goes with rural properties, but you’re also selling a business so you need to find a balance.

“A big part of a rural agent’s role is to provide comprehensive information about the property for the buyer, more so than is needed for a home or property in a city or more residential areas. You sell a farm largely based on the performance of the business, so you need to be able to provide a lot of detailed information on the farm’s ability to perform, which requires a lot of data to be organised and presented in a way that’s easy to understand. Ideally, you’re aiming to minimise the number of assumptions a buyer needs to make when deciding whether to buy the property and present the asset in the best possible light.”

The rural real estate market can also be significantly impacted by international, national and local influences, so it’s important for Sam to stay across everything from agricultural trends through to government initiatives that may affect his work.

“It’s important to be able to leverage what’s happening in each agricultural sector you deal with. For example, if there’s an announcement that government is investing in the dairy industry, then we may shift our focus to relevant properties. Or there might be new research about almonds making headlines, so suddenly we see a spike in interest in almond farms.

“This is why it’s important to stay across industry reports and what’s happening with research and government, so you can move quickly if needed.

“It’s also part of the reason why, as a rural agent, your database is so important. There’s a big focus on buyers and a lot of transactions are done off market. You might have a buyer that’s looking for something specific, like a sheep station or a cotton farm that meets certain criteria. We work with them and our contacts to try and find what they’re looking for.”

Sometimes these farms have been in a family for generations. There’s often a lot of history that goes with rural properties, but you’re also selling a business so you need to find a balance.


PERSPECTIVES / COVER PROFILE

Going the distanceNot surprisingly, one of the biggest challenges of working in rural areas is the huge distances that Sam needs to cover each week to see clients.

Based in the city, at Warwick Farm at the Inglis Riverside Stables, Sam divides his time between the office and the open road.

“I do enjoy being out on the road, but distance is definitely a challenge in this specialisation,” he explained. “Time management is also a challenge. You need to be able to effectively manage your time and workload like any other resource you rely on. It’s difficult, but it’s important to have boundaries that you can stick to.”

For Sam, technology is vital to maintaining these boundaries and staying on top of client communications. And even just in the past 10 years, he’s seen dramatic improvements in how technology can streamline his workflow.

“It’s something a lot of us take for granted now, but having my emails accessible on my mobile phone has made a huge difference to how efficiently I work,” he explained.

“When I first started, on a day when I was on the road driving to different properties I could get back to my desk at the end of the day to 100 emails needing attention. Now, I can be checking my emails on my phone during breaks in the day and I can stay on top of what’s happening.

“Technology has also helped with being able to look at and review farms online and our company has a strong online presence, so that helps with clients too. I still need to travel a lot, but I can usually get a good impression of a property online first, which has improved efficiency.”

An ethos of professionalismSam welcomes the move to have the real estate industry recognised as a profession.

“Inglis already works with an ethos of professionalism, and my view of how to conduct business is 100 per cent in line with that,” he said. “I think professionalism is really important. In my mind, if you are transparent, honest and act with integrity, that’s always going to be good for business. Professionalism will be great for the industry and I think it’s important for our overall longevity.

“Professionalism is also about investing in yourself, building on your knowledge and always improving the service you offer clients.”

RURAL MARKETING INSIGHTSA key part of Sam’s role is creating the marketing material for each of his properties. In 2016 and 2017, Sam was awarded the REINSW Award for Excellence in the Rural Marketing category, so he knows what it takes to create an effective campaign.

“It’s different from marketing other kinds of real estate,” he said. “It’s different in the sense that the farm is not only the person’s home, but it’s also a business. Often it has been their family home and livelihood for generations so there is a lot of history, sensitivity and emotion that goes with that.

“When you’re marketing a farm, you’re not only selling the rural lifestyle aspect, you’re selling a business, so you need data and information about productivity to showcase the farm’s strengths and selling points.

“Each farm is different, so our marketing is tailored to the specifics of each property and business. We use a combination of marketing methods.

“Recently, I created a video for a property that included drone footage and an interview with the Managing Director of the farm, who told the history of the property and why it’s a successful business. There was a really interesting story to tell and it was the most effective way to share that history. It’s not something we do for every farm, but you need to always be thinking about the best way to showcase the property.

“Believe it or not, hardcopy brochures are also still really effective. People are bombarded with online information and emails every day, but a brochure is something tactile that they can take with them and look over in their own time. It’s a great way to present the great imagery, comprehensive and data rich information, and extensive maps of the property that buyers need to make their decision. We find it’s really valuable and popular part of our marketing strategy.”

SAM’S TIPS to make your mark as a rural agent

1 Honesty and integrity are critical. Your reputation is everything and you should always work ethically, honestly and with respect.

2 Manage your time. Time management and the ability to set and meet deadlines is important if you want to be successful. If it’s a struggle for you, find someone that can help you stay on top of it.

3 Your database is paramount. If you want to be a successful rural agent, you need to spend time creating a strong database and maintaining great relationships with your contacts.

4 Persevere. If you put the time, energy and work in, you will get results.

5 Marketing, marketing, marketing. High-quality marketing is crucial for success in the rural market. Make sure you’re presenting your properties professionally, using all the resources you have and include detailed information that’s easy to understand.


Lauren Trigg Property Manager, Asset Management Services at Knight Frank

“I’m a relative newcomer to the industry and this September will mark three years for me.

I was initially attracted to the industry because of the detail and design of higher-end residential properties. As I became more involved, I found that I liked learning about the processes behind the scenes and that there’s always something more to learn. Real estate allows me to balance interacting with clients and tenants with problem solving and maintaining a strong attention to detail.

Commercial management provides me with the opportunity to be involved with larger-scale capital expenditure projects, such as lobby and building upgrades, while also using analytical skills via the assets income and operational expenditure budgeting process.

Although I mainly work as a commercial property manager, I’ve been fortunate to also gain exposure to industrial, retail, residential and strata properties. I like the variety in career prospects that the commercial property industry presents.

Being part of a new generation of agents provides me with an advantage, as I can bring a different and diverse mentality to my team and to management. As an example, in 2017 I was involved in a project that introduced automation to part of our processing functions and I continue to be involved in the development of ideas as we look at different ways to manage buildings.

Working across a large range of asset types has brought with it a variety of sometimes difficult and unique situations. This has challenged me to come up with creative solutions to meet the needs of both building owners and tenants, while adhering to reporting and risk requirements. Balancing these relationships has become a key component of my role.

Over the next 12 months, I’d like to expand my knowledge of the broader real estate industry. I’m involved in a development program, which has provided me with a great opportunity to network with both my peers and a wide range of senior leaders. I’ll also be finishing my Bachelor’s degree at the end of 2018, so beyond this I’m excited to have more time to focus on refining my skills, particularly across leasing.”

In their own wordsThe Journal spoke to three commercial property agents about their career paths, the highs and lows, and what’s next for them on their professional journey. Here’s what they had to say.


PERSPECTIVES / FIRST PERSON

Andrew Burrows Senior Commercial Property Manager at MMJ Real Estate Wollongong

“This year marks 20 years for me in the real estate industry. I’ve always had a love of property and it was the asset management field that I wanted to specialise in.

I spent six years as a residential property manager in both the Sydney and Illawarra markets, before moving into the commercial field in the Illawarra market. I was ready for a new challenge, so when the Managing Director of MMJ approached me about taking on a commercial property management role I jumped at the opportunity.

One of the things I enjoy most about commercial is the type of clients I work with. When I was in residential, most of my clients were ‘mum and dad’ investors. Now I’m working with a variety of high net worth individuals and listed funds, which I thrive on. Rather than having conversations about minor repairs, I’m working closely with my commercial clients on building upgrades, tenancy layouts and how we can best position their asset for maximum returns into the future. There’s a lot of strategy and planning involved, which can really help shape communities and bring wellness to buildings.

I thrive on the problem-solving aspects of my job. For example, last year I was managing a building where the tenant of 30 years who occupied approximately 3,500m2 was moving out. The ‘make good’ clause in the lease was extremely vague, to the point where they believed they could just get up and walk away from the space. Through my knowledge – and many hours of negotiation – I was able to help my client save approximately $1.5 million through the make good. That was a big career highlight for me.

Every day is an opportunity to learn something new and work for the benefit of my clients. I’m looking forward to continuing to grow my skills and knowledge, and build the MMJ brand in the coming year. There are numerous commercial, retail and industrial opportunities in our market and the surrounding areas, and we’re well positioned to provide a very high level of service that sets us apart from our competitors.”

Maria Agostino Senior Executive, Industrial at Colliers International NSW

“I’ve spent my entire career in and around property. After some time in local government, I started with Colliers and have now been with them for almost 15 years. Starting as a receptionist, I went on to become PA to Gavin Bishop, who is now National Director, Industrial.

Then, in April 2016, I decided to make the leap to agency. Having spent so much time in Industrial as a PA, it seemed obvious to continue on this path. Stepping out of my comfort zone and becoming an industrial agent was a challenge. But I’m fortunate to have worked with Gavin, who was incredibly supportive and gave me a lot of confidence.

