Reference no: EM131392536 , Length: word count:1500

Identify Legal and Ethical Requirements of Property Management to Complete Agency Work

Part 1: Short-answer questions

Question 1: In your own words explain why effective communication skills are so important when managing property on behalf of landlord clients.

Question 2: (a) Name the main legislation in your state/territory (state the name of the Act as well as any Regulations related to this Act where relevant) that covers residential tenancy matters and which statutory authority administers this legislation.

Note: If you are in the ACT, the body that covers residential tenancy matters and administers this legislation is a Government body not a Statutory authority.

(b) Where within your state's legislation can you locate the ethical and conduct standards applicable if you were working in property management? List two (2) of these conduct standards.

Question 3: (a) What is the name of dispute resolution body for residential tenancy disputes in your state?

(b) Name two (2) types of disputes that you may need to use this body to resolve?

Question 4: Explain the process for taking, processing and releasing a rental bond in your state by completing the table below, including:

• The maximum amount that can be required from a tenant
• Any legislative requirements restricting when the bond can be required from the tenant
• What the managing agent must do with the rental bond upon receiving it, including stating the statutory authority that the bond must be paid to, any prescribed forms for lodgement and any time frames to do so.
• The process for releasing the rental bond, including when the rental bond should be released, any prescribed form/s to be used and any time frames involved.

YOUR STATE	Maximum amount that can be required from a tenant	Any legislative requirements restricting when the bond can be required from the tenant	Statutory authority bond must be paid to and any forms and time frames to pay to statutory authority	The process for releasing the rental bond, including when the rental bond should be released, any prescribed form/s to be used and any time frames involved.

Question 5: (a) Explain the difference between a fixed term tenancy and a periodic tenancy, and how this impacts on the potential sale of the rental property.

(b) Can a rental property be sold during a fixed term tenancy, and if so, on what basis?

(c) In the event that a rental property is being sold, what is the legislative requirement in your state regarding providing notice of the sale and gaining access to show the property to prospective buyers?

Note: WA, VIC & TAS, do not have legislative requirements for providing notice to tenants of the sale of the property. If you reside in one of these states, please write 'nil' in this column.

Question 6: Your agency manages a property on behalf of a landlord and charges them 7.7% including GST. The property is signed up on a 12 month tenancy for $400 per week rent.

(a) How much is the agency going to attract in management fees over this twelve month period (given that the tenants stays in the property for the full 12 months)?You must show your calculation of how you arrived at this figure.

(b) List two (2) other fees that might also be charged by your company as managing agent (besides the management fee stated above).

Question 7: (a) List two (2) reasons why a landlord may want to terminate the tenancy agreement they have with their tenant.

(b) Describe the procedures involved when a managing agent needs to terminate a lease and have the property vacated, including any documentation required, and how the documentation needs to be served on the tenant.

Question 8: (a) Explain the purpose of a managing agent preparing a financial statement for the landlord of a managed property.

(b) List four (4) items that may be contained in a rental statement to a landlord for their managed property.

Question 9: Imagine that you needed to lease the particular property that you are currently residing in. Identify three (3) different strategies for marketing this property for lease and explain why you think each of the strategies you have nominated would be appropriate as a way of marketing the property.

Part 2: Case study

You've recently been employed in the property management department of a relatively new agency that has opened up in your area. They are a busy agency for property management and their rental property portfolio has grown rapidly over the last year since the agency opened. In your new role, you are going to be responsible for leasing properties and carrying out inspections, so you will need to regularly access the keys for the rental properties your agency manages. You have noticed that the key management system the agency is presently using is quite disorganised and messy. Keys for properties managed by the agency have gone missing and no one seems to know where some of these keys have gone.

Question 1: (a) Explain the risks associated in this scenario with not maintaining and keeping a key register appropriately, including possible consequences to all the parties (the tenants, landlords and your agency) if key security is compromised.

(b) Outline the basic way you would set up and maintain a key system including maintaining a register of keys held by the agency and a process to ensure that keys are kept secure.

Case study (continued)

Your agency is approached by a landlord Ms Annette Peppertree, to list her property for lease and ongoing management.

The details of her property are:

Landlord details:

Landlord name: Annette Jayne Peppertree

Landlord Address: 11/23 Ross St, Elsewhere 1245

Tenant details:

Tenant Name: Mr John Doe

Tenant's address: 6 Warra St, Somewhere 1234 (current address. i.e. where he is moving from):

Additional note: John Doe will be occupying the property with his son, who is 10 years of age.

The details of the managing agency are:

Agency name: ABC Pty Ltd Trading as ABC Real Estate (note: when stating agent details in forms, use the full details of the agent including corporation name and trading name)

Agency address: 10 Railway Street, Somewhere 1234

Agency ABN: 12345678

Agency Licence No: 123456

Rental property details:

Property Address: 15 Verity Street Somewhere 1234

Property description: 3 bedroom house with single lock up garage

Rental amount: $400 per week(paid fortnightly)

Length of tenancy: 12 months (note: a 12 month tenancy is 365 days. E.g. if the start date is 01/01/16 then the end date is 31/12/16)

The landlord authorises for the agent to refer back to them for instructions prior to signing a further tenancy agreement after the end of this fixed term period.

The management agency fees:

• Leasing fee is equivalent to one week's rent.
• The management fee that the agent is asking is 7.7% including GST.
• The landlord authorises the managing agent to have a budget of $1000 to spend on repairs and maintenance without having to go back to the landlord for approval.
• The landlord authorises the managing agent to pay council rates, water rates and repairs and maintenance invoices from the rental income.

Question 2: Following on from your marketing the rental property, you locate a tenant by the name of John Doe, who wishes to apply for the property.

(a) Explain the process of how you would decide whether this tenant should be approved as the new tenant for this rental property. Ensure that you cover the Application for Tenancy and appropriate checking of references in your response.

(b) The prospective tenant Mr John Doe wants to have the property kept for them until he can move in. Explain the legislative requirements in your state related to the payment of any fee (such as a reservation fee or holding fee) prior to the tenant signing the tenancy agreement.

What such fees called in your state; and

What the legislative requirements are with regards to asking or accepting these fees including:

• Is this fee allowed in your state?
• Is the amount refundable if the tenant does not proceed to lease the property?
• Timeframes associated with the fee?

(c) List the amounts that this new prospective tenant MR John Doe will need to pay upon signing his tenancy agreement, including

• the amount of rental bond
• the amount of rent in advance
• any other fees payable by the tenant.

(d) Using the details provided in this case study, prepare and complete the following documentation for this tenancy (ensure all required fields, including signatures are completed):

• A residential tenancy agreement
• A rental bond lodgement
• A condition report

You may assume or use hypothetical information which hasnot been provided to you in the case study details, to complete the required forms.

Ensure that you use your state specific forms which are located in your supporting resources for this subject on the eLearning platform. In the case of the condition report, complete this on the property that you are living in, as if it were the rental property in the case study.

(e) List the documentation, including any prescribed forms or fact sheets required by your state's regulatory authority, that you would have to provide to the new tenant at (or immediately prior to) signing the tenancy agreement?