Assessment Task 3: Property Management National Real Estate Learning
What you need to do:
As part of your role as a property manager you will be required to accurately complete statutory and agency residential tenancy documentation, including authority, leasing and termination documents.
Complete the projects below.
What you will need:
- Research materials such as books, internet, magazines, workplace documentation etc.
- Access to property management legislative and regulatory documentation relevant to own state or territory.
- Download the following templates provided in the assessment task area on the student portal.
- Exclusive Leasing and/or Managing Authority (residential)
- Owner Property Details Sheet
- Residential Tenancy Agreement
- Residential Premises Condition Report
- Notice to Vacate
- Key Register Template
What you need to submit:
- All forms/documentation you were required to complete for each project.
- Where questions require written answers, type up your responses in this Microsoft Word document and submit as part of your assessment.
Project 1 – Instructions
Read through the following scenario and complete the tasks below.
Ian and Rebecca Harrison have recently purchased an investment property through your agency. They are intending to lease the property for a fixed period of at least 12 months and have engaged you to manage the property. Details of the property are as follows. Address: 5/256 Black Street, Preston VIC 3072 Description: Two bedroom, brick and tile villa unit approx. 22 years old, central bathroom, laundry and toilet, spacious kitchen with open plan living and dining, large private courtyard and single remote lock up garage. Features: Built in Robes, wall to wall carpet in bedrooms, stainless steel appliances, gas cooking, reverse cycle air-conditioning, gas heating. Pest treatments conducts at pre-purchase of property Property has been refurbished in full within last 5 years (original plumbing and wiring). Reverse cycle air-conditioner Electric hot water system Stainless steel dishwasher and rangehood Hardwired smoke alarms and safety switch tested at pre-purchase XYZ Building and Pest Pty Ltd Located within walking distance to transport, shopping and cafes. |
Task 1: Owners Property Details Sheet and Exclusive Leasing and/or Managing Authority
Complete required documentation
Using the information on the scenario and the additional information below, complete the following documents (these are provided in the student portal in the relevant assessment task).
- Owners Property Details Sheet
- Exclusive Leasing and/or Management Authority
ADDITIONAL INFORMATION
Owners Details Ian and Rebecca Harrison 3 Foxdale Court Queensland QLD 4133 E: theharrisons@gmail.com M: 0412 845 789 Rent per week: $330.00 Bond: Equivalent to 4 weeks rent Agreement commences today The authorisation covers the ongoing management of the property including initial and subsequent leasing if a new tenant is required 30 days – notice to be given to terminate the authority. Nil additional services, nil excluded services and nil special conditions are applicable to the lease Fees payable to agent including GST: Letting Fee – 3.3% (on invoice) Lease Renewal Fee – 3.3% (on invoice) Management Fee – 7.7% weekly (payable on disbursement of funds) Expenses: Marketing – client budget of 1 week’s rent payable on listing Name(s) of all relevant parties to be printed into the document where required. |
Notes:
Any items not listed are to be deemed not applicable and not required for entry for the purpose of the exercise.
Submit the completed forms as part of your assessment for this task.
Task 2: Market the Property
Now that you have successful obtaining the authority to act on behalf landlords Ian and Rebecca Harrison you must now market the property in order to secure a suitable tenant(s) for their investment property.
2.1 – Marketing Strategy
In the space provided below, outline a marketing strategy for advertising the property.
Focus on your audience, aim your marketing. You need to refine your emphasis if you don’t have a particular target market. Get social. Get social. Use the mouth word. Before you need to promote, develop interest. Link to the community. Market a collective, not an estate. |
2.2 – Advertisement
Write an advertisement for the property to be including in the agency’s website listings.
A title. Your title is important. Statement to open. You need to address one crucial question in your opening statement – what are future customers looking at? … Functional description. … Concluding declaration. |
2.3 – Risk Management
Develop a risk management plan using the table below and include a minimum of three risks and the strategies you would implement to manage the risks. Submit the documents you developed as part of your assessment for this task.
| Risk (What is the risk?) | Stakeholders (Who does it affect) | Treatment (How can you minimise to an acceptable level?) |
Location | It will affects the agents as well as stakeholders | The fact that a property block is linked to its position is one of the major limitations of a property. It’s rare and there’s little replacement. Different suburbs and kinds of properties perform differently within a suburb. |
| Time Bound | Custumers as well as stakeholder. | Professional real estate development is extremely complicated, rapidly changing and multidisciplinary. The time it takes from initial to finishing of the process of development and the complexity requires substantial time, resulting in a lack of flexibility for real estate developers to react rapidly to variations in the market that lead to increasing financial risks. |
Investment | Stakeholder | The building of a property and the purchase of the property demands significant expenditure. A developer must also assure maximum equity return, most of the time external funds are needed to satisfy capital requirements. |
Planning And Council Regulations | Agents | Most of the immovable market is open to the general public. However, social and fiscal policy in the form of rent controls, tax deductions and depreciation allowances, stamp duties and more directly, via the implementation of policy structures, also exerts its impact. |
Task 3: Residential Tenancy Agreement
Aaron Hamil has been approved to lease the property. The landlords have requested a twelve month lease starting from the 1st of the following month.
Complete a ‘Residential tenancy agreement’ form and submit it as part of your assessment for this task.
ADDITIONAL INFORMATION
Tenant Details Name: Aaron Hamil Ph: 0422 411 235 E: a.hamil@gmail.com Notes: Owner’s corporation is applicable and you are to assume that you have provided this to the tenant as per legal requirements. Agent is authorised to approve urgent repairs Names can be typed in place of initials and signatures for the purpose of the exercise. Tenant consents to electronic communication |
Submit the completed form as part of your assessment for this task.