Industrial may not seem like an obvious choice – and, I admit, I don’t particularly like getting my shoes dirty when I’m onsite! – but I find it fascinating and professionally stimulating. I’ve been on a steep learning curve for the last two years. As a PA, I saw all the comings and goings of industrial agents, but being out in the field myself is completely different.

I like the fact that, in some ways, I’m defying expectations. Turning up to a job site in a skirt with my hardhat and hi vis vest on surprises some, but I’m increasingly confident in my skills and knowledge, and know I can hold my own. My admin background means I bring a different outlook. I’m always analysing processes and looking for more efficient ways to do things.

The last couple of years have been filled with highlights for me. Winning the Achievement category at last year’s REINSW Awards for Excellence, and then being a finalist in the REIA National Awards, was a real thrill. Closing a 30,000m2 deal in my first two years as an agent was massive. And I’m on track to achieving my yearly target and will be exceeding my goals

Looking forward, I want to develop my personal branding and work on cementing myself as one of the leading industrial agents in Sydney. I definitely feel like the best is still to come.”


PERSPECTIVES / COVER PROFILEPERSPECTIVES / Q&A

Forging a specialised pathA ‘tree change’ saw Lesley Rattenbury move from banking to real estate. Since taking the step, she’s successfully followed a career path that’s led her to a specialist role at leading property management agency Leah Jay.

QA&

Being able to add real value to the business, and the people in it, is the ultimate reward.

How long have you been in the real estate industry?I started out in real estate in 2005 when I made a ‘tree change’, moving from Newcastle to the small country town of Gunnedah. Before that, I’d built a successful career in the banking sector. I took my first bank job as a 17 year old fresh out of school. Over the next 28 years, I worked my way through the ranks to sales and management positions in home lending and business banking.

When I moved to Gunnedah, I decided to expand upon the property knowledge I’d gained in banking by moving into real estate. I found a position as a property manager and it was evident from Day 1 that this was an industry I’d be passionate about. I steadily built up a quality portfolio of managements and later purchased a share of the company, becoming the General Manager and Licensee-in-charge.

Then, in 2016, I moved back to Newcastle. I was looking for a specialised role where I could use the skills and experience I’d built – and I knew that it wasn’t going to be easy to find. I ended up approaching Leah Jay and the rest is history

What is your role at Leah Jay?I’m the Systems Support Manager at Leah Jay. It’s a diverse and challenging role – and it’s still developing. It’s a role that the agency created for me and the stars have aligned in a way that I could only have dreamt.

My role has morphed into a multi-faceted one and I’m now a member of Leah Jay’s executive team. I project manage the research, development and implementation of new systems, facilitate the development of policies and procedures, oversee administration, and

coach and mentor property managers. I also assist with day-to-day operations and the resolution of client concerns. I definitely don’t get bored!

What do you enjoy most about your job?I feel incredibly supported and know that my opinion is valued – and these things are integral to both my personal and professional wellbeing. Being able to add real value to the business, and the people in it, is the ultimate reward.

Who do you look up to in the real estate industry and why?That’s an easy one – Leah Jay. She’s a home-grown Newcastle business woman who started out as a young woman in property management with a dream. Over the course of almost 24 years, Leah has built the business into what it is today.

In my opinion, she’s without parallel in the industry. She’s unassuming and quietly, but steadfastly, goes about achieving her personal and professional goals like no one else I know. She lives by her values and those values filter down through every level of the business.

What makes Leah Jay and its team unique?We’re property management specialists, which is a bit different. We’re also very focused on innovative change and technology, which allows us to capitalise on industry disruption. For us, it’s an opportunity. Integrating this change into our business strategy allows us to maintain our position as industry leaders.

Leah Jay herself is also very much part of the fabric of the business and we’re strong


Don’t listen to anyone who says you’re not the preferred gender, old enough or anything else that gets in the way of realising your dreams.

supporters of women. Our agency strives to empower women and prioritises their needs at all of life’s stages, without threat to their future career advancement.

What are your goals for the next 12 months?I’m looking toward the successful integration of a couple of ‘big ticket’ systems that will result in time savings, and will maximise resources and enhance our retention strategies. My goal is to roll out these systems in a way that keeps our property managers engaged and promotes early acceptance of the changes.

I’ll also be continuing my own self-improvement journey through further property industry studies. And I want apply my experience, insight and knowledge authentically with the Leah Jay team and be a positive influence in their growth.

When you’re not at work, how do you like to spend your time?It’s taken a lifetime of practice to get the right balance between my work and home life. I don’t often completely switch off, but I’ve become reasonably skilled at prioritising the things that are important and also urgent. These days, it’s a rare thing that gets between me and my family enjoying our travels regionally and abroad, or our hibernation time at home. Family time with our daughter and son-in-law, our fur babies and working in the garden balances and sustains me.

Is there a phrase or adage you live by?“Do what you say you’re going to do.” I strive to ensure this happens every time by setting expectations with the relevant stakeholder, taking action immediately, following up, giving feedback and then reviewing and resetting timeframes where needed.

What’s the best advice you would give to your younger self?Don’t listen to anyone who says you’re not the preferred gender, old enough or anything else that gets in the way of realising your dreams. You are enough. And buckle up – you’re in for an unbelievable ride.

Where there’s a will, there’s a way

There’s little doubt Novak Properties has made its mark on Sydney’s Northern Beaches since opening its doors in 2002. The dynamic husband and wife team of Mark and Lisa Novak share how they’ve positioned their agency as one of Sydney’s finest with their out-of-the-box thinking.

Mark Novak always dreamed of opening his own real estate agency – one unlike any other. But he didn’t expect that at just 23 years old he’d find himself opening and operating a business on just a few days’ notice.

“I was working with a major franchise agency at the time and was their number one salesperson,” Mark remembers. “I also owned a majority share of the agency’s rent roll and was in the process of negotiating a buy out of the remainder. To cut a long story short, things didn’t go quite as planned and I made the drastic decision, pretty much overnight, to run the property management business independently.

“Within days, we managed to pack up all the files, find an office, set up our computer systems and then throw open the doors. Novak Properties was born!”

Sixteen years on, Mark’s dream of creating an agency experience like no other is a reality and Novak Properties is firmly cemented as one of Sydney’s finest agencies.

“Today, Lisa and I employ a team of 43 and have built our rent roll of more than 1500 properties,” Mark said. “We’re a one-stop shop for all residential, commercial, off-the-plan and property development needs across sales, leasing and property management – and we’re always looking for the next area we can branch out into.”

By CATH DICKINSON

Dynamic duoLiving together and working together isn’t for everyone, but Mark and Lisa thrive on it.

“My parents were in business together and I remember their friends saying to them ‘gosh, how do you work together’,” Lisa laughed. “That’s exactly what our friends now say to us. If only we had a dollar for every time someone made that comment.

“Sure, it’s not for everyone. But when it works – like it does for us – it’s nothing short of magical.

“In a marriage, one person will often be the accelerator coming up with the ideas and the other will be the brake, saying ‘no, slow down’. I think Mark and I are both accelerators! We both have crazy amounts of energy and our business has definitely benefitted from it.”

People powerWhen you talk to Mark and Lisa, their passion for what they do is palpable – and it’s this same passion that they look for in those they bring into their team.

“Mark and I are programmed the same way,” Lisa said with a smile. “We’re passionate people and are always running at a furious speed. It’s not for everyone and we’re extremely cognisant of that, but we seem to attract like-minded people who want to run at the same speed we do.

We’re passionate people and are always running at a furious speed … we seem to attract like-minded people who want to run at the same speed we do.

LISA NOVAK Novak Properties


FOCUS / AGENCY PROFILE

“Having said that, we’re also focused on family and have a life outside real estate. We’re mindful and respectful that the people in our team do too. That’s why we do whatever we can to provide a flexible working environment.”

Whatever they’re doing, it’s certainly working. Mark and Lisa’s staff retention rate speaks volumes about the environment and culture they’ve built.

“Novak Properties is 16 years old and our Head of Sales, Angelo Goutzios, has been with us for 14 of those years,” Mark said. “Similarly with some of our senior property managers, who have been with us for almost a decade.”

“Remember, Mark was only 23 years old when he started the agency,” Lisa added. “In a way, we’ve all grown up together and learnt from each other. That’s a central element in the culture we’ve created.”

According to Mark, working in an open-plan environment is a must.

“Sales agents, property managers, support staff, accounts – everyone! – we’re all working together,” he said. “It creates a really nice culture.

“And all the facilities we offer to our clients – antipasto bar, coffee, lounge and more – are also available to our team. It’s important to us that everyone works in a great environment.”

As well as the obvious benefits of coming to work in one of the most luxurious offices in the

country (see page 20), the Novak Properties team also goes on outings every six weeks.

“Partners are invited, so we generally have 60 to 70 people each time,” Lisa said. “We really are one big family.”

Always willing to trySo what’s next for Novak Properties?

“We’re just about to launch Novak Hotels,” Mark said enthusiastically. “Because we’re on the beaches, Airbnb is quite popular. We have a couple of boarding house style buildings that we already manage, so we’re going to start doing more holiday and short-stay type work.

