INDUSTRIAL & COMMERCIAL REAL ESTATE BRISBANE QUEENSLAND AUSTRALIA

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Water Proof Your Asset - Smart Property Management Services

As the drought continues to bite and water restriction levels are increased, the question begs asking: ‘How does this affect Landlords, Tenants and Asset Managers?’ 

The onus is on Owners/Managers to make sure that simple things such as garden auto sprinkler systems are no longer working and that any water leaks on the property have been addressed. However, this often puts the property in conflict with the Local Council given that there is a requirement to keep properties landscaped. However, generally, common sense is prevailing and councils acknowledge they can’t have it both ways. 

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In recent times, Owners/Managers have been instructed by Council and the Fire Services Department to label all fire hoses and hydrants. For example, Brisbane City Council labels advise that there is a maximum penalty of $75,000 per occurrence for its inappropriate use. This move is the result of tenants and/or ‘Joe Public’ using fire hose reels to wash their cars/trucks/etc. 

Councils are monitoring water usage and we find we are now being asked to explain why water consumption has increased on tenanted properties. In many cases, it is simply that the property has been vacant and subsequently leased after the previous reading, or there had been a change of tenant/use. 

Authorities have made it clear that they are watching every drop used. They have muted there will be increased costs to purchase water and are already approaching large water usage tenants and asking the hard questions about what measures they are undertaking to minimise usage. The implications become greater if levels drop so significantly that government forces large water usage tenants to modify or close.  

Without scare-mongering, there is a clear and present threat to some Landlords. Either some or all of certain tenants will be unable to continue to operate and therefore close, resulting in non-payment of rent and/or vacancies. The less tangible effects will be the flow-on effects to related industries/business that are impacted by the loss of these industries. Economically, this has been downplayed but should not be discounted. 

So how can we help or change this pattern? 

From a management perspective we can work with tenants to help reduce any non-essential water usage across properties. Ensure that all leaks/running toilets/showers/etc are repaired. This may seem simple but across a range of properties the cumulative effect is significant. 

Some Landlords and managing agents are now going to the extreme of seeking tenants who are less directly affected by water supply issues or use products that do not rely on large volumes of water for manufacture. 

At Raine & Horne Commercial, this is just one aspect of critical focus we give to managed properties within our portfolio. Feel free to ask us regarding water smart steps you can implement to help safeguard your future investment income.