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Melbourne rental: Defective window leads to $1200 mold nightmare

A Melbourne man has been locked in a draining battle after discovering a widespread mold issue in his rental property.

It wasn’t until Jason, his wife and son were forced to move out of their two bedroom, Melbourne apartment, that they realized their mold problem was much bigger than anticipated.

Although the issue was enough for the family to terminate their lease early, the father-of-one estimated he’s spent more than $1200 on rent.

This is despite the fact the property has been vacated while work was performed at the property to fix an issue with their window caulking.

“We had to continue to pay rent for something that wasn’t our fault. It was a structural issue. It’s a building defect,” Jason told news.com.au.

After six months of living in their Doncaster East residence, Jason’s wife began noticing mold growing on the balcony door frames in May this year.

However, they say that their property manager advised them to treat the mold with Domestos – a disinfectant which contains bleach.

“We were like OK, but this is a mold issue. We had photos and we asked them if they wanted to send someone out,” Jason said.

“They were like, ‘Use Domestos and if it doesn’t work, then get in touch and we’ll send someone out.’”

While the initial treatment using Domestos worked, the mold returned a few weeks later. Their frustration was compounded by the fact that prior to signing the lease, the family were informed that while the apartment had mold issues and showed signs of water damage, they were told the issue had “all been fixed”.

Around the same time, the family also began getting sick. Jason said both him, his wife and are experienced recurring breathing difficulties and an “itchy feeling inside their nostrils”.

Although the family did visit a doctor, they didn’t know their symptoms could have been connected to the mold that was unsuspectedly growing in their home. Instead they were diagnosed with allergies and prescribed antihistamines.

“If you woke up at seven o’clock in the morning, you’d be sneezing until midday,” he said.

“We just thought it was maybe a cold because it was winter but over the course of the next month or so, we decided we would try our best to move out as soon as possible.”

‘It covered a quarter of the wall’

By June, the family had made the decision to end their lease and purchased a property instead. However, while moving out, they made a ghastly discovery.

“The issue is that the mold we saw at the time was just around the door frames, so we didn’t think to remove all our furniture to check if there were further issues,” he said.

“The mold behind the bed head was so significant, it covered a quarter of the wall.

“When we moved the baby change, everything underneath it was filled with mold and it was damp and there was water. It was really bad.”

While Jason was organizing the final cleaning for the apartment, they were informed by the agency that a builder had identified an issue with the caulking in the windows, which had caused the water to leak on the carpet. They were also told that the mold was caused by condensation from a lack of ventilation in the room.

Emails seen by news.com.au, confirmed the correspondence between Jason and the agent.

“The way I read it is that if it’s a ventilation issue, then it’s either a building design issue, or the blame is being put on us for not opening the window,” Jason said.

Despite this, the family was told that they had to continue paying rent until the apartment was re-leased.

“We were like, ‘The builder might need to get out the window guy. The window guy has to then come out to fix the corking, and then they have to fix the carpets.’” Jason said. “That could have taken weeks, if not months.

“Then when we went back and gave them the keys, (the agency) had the tenacity to say, ‘The mold issues still needed to be cleaned, how about I give you the keys back and you go back and use more Domestos?’ ”

While news.com.au approached the agent for comment, a spokesman for the agency declined to comment as a claim has been lodged with the Victorian Civil and Administrative Tribunal (VCAT).

“We must respect the process and not prejudice the tribunal’s decision,” he said.

Changes to mold and rental laws

Their dealings with the real estate agency have left Jason and his wife “incredibly upset”.

“When we found the mould, we were shocked, disgusted and upset,” said Jason.

Under changes to rental law in March 2021, issues related to mold and damp when caused by a building’s structure are now treated as an urgent repair. This classification means rental providers must address these issues as soon as possible.

If the issue is not responded to urgently, tenants can go through VCAT, where the application must be heard within two business days.

Speaking to news.com.au, practicing lawyer and the rental support services manager for Tenants Victoria, Georga Wootton said the renter advocacy group sees complaints about mold triple in winter. Ms Wootten estimates one-in-10 inquiries are currently about issues related to mold and damp.

Although tenants can apply for a rent reduction in issues related to mould, Ms Wootten said that rental providers often “aren’t willingly going to do that”.

“We advise all of our renters that because there’s been a breach of the residential tenancy act – which is to keep the premises in good repair – effectively the property is not in good repair if there’s mold there,” she said.

“So it does mean the renter could be entitled to compensation.”

However she admits this is not an immediate fix.

“There is a bit of a timeline until you might get that compensation,” she said.

“That can be disappointing for some renters because they are in that distressing situation of having to live in a moldy home.”