“We don’t want to lose out on the opportunity to the likes of Airbnb.”

It’s this willingness to identify opportunities and try something different that sets Mark and Lisa apart.

“We’re crazy dreamers and we want to be pioneers,” they both agreed.

Mark added: “It’s not enough to be one step ahead. We want to be 20 steps ahead. That’s why we’re constantly asking each other ‘what’s next?’ It’s better to fail 10 times and succeed once than to never be willing to try at all.”

One thing’s for sure: whatever’s next, nothing’s slowing down this dynamic husband and wife team.

We want to be 20 steps ahead. That’s why we’re constantly asking each other ‘what’s next?’ It’s better to fail 10 times and succeed once than to never be willing to try at all.

MARK NOVAK Novak Properties


MAKING MAGICThere’s a definite magic to the Novak Properties brand, which is directly attributable to Mark and Lisa Novak’s drive to differentiate themselves from other agencies. Here are just some of the ways they’re making magic happen.

BESPOKE HQTo say that Novak Properties’ headquarters are like no other is an understatement to say the least.

A six-meter marble antipasto bar serving cheese and charcuterie platters doubles as the reception counter. A barista is on hand to serve up freshly brewed coffee with a homemade biscuit made lovingly by Grandma Novak. A magnificent two meter imported crystal chandelier hangs from the ceiling and a 10 metre LED video wall showcases properties and community activities.

“Our office resembles a luxurious home, with chesterfield lounges, exquisite dining and meeting areas, and even a garden,” Lisa said.

“It’s not about having the flashiest office in the country. That’s not it at all. We live in a world that is increasingly high tech, but more and more low touch. But real estate is all about human interaction and relationship building – and our office has been created with that ethos in mind.”

ALWAYS AVAILABLENovak Properties’ motto is “we never sleep”. Hard to live up to? Not so, according to Mark.

“We truly are a 24/7 business,” Mark explained. “We live in a fast-paced world and people want things instantly. If they have to wait 24 hours, that’s too long.

“Our office hours are 8am to 8pm and clients can contact us any time of the day or night, whatever the day of the week, by phone or via online chat.

“People are busy and we want to ensure that we’re available when they need us. For example, we open rental properties for inspection by appointment any time until 8pm. This means we’re able to show properties at a time that suits potential tenants and also lease vacant properties quickly for our landlords. We also do sales opens three times a week, including on Sundays.”

LIGHTNING-SPEED RESPONSE TIMESToday, we all expect the information and answers we want to be at our fingertips.

“We take great pride in our fast response times,” Mark said. “We have a team structure, rather than focusing on individual agents. So if, for example, a sales enquiry comes in for an agent and they don’t respond within nine minutes, any other member of the sales team can take the call for the enquiry.

“It works beautifully, because we can guarantee that every single client is answered quickly and by a qualified agent. While one agent might miss a listing to another agent in the office, it generally comes full circle because down the track they’ll pick up an enquiry that hasn’t been picked up by someone else within nine minutes.

“For us, it’s all about focusing on the client and making sure they’re looked after.”

Lisa also points to Novak Properties’ three-minute SMS property report campaign as another example of how the team are meeting the need for instant information.

“Anyone, at any time, can SMS their address to a designated number and within three minutes we’ll respond with a full report about their property,” Lisa explained. “This single campaign, launched in the past year, has been our most successful to date and has generated in excess of 800 new leads.

“We’re supplying a value-add service that’s free of charge. After sending the report, we follow up to see if we can work with the lead to see how we can help them progress on their property journey.”

MARKETING MAESTROSMark and Lisa take marketing very seriously.

“We have an internal marketing team of six – journalists, copywriters, creative experts and even an ex-staff member from National Geographic,” Lisa said.

“We’re always looking for ways to give our marketing an edge. An example is our approach to commercial property. Rather than simply putting up a signboard, we ‘wrap’ the entire shopfront with branded signage – it becomes like a billboard. In highly exposed areas, we also light up interiors in ‘Novak green’. It makes our properties really stand out.”

Novak Properties also take a different approach to prestige properties.

“Most agencies make no differentiation between the marketing they do for a $600,000 property and that for a $3 million property,” Lisa explained. “This led us to create an elite marketing arm of our business, catering for high-end properties and showcasing them in the light they truly deserve.

“This includes an individualised A3 photographic album for each property with poetry-like copy to match. We also use state-of-the-art LED signboards, 3D walk-throughs and marketing material on the finest paper stock.”

PRINTING HEAVENWhile online channels are an essential part of any property marketing campaign, Mark and Lisa know how important printed collateral still is – so much so that they have their own in-house print shop.

“We’re not just talking about a high-end photocopier,” Mark said. “We literally have a print shop in our office.

“Commercial copiers, cutters, laminators, folders, scorers, envelope feeders, binders and more. We can print anything that Kwik Kopy can – and to a better standard. This means we can get our collateral to market quicker, it keeps costs down and we also retain control over the quality.”


FOCUS / AGENCY PROFILE

REA GROUP / ADVERTORIAL

Welcome to realestate.com.au’s Listed, our new agent web series. Through 10 exclusive episodes, we’ll be talking to agents and property managers from around the country – giving you a glimpse into their lives and passions as they discuss their own industry experiences and insights.

“The Listed web series gives you an opportunity to explore what makes some of the top performers in the real estate industry stand out as leaders in their markets.”

We understand that no two agencies, agents or property managers operate in the same way. The Listed web series gives you an opportunity to explore what makes some of the top performers in the real estate industry stand out as leaders in their markets.

These insights include:• How an understanding of your

customers’ culture and traditions helps to close deals (with Marc Lum from Ray White Glen Waverley)

• The importance of training for success (with Chris Hassell from Buxton Bentleigh)

• How to write the book on rent (with Lauren Robinson from Rental Results).We also spent the day talking to Mark

Novak, Director at Novak Properties in Sydney, about the importance of convenience when working with customers.

Novak Properties bring together a unique combination of high-touch customer service and hospitality, with cutting-edge technology to provide convenience to their customers. Their agency ethos resonates throughout their entire office space. When on site at the agency, customers are greeted with an option of seating arrangements ranging from a café-like seating area complete with operating coffee and antipasto bar to plush leather couches and a dining table – all designed to make

customers feel like they’ve been welcomed into their home.

In the episode, Mark explains how cutting-edge technology is embraced as a key provider of convenience for their customers, through their VR room and a Snaploader table (which allows the team to virtually walk customers through new developments).

To really bring convenience to the forefront and stand out from the market, the episode explores Novak Properties unique approach to inspections. Mark explains the brilliantly simple concept: customers are invited to park at the office and are then driven from the office to a variety of homes for inspection. This not only provides exceptional levels of service for their customers, but helps to develop a strong and lasting connection.

To watch Mark Novak’s episode, and the rest of the Listed web series, visit the realestate.com.au Agent Marketing Centre – agent.realestate.com.au.

Just LISTED!


PERSPECTIVES / COVER PROFILEFOCUS / PROFESSIONALISM

Technology in actionNew technologies have changed the world and the rate of change will continue to accelerate in the coming years. As the real estate industry moves towards professionalism, this means we must adapt by embracing technological advancements or be left behind.

By HELEN HULL

The adoption of new technologies that facilitate better communication with clients and allow for greater efficiencies undoubtedly result in a better and higher level service by agents.

Today, consumers expect agents to perform at an unprecedented level and the greatest enabler of increased performance is technology.

“The adoption of new technologies that facilitate better communication with clients and allow for greater efficiencies undoubtedly result in a better and higher level service by agents,” John Cunningham, Chair of the REIA Professionalism Committee, said.

“Professional agents understand their clients’ needs and have the knowledge, skills and expertise to provide the best advice and solutions. Technology plays a critical part in making this happen.

“Prospecting, hot spotting and other tools now available are smarter and faster than any agent, and using them can massively increase the opportunities for quality communication that is local, current and relevant to consumers,” he said.

“The best agents in both sales and property management know that their core function is to be at the centre of the client relationship.

“Technology enables low to mid-dollar range tasks to be effectively carried out by system management tools that allows agents extra time to be more effective communicators, which increases their value proposition.”

Mr Cunningham said impeccable back-office support is essential for agents seeking to build a professional career.

“There must be clarity of communication, quality information supplied, no short cuts or smoke and mirrors, and no need for second opinions.”

Mr Cunningham said advancements in online forms technology, data integration and sharing, and now the advent of the digital contracts connecting with DocuSign, opens up a whole new world of speed and efficiency.

“Agents can digitally sign an agreement with a seller in another country and then be able to obtain a digital version of the contract for sale the very same day.

“Properties can then legally go to market immediately and property consumers on both sides of the transaction will be the winners.”

Mr Cunningham said looking ahead we’ll see more consumer experience enhancing tools that will elevate the agent’s role as a trusted advisor – connecting their consumers to other services including finance, accounting, removalists, interior designers, connection services, legal advice, financial planning, as well as white and brown goods.

“These services from reputable providers will embue the property consumers with far greater trust in the process and result in better outcomes for all.”


