HI Order - Housing SA Improvement Branch

Just settled on a property. The agent instructed me the house has some defects that will need fixing. Nothing major just cracks in cornice. Door won't open properly, cracked concrete etc.


I have received a later from Housing Improvement Branch stating the defects which are very small and meticulous its strange they are even bothered about like cracking in cornice...

Does anyone have any experience dealing with this department?

Also in the mean time I already found tenants and they are moving in this week. So I won't be able to fix everything before they move in...

Am i allowed to rent out the house before I fix these "defects"?
 
I'd be getting it all sorted ASAP, you don't want anyone pestering you, especially with regards to HIA orders.

There's a particular rort which happens in some of the rural SA areas where career tenants will have HIA orders placed on properties which would take too much money to repair, so they get a reduction in rent in the meantime. The reductions I've seen have taken the rent down to sub $50wk.

Were you aware of the HIA order when you made the purchase?
 
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I'd be getting it all sorted ASAP, you don't want anyone pestering you, especially with regards to HIA orders.

There's a particular rort which happens in some of the rural SA areas where career tenants will have HIA orders placed on properties which would take too much money to repair, so they get a reduction in rent in the meantime. The reductions I've seen have take the rent down to sub $50wk.

Were you aware of the HIA order when you made the purchase?

The property is in good condition other than these so called defects. I wasn't given a list before I bought it. But was after....damn agents


The list has about 20 things most are cosmetic. Like cornice cracking. Also there is no lock on a gate

Some require to be checked by a licences builder and to be signed off. Like the cracked concrete.

It's not even a big crack I can't see why that is an issue.

Am I legally allowed to rent out the house before I fix these things? Anyone know?
 
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Ok so called the HI Department.

Spoke to the inspector who said I need to sort these more important things like electrical wires and he will come and inspect the property and the order will be removed.

How ever if I don't do anything a "rent fix" will be applied

Only hard part is I only have a couple weeks to sort this all out now. As this letter was sent to the agency selling the property. They received it during settlement 28th January and only just have it to me now. Thanks a lot
 
Ok so called the HI Department.

Spoke to the inspector who said I need to sort these more important things like electrical wires and he will come and inspect the property and the order will be removed.

How ever if I don't do anything a "rent fix" will be applied

Only hard part is I only have a couple weeks to sort this all out now. As this letter was sent to the agency selling the property. They received it during settlement 28th January and only just have it to me now. Thanks a lot

Sounds about right. If it's only a number of minor repairs you've come off easily - they can be as extreme as treating salt damp, retiling entire properties etc. Meanwhile a tenant who was renting for bargain basement rents because of the poor quality get's a FURTHER rent reduction under the HIA order.
 
Ok so with further talks with the HI branch I have come to the conclusion in order to have the HI order removed. I have to complete the following

- demolish a dodgy garage/carport
- demolish a crumbling brick wall
- replace about 20m of new fence.
- remove a cracked concrete step
- redirect storm water / down pipe away from house
- bunch of cornice cracking cosmetic stuff


What will I tell the tenants?!

If I knew I had to fix all these things I wouldn't have put anybody in there.

Will post before and after pics of demolition
 
. I wasn't given a list before I bought it. But was after....damn agents

This info should have been disclosed.I hate the legal path,but this would be a prime candidate.
These orders dont just come from thin air,the previous tenant probably had them,the agents sound dodgy.
 
Did you have a Building Inspection done prior to the Cooling off expiry? I am surprised this wasn't picked up prior to settlement and disclosed by the vendor, it sounds dodgy it me. Hope the repairs can be carried out quickly so you can charge market rent
 
This info should have been disclosed.I hate the legal path,but this would be a prime candidate.
These orders dont just come from thin air,the previous tenant probably had them,the agents sound dodgy.

Information or the list was NOT shown to me when I signed the contract. The agent slipped it in the contract when he posted me out my copy.

Very dodgy. He also received a second letter from the HI Branch during settlement and held onto it so I didn't change my mind and pull out of purchase.

Also he did not advertise that the house had a HI order on it online or in brouchure and I have been told he legally has to.




Did you have a Building Inspection done prior to the Cooling off expiry? I am surprised this wasn't picked up prior to settlement and disclosed by the vendor, it sounds dodgy it me. Hope the repairs can be carried out quickly so you can charge market rent

To secure the property I didn't get a building inspection ,probably should have!

I still would have bought it anyway I think. It's a good corner block. And other than the list of repairs the house is in good condition and I got it for a good price and it is postive cashflow $90 pw.

Also good news is the HI inspector said he would give me a few more weeks to complete all the repairs. Most hassle will be fencing as it is entangled in trees.
 
I The agent slipped it in the contract when he posted me out my copy.

Be a bit carefull here,your $90 positive could easily end up in the new tenants pocket through reduced rent.Seriously though,it should have been advertised as such,and disclosed.
 
Be a bit carefull here,your $90 positive could easily end up in the new tenants pocket through reduced rent.Seriously though,it should have been advertised as such,and disclosed.


I'm confident I can fix everything in time now. The HI person gave me an extra three weeks, guess he felt sorry for me!
 
probably not alone on here, would love to know the name of the selling agency? but understand why it cannot be told...? expect you will avoid them in future and tell others to do the same.

steep learning curve. good luck.
 
Yes you need to get everything ticked off the HI list before you can rent at market rent.

In their order they would have a reduced rent amount that you would be allowed to charge in the mean time.

I had breakfast yesterday with a couple of other bigger RE agents - one mentioned a 40% increase in HIA orders in the past couple of years on SA.
Tenants are unwilling to put up with the slightest things and I think that is probably a reflection of increased rents??? - my thoughts!
 
Yes you need to get everything ticked off the HI list before you can rent at market rent.

In their order they would have a reduced rent amount that you would be allowed to charge in the mean time.

I had breakfast yesterday with a couple of other bigger RE agents - one mentioned a 40% increase in HIA orders in the past couple of years on SA.
Tenants are unwilling to put up with the slightest things and I think that is probably a reflection of increased rents??? - my thoughts!

HI inpector said in the mean time I can charge what I want for rent. But if I don't fix everything a rent fix will be applied based on average rent on the area and the value of the house.
 
Destruction has begun

Dismantled this today with a friend. Could have bulldozed whole thing but dumping fees would be too expensive so separated all the wood, steel

From pictures it looks ok but it was very dodgy. No support and the brick wall on the back was so weak and was flexing when it was leant on.

Going to put a fence where the poles are for now to close it in



 
Yea latest purchase.

That one the land was a bit bigger. But the "house" was garbage pretty sure the person bought that off me still hasn't got it rented out.

It was just too old and run down. I payed too much for it from a development point of veiw.

And the rent I was struggling to get for it wasn't making it good to hold onto for a long time.

Where as this house I already have rented and it's good condition inside.

Outside I will have sorted out soon
 
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Update

Pretty much have everything sorted now. Other than scraping and painting some facia's.

Been a busy couple weeks. But am meeting up with HI agent this coming Friday and I should have a HI free house :)

Lesson learnt are to read contract properly. And do not trust real estate agents ever.


This is the 4th house I have bought so thought I was some sort of expert, definatley not the case!

Good things are a couple of new contacts I will use again and I learnt how to put up a fence which is always handy

Pics of work




 
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