Still, Ms Wootten advises tenants to continue to pay the rent, so they don’t risk getting a notice to vacate.

“This can happen if you’re more than 14 days in rent arrears,” said Ms Wootten.

“We don’t want to see people to lose their homes.”

‘It’s painful’

After more than a month of back and fourth, the family were informed on Tuesday that the agent had re-leased the property. Since they vacated the property, Jason estimates the family have paid around $1200 in rent while the window caulking was being fixed, plus an additional $220 for the listing to be advertised.

Attempts at brokering an amicable resolution have also failed to the wayside, Jason said.

“I had a conversation with her two days ago. I said, ‘Can we come to something friendly here? Can we stop paying rent?’”

Jason said the drawn out issue has also been taxing on the family’s mental health and financial position.

“It’s really hard because with interest rates going up, it’s difficult continuing to pay rent for something we can’t even release off our books. It’s painful,” he said.

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Australian mum’s travel hate booms into $20m business Luxico

When it comes to holidaying, deciding whether to go with the expected comforts of a hotel or the relaxed amenities of an Airbnb generally comes down to the guest and the mood of the trip.

For mum and businesswoman Alexandra Ormerod, travel has always been high on the priority list – and she had no plans for that to change when she and husband Tom decided to start a family.

But with a little one in tow, the pair soon realized that the simple pleasures they once took for granted in a hotel room were no longer applicable for a young family.

“We have a lot of family overseas… we are avid travelers and after our first daughter was born we quickly discovered in our travels that hotels were dead to us and that came as a bit of a shock,” Ms Ormerod told news.com. ouch

“We soon found it very challenging to be traveling with a small child and finding accommodation that was of a standard better than a serviced apartment.

“We realized quite early on that places like Europe and Asia have a more mature market than Australia, so there are a lot more villas to hire in different locations. Whereas when you came to Australia and you effectively had the option of a holiday home. That home would be hired through a real estate agent and generally you were restricted to a coastal location and picking the keys up from the local fish and chip shop because the office was closed.

Ms Ormerod said the “disconnected experience” and “transactional approach” to hiring holiday homes in Australia meant guests “never really knew what they were going to get” on arrival.

With a background in advertising, Ms Ormerod said her work in travel and tourism along with her husband’s involvement in property development and real estate meant they identified a gap in the market for couples, friends and family groups seeking options in the luxury end of the holiday homes market.

As a result, ‘Luxico’ – which essentially combines hotels and holidays homes into one – was born in 2013.

“Luxico was a bit of an obvious outcome,” she explained of the company, which is now worth almost $20 million.

“We found there was a real niche for designer accommodation which we identified as not really existing at the time Luxico was born.”

Having a house on the Mornington Peninsula, Ms Ormerod said a lot of neighbors and Melbourne residents had “big homes” in the area which sat empty for most of the year. So she and Tom started renting out properties in the area which signaled a huge area of ​​demand for beautiful, high-end homes temporarily.

“We found there was a lot of demand for that $1000-a-night or more price point that was not being serviced,” she said.

“So we then built on that to try and service that demand, and try to take the experience away from a transactional offering to a more hospitality or hotel offering [within a luxury home].”

Each Luxico stay comes with a concierge service – essentially a local who ‘checks you in’ to the home. Each concierge acts as a point of call for guests, with no request too big, small or bizarre. The homes range from $250 to $15,000 or more per night.

“It’s bringing the human element back into that holiday home stay, and all our concierges are from the local area,” she explained of the company which exclusively manages $700 million worth of property across Australia.

“The extra services you can have – from chefs, to butlers and specialist touring – are all part of the optional extras.

“But for the everyday traveller, the feedback has been that the concierge had given them insider tips to the area … maybe told them of an amazing hidden gem they wouldn’t have otherwise known about that made their holiday.”

While celebrity clients make up a large bulk of the brand’s clientele, Ms Ormerod said “mums and dads” still make up the majority of bookings.

“Luxico is an end-to-end service so we exclusively manage all of the properties that we offer,” she said, adding that if a family is looking to book two or three hotel rooms – a home works out to be better value.

“So we are managing the guest experience not just through the booking process, but the experience they have in home and even afterwards.

“So from the slippers, to the towels to prepared toiletries, the concierge is going in there and provisioning and preparing the home so if you are traveling with small children we will bring in a toy box so they have something to play with. So it’s all those little touches that make the experience a continuance of the booking process.

“It’s more a holistic experience, connecting you with local products, experiences and service providers that will build on that stay.”

Read related topics:airbnb

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Categories
Business

Australian mum’s travel hate booms into $20m business Luxico

When it comes to holidaying, deciding whether to go with the expected comforts of a hotel or the relaxed amenities of an Airbnb generally comes down to the guest and the mood of the trip.