The state of

TECHNOLOGYWe asked real estate leaders across the country for their opinions about the state of technology in our industry.

Colin McIntyre Sales Agent and Auctioneer at McIntyre Property, Australian Capital Territory

Years in real estate: 21 years

“The real estate industry has embraced new technologies as they become available.

We’re in a communication industry where a simple face-to-face conversation allows you to get a feel for your client’s thoughts, whereas the systems available designed to make life easier – like email and text messaging – can cause a loss of personal interaction.

Technology helps to speed up communication when it comes to reporting and the sales process. It also extends our advertising reach and allows buyers to qualify themselves online before even entering the property or making contact with an agent.

We’re always searching for more efficient ways to deal with processes and procedures, and we lean towards technology that reduces our paper usage, office space and time.

Access to information is on the increase. Information on recent sales and about agents – positive and negative – is easily available online.

The need for a franchise behind you to provide the necessary systems and processes are long gone. A single person agency can easily and cost effectively access all the technology necessary to run an efficient agency and be well established digitally."

Scott Chadwick Managing Director at Chadwick Real Estate, New South Wales


“We have a passion for making things better using technology. We use technology across the entire spectrum of what we do – it’s in our DNA as a business. Adopting new technologies is a time and money saver that ultimately impacts our client service and, at its best, also helps our agents.

Consumers currently have more information available to them than ever before. In the past, it’s been difficult for agents to effectively show their strengths. But social media is now an effective way to do this, which makes it very powerful.

We align ourselves with people who value technology and within that cohort of like-minded individuals, so we can share the best of the ideas. We have a dedicated in-house person who specialises in that space and they help us evaluate social and digital technologies.

New technologies are crash tested and trialled across the various facets of our business before we adopt them and we’re always looking for implemented examples in the industry amongst our friends and contacts to see what opportunities are working.

In the future, I think we’ll see the rise of artificial intelligence – technology that thinks for itself!”


Anthony Toop Chairman of Toop & Toop, South Australia


“The use of technology in real estate is amazing. New devices, new capabilities – we should all be rejoicing in this era, because it’s just so exciting.

Those who show resistance to adopting technology will, through market forces, find it tough operating in the traditional model.

Technology is the enabler in the real estate transaction and is essential for good legislative compliance. We use it to bond the team, create ‘team selling’ systems and it assists us with ensuring compliance. We use it to communicate with stakeholders and to simplify their lives. It’s so integral to our business, I can’t imagine life without the latest technology capabilities.

Without new technology, we would not be capable of profitably delivering the services we currently do. For example, our maintenance software, ‘FIX’, has changed our property management business forever, saving the business and landlords a fortune.

Technology is integral to our future. We have split off a technology company to develop solutions to enable greater speed and responsiveness. We talk about solutions in months, rather than in years. It’s the foundation of our business and there’s absolutely no doubt in my mind that the next five years will be defining for all of us in real estate.”

Jeremy O’Donoghue Managing Director at First National Real Estate O'Donoghues, Northern Territory


“I think the industry is very active in the technology space – we have to be, because buyers and sellers are rapidly adopting technology.

We’re seeing lots of benefits for consumers – especially when it comes to the data available to them, which has made it easier to look for property, identify value and compare yields. This data means consumers can feel comfortable about what they’ve purchased or the trends they’re seeing in the market.

Agents needs to educate themselves in the tech space regularly and keep up to date with what has happened and is going to happen.

Technology has made things very factual and real. Data doesn’t lie and access to records and photos clearly show things like if a property has been renovated or not.

In such a fast moving environment, we need to embrace the changing environment to ensure we aren’t left behind. It’s exciting to be able to put systems and processes in place that are taken over by machines and ensure that we’re consistent and compliant with best practice.

Clearly the online portals are very powerful within our sector and it’s important to watch what they’re doing. We also keep an eye on other industries like banks to see what changes they’re making and attempt to adopt them within our own business.”

Peter Brewer Chair of the REIQ Board of the Directors, Queensland


“The take up of technology in the real estate is atrocious! I’d suggest that only 10-15 per cent of the industry do it well.

Emerging technology has provided our industry with exciting ways to show its relevance. It can simplify the process and provide consumers with the information they want on the platforms they use. Importantly, social media allows agents to show that they are true human beings who are genuinely part of the community. Done well, it can change the perception that we’re ‘all about the transaction’.

My simple mantra is: ‘Real estate agents won’t be replaced by technology, they’ll be replaced by real estate agents who effectively use technology.’ The rise of the use of artificial intelligence and digital assistants has the capacity to replace the mediocre agent. I fervently believe that the mediocrity will be replaced by machines.

Keep an eye on Amazon Alexa, Google Home and Siri. We’re seeing some exciting innovations with these forms of AI.

A colleague has recently installed a powerful AI platform to streamline all incoming enquiry and to automate repeat tasks. That software will never ask for a pay rise, will do the job 100 per cent of the time, never calls in sick and has, in six months, saved the business $31,000.”


FOCUS / PROFESSIONALISM

Tameka Smith Director of Property Management at Key2 Property, Tasmania


“The real estate industry’s use of technology is second to none.

New and exciting developments over the last 10 years see the software available to property managers now 100 times better. Previously, we advertised rental properties in the newspaper and the internet was not really used. Now we have the luxury of premier listings, showcases, virtual tours and 3D modelling. You can now lease a property at the touch of a button.

We were a 9 to 5 industry and we’re now able to offer properties 24/7. Cloud-based software available for reporting and trust accounting makes property management more streamlined, there’s less room for errors and it’s much easier for investors to access their property data whenever they wish.

Developments with REI Forms Live and the new inspection app see the industry more streamlined.

The way we market our properties and ourselves is always developing and changing, and this needs to be embraced. While I love technology and love what it brings to our marketplace and the changes that have occurred over the past 10 years, I do believe that there’s nothing better than a conversation over the phone or in person. It’s a fine line not to get too caught up in the systems and ‘wow’ of technology and make sure that we have that personal touch with our clients.”

Mark Di Giulio Director and Auctioneer at Barry Plant Doncaster East, Victoria


“The most successful agents have a balance between adopting technology and using traditional practices. Those focusing on one or the other can underperform, because it’s still essentially a people’s business where buyers and sellers want to work with a good human being, not a good computer.

Buyers and sellers want easy access to information and technology that creates good interaction between them, the marketplace and the agent. It can allow you to be in their face adding value without being annoying.

Technology can be a clever tool to leverage your business through market databases, buyer/seller management and campaign management. However some agents can get too smart with technology and they forget the basics.

I run an Effective Business Unit (EBU) and if the team thinks a piece of technology is adding value, I’ll implement it. I’m not a tech savvy person. If you want to be successful with technology, you need to employ the right people to manage it for you.

I think, in the future, for entry-level type properties and lower value homes, we may see more owners attempting to transact properties without an agent. With anything middle range and above there will always be a place for a professional agent to sell on a human level.”

Peter Clements Founder of Mint Real Estate, Western Australia


“I’m consistently amazed at agents who do things the hard and old-fashioned way. Technology allows transparency and trust, which is a rare commodity in our industry. Buyers and sellers want to know what’s going on, immediately and honestly. Without the use of technology, that’s almost impossible to deliver.

Technology is an enabler of better communication and improved efficiency. You’re able to focus on why you were hired – to get the best possible result as a professional, using your skills in negotiation.

Homepass and Inspect Real Estate both help reduce time spent on admin, like capturing new buyer details at an open home.

CRM’s have also come a long way and the automated features enable us to be more efficient with our time and focussed on things a computer can’t do.

Ninety-nine per cent of the homes I list are sold using the Openn Negotiation App, which allows buyers from anywhere in the world to bid in real time against each other. It puts qualified buyers on an even playing field, to openly negotiate on price with complete transparency and security knowing the number of real buyers.

Agents who arm themselves with technologies that highlight the real benefits they bring to the transaction will continue to bring value to the process of buying and selling a home.”


Customer experience design matters. The customer wants better. Here Josh Phegan explains why and how you can meet the challenge.

We live in a world where you press a button and a car turns up. You press another one and dinner turns up. And then you can press yet another button and have a new potential partner turn up.

Today's consumer doesn't want to buy, nor do they want to sell. They don't want to use an agent. They don't want to live where they currently are; they want to live somewhere else. If they could press a button and make that happen, they would.

In the new world, you have to redesign your customer service offering so that you can get more of the jobs done. What are the jobs the customer is trying to get done? What are the underlying jobs they also need to get done?

Technology helps to scale service. As software eats into the tasks list, automation takes over and helps you to do more with less. If you don't embrace new technologies, you get left behind and stuck in archaic time-consuming processes.

The role of technology is to make things easier so you can focus on the things that drive your business, like getting on the phone and getting in front of consumers.

Today's consumer has unmet needs, unidentified needs and unsatisfied needs. The agent that can meet, identify and satisfy those needs is the one that wins. Technology allows you to scale the service by evolving systems. Systems like forms (to capture information), checklists (to ensure consistent service), visuals (to communicate powerful messages) and dialogues (to be more active on the phone) are the essential elements to scale a business.

