Agency Practice

The top 5 liability pitfalls every property manager must avoid

👓 1.5 minute read

Every First National property manager faces the constant challenge of ensuring safety and minimising liability risks. Understanding the top hazards within your rent roll can make a critical difference in protecting your reputation as well as your landlords’ assets. 

This guide outlines five essential areas where liability issues commonly arise, then are escalated to First National’s professional indemnity insurer - Honan. Addressing these pitfalls proactively is key to upholding your duty of care.

Stay informed and diligent to safeguard both tenants and your clients’ investment properties.

1. Damaged Woodwork - Deteriorating or damaged timber can compromise structural integrity and create safety hazards. Regular inspections and timely repairs are essential – particularly with balconies and decks.
2. Faulty Fittings, Fixtures, & Appliances - Poorly maintained or damaged fixtures—not to mention malfunctioning appliances—pose risks of cuts, falls, fires, and other injuries. Prompt maintenance is crucial.
3. Unsecured Furnishings - Heavy items such as bookshelves and TVs should be securely anchored to prevent toppling and causing serious injuries. Make sure you communicate these risks when you see them, make file notes, and facilitate rectification where this complies with local legislation.
4. Unsafe Pool Fencing - Inadequate or unstable pool barriers and malfunctioning gate locks can lead to accidental access and drowning risks. Ensure pool fencing meets all safety standards.
5. Neglecting Known Risks - Failing to address or report identified hazards can result in liability claims. Stay proactive by informing landlords of risks and ensuring compliance with safety and maintenance obligations.

By focusing on these core areas, property managers can uphold their duty of care, protect tenants, and safeguard investment properties.

A simple negotiation strategy that changes everything

👓 2 minute read

Sales negotiations can stall over the smallest of margins. Whether it's $5,000, $10,000, or $15,000, buyers and sellers often fixate on the dollar amount rather than the bigger picture. As a First National Real Estate agent, your role is to help them see beyond the numbers—and one of the simplest yet most effective ways to do this is by shifting the conversation from dollars to percentages.

Why Percentages Work

A $15,000 difference in a negotiation feels like a lot of money. But what if you frame it differently? Instead of saying, "You're $15,000 apart," say:

"This is just a 2% difference in your asking price. Does it really make sense to walk away over such a small percentage?"

By translating the gap into a percentage, you reposition the conversation. A minor percentage shift often seems far more reasonable than a lump sum, making it easier for both buyers and sellers to justify movement.

The True Cost of Vendors Refusing to Negotiate

Helping clients understand the opportunity cost of hesitation is critical. Many believe that waiting will lead to a better outcome, but in reality, the risks often outweigh the rewards.

For sellers, holding out means:

• More time on market: Buyers start to wonder what’s wrong with the property
• Higher days on market: A longer campaign can reduce interest and push prices downward
• Increased stress: Uncertainty about whether the property will sell adds financial and emotional pressure

For buyers, waiting too long can mean:

• Lost time: The more time spent searching, the less time focused on work, family, and other priorities
• Market fluctuations: If interest rates rise or the market tightens, hesitation could mean paying significantly more later
• Missed opportunities: The ideal property may not wait, and alternatives may not measure up

By helping your clients weigh these factors, you can move them away from an emotional reaction and towards a logical decision.

A Dose of Market Reality

No one can predict the market with certainty, but history tells us that waiting is often a gamble. If the market moves by just 5%, a seller could end up with a lower offer in the future, while a buyer could find themselves priced out entirely.

It’s important to remind your clients that a deal today—perhaps just 2% below expectations—is often better than risking an uncertain future.

The Agent’s Role in Closing the Gap

Your ability to guide buyers and sellers through negotiations is what sets you apart. By reframing dollar figures as percentages, highlighting the hidden costs of waiting, and reinforcing market realities, you empower your clients to make smarter, faster decisions.

Negotiation isn’t just about getting the best price—it’s about securing a result that allows all parties to move forward with confidence. Mastering this simple shift in strategy could be the key to closing more deals, more efficiently, and with greater success.