For mum and businesswoman Alexandra Ormerod, travel has always been high on the priority list – and she had no plans for that to change when she and husband Tom decided to start a family.

But with a little one in tow, the pair soon realized that the simple pleasures they once took for granted in a hotel room were no longer applicable for a young family.

“We have a lot of family overseas… we are avid travelers and after our first daughter was born we quickly discovered in our travels that hotels were dead to us and that came as a bit of a shock,” Ms Ormerod told news.com. ouch

“We soon found it very challenging to be traveling with a small child and finding accommodation that was of a standard better than a serviced apartment.

“We realized quite early on that places like Europe and Asia have a more mature market than Australia, so there are a lot more villas to hire in different locations. Whereas when you came to Australia and you effectively had the option of a holiday home. That home would be hired through a real estate agent and generally you were restricted to a coastal location and picking the keys up from the local fish and chip shop because the office was closed.

Ms Ormerod said the “disconnected experience” and “transactional approach” to hiring holiday homes in Australia meant guests “never really knew what they were going to get” on arrival.

With a background in advertising, Ms Ormerod said her work in travel and tourism along with her husband’s involvement in property development and real estate meant they identified a gap in the market for couples, friends and family groups seeking options in the luxury end of the holiday homes market.

As a result, ‘Luxico’ – which essentially combines hotels and holidays homes into one – was born in 2013.

“Luxico was a bit of an obvious outcome,” she explained of the company, which is now worth almost $20 million.

“We found there was a real niche for designer accommodation which we identified as not really existing at the time Luxico was born.”

Having a house on the Mornington Peninsula, Ms Ormerod said a lot of neighbors and Melbourne residents had “big homes” in the area which sat empty for most of the year. So she and Tom started renting out properties in the area which signaled a huge area of ​​demand for beautiful, high-end homes temporarily.

“We found there was a lot of demand for that $1000-a-night or more price point that was not being serviced,” she said.

“So we then built on that to try and service that demand, and try to take the experience away from a transactional offering to a more hospitality or hotel offering [within a luxury home].”

Each Luxico stay comes with a concierge service – essentially a local who ‘checks you in’ to the home. Each concierge acts as a point of call for guests, with no request too big, small or bizarre. The homes range from $250 to $15,000 or more per night.

“It’s bringing the human element back into that holiday home stay, and all our concierges are from the local area,” she explained of the company which exclusively manages $700 million worth of property across Australia.

“The extra services you can have – from chefs, to butlers and specialist touring – are all part of the optional extras.

“But for the everyday traveller, the feedback has been that the concierge had given them insider tips to the area … maybe told them of an amazing hidden gem they wouldn’t have otherwise known about that made their holiday.”

While celebrity clients make up a large bulk of the brand’s clientele, Ms Ormerod said “mums and dads” still make up the majority of bookings.

“Luxico is an end-to-end service so we exclusively manage all of the properties that we offer,” she said, adding that if a family is looking to book two or three hotel rooms – a home works out to be better value.

“So we are managing the guest experience not just through the booking process, but the experience they have in home and even afterwards.

“So from the slippers, to the towels to prepared toiletries, the concierge is going in there and provisioning and preparing the home so if you are traveling with small children we will bring in a toy box so they have something to play with. So it’s all those little touches that make the experience a continuance of the booking process.

“It’s more a holistic experience, connecting you with local products, experiences and service providers that will build on that stay.”

Read related topics:airbnb

.

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Business

Developer Cedar Woods shelves Brisbane townhouse project leaving homeowners ‘screwed’

A homeowner who bought into an off-the-plan development in Brisbane, which has now been shelved, has described the development company’s decision as an “absolute joke” claiming that it would leave his family financially “screwed”.

Chris* signed up to buy an $800,000 townhouse last year in the $180 million development called Greville, in the northern suburb of Wooloowin, and was scheduled to move into the new home with his partner and daughter in 2023.

The project was set to deliver around 250 homes, a recreation zone and pool, as well as a community park, and had originally been marketed as an urban village just 5km north of Brisbane’s CBD.

Now, the family has been left angry and upset after Perth-based developer Cedar Woods announced it was delaying the project, blaming rising costs, labor shortages, significant rainfall events in Queensland and extended construction timelines.

Buyers have been given the option to have their deposits refunded and will be offered the first choice when the project is remarketed, according to the developer, which it said hoped would be in the second half of next year.

But Chris claims they are “stuck in no man’s land” because the developer doesn’t have a clause in which they can cancel the contract, a claim Cedar Woods would not comment on.

In a letter to buyers, Cedar Woods proposed that both the developers and buyers agree to “a mutual termination of the contract” as the project would be “indefinitely delayed”.

But so far the family says it has refused to accept the return of their deposit, nor had any responses to other inquiries.

“There’s never been any consultation whatsoever. There was a post on Facebook in April about how they would start (construction), but then the post was deleted and we got phone calls saying everything was cancelled,” Chris told news.com.au.

“Financially, we have been really screwed by Cedar Woods’ decision because now the property prices are still up and we personally don’t think they are going to fail as much as speculators say. Add this to the pressures due to the cost of living going up and interest rates going up, greatly limit our choices.

“We have been looking at similar places and we are not going to get anything for under $1 million for the area.

“We tried to put an offer on a development of four townhouses and the real estate agent basically laughed at us as they are after the mid-$1 million mark for a place with the same square meterage and floor plan similar to what we had bought. ”

Cedar Woods did not respond to a news.com.au’s question on whether the townhouses and apartments would be sold at a higher price once the project was relaunched.

A post on its official Greville Facebook page back in April that said works were under way has now been deleted, but homeowners were left blindsided when the project was shelved just a month later.

“Construction is off to a great start in 2022,” the now deleted post read.

“Despite the weather in southeast Queensland, we are happy to share that civil works on the site are partially complete and construction will begin shortly. It is an exciting time for Greville and we are excited to show you what is to come.”

Chris, who works as a project manager, added that communication had been poor and the couple were “most peeved” that there was “no real consultation” by the company about the decision to shelve the project.

“This decision has majorly impacted people’s lives and they just don’t seem to care,” he said.

Cedar Woods managing director Nathan Blackburne said the firm’s decision was extremely difficult, but it was the right decision in an environment where builders were facing additional risks.

“We know purchasers are disappointed and (we) have apologized to them. We greatly appreciate the understanding of our purchasers who in the main are aware of the current conditions,” he said.

Extended construction time frames and increased costs had meant that the particular stages could not proceed as completion wasn’t possible by specified completion time frames, I added.

“Cedar Woods has continued to engage with the affected purchasers and provide opportunities for further discussion while prioritizing the return of their deposit,” he said.

“The company hopes to re-engage with them when conditions in the sector are expected to improve over financial year 2023.”

But for Chris and his partner, who are in their mid-30s, their “huge” excitement about owning the townhouse has turned into a nightmare.

“We are tossing up if we have to move further out of town away from family, friends, work and childcare, which would make life more inconvenient, but that’s one of the only options we have,” he said.

“Cedar Woods made a decision to protect shareholders and their bottom line as they are a business and I get that, but the impact that it will have on our family and other families out there is not insignificant.”

Meanwhile, work is still continuing on the project site, which has left buyers furious with many lashing out at the developer on Facebook.

“Cedar Woods is continuing to finalize all of the civil construction, remediation work of the historical laundry and the delivery of the community park in preparation for the project to come back to market,” Mr Blackburne said of the continued works.

Australia’s construction crisis

It’s not the first project to be suffered this month in Australia’s embattled construction industry.

Perth developer Sirona Urban killed off a $165 million luxury tower, where more than 50 per cent of apartments had been bought off the plan, blaming skyrocketing construction costs and shortages.

Owner Matthew McNeilly said construction costs had risen by 30 per cent in the past 10 months.

Then there was a Melbourne developer that abandoned plans to build a $500 million apartment tower on the Gold Coast, blaming the crisis in the building industry and surging construction costs for making the project unprofitable.

The development by Central Equity was set to kick off this year featuring 486 apartments in a 56-storey tower, known as Pacific One, and was due to be built on a beachfront block in Surfers Paradise.

Apartments had been sold with a starting price from $650,000 each.

Overall, the construction industry has been plagued with a spate of collapses caused by a perfect storm of supply chain disruptions, skilled labor shortages, skyrocketing costs of materials and logistics, and extreme weather events.

Earlier this year, two major Australian construction companies, Gold Coast-based Condev and industry giant Probuild, went into liquidation.

Then there have been smaller operators like Hotondo Homes Horsham – a franchisee of a national construction firm – which collapsed earlier this month affecting 11 homeowners with $1.2 million in outstanding debt.

It is the second Hotondo Homes franchisee to go under this year, with its Hobart branch collapsing in January owing $1.3 million to creditors, according to a report from liquidator Revive Financial.

Snowdon Developments was ordered into liquidation by the Supreme Court with 52 staff members, 550 homes and more than 250 creditors owed just under $18 million, although it was partially bought out less than 24 hours after going bust.

Others joined the list too including Inside Out Construction, Solido Builders, Waterford Homes, Affordable Modular Homes and Statement Builders.

*Name withheld for privacy reasons

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