No one piece of software will ever be your solution. What you need to build is an app stack. Just like on your phone, it's a group of apps that complete specific functions, so you can minimise stress, maximise output, and drive efficiency and personal effectiveness. With API's apps can talk to each other, sharing data, causing trigger events and automating essential elements of service, so you can focus on the real value adds.

The role of technology is to make things easier so you can focus on the things that drive your business, like getting on the phone and getting in front of consumers.

JOSH PHEGAN is an internationally renowned go-to speaker, trainer and coach for high-performance real estate agents and agencies.

When selecting technology, look for the following …

1What’s the problem you’re trying to solve? What you think is the problem is rarely the problem. When you understand

the problem you're trying to solve you can put the best system in place to get the result. Most people think prospecting is their issue, yet if they served their existing customers well, those customers would lead to more customers. Definition of the client service journey allows you to understand workflow – what needs to happen next? Moreover, who's involved? What technology is required?

2How does it work/play with your existing app stack? Tech needs to talk, but not all tech is the same. Syncing needs to be two

way, immediate and in the moment. As you scale and grow, you need a robust tech platform that can handle the load as you go from one office to many, one salesperson to a team.

3 Is it mobile first? You can do everything on your mobile. Make sure every app is mobile first, that way you keep your team mobile and

your systems simple.

4 Does it scale, especially to multiple team members? Workflow matters. As your team grows, you need adoption of all of your

essential systems. How does the application work with multiple users and ensure there's no wastage?

5 Can you talk to real life users and see it in play? There's nothing like seeing the technology in play and learning from power

users who've mastered the tech. Seeing tech in new applications opens your mind to new possibilities. I'm OK with people only using 10 per cent of an app if that 10 per cent solves a significant problem.

By JOSH PHEGAN

Drive service levels with new tech


FOCUS / COACHING CORNER

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By HEDGIE GUNDRY

Landlords’ insurance: A win-win for everyonewith Realtyprotect

There are very real risks involved when managing uninsured rental properties. Here’s why property managers should encourage landlords to take out the right insurance.

From fire and flooding to rental default and malicious damage, landlords’ insurance provides essential risk protection for both landlords and property managers. Having a fully-insured rent roll not only saves property managers valuable time and money, but also protects against any public liability – an important area of cover which can often be overlooked.

Standard best practiceAccording to REINSW Business Development Manager John Trani, it’s now standard industry best practice for property managers to discuss the financial risks a new landlord may face and how to manage these risks with a comprehensive landlords’ insurance policy.

“Even though there’s no legal requirement for landlords to have landlords’ insurance, many property management teams now insist on the landlord having this level of cover before they take on a new property. It’s really now standard best practice,” John explained.

“A good landlords’ insurance policy simply minimises risk for everyone. And it ultimately makes your job easier as it covers things like loss of rent, time spent at tribunals, legal expenses and any damage caused to the rental property.

“One area that’s often overlooked is the public liability protection landlords’ insurance offers not only to landlords, but also property managers,” he said.

“If a tenant has a serious fall within a rental property, they may have grounds to make a negligence claim against the landlord. But what often happens if the landlord has no insurance, is the landlord's solicitor may try to counter sue the property management company.”

If a landlord doesn’t take out landlords’ insurance, property managers need to have a paper trail in place that clearly shows the insurance was recommended either at the time of signing the management agreement or during the time the property is being managed.

“From a property manager’s perspective, professional indemnity insurance may cover them in this instance. But it’s just easier for everyone if the property is covered with a good landlords’ insurance policy, including high levels of public liability.”

Saves you valuable time and moneyManaging a fully-insured rent roll also saves a property manager precious time when it comes to coordinating any repairs that may arise.

“If your landlord has a broken water pipe in their strata unit causing damage to the property, they may be up for thousands of dollars in repairs and loss of rent,” John said.

“The owners’ corporation will normally fix the pipe and walls, but the landlord would be responsible for repainting, cleaning and replacing the carpets. Having landlords’ insurance in this situation makes the repair process a lot less stressful for everyone involved.”

Similarly, landlords’ insurance will also make a property manager’s job easier in the event of a tenant defaulting on rent payments. If the landlord isn’t insured, the property manager or landlord may need to pursue outstanding money in the local court, which is both stressful and time consuming.

“If a tenant stops paying rent and the landlord isn’t insured, a property manager’s workload increases immensely,” John said.


FOCUS / LANDLORDS’ INSURANCE

“Not only does your commission stop during the default period, but if the case ends up at the local court for debt recovery and the tenants are unable to pay a lump sum immediately, you could be chasing rent for years to come.

“With landlords’ insurance, once the claim is made and the funds are released, you’ll receive any outstanding commission. And you can also claim for your time representing the landlord through the policy.”

Not all policies are the sameEncouraging landlords to take out landlords’ insurance is obviously a win-win for all concerned. But according to John, it’s also in your best interests to make sure the landlord understands not all policies are the same.

“Landlords’ insurance is one of those policies where a landlord really needs to read the fine print to check the level of coverage,” he said.

“When it comes to rental default, some policies will only provide cover for fixed-term leases, but not when the lease is in the continuation period. It’s therefore really important the landlord reads the product disclosure statement thoroughly to ensure the policy meets their needs.”

Landlord's objections and how to handle them

1 "If you do your job properly, I won’t need it."No matter how well a property manager does

their job, a tenant’s life circumstances can change. And no matter how financially-secure a tenant is on paper or how glowing their references, personal circumstances can result in perfect tenants defaulting on rent. It’s also very hard to predict how a tenant will react in terms of compensation when asked to tolerate any ongoing repairs or if they injure themselves within the property.

2 "I’ve got building insurance and a bond."Building insurance generally only covers

damage to the building, not damage caused to the contents and other risks inherent in owning a rental property, such as loss of rent. Contents includes curtains, carpets, blinds, light fittings and more. A bond is also only four weeks’ rent, whereas the cost of malicious damage or accumulated loss of rent during eviction can often be much higher.

3"The owners corporation already has insurance."The owners corporation will have

building and public liability insurance for the outside of a strata building, but not for the inside of the lots. If a water pipe breaks, for example, the strata scheme will fix the pipe, but they will not pay for any internal damage to paint work, carpets and floorboards. There may also be loss of rent in this situation, which would not be covered.

LANDLORDS’ INSURANCE WITH A DIFFERENCEDeveloped by CGU with REINSW, protecting your landlords with Realtyprotect is as simple as logging into REI Forms Live.

When you complete the Managing Agency Agreement, you’ll be prompted to ask the landlord if they want a quote for landlords’ insurance. By clicking ‘yes’, a quote will automatically be emailed to the landlord when you finalise the agreement. They can then accept the quote and receive the policy online. It’s that simple – and all the details are stored in REI Forms Live.

Importantly, if the landlord says ‘no’, you’ll have a record of this should any future claim arise.

To find out more about Realtyprotect, contact REINSW Business Development Manager John Trani on 0413 365 517 or at [email protected]

Go to landlordsaviour.com.au for more information.


By CATH DICKINSON

Short stay crackdownThe NSW Government has labelled its proposed framework for short-term holiday letting as “the toughest in the country”. Here’s what you need to know about what’s ahead for the sector.

The growth of the short-term holiday letting sector has been rapid and shows no signs of slowing down.

With more and more visitors to New South Wales using online booking platforms like Airbnb and HomeAway (formerly Stayz), the NSW Government announced in mid-2017 that they were going to crack down on the sector. The release of the Short-term Holiday Letting in NSW discussion paper outlined options and underlined the government’s intention to take over what to date has been an ad-hoc process from council to council.

After a consultation process, which REINSW took part in, the government has now revealed its proposed regulatory framework for the short-term holiday letting sector going forward.

Reforms are a “win-win”Minister for Innovation and Better Regulation Matt Kean said the new framework recognises the estimated $31 billion annual contribution of online booking platforms like Airbnb and HomeAway to the Australian economy, while stamping out party houses through a mandatory Code of Conduct.

The framework also includes changes to the Strata Schemes Management Act, which will allow owners’ corporations to adopt a by-law, with a 75 per cent majority, preventing short-term letting in their block if the host does not live in the unit they are letting out.

“We’ve consulted widely with industry and the community to make sure our nation-leading framework is the very best approach to short-term holiday letting,” Mr Kean said. “It’s a ‘win-win’ for all involved.

“The mandatory Code of Conduct for online booking platforms, managing agents, hosts and guests will address impacts like noise levels, disruptive guests and effects on shared neighbourhood amenities.”

Mr Kean said that the code will also include a new dispute resolution process to resolve complaints and NSW Fair Trading will have powers to police online booking platforms and managing agents.

“Under our ‘two strikes and you’re out’ policy, hosts or guests who commit two serious breaches of the code within two years will be banned for five years and will be listed on an online exclusion register,” he explained.

“These are the toughest laws in the country and will make sure residents are protected while ensuring that hosts who do the right thing are not penalised.”

New state-wide planning laws will also come into force.

