Property Management Information for Owners
It is only on rare occasions that we have the need to advertise for prospective tenants in the print media. Our properties are advertised on 5 websites, www.trademe.co.nz, www.realestate.co.nz, www.raywhite.co.nz, www.raywhite.com, and www.rwmtedenvillage.co.nz .. We have a large number of referred prospects who register with us on a daily basis. Our ‘Prospective Tenants List’ is made up of tenants who ‘register’ either by completing the on-line ‘Tenant Registration form’ or who register in person at our front counter.
Should we not find suitable tenants from our list then we will advertise for further registrations through the local newspaper (NZ Herald).
There is no cost to the owners for this advertising!
Having completed the registration form, all prospective new tenants are interviewed, either in our offices or, if out of town, over the telephone. At this interview we ask the prospective tenants to supply a valid (preferably photographic) ID and any written rental or workplace references that they may have. We question them about their family and employment circumstances, where they have been living for the last two years, who their landlords were, their reasons for leaving, who else will be living with them, their ability to pay rent, their accommodation preferences and we also cover such topics as pets and smoking habits. From this interview and upon any subsequent enquiries (Credit Checks or Reference Checks) we are able to assess the merits of each prospect and their suitability as a tenant for either one of our ‘Casual’ or one of our ‘Managed’ properties.
Tenant selection is probably the most important aspect of Property Management as both the reliability of rental income and the care and well being of the rental property depend entirely upon getting the right tenants. Unfortunately the rental market place does contain a hard core of unreliable tenants who consistently default on their rent payments and who have no respect for other people’s property. Our aim in the selection process is to avoid such unreliable tenants.
We select tenants for our Casual or Managed rental properties strictly upon the criterion of merit. We conduct a personal interview, check ID’s, check previous rental and workplace references and carry out a credit check. Our policy is to rather have the property vacant for a few weeks than to select a less than ideal tenant. Please note that we do not accept instructions from owners that may contravene the Human Rights Act or any other enactment that could compromise the health, safety or wellbeing of future tenants.
Showing the Property
Once we have short listed those prospective tenants whom we believe may be suitable for the subject property we make arrangements either with the ‘sitting’ tenant or with the owner to show them through. It is quite common to have a number of prospective tenants viewing the property at any one time. It is our company policy to ensure that prospective tenants have physically viewed the property prior to it being offered to them. This avoids any post possession disappointment and the possibility of litigation for misrepresentation that could be associated with such ‘sight unseen’ tenancies. In order to protect the owner from any such litigation we include a clause in all our Tenancy Agreements which states that the tenant has viewed the property and accepts it purely ‘in reliance on their own judgment and not on any statements, promises or undertakings’ made by us or by the owners of the property.
Prospective tenants are asked at the time of their interview to supply written copies of any previous rental and/ or workplace references. Quite often no written references are made available in which case we ask that the contact phone numbers of previous Landlords be supplied so that we can at least obtain a verbal reference. We do make contact with all these referees to ascertain and confirm the information supplied to us by the prospective tenant. Obviously the results of these enquiries goes a long way to establishing the relative merit rating of each prospect.
There are however some situations where no previous rental references are available such as a current home owner who has just sold their property or is on transfer, or a young couple who have never rented before. In the former case we would seek confirmation of the home ownership and in the latter we may well seek the backing of a written guarantor before offering them a property.
TINZ / Tenancy Information Credit Checks
As part of the Tenant registration process, all prospective tenants are asked to sign an authorization in which they agree to us obtaining both credit and reference checks and for us to provide such information gained to prospective Landlords. Some of this information may well be personal information subject to the Privacy Act 1993 and as such we have an obligation to ensure that the information is used only for the purpose for which it is intended and is not made available to any other party. We do take such obligations very seriously.
TINZ / Tenancy Information credit checks are an important indication of a prospective tenant’s ability to pay their rent regularly and a history of bad debts would undoubtedly diminish their merit rating.
The Tenancy Agreement is the formal document that sets up the relationship between the Landlord and the Tenant and spells out the rights and obligations of each party. The Residential Tenancies Act (RTA) requires the Tenancy Agreement to be in writing and a copy must be made available to the tenant. The Act also dictates what minimum information must appear in the contract. We include approximately four pages of extra terms and conditions in all the Tenancy Agreements that we prepare. These are designed to clarify many of the ‘grey’ issues associated with the tenancy and wherever possible protect and indemnify the owner from potential litigation. It is our practice to go through the complete agreement, clause by clause, with both the owner and the tenant in the case of ‘Casual lettings’ and with the tenant where we are the Property Manager.
