June 25, 2012

Role of a Property Manager - Property Management Training and Procedures PME

Part of Chapter 1 of PME - Property Management Excellence Procedures and Training Guide

Over 100 best practice forms and information are in addition to the 250 plus page procedures and training manual.

PME also includes the following on the PME CD;

·       Personalised tenancy sign up CD – valued at $880 standalone product – non-member rate

·       QCAT Training CD – valued at $330 standalone product – non-member rate

·       Drugs in Property Awareness CD - valued at $55  standalone product – non-member rate

·       QCAT relevant Decisions and appeals up until June 30th 2012


1.1 What is the role of a Property Manager?                                               

Property Managers manage the tenancy relationship and relevant tenancy matters on behalf of the lessor client.  A key tip in property management success is to ensure your agency verbal and written language reflects the ‘true situation’. For example use words such as

·        On behalf of the owner

·        The lessor has advised

·        The landlord instructions are

Remember, Property Managers don’t make decisions as such; recommendations and solutions are made to the parties of the agreement (lessor and tenant) and if they don’t agree or may not be correct, dispute resolution may occur.

Below are some of the main services property managers carry out as the managing agent. The list is not exhaustive and is a general guide only.

  • Showing the property

o   Organising inspections to show the property to prospective tenants

  • Advertising the property

o   Using resources such as on websites and our in house agency ‘rent list’

  • Processing tenancy applications

o   Verification and assessment of the tenants ability to pay rent and ability to care for the property

  • Lodging rental bonds to the Government Authority on behalf of the lessor

o   It is a legal requirement that rental bonds paid by a tenant be paid to the RTA (Residential Tenancies Authority) within 10 days of monies being received. Bonds can be no more than 4 x the weekly rent if the rental weekly value is $700 per week or less. If the rental property is over $700 per week, the bond total amount is not limited and is negotiable between the parties.

  • Completion of the required tenancy documents to commence the tenancy on behalf of the lessor

o   The RTA Form 18a – the General Tenancy Agreement

§  This must be given to the tenant prior to monies being taken

o   The RTA Form 1a – the entry condition report

§  One copy must be provided to the tenant on or before the day they take possession. This is a particularly critical document and the tenant is required 3 days in which to sign and return a copy with any extra comments. We will forward a copy to you for your records and discuss any matters if applicable.

o   The RTA Form 17a – the information statement

§  A useful resource booklet provided by the RTA that we on your behalf a required to provide to tenant when giving the agreement for signing (a copy is provided as part of this proposal package)

o   Body corporate by-laws (if applicable)

o   Trust account receipt

o   RTA Form 2 – bond lodgement form

  • Accounting on behalf of the lessor

o   Payment of invoices (if instructed)

o   Disbursement of rental trust funds

  • Rent arrears

o   Daily rent arrears administration and monitoring

o   Issuing of required statutory notices as required and if applicable

  • Maintenance negotiation

o   Notifying the lessor of maintenance (as per management agreement instructions)

o   Communication with the tenant

o   Organising a suitable contractor

o   Providing a work order to the contractor

o   Following up as required

o   Payment of invoice

o   Accounting to the lessor accordingly

  • Tenancy renewals and negotiation

o   Contacting the lessor to verify instructions such as to renew the lease or to provide notice to the tenant to vacate

o   Making the renewal lease offer to the tenant

o   Negotiating rent increases if applicable

o   Following up the tenant

o   Tenancy paperwork – a new Form 18a – General Tenancy Agreement

  • Carrying out general routine inspections during a tenancy

o   Issuing the required RTA Form 9 entry notice allowing the required statutory time frame

o   Carrying out the inspection

o   Completing best practice report and providing it to the landlord

o   Following up tenants or the landlord as required and if necessary

  • Carrying out the final inspection

o   Statutory and best practice letter and procedure requirements

o   Inviting the tenant to the final inspection

o   Carrying out the final inspection to ensure that the property is returned in the same condition as it was found – except for fair wear and tear as per Standard Term 37 of the General Tenancy Agreement (section 188 (4) of the RTRA