“Short-term holiday letting will be allowed 365 days per year when the host is present,” Anthony Roberts, Minister for Planning and Housing, said. “Where the host is not present, there will be limits on the number of days that hosts can rent out properties – 180 days in Greater Sydney and 365 days in all other areas of NSW.”

Mr Roberts explained that councils outside Greater Sydney will have the power to decrease the 365-day threshold to no lower than 180 days per year.

“The 180 days a year limit equates approximately to weekends, school holidays and public holidays, so we felt this was a fair and balanced approach,” he said.

“Councils outside Greater Sydney can decide if permitting short-term holiday letting for the entire year is acceptable for their local communities. This recognises the importance of tourism in some regional areas.”

Code of Conduct a positive stepThe introduction of a new mandatory Code of Conduct has been welcomed by REINSW. In responding to the government’s discussion paper in October 2017, REINSW argued strongly that any new short-term holiday letting framework must include a strengthened code of conduct.

“We support the government’s decision to make the new Code of Conduct mandatory,” REINSW CEO Tim McKibbin said.

“While the Holiday Rental Code of Conduct has been in place in NSW since 2012, it has unfortunately never lived up to its promise. It’s voluntary and, as such, there’s no incentive

We’ve consulted widely with industry and the community to make sure our nation-leading framework is the very best approach to short-term holiday letting.

MATT KEAN Minister for Innovation and Better Regulation


FOCUS / SHORT-TERM HOLIDAY LETTING

to adhere to it. Further, it’s roundly viewed as ‘toothless’ because it’s not enshrined in legislation and so is not enforceable.

“We proposed that any new code should be enshrined in legislation, so it is a formal element of any regulatory framework and can be effectively enforced. By doing this, both agent and non-agent operators will be bound to adhere to it.

“We also maintained in our submission that the government has a role to play in the management of any code of conduct, and must be accorded the appropriate resources to manage and enforce it.

“REINSW is pleased with the direction the government has chosen to take regarding this element of the new framework.”

Bringing about consistencyMr McKibbin also applauded the government’s move to bring in state-wide planning laws to regulate short-term holiday letting.

“At present, local councils across New South Wales take different approaches to regulating short-term holiday letting within their jurisdictions and the lack of a uniform approach to the sector has often led to confusion,” he said.

“In our response to the discussion paper, we submitted that to address this lack of consistency and not impinge on already limited council resources, short-term holiday letting should be regulated at a state level.

“We’re happy to see that our calls have been heeded. The new state-wide planning laws will provide owners with the certainty they have been craving, while still allowing councils to address local needs.”

Creating a registerIn its submission in response to the discussion paper, REINSW said there was value in putting a simple registration regime in place. Where an owner wants to engage in short-term holiday letting, they should be required to register their property. This registration would take place via a centralised registration portal (administered by the NSW Government) and the property would be assigned a registration number. They would then be required to provide this registration number to the managing agent or enter it into the online booking platform when they seek to advertise the property.

“While the government’s exclusion register falls short of the overall registration system REINSW proposed, it does meet the need to provide some sort of tracking system for those who are breaching the law,” Mr McKibbin said.

“This means of enforcement will go some way to ensuring that behaviour in breach of the Code of Conduct is sanctioned, and we’re pleased that hosts and guests will be held accountable.”

Next stepsREINSW is now in the process of reviewing the draft Bill.

“We’re going through the Bill with a fine-tooth comb,” Mr McKibbin said. “We’ll continue to voice our position to government to ensure any framework provides clarity and guidance for all stakeholders, and ensures the economic benefits of the sector continue to flow while also managing the social and environmental impacts.”

We’re happy to see that our calls have been heeded. The new state-wide planning laws will provide owners with the certainty they have been craving, while still allowing councils to address local needs.

TIM MCKIBBIN REINSW CEO


PERSPECTIVES / COVER PROFILEFOCUS / SHORT-TERM HOLIDAY LETTING

CODE OF CONDUCTMandatory compliance A mandatory Code of Conduct will be introduced. It will apply to anyone involved in providing or using short-term holiday letting (including online booking providers, managing agents, hosts and guests).

Consequences of breach The Code of Conduct will establish a ‘two strikes and you’re out’ policy. A strike will include any behaviour that unreasonably interferes with a neighbour’s quiet and peaceful enjoyment of their home.

Hosts or guests who commit two serious breaches of the code within two years will be banned for five years.

Online accommodation platforms and managing agents will not be permitted to offer services to anyone or any dwelling that is listed on the exclusion register.

Complaints process The Code of Conduct will establish a complaints system that will be available to neighbours of short-term holiday letting premises, strata committees and owners’ corporations.

Complaints will be assessed by independent and impartial adjudicators, approved by the Commissioner for Fair Trading. Adjudicators will be required to make decisions on evidence and after giving both complainants and respondents a chance to put their case forward.

Strikes will be recorded on an online register to ensure that hosts and guests are not able to ‘platform shop’.

Online booking platforms and managing agents will have to check the register before taking on new customers. Failure to do so may result in significant penalties of up to $1.1 million for corporations and $220,000 for individuals.

Compliance and enforcement NSW Fair Trading will have powers to police online accommodation platforms and managing agents.

The Code of Conduct, its enforcement, the compliance system and the online register will be funded by the industry.

STRATA SCHEMESBy-laws prohibiting short-term holiday letting The Strata Schemes Management Act will be amended to clarify that by-laws can prohibit short-term holiday letting (by a 75 per cent majority vote), but only for lots that are not a host’s principal place of residence.

If a host is genuinely sharing their home, they will still be able to use a spare room for short-term holiday letting and will be allowed to let out their principal place of residence while they are away on holidays.

Information kits NSW Fair Trading will develop a strata information kit to advise owners corporations on how they can use other existing strata laws to help deal with short-term holiday letting.

PLANNING LAWSState-wide approach New state-wide planning laws will allow for short-term holiday letting under certain conditions.

On-site hosts Where a host lives at the premises, they can use their home for short-term holiday letting for 365 days per year as an exempt development (i.e. they do not need to submit a development application to their local council).

Off-site hosts Where the host does not live at a premises located in metropolitan Sydney, Newcastle or Wollongong, the property can only be used for short-term holiday letting for up to 180 days. If the property is located in any other part of NSW, it can be let for 365 days.

Changing limit on number of days Local councils will have the power to increase or decrease the limit to any number between 180 and 365 days.

Where a property owner wants to use the premises for short-term holiday letting for more than the limit applying in their local government area, they will need to lodge a development application and seek approval from their local council.

The content above has been drawn from information

available at fairtrading.nsw.gov.au

THE PROPOSED FRAMEWORK


Why not take the time now to have a confidential chat about buying a new rentroll. We can then start mutually planning your expanding rental strategy.

We have some genuine sellers ready right now to negotiate confidentiallyand discreetly their rent rolls.

Ross Hedditch Mob: 0418 321 952 [email protected] Francis Mob: 0418 223 933 [email protected]

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ROSS HEDDITCH

BDH SOLUTIONS

STEPHEN FRANCIS

Consideringbuying another

rent roll?

Why not take the time now to have a confidential chat about buying a new rentroll. We can then start mutually planning your expanding rental strategy.

We have some genuine sellers ready right now to negotiate confidentiallyand discreetly their rent rolls.

Ross Hedditch Mob: 0418 321 952 [email protected] Francis Mob: 0418 223 933 [email protected]

bdhsolutions.com.au

ROSS HEDDITCH

BDH SOLUTIONS

STEPHEN FRANCIS

Consideringbuying another

rent roll?

UNDERQUOTING / FOCUS

Spotlight on underquoting

Recent blitzes by NSW Fair Trading serve as a timely reminder about the importance of understanding the law and your obligations when it comes to underquoting.

Real estate agents in Sydney’s Inner West were collectively fined more than $66,000 in May 2018 for breaching underquoting laws.

Inspectors from NSW Fair Trading visited 37 agents in the area, finding 27 to be non-compliant and fining 19 for underquoting offences.

This latest crackdown follows similar inspections earlier this year across Sydney’s Eastern Suburbs and Northern Beaches, which saw 18 agents found guilty of underquoting.

NSW Fair Trading’s focus on underquoting highlights why it’s essential for all agents to have a detailed understanding of underquoting laws and ensure they are operating within the letter of the law.

Here’s a reminder of the top five things you need to know about when it comes to underquoting.

Underquoting GuidelinesThe Underquoting Guidelines for Residential Property have been developed by NSW Fair Trading to help agents understand their obligations. Download a copy of the guidelines at fairtrading.nsw.gov.au

Record selling price statements

You must keep a written record of any and all prices you have quoted in relation to the property. These written records

will help you to demonstrate that you haven’t quoted a price that is lower than your estimated selling price.

At an open home, you’re likely to provide the same information to a number of potential buyers. In such cases, you can simply make a single record of the uniform information provided. However, if you have a conversation with an individual over the phone or face to face, then you must make an individual written record of the information conveyed.

Regularly revise the estimated selling priceBased on market changes or feedback from potential buyers, it may become clear that the estimated selling price is no longer a reasonable estimate of the likely selling price. If this is the case, you must revise the estimated selling price.