Initial Rent, Bond and Fee
On signing the Tenancy Agreement the new tenant is asked to deposit to our Trust Account the initial rent, bond and fee as detailed in the agreement. We usually require the first 1-2 weeks rent to be paid in advance together with three weeks rent as bond and also our letting fee which is one weeks rent plus GST. That’s a total of 6 weeks rent plus the GST on our fee.
In the event that either part of or the entire bond is to be transferred from a previous tenancy then we require the bond transfer form to be signed by the previous Landlord before the time and date of possession. It is our company policy to never release the keys to the property (and thus grant possession) until these issues have been satisfied.
We make it a condition of all our Tenancy Agreements that these initial sums be received in full (including a fully signed bond transfer form where applicable) by the agreed time and date of possession. This means that should the funds not be paid or the signed bond transfer not be received then the Tenancy Agreement will automatically become null and void and any part funds that may have been paid to us will be returned to the tenant in full.
On-Going Rent Payment Facilities
The most common arrangement that we make with tenants for the on-going payment of rent is by Automatic Payment through the tenant’s bank. At the time of signing the Tenancy Agreement we also have the tenant complete the Automatic Payment form which we then lodge with their bank. Some tenants prefer however to make their rent payments by telephone or internet banking and in certain cases we can make arrangements with WINZ for the direct payment of rent from Social Welfare benefits. We do not offer any direct debit or ‘eftpos’ facilities.
Where we are acting as Property Manager and the tenant prefers to pay their rent in cash, we supply them with a Trust Account bank deposit book and ask them to make payments in person at our nominated bank. Wherever possible we do not collect on-going rents at our office preferring to maintain the clear audit trail that direct banking procedures provide and thus ensuring that all rents are properly accounted for.
A ‘Bond Lodgment’ form is completed with the tenant at the time of signing the Tenancy Agreement and the bond itself is collected prior to the tenant taking possession of the property. A Bond of up to four weeks rent may be collected. The money is held in our Trust Account until the agreed possession date at which time we lodge it with Tenancy Service where it is held until the end of the tenancy.
Where we are acting as Property Manager and the tenancy comes to an end, we will carry out a final inspection of the property and authorise the release of the bond or request that amounts be withheld. Bond may be withheld if the tenant leaves the property without fully paying up their rent, or if cleaning, gardening or repairs to damage is required.
If there should be a dispute in respect of the bond then the matter will be referred to Tenancy Services for mediation. If this is unsuccessful then the matter will then be referred to the Tenancy Tribunal for a judgement ruling.
Bonds are held by Tenancy Services until the end of the tenancy at which time it is refunded either in full or in part to the Landlord or the Tenant depending on circumstances. Both parties must be in agreement for the bond to be refunded and both the Tenant’s and the Landlord’s signatures must appear on the form before it will be released by Tenancy Services. There are usually only two issues that we have to consider when agreeing to release the bond - (a) that the rent is up to date on the repossession date and (b) that the property and its contents are in substantially the same condition as at the beginning of the tenancy (less any fair wear and tear).
We normally regard the end of the tenancy as the date stipulated in the vacation notice or when the tenant hands over the keys having removed all their belongings and cleaned and tidied the property for return to the Landlord, whichever is the later. At this time we carry out what we call our ‘final’ inspection using the ‘Property Inspection’ report signed by the tenant at the beginning of the tenancy as our guide. We do not produce a separate inspection report at this time.
We look for any significant changes to the property such as any damage or any ‘unfair’ wear and tear or if any of the Landlord chattels are missing. We also check that the premises are in reasonably clean and tidy condition, that there is no rubbish in or about the property and that the lawns are mown and the grounds are also reasonably tidy and well presented. If there are any issues then we ask the tenant to either remedy them immediately or we make an agreement with them that either part or their entire bond be used to remedy the problem. Once we have satisfied these outstanding issues we can then sign the bond off accordingly and the funds are normally remitted within four to seven days.
