Identify legal and ethical requirements of Property Management to complete agent work PDF

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Identify legal and ethical requirements of Property Management to complete agent work. CPPDSM4007A Apply knowledge of Property Management Property Management  Real estate is managing properties on behalf of landlords  Duty of care to act at all times in the best interest of your client and maximise profit.  Rent roll: commission earned from agent’s rent roll. e.g. managing their assets.  Add saleability of the agency and enhancing its sale price.  Knowledge of residential or leasing commercial or industrial property.  Regulated by the law.

Government agencies  NSW OFFICE OF FAIR TRADING  Responsible for Property Stock and Business Agents 2002 and Regulation 2003.  Regulates: Residential Tenancies Act 2010 and Regulations 2010  Retail Leases Act 1994  Strata Schemes Management Act 1996  Anti-Discrimination Act 1977 Australian Competition and Consumer Commission (ACCC)  Administers the Trade Practices Act 1974. It aims to: - Preserve competition of private enterprise to benefit consumers - Strengthen consumer protection Type of Tenancies 1. Residential Tenancies- Residential Tenancies Act 2010 and Regulation 2010.

2. Fixed term tenancy- 6 months, 12 months or even 3 months. Period specified in the agreement. 3. Periodic tenancy- Once the fixed term of the tenancy has ended, must be terminated first. If it is not terminated, the term continues. 4. Non-residential tenancies- Includes Property such as Factories, commercial premises and shops. - forms, terms and conditions vary according who makes it and the state of the market. - Prepared by landlord’s solicitor - Retail leasing – understanding of the Retail Leases Act 1994 and the Retail Amendment Act 1988 (NSW) - Mistakes made by the property manager can cope severe punishment. - Tenant suffered by misinformation given by a staff will expose the agency to compensation.

5. Agricultural tenancies - controlled by two legislations: Agricultural tenancies Act 1990 and Agricultural Tenancies Agreement Act 2001. - regulates the rights of agricultural landowners, tenants and sharefarmers. - Resolves disputes between these parties by mediation or arbitration.

Develop Knowledge of Property Management Process

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- Property Managers must follow set procedures and rules that are divided into specific stages. - E.g. manage, listing, finding tenants and executing the lease and so on. - The process includes: Prospecting tenants Conducing an ingoing inspection of the property- liveable condition Listing presentation, filling out a condition report Advising owners on the rent Discussing legal obligations, responsibilities and rights of the landlord and clients. Completing an agency agreement form with the owners, leasing agency agreement or managing one.

Determining an advertising and marketing strategy- maximise sale profit Attending a signage on the property Showing the property to prospective tenants- open inspection Complete all necessary documentation- Tenancy agreement, rent, bond. Ongoing maintenance of the premises, reporting to the owner, handling repairs and outgoing inspections. (4 inspections per year)  Open communication with owner.

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Prospecting  Increase rent roll by listing new properties, which equal profits.  Staff who prospects for new clients must adhere to the Rules of Conduct e.g. Understanding PSBA 2002 and to not harass clients.  Examples of prospecting are 1. Referrals from clients to their friends or families 2. Walk- ins 3. Advertising in the local paper. 4. Mail outs to absentee owners 5. Builders/ trades 6. Window displays outside agency 7. Sign boards 8. Databases 9. Newsletters 10.Landlords advertising privately for tenants - Listing from referrals are the main point of contact for potential new clients.

New managements - Obtained after the Property Management Supervisor to sell themselves to potential clients. - During the open inspection, they must complete a detailed inspection report of the property. - This is important as the agent must make a detailed observation of any repairs or maintenance needed. - A presentation kit or ‘prospectus’ profiling the office, property management department, fees is an effective way to showcase their skills and service.

- Must have open communication to discuss and answer questions from clients. - Section 55 of the Property Stock and Business Agents Act 2002Agency must complete a Managing Agency Agreement for the agent to be entitled to commission or expenses. Marketing/Advertising a Property for lease  The trade practices Act 1974 and the Property, Stock and Business Agents Act 2002- agents to not mislead clients and tenants.  The type of advertising is: - Market research - Price for a property - Budget The most common form of advertising is: - Window display - Signboards - Internet - local emails Property Inspections for leasing of Property  Staff needs to manage their time wisely  The use of open inspection with rental properties as it maximises client base.  They must screen and inspect prospective tenants.  Must fill out an application form. Tenancy applications  Selecting a tenant is crucial for an agent.  Screening a tenant before signing a residential tenancy agreement is important to avoid problems.  Contact references prior. Beginning a tenancy - Part 1: The terms of the agreement - Part 2: the condition report- 2 copes - A copy of the new tenant checklist - Bond lodgement form - A written statement- cost payable and signed agreement

- Cost include: bond and rent in advance Note - The Residential Tenancies act 2010 prohibits from charging the tenant a fee for preparing the tenancy agreement. - Before the tenant signs a lease at the start, the agent must prepare a sales contract, financial institution has taken court action and material facts. - An agent must disclose any crucial information about the property under the office of fair trading. - Any additional agreement must be agreed on by both parties - They cannot be deleted or altered afterwards.

Rental bond  1977 NSW government legislated to control collection., holding and return of bonds.  Four weeks of pay can be taken Holding fee  It can only be asked by the tenant after they signed their tenancy agreement.  The holding fee reserves the property under the tenant’s name for a week.  Tenant must forfeit the full amount if they have a change of mind.

Condition report  This requires 2 reports made by the agent and tenant.  Agents have 10 working days to lodge all the bonds.  Tenants responsibility: tenant needs to keep premises in a liveable condition.  They must not be negligent in the care of their property or cause any damages.

During a tenancy agreement  Rent payments and receipts - Tenants must be given at least one way to pay for their rent - Rent payment not being made by the tenant will be charged by the bank. - All tenants must give a fee-free way to pay their rent. - Must be met within 7 days. 2. Alterations  Tenants cannot make or request alterations without the approval of the landlord.  They need a written permission by the landlord before commencement.  Under the act, landlord must allow alterations to the tenant in regards to the property and not unreasonably refuse request e.g. lock on windows.  Landlords can refuse a tenant’s request to: - Paint the property - Structural changes - Alterations prohibited by law....