If you do revise the estimated selling price, you must give written notice to the seller of the revised price and provide them with evidence to support the reasonableness of your revised estimate. You also need to amend the agency agreement to reflect this.

To help you comply with your obligations, REINSW has prepared

a Notice of Revised Estimated Selling Price, which is available via REI Forms Live and at reinsw.com.au

Don’t forget, you’ll need to take all reasonable steps, as soon as practicable, to change or withdraw any ads or marketing material with a price different to the revised estimated selling price.

Use the right terminologyThe Act now bans the use of phrases such as ‘offers above’ and ‘offers over’ when stating or publishing the estimated selling price. It also bans the use of any similar words or symbols. However

you can use phrases such as ‘price guide’, auction guide’, ‘bidding guide’ or ‘price estimate’, as long as

your published or stated price or price range complies with the Act’s other requirements.

Evidence the estimated selling priceYou must provide the seller with evidence of how you reached the estimated selling price for the property. You must also record and keep on file any and all relevant

information that shows how you determined the estimated selling price to be reasonable (for example, comparable

sales, market conditions, the property’s features and any other relevant information).

Determine the estimated selling priceUnder the Property, Stock and Business Agents Act 2002, you are required to include an estimated selling price in your agency agreements. This must be your reasonable estimate of the likely selling price for the property and may be expressed either as a single price or a price range. If you use a price range, the highest price in the price range cannot exceed the lowest price by more than 10 per cent.

What is a reasonable estimate will depend on the particular circumstances of each property. It should only be determined after careful consideration of any unique factors and based on your knowledge, experience and professional skills.

12

4

5

3


Passing the test: Are you a fit and proper person?

Section 14(1)(b) of the Property, Stock and Business Agents Act 2002 relevantly requires an agent to be a fit and proper person to hold a real estate licence. Sounds straightforward, right? But failure to pass the test can result in your licence being cancelled. So, ask yourself: “Am I a fit and proper person?”

What does a fit and proper person look like? Do you have to run a four-minute mile, bench press 200kg and follow Downton Abbey-esque etiquette? Well, no.

The overarching purpose of determining whether an agent is a fit and proper person is protection of the public.

The basic test involves three things: honesty, knowledge and ability.

Still not clear? Luckily, the NSW Civil and Administrative Tribunal has dealt with a number of cases regarding the cancellation of real estate licences for failing a fit and proper person test.

These cases help by providing practical guidance of what the test means for you in daily life.

Demonstrating remorse for dishonest actionsIn Gambino v Commissioner for NSW Fair Trading [2014] NSWCATOD 135, the agent had been convicted of dishonestly obtaining financial advantage by deception, as well as an assault. Drug use was also referred to in his police file. He had been a real estate agent for over 30 years.

Applying the tests of honesty, knowledge and ability, the Tribunal

found the agent was not a fit and proper person to hold an real estate licence as the conduct “demonstrated that he lacked the honesty to execute the office of a real estate agent truly without malice, affection or partiality.”

The Tribunal did qualify this by saying that a criminal conviction on its own wasn't conclusive of whether an agent is a fit and proper person, but in this case the dishonest nature of the crimes was a decisive factor.

An important factor to note in the Tribunal's decision was that the agent had not fully accepted responsibility for his offending and was not completely frank with the Tribunal about the circumstances in which a warning was placed on his police file about drug use.

Poor judgement not decisiveIn Farah v Director General, Department of Finance and Services [2014] NSWCATOD 112, the issue was an earlier criminal conviction for money laundering.

The agent had held a licence for almost 20 years, had worked in the industry for more than 30 years and had an otherwise unblemished record as a real estate agent. The only ‘black mark’ was (and still is) the money laundering conviction.

A number of payments had been made on behalf of an associate of the agent, ostensibly by way of a loan to assist in the payment of school fees and that loan was eventually repaid.

The associate was charged and convicted with conspiring to import a commercial quantity of cocaine, and the money laundering charge brought against the agent related to dealing with the proceeds of crime.

The Tribunal focused its enquiry on what aspect of the agent's behaviour rendered him unfit, at that time, to hold an agent's licence. Was it an isolated occurrence? Was the offending conduct (even if serious) connected with, or did it bear upon, his activities as a real estate agent?

In this case, the Tribunal did not cancel the agent's licence, as it concluded that the money laundering offence was not one involving dishonesty but rather “an episode of poor judgment” as the agent was unaware that the funds were the result of drug trafficking.

The passing of timeIn Salcedo v Commissioner of Fair Trading [2016] NSWCATOD 19, NSW Fair Trading cancelled an agent’s licence


FOCUS / LEGAL

By PETER MORAN

due to previous convictions relating to shoplifting and stolen credit card. He appealed the decision to the Tribunal.

While the shoplifting offence was minor ($150 dollar fine), the agent was also convicted of larceny and dishonestly obtaining property by deception in relation to a stolen credit card.

The agent submitted that he was remorseful and that the offences were only committed as he was destitute (he used the credit card for food) and unable to access Centrelink benefits (as he was under 21 and in an ongoing dispute with his father).

Despite the agent's circumstances and his young age when committing the offences, his application was rejected due to the dishonest nature of his crimes and the fact that he failed to disclose his convictions when completing his real estate licence application form.

The Tribunal did note that this did not preclude him from applying for a real estate licence in the future, stating: “It may well be that at some time in the future the applicant will be both a fit and proper person and no longer a disqualified person. However, it is not yet that time.”

Whether or not a sufficient period of time has passed to ignore previous offences has been considered by the Tribunal in a number of cases and no clear rule has been adopted. Instead each case will be based on the circumstances of each applicant.

Compliance is a mustIn Porter v Department of Finance and Services [2014] NSWCATOD 93, the agent had her licence cancelled by NSW Fair Trading on the basis she was not a fit and proper person due to non-compliance with the PBSA Act.

In 2012, the PBSA Act was amended to include a requirement for mandatory professional indemnity insurance. This provision came into effect on 1 July 2013.

A Senior Investigator from NSW Fair Trading's Consumer Protection Team attended the agent's offices and, amongst other compliance checks, requested proof of her professional indemnity insurance

She was unable to produce proof at the time of the inspection and, at best, was only able to later obtain a photocopy of a Certificate of Currency from an insurance broker.

The Tribunal found that this demonstrated that the agent was in breach of the PSBA Act, but stopped short of cancelling her licence, instead giving her a reprimand/caution.

This case is a clear example of how non-compliance with the requirements of the PBSA Act could lead to doubt in whether a person is a fit and proper person to hold a real estate agent's licence, and breaches while not criminal in nature could potentially lead to the cancellation of licences. However, in this case, the agent was lucky to just receive a caution.

DISCLAIMERThe information contained in this article, which is current as at the date of publication, provides only a general overview of subjects covered. It is not intended to be taken as legal advice or advice regarding any individual situation and should not be relied upon as such. Insureds should consult their insurance and legal advisors regarding specific coverage issues. All insurance coverage is subject to the terms, conditions, and exclusions of the applicable individual policies.

PROFESSIONAL INDEMNITY INSURANCE Compliance with the requirements of the Property, Stock and Business Agents Act 2002 is a factor in whether a person is a fit and proper person to hold a real estate agent's licence. Breaches, while not criminal in nature, can lead to the cancellation of licences.

Let Realcover protect your business with professional indemnity insurance designed with your needs in mind.

For more information and to discuss your insurance needs, please contact Realcover by speaking with a JLT representative on 1800 990 312 or email [email protected]

ARE A FIT AND PROPER PERSON?

Maintain awareness of the fit and proper person test and its requirements of honesty, knowledge

and ability, both within and outside real estate activities.

2 Exercise extreme care when agreeing to make payments to associates or persons not connected

with the estate agency practice, without full knowledge of the activities of the persons involved.

3 A criminal conviction alone will not result in a licence cancellation on a fit and proper person basis.

4 Accept full responsibility for offending conduct when faced with licence cancellation. Dealing with

the circumstances of the offending conduct frankly and honestly with the Tribunal will enhance the prospect of avoiding a ‘not fit and proper person’ finding.

5 Demonstrate sufficient remorse or understanding of the impropriety of the conduct.

6 Have office procedures in place so as to clearly identify if requested evidence of regulatory compliance,

including issues such as professional indemnity insurance cover.

7 Maintain files in respect of each regulatory issue; i.e. completion of continuing professional development

of staff, trust account records, proof of professional indemnity cover.

8 When in doubt seek legal advice as to regulatory obligations and statutory compliance issues.

PETER MORAN is a Partner at Colin Biggers & Paisley (which is a panel lawyer of QBE).

Realcover is underwritten by QBE Insurance (Australia) Ltd and managed by JLT


1

Do you have a new employee who needs training? If so, did you know they can gain practical experience while completing a formal qualification with a traineeship?

DANIELLE ANDREWS is the REINSW Education & Training Manager.

WHAT ARE THE BENEFITS?BENEFITS FOR THE AGENCY• Up-skill employees to meet business needs

• Government incentives available

• Provide opportunity for employees to mentor others

• Traineeships can commence at any time of the year

• Training subsidised by NSW Government Smart and Skilled Program

• Payroll tax rebate.

BENEFITS FOR THE TRAINEE• Achieve a nationally recognised qualification

• Learn valuable workplace skills

• Receive comprehensive training

• Flexible study options to suit learning needs

• Increase career opportunities.

Traineeships allow individuals to gain practical experience through workplace employment and complete a nationally recognised training program while obtaining a wage.

After more than 10 years of lobbying by REINSW, the real estate reforms have been passed, which makes it vital that trainees have the most up-to-date information as we wait for the changes to be implemented. Find out the latest information about the reforms at reinsw.com.au/reforms

Good entry-level real estate employees are hard to come by, which

is why it is critical to equip them with the skills they need to help develop them and your business. This way you create a win-win situation for everyone involved.

Of course, cost is a factor. This is where we can help. REINSW has funding from the NSW Government Smart and Skilled Program that will subsidise the cost of training for your trainee.

You may even attract Australian Government Employer incentives for taking on a trainee.

So, all you need to do is find the trainee and we provide the training.

What training do we provide?We can provide the following training:• CPP30211 – Certificate III in Property

Services (Agency), undertaken over 12 months, which includes the delivery of the Certificate of Registration Course

• CPP40307 – Certificate IV in Property Services (Real Estate), undertaken over 24 months and allowing the trainee, upon completion, to apply to NSW Fair Trading for a Real Estate Licence.

Who’s eligible?• New entrant – Employed for less than

three (3) months’ full time or less than six (6) months’ part-time with your business

• Aged 15 years and over• No longer at school.

Want to know more?For more information about Traineeships, you can contact me by emailing [email protected] or calling (02) 8267 0520.


TRAINING AND EVENTS / UPDATE

Get ahead for the industry training reformsBy DANIELLE ANDREWS

CALENDAR / TRAINING AND EVENTS

Train with the industry body

Starting out*REINSW runs a high-quality and highly-regarded Certificate of Registration Course for anyone who wants to start a career in real estate. That’s why many of our students come from referrals from agents like you. Students can:

• Study in a classroom over five days

• Enrol in eLearning for self- paced study

• Gain practical job-ready skills from experienced trainers, who are practising agents.

To find out more go to reinsw.com.au/CORC

The Certificate of Registration Course forms part of the CPP40307 Certificate IV in Property Services (Real Estate).

Earn your Real Estate Licence*Do you want an edge over your competitors to set yourself apart from other agents? Complete the CPP40307 Certificate IV in Property Services (Real Estate) qualification and obtain your Real Estate Licence.

You can enrol at any point in the year and will attain your qualification by successfully completing all the necessary short courses over a 12-month period.

When? Enrol at any point in the year and complete unit clusters in the order you choose.

Where? REI House 30-32 Wentworth Avenue Sydney

Units may also be completed via eLearning or a combination of face-to-face and eLearning.

Prerequisites? You must hold a Certificate of Registration.

To find out more, go to reinsw.com.au/licence

Each short course forms part of the CPP40307 Certificate IV in Property Services (Real Estate).

Recognition of Prior Learning*REINSW has a flexible approach to helping you upgrade your qualifications and doesn’t believe you should have to spend time re-learning things you already know.

If you already have experience in real estate, it can be recognised via our Recognition of Prior Learning program to help you gain your Certificate IV in Property Services (Real Estate).

To start the process, you need to enrol in the RPL program, complete the self-assessment questions and provide evidence of your experience. An REINSW assessor will then review your application.

You will then be advised of the outcome of your application and a plan will be put in place to confirm your skills and knowledge and to provide any additional training required to enable you to be issued with a Statement of Attainment or Certificate IV in Property Services (Real Estate).

To find out more about RPL, go to reinsw.com.au/rpl

Free webinars on demandREINSW runs regular webinars giving you access to live and interactive training without having to leave your home or office.

But sometimes you just can’t make the date and time. That’s why each of our webinars are available on the REINSW website, so even if you miss one you can still watch it later whenever you’re able to.

The presenters are agents and specialists who are experts in their field. They focus their presentations on single issues so they offer an in-depth and thorough look at the topic.

These topics include:

• Avoiding auction disasters • Supervision guidelines for agents• NCAT overview and preparation• Commercial sales contracts and

agency practise• Strata law reforms• Foreign resident capital gains

withholding tax• How to avoid costly negligence

claims.

To find out more go to reinsw.com.au/webinars

Find out moreTo find out more about any of REINSW’s courses:

reinsw.com.au

(02) 9264 2343

[email protected]

*This training is recognised within the Australian Qualifications Framework

RTO: The Real Estate Institute of New South Wales LtdRTO Provider

Number: 90117*


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New membersToday the real estate business is more competitive than ever before and membership of REINSW has never been more important. We’re proud to welcome the following agencies to our membership ranks.

241 Pty Ltd Manly

Australian Prime Realty Dover Heights

Austrina Global Group Sydney

AW Commercial Real Estate Wodonga

Belle Property Lane Cove Property Management Lane Cove

Best Real Estate Wentworthville

Caelia Collins Bar Point

Cara Real Estate Hornsby

Century 21 KeyNorth North Sydney

Charles L King & Co Barham

David Harvey Auctions Smeaton Grange

Di Jones Real Estate Beecroft

Emprise Property Liverpool

Engage Property Belmont

Gary Richard Johnston Forbes

George Brand Terrigal Toukley

InStyle Estate Agents Canberra Kingston

Mackay Agencies Duffys Forest

Maxma Development Sydney

Peter Milling & Company Dubbo

PRDnationwide Wagga Wagga Wagga Wagga

Professionals and Mark Cochrane Mullumbimby

Property Connect Operations Sydney

Ray White (Crows Nest) Crows Nest

Ray White (North Ryde) North Ryde

Rentaur Property Management Double Bay

Richardson & Wrench Commercial South West Kingsgrove

Sell 1st Real Estate Port Macquarie

Sky View Property North Sydney

Starr Partners Real Estate Narellan Narellan

Sydney Childcare Sales Avalon

The Agency Sales NSW Neutral Bay

Tristate Land Sales and Advisory The Junction

Wilsonbritten Real Estate Morisset

Wiseberry Kingscliff Cabarita Beach

XiaSyd Investment Chatswood

Your Corner Realty Manly

The agencies listed took out membership in April and May 2018.

NEW MEMBERS / LAST WORD

What’s the buzz?The range of topics canvassed in the media has been wide ranging in recent months.

It is completely disingenuous for government to express sympathy for our first-home buyers and other property consumers and then rip them off with outdated stamp duty rates. The NSW Government needs to search for its conscience and fix these outdated stamp duty brackets.

TIM MCKIBBIN REINSW CEONSW Government needs to reform stamp duty brackets Your Investment Property, 26 April 2018

reinsw.com.au/journalREAD MORE

It’s clear that the market in parts of Sydney is really struggling and agents are having to focus strongly on ensuring that the vendors are meeting the market in relation to price.

LEANNE PILKINGTON REINSW President

Lending constraints hinder Sydney Buyers The Real Estate Conversation 21 May 2018

Landlords should be entitled to take control of their property when they need to. It’s not the landlords’ responsibility to provide public housing. We need to understand it’s an investment and their situations can change.


No grounds evictions to remain after review of tenancy laws Sydney Morning Herald 21 May 2018

It’s just one simple line in the legislation in Queensland that allows them to hear the tenancy issues no matter where the parties are, and for whatever reason in NSW, they won’t do it. It makes no sense. The NSW Government must act swiftly and effectively, and make an amendment to the legislation as quickly as possible.


‘Stupid’ ruling hurts landlords with interstate tenancy disputes in NSW Smart Property Investment 19 April 2018

The second reading of the 1986 [stamp duty] bill noted the increased rates would only affect properties worth more than $300,000 ‘and thus will not affect the average home purchaser’. The median house price in Sydney is now at $1.1 million, costing $46,000 in stamp duty. It’s time for the government to amend these 1986 stamp duty brackets.


Time to scrap stamp duty once and for all Daily Telegraph 27 April 2018

People are trying to make their available land work for them, particularly in the inner suburbs. They might earn extra income or have a self-contained property so they can house either granny or family members who are aren’t able to get into the market – a number that’s growing daily.

TIM MCKIBBIN REINSW CEO

Sydneysiders are turning their backyard sheds into granny flats Your Mortgage 14 May 2018

To date, the government has chosen to ignore the damage these outdated tax rates are causing. By doing nothing, the government is simply profiteering at the expense of the consumer. The government’s conduct in regard to this issue is nothing less than unconscionable.

LEANNE PILKINGTON REINSW PresidentCall to end ‘unconscionable’ stamp duty ‘profiteering' The Adviser, 4 May 2018

It’s not good for anybody. It’s not good for the tenant, it’s not good for the landlord and it’s not good for the real estate agent, because our court systems are already overburdened. I don’t understand the logic in feeding these matters through to the courts as well.


New High Court tenancy ruling ‘illogical’, ‘no good’ says REINSW Residential Property Manager 24 April 2018


LAST WORD / MEDIA

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