Should there be a dispute in respect of the bond then the matter will be taken to either mediation or the Tenancy Tribunal for resolution. Experience has shown us that by keeping accurate property inspection records and dated photographs of the premises prior to the commencement of the tenancy, we are able to avoid most of those situations where tenants vow and declare that a certain problem was pre-existent when they moved in.
Keeping complete tenancy records is one of our most important functions as a Property Manager. Some records such as rent records and rent receipts are mandatory and indeed failure to keep such records is an unlawful act. Many of our records are computer based including rent records, inspection records, and Trust payment records. We go to some lengths to ensure that all of these computer records are kept secure by using both internal and external backup media. Our daily backups use an alternative network computer plus a large volume external hard drive which is then kept off site
In addition to computer records we also keep a variety of hard copy records such as the signed originals of all Tenancy Agreement documents, Agency Authority forms, Bond acknowledgements, copies of Automatic Payment forms, duplicates of Trust Account receipts, copies of tradesmen’s tax invoices and their relevant cheque payments and of course any correspondence with either the tenant or the owner.
Rent Collection, Rent Receipts and Audits
The Residential Tenancies Act (RTA) requires Landlords to keep accurate records of all rent payments made by tenants and furthermore has made it an ‘Unlawful Act’ (Section 30 (2)) should the landlord fail to keep proper records! The act also requires landlords to issue rent receipts for certain moneys (Section 29) and again failure to issue such receipts is an unlawful act.
As a protection for home owners our Trust Accounts are regularly audited by a local registered chartered accountant as required under the Real Estate Agents Audit Regulations 1976.
As a ‘systems’ based organization we operate a state of the art computer software programme (Rest) which keeps track, on a daily basis, of all the rent payments received from the tenancies under our management. Should a tenant default then we are immediately alerted and can take the appropriate action. (See ‘Issuing Notices’)
Monthly Accounting to Owners
Historically it has always been the practice of Property Managers to account to owners on a calendar monthly basis and our Trust Accounting system has been set up on this same historical model.
Throughout the month tenants make their regular rent payments to our Trust Account and then on the first working day of the following month we print out our ‘Owner Statements’ and make a direct credit of available funds to the owner’s bank account. The statements detail all moneys received into our Trust Account for the previous month including rents, bond refunds and any compensatory payments. It also details outward expenses such as tradesmen’s payments, regular outgoings such as rates or insurance premiums and the deduction of our agreed management fee.
The statement is then posted or emailed to the owners wherever they may be in the world or to their nominated accounting agent. Original copies of Tradesmen’s tax invoices are kept on file at our offices and are available upon request. Statements also contain explanatory notes regarding anything that may have been pertinent to the rental property during that particular month.
Should the owners or their tax consultant require further copies of rental income and expenditure for the year, our ‘Aspect’ system is able to reproduce the required monthly statements for the property dating back to the time of our appointment.
Rates and Insurance Payments
Owners can arrange with the Auckland Council to have their rates demands sent to our office for payment from rents collected. Likewise owners can arrange with their insurers to have their insurance premium demands sent to our office. These payments will be made in the same month in which they arrive at our office providing of course that there are sufficient rental funds for the property in our Trust Account. Should there not be sufficient funds then we will hold back the monthly payment to the owner and pay the account in the following month.
Under section 39 of the RTA, tenants are responsible for water charges (rates) provided the premises have a separate water meter, the tenancy agreement states the fact and the water supplier charges for water provided to the premises on the basis of metered usage.
Owners can arrange with Water Care Services Limited to have their water rates demands sent to our office for collection from the tenants. Retrieving water charges from the tenants includes ‘receiving accounts, perusing the water accounts (questioning any glaring discrepancies with Council), paying the same, creating and sending an invoice for the account or part thereof to the tenant (often splitting the account between tenancies), collecting and banking the funds and crediting the owners account’. A uniform charge is made for this service twice a year when Council invoices water charges.
Repairs and Maintenance
All residential properties are subject to gradual degradation and it is inevitable that repairs and maintenance will be required from time to time. Internal and external paintwork, carpets, curtains, tap washers, light fittings, stoves, heaters, hot water cylinders and even roofs have limited life expectancies and all will need to be repaired, repainted or replaced in due course.
As Property Managers our ‘Appointment to Manage and Let Residential Property’ authorises us to deal with the day to day (generally minor) repair and maintenance problems but within the constraints of an agreed budgetary cap of $300.00 in any one month. Should work be required that is valued in excess of this amount, then the owner, or their representative, will be promptly advised and further instruction sought. Should the problem however be one of an urgent nature (like burst water pipes) and likely to cost well in excess of the budgetary cap, we would nevertheless effect immediate repairs, again in accordance with our Authority instructions.
Most of these small repair or maintenance jobs are carried out at our discretion and without reference to the owners. We are of course mindful of the owners need to keep such expenditure within reasonable bounds and in making any decision to carry out work we weigh the owners need for restraint against the health or safety needs of the tenant and the obligations and requirements of the Residential Tenancies Act. Section 45 of this act requires the Landlord to maintain the premises in a reasonable state of repair and to comply with any other buildings, health or safety enactments.
Our company has secured the services of a wide range of qualified tradesmen who are able to promptly attend most of the repair or maintenance issues that arise on a daily basis. We have negotiated excellent rates with most of these trades’ people so that costs are kept at a reasonable level without compromising standards of workmanship! Owners can of course nominate their own trades’ people; our only stipulation being that they must be suitably qualified to carry out the work.
Major Repairs or Maintenance
Our R and M service is often extended to include obtaining quotations for major works in or about the managed property (e.g. exterior painting or interior decoration) and the limited supervision of such works. Unfortunately we are not qualified Project Managers so we can only give a layman’s approval on completion of the work and naturally we cannot accept any liability for such supervision. As the cost of these major repair or maintenance works is generally well in excess of the limit agreed in our agency authority, arrangements for payment must be made prior to the commencement of the work. The most common arrangement is for the funds to be forwarded by the owner in advance to our Trust Account where it is held pending completion and final approval of the work at which time we will pay it out to the contractor.
Once we have established that a repair or maintenance job is required we issue the relevant tradesperson a Works Order. The order details the property, the tenant; the contact phone numbers of the tenant and of course the work to be done. The majority of our Works Orders are faxed from our Property Managers to the tradesman concerned but we are increasing finding that many contractors prefer to receive email instructions.
Payments to Tradesmen
Once the repair or maintenance job has been completed the tradesperson concerned will forward their account to us for payment. Firstly we check that the job relates to our Works Order and that the sum being charged is fair and reasonable. Should we consider that we have been overcharged then we will go back to the contractor for an explanation and an adjustment of account if necessary. We also check that the job has been done to our satisfaction which may be as simple as giving the tenant a phone call or, for more complex issues, making a visit to the premises and conducting a physical inspection of the work.
When we are satisfied in all respects that the job has been completed we will make a cheque payment or more commonly these days a direct credit by internet banking, from our Trust Account debiting the funds held in the name of the owner. Should there be insufficient funds then the payment will be held over until enough rental income has accrued to make the payment.
Occasionally a larger than normal payment may require us to make extended credit arrangements with a particular contractor, usually by way of several payments over a two or three month period. As, over many years, we have developed extremely good relationships with our contractors there is seldom any problem with such arrangements.
Tenant and Tenancy Problems
One of the major reasons why owners appoint us to act as their Property Manager is our ability to deal with a wide variety of tenant and general tenancy problems as well as our ability to mitigate any associated financial losses. Problem solving calls for a high level of ‘people’ or ‘relationship’ skills as well as an intimate knowledge of the Residential Tenancies Act and its associated procedures and notices.
The most common tenant problem is without a doubt the non payment of rent followed closely by ‘unfair’ wear and tear and damage to the premises. Noise and nuisance is also fairly common particularly from stereos and from dogs whilst lack of garden care, overcrowding and disputes with neighbours all have to be dealt with from time to time. On other occasions we may have to deal with the police following a burglary or an attempted break-in; the fire service following a fire; or neighbours who are upset about encroaching trees or fencing problems.
When such difficulties arise we have found that by taking prompt and positive action we can very often eliminate the problem or at least limit it and keep it from getting out of hand. In many cases however the solution requires a firm response that may not always be agreeable with the tenants. Breach of contract by a tenant is unacceptable even when personal problems have arisen and although we can sympathize with their situation, we will nevertheless pursue our legal remedies in accordance with the Residential Tenancies Act (RTA).
The Residential Tenancies Act (RTA) stipulates a number of situations where it is mandatory to issue appropriate notices and it also stipulates the content of such notices.
If problems should arise that are in breach of the Tenancy Agreement or the Residential Tenancies Act we issue what is called a ‘10 Day to Remedy Notice’ pursuant to section 56 of the Act. If a tenant has missed a rent payment for instance and has failed to respond to our ‘reminder’ phone call then a ‘14 Day’ notice will be served. Likewise we issue ’14 Day’ notices for repairs to damage to the premises, noise and nuisance, unkempt grounds, overcrowding, etc. If problems should persist then further application will be made to Tenancy Services for either a mediated solution or to the Tenancy Tribunal for a court order.
Other notices that we issue from time to time may include notice to inspect premises, notice to enter to do work, notice of intention to sell premises, notice to terminate tenancy, change of landlord notice, and notice to increase rent.
Should a breach of a Tenancy Agreement or the Residential Tenancies Act not be remedied by a tenant following the issue of a ‘14 Day to Remedy Notice’, we will as a matter of course make application to Tenancy Services to have the matter settled by mediation. An application for mediation costs just $20.00 and it takes only a few days to arrange a meeting. It is very often time and money well spent!
The meeting is usually held in the local Tenancy Services office or by a telephone ‘conference call’ with the tenant, ourselves (as landlord) and the Tenancy Mediator present. It is a fairly informal affair but the issues are thoroughly discussed and the various options for resolution considered. If a solution can be agreed (say for instance an agreement for the tenant to make extra payments on top of rent in order to catch up rent arrears) then the agreement is written up by the mediator as a Mediated Order and all parties sign the document.
It is our practice to ensure that wherever possible our mediated agreements contain a ‘consequential clause’ which means that should the tenant not stick to the mediated agreement then a consequence will be imposed. This is usually the termination of the tenancy within 48 hours! We also ask that all our mediated orders be ‘sealed’ by the Tenancy Tribunal which has the effect of turning the Mediated Order into a Court Order which in turn can be enforced by court bailiffs.
If we are unable to come to an agreement at mediation or the tenant does not show up to the meeting then we can ask that our application be automatically referred to the Tenancy Tribunal for a judgement hearing.
In the event that we are unable to come to an agreement with a tenant following a mediation meeting, or should the tenant not attend the mediation meeting or should the issue be of such a serious nature that mediation would be inappropriate, then we will automatically take the matter to the Tenancy Tribunal for resolution.
A Tenancy Tribunal hearing is held in a formal court setting with an official adjudicator presiding and with all proceedings being recorded. As we are generally the ‘applicant’ we are the first to put our case forward and it is vital that all the relevant evidence is properly presented and any relevant witnesses called. Evidence may be in the form of photos of the premises, rent records and tax invoices from tradesmen for repairs to damage, cleaning, rubbish removal etc. The other party can then respond and likewise present evidence and call witnesses. The adjudicator will then make a judgment based on what he has heard and this judgment is then written up as a Tenancy Tribunal Order. This order can subsequently be enforced as a Court Order by the bailiffs of the court.
Tribunal Orders may be issued for a variety of reasons including termination of the tenancy, the granting of possession of the premises to the landlord, ordering payment of rent arrears, making compensatory payments for landlord expenses, refunding part or the entire bond to either party, and the disposal of goods if tenants goods have been abandoned.
Our company is not in the business of debt collection but we do nevertheless undertake a number of measures on behalf of property owners to try and recover as much tenant debt as possible. We hold the view that we should pursue the erring tenant for the rest of their lives until their debt is settled.
Once a Tenancy Tribunal Order has been issued we try and make an immediate arrangement with the tenant to make debt repayments direct into our Trust Account. In most cases however the tenant debtor just ‘disappears’ and there would seem to be little hope of any debt recovery. In these cases we place the debt with Debtworks who has the facilities to find and compel debtors to honour their commitments. For this service they charge 20% (plus GST) of all moneys recovered.
It is our practice to maintain a separate debtor’s account into which debt repayments are credited and payments for extra Baycorp charges and fees are debited. Extra Baycorp charges may include $135.00 to obtain an Examination Order, $90.00 for an Attachment Order, Document Service fees are $33.75, Agents Fees are $78.75 and Field Calls are $22.50. All of these extra costs are of course added on to the tenant’s debt! We believe it to be well worthwhile paying these extra charges as it maximises the likelihood of getting a return for the owner. As repayment funds are received we firstly credit the debtors account with the sum of the extra charges and then we make payments to the owners personal account. Unfortunately it can often take several years to get all the debt repaid but we feel that any recovery is worth it!
One of our most important functions as Property Managers is to regularly inspect the rental property and keep accurate and detailed records of the state of the dwelling and its surrounds. By making regular inspections we can ensure that the property is being looked after and that all the terms and conditions of the Tenancy Agreement are being met. It is also an opportunity for us to pick up any warning signals that all may not be well with the tenancy and to nip any potential problems in the bud. In addition inspections give the owners an overall ‘picture’ of developing maintenance or repair needs so that they can plan and budget for their implementation well in advance.
The frequency of inspections is determined in consultation with the owner and is set out in our appointment agreement. The Residential Tenancies Act does not permit more than one inspection per month; however we believe that four inspections per year are quite sufficient in most cases. Under our ‘Fully Comprehensive Scheme’ we automatically conduct four inspections per year. Under our ‘Standard Scheme’ the frequency of inspections has to be pre-agreed and we make a charge for each inspection. Quite often owners request only one inspection per year but we feel that this level is far too low for effective monitoring purposes.
We operate a fully computerized Property Inspection system which allows us to schedule inspections in accordance with our management authority, issue inspection notices to the tenants at the correct time and print off detailed reports once the inspection information has been inputted. The owner’s printout will include any relevant comments that we have noted at the time of the inspection and on occasions we may also include a photograph should we believe it relevant. We also produce a tenant printout which the tenant signs as being a true and correct record of the state of the dwelling at the beginning of the tenancy.
The vast majority of properties that we manage are unfurnished and contain minimal landlord chattels such as carpets, blinds, drapes, curtains and curtain rods, electric lights and fittings, electric stove, washing line, and letter box. All of these chattels are included in our inspection reports so that we can keep track of them during our regular inspections.
Fully furnished properties however need to have a very detailed list of chattels drawn up at the time that we take over the property as Property Manager. By detailed we do mean right down to the number of knives, forks and spoons, cups and saucers, pots and pans, bed linen etc. This task is normally undertaken by the owner and the list is then ‘checked off’ with us to ensure that all chattels have been included. Should the owner require it, we will undertake to prepare this list for them at the charge shown on our schedule.
Insurance and Insurance Claims
It is a requirement of our ‘Appointment to manage and Let’ a property that the owner will insure the premises for replacement value and ensure that premiums are kept up to date.
Our ‘Appointment’ also gives us the authority to make insurance claims on behalf of the owners in their absence. When a claimable event occurs we will make every endeavour to contact the owner wherever they may be in the world and advise them of what has happened. Should we be unable to make contact then we will proceed with the claim by advising the relevant company and liaising with their assessors. The most common claims are for water damage from burst pipes or leaking roofs, wind damage, malicious damage following burglary and occasionally more serious damage caused by fire. On each claim the owner will be liable for the excess on their policy and we make arrangements with the Insurers for payment of this excess. Depending on circumstances the tenant(s) could be liable for repayment of this excess to the landlord.
We automatically conduct rent reviews on all our managed properties either when a change of tenancy occurs or annually whichever is the shorter time period. The Residential Tenancies Act does allow us to alter the rent level every six months and we are obliged to give the tenants 60 days notice of any rent rise.
In order to establish the ‘fair market rental value’ of any property we firstly assess the rent levels of similar properties in similar areas and apply ‘pluses and minuses’ for variations in presentation and amenities. We also consult statistical information that is available to us both from within our office and externally via Tenancy Services which gives a good idea of whether the market is moving up or down at any point in time
Our objective is to strike a rent level that is fair to both the tenant and the owner and is in keeping with prevailing market conditions. If the rent level is too high we find that (a) the property is harder to let and (b) tenants move on fairly quickly to more equitably priced accommodation which, in both instances, creates vacancy problems and a greatly reduced return on investment for the owner. Conversely if the rent level is too low then the owners are again not maximizing the return on their investment.
We are asked on occasions to supply lending institutions and individual investors with rent appraisals for loans and investment purposes. These appraisals have to be done by a licensed Real Estate Agent as there are some serious legal implications when members of the public rely on the information supplied. We are fully licensed and regularly carry out such work.