What First National agents need to know about the new FIRB portal

👓 1 minute read

A significant change is coming for real estate agents handling transactions involving foreign investors. The Foreign Investment Review Board (FIRB) is launching a new Foreign Investment Portal, which will streamline compliance reporting and submissions. Here’s what you need to know.

Key Dates & Changes

• 24 February 2025: The new portal goes live for compliance reporting
• 31 March 2025: A private beta phase begins for a small group of investors and agents testing submission and payment functionalities
• End of April 2025: Full portal launch, allowing all users to submit investment proposals and payments

What This Means for Agents

Previously, compliance reporting required emailing Treasury with evidence of meeting FIRB conditions. From 24 February 2025, compliance reports must instead be lodged via the new Foreign Investment Portal.

Until full implementation, new investment proposals must still be submitted via the existing FIRB Application Portal. However, once the new portal fully launches in April 2025, both compliance reporting and investment submissions will be centralised within a single system.

Access & Benefits

Agents will be able to access the portal via foreigninvestment.gov.au. Key improvements include:

• Secure digital identity authentication, reducing the need for repeated identity verification.
• A more user-friendly interface for compliance reporting.
• Centralised communication with Treasury, making it easier to track submissions and requests.

Next Steps

• Ensure your agency is aware of the 24 February compliance reporting change.
• Familiarise yourself with foreigninvestment.gov.au, where guidance materials and updates will be posted.
• Attend the April information session to prepare for full implementation.

For further details or support, FIRB has provided a general enquiries line: +61 2 6263 3795 and an email contact: FITC@treasury.gov.au.

The virtual assistant that could cost you a bomb

👓 1.5 - 2 minute read

Last year, First National reported the case of a Filipino virtual assistant (VA) who has successfully filed a wrongful dismissal claim in an Australian Court. We’re tracking this case and seek to remind any First National member who is employing a VA directly, as opposed to through our Alliance Partner (Affordable Staff), that you have a potentially significant risk within your business.

The critical component of this case is that the Australian company involved (Doessel Group Pty Ltd) sought to have the VA’s claim overturned because the VA was engaged as an independent contractor – and therefore could not have been unfairly dismissed because she was not an employee. 

Fair Work disagreed, finding that the VA – who was described as an independent contractor in her contractual agreement with Doessel Group - had been employed on a contract whereby the employer prescribed the work she was to do, and supervised and controlled her work. The fact that her employment agreement was titled ‘Independent Contractor’s Agreement’ did not in itself determine the legal relationship between the VA and Doessel Group.

Should any First National member have a direct relationship and written ‘agreement’ with a foreign-based VA that describes:

• Tasks
• Ad Hoc duties
• KPIs
• Timeline expectations

And should that VA conduct their communications with your customers using equipment you have prescribed and/or be communicating with an eSignature bearing your company name, and you are exercising control over the work being performed, you may well find that you have a relationship consistent with 'employment' under Australian law.

With the employer having failed to convince the judge that the VA was an independent contractor, the VA’s unfair dismissal case is now scheduled to be heard. Should a judge find that she was indeed unfairly dismissed, it’s possible other liabilities under Australian employment law could be upheld – such as Australian minimum wages and Super contributions. 

The potential for an adverse decision to have profound impacts on Australian businesses who are employing virtual assistants directly is significant. First National principals would therefore be well advised to carefully wind up any such arrangements ahead of this determination.

Affordable Staff is First National Real Estate’s Alliance Partner for virtual assistant. For more information, contact Affordable Staff on 1300 139 482.

Scammers continue to target First National agencies

👓 30 second read

In the last edition of Our Fabric, we highlighted two particular scams currently targeting First National Real Estate agencies – Trademark Attorneys and Domain names.

Reports continue to flow of the trademark attorney scam hitting our offices, whereby members are encouraged to respond to stop an entity from attempting to trademark your First National Real Estate office trading name.

The other email suggests that an entity is trying to purchase your domain name in another country and should also be ignored.