Task 4: Residential Premises Condition Report
4.1 – Prepare the Report
Before the tenant moves into the property a Residential Premises Condition Report must be prepared by the agent to accurately detail the condition the property is in prior to the tenant occupying it. This will ensure that the property is returned in as near a condition at the end of the tenancy period.
For the purpose of the exercise, identify a property that you can access, it could be your own home, or that of a family member or friend. Conduct a property inspection as if you were inspecting the property of Ian and Rebecca Harrison and accurately complete the residential premises condition report – make sure you put the address of the Harrison’s property on the report.
Assume the following issues with the property add the following issues to the condition report:
- broken light fitting in the bathroom
- a hole in the lounge room wall
- a broken wardrobe door handle in the master bedroom.
Submit the completed form as part of your assessment for this task.
4.2 – Questions
A week later, Ian (the landlord) knocks on Aaron’s door at 8:00pm. He tells Aaron that he was ‘in the neighbourhood’ and thought he would pop in to fix the wall and take the broken fittings so that he can get them replaced.
- What section of the Act has been breached?
According to Section 73 of the Act, “A party that suffers from such an infringement shall be entitled, where a contract is violated, to receive compensation from the person that broke that contract for any loss or damage that naturally arises as a result of such violation. |
- Outline a landlord’s entry rights and obligations as defined in the Act.
The rental company may enter the property as long as it acts in accordance with legislation. Nevertheless, they cannot: unreasonably exercise their right to enter. Stay or let other persons stay for the purpose of entrance for a longer time than is required, unless authorised by the renter. |
- Under what circumstances can a landlord enter a property? Identify the appropriate section of the Act.
Any day, save a public holiday, may only enter the property between 8:00 and 18:00. It is only possible, if the renter agrees, to enter outside this period. |
- When can an inspection be carried out on a rental property?
| Only after the first three months of the rental agreement may a general examination be carried out. You can do it at most every six months. The main test is to make sure the property is maintained in excellent shape by the tenant. |
- What must be in a notice of entry?
The notification must be signed by the landlord or agent in writing. The notice must be signed. The customer has to be served at least 24 hours prior to check-in. The notification must indicate why and why and when entry is made. - Does Aaron have the right to refuse Ian entry?
Aaron legally should request to obtain access to a tribunal order. If you rent privately and refuse access for gas or electronic safety inspections, you might be at danger for expulsion under section 21. |
Task 5: Undertake termination process
When it comes to the end of the tenancy the agent must follow appropriate termination processes.
Eleven months have passed and the lease is due for renewal. The owners decide that they will not renew the lease as their daughter is going to move into the property.
5.1 – Notice to Vacate
Prepare a ‘Notice to vacate’ to provide to the tenant for Ian and Rebecca Harrisons investment property.
Submit the completed form as part of your assessment for this task.
5.2 – Process
Outline the steps that you take to ensure compliance with legislation and that the best interests of the owner are considered. You should include any documentation that needs to be completed.
Keep abreast on evolving legislation. It’s not simply compliant something your company is. Specialists involved. Involve. Small and developing companies in particular might violate regulations unknowingly. Ensure that staff follow protocols. Schedule internal audits on an ongoing basis. Use the programme you need. |
Project 2 – Instructions
During day to day real estate activities, the keys belonging to properties of various owners and landlords for whom the agency is providing service will be removed from the office and used by staff, tenants and possibly tradespeople.
Keeping track of the whereabouts of these keys is imperative to maintaining the security of your client’s valuable assets and minimising the risks that can affect the agency relating to key security.
Task 1 – Key Register
1.1 – Complete the Key Register
Amanda Watkins is the officer responsible for managing the key register at ABC Real Estate. You have a number of property inspections to attend.
You receive the following keys at 10:00am on 2 April 20XX and return them at 2:30pm on the same day.
- You are conducting an end of lease inspection at 13 Bucket Way, Keilor (Key P065).
- You have been asked to advertise a rental property at 25 High Street, Essendon (Key P267). You need to see the property before writing the advertisement.
Amanda is on leave, so the receptionist Paul Barber, is issuing keys. You are conducting two open for inspections in the evening.
You receive the following keys at 5:00pm on 4 May 20XX and return them at 9:00am the next day.
- 2/17 Partridge Street, Niddrie (Key P515)
- 23 Callum Court, Sydenham (Key P349)
Complete the key register template provided in your student portal using the information provided.
Submit the completed form as part of your assessment for this task.
1.2 – Key Management Procedures
Undertake research to determine the process for maintaining and accessing key registers. You may like to interview an agent, agent’s representative or other agency staff, or you can review the key procedures sample provided in your course.
If possible, obtain a copy of a written procedure for accessing, maintaining and security of a key register in an agency.
You must answer the following questions.
- In what format is the key register kept, ie database, spreadsheet
The key number is exclusively recorded on our system with the KeyLedger.com real estate key registry. This implies that you have to search up this number and find the keys for a property. |
- Who is responsible for maintaining the register and issuing keys?
All in the office are responsible but the Senior Proprietor and/or Senior Sales Officer are responsible for ensuring that the key register is kept. |
- Outline the process for obtaining, using and returning keys, ie: Who can sign keys out? Can they be kept overnight? Can they be passed on to a third party?
Upon registration of the property under the name of the managing agents, the managing agent may authorise employers or renters to provide a letter of authorisation for a copy of the key. For persons with written permission, key and picture ID, we will only cut keys. |
- What happens if a key is not returned?
As all the keys have not been returned, your host is entitled to change the keys for your new renter. Some landlords may use the opportunity at your expense to update or change the locks, which means you improve the property with your deposit money. |
- How is security for both the register and keys maintained? ie password protection for register, keys are kept locked up, etc.
Learner Declaration
You are now required to upload this completed document to the Otrain Learner Portal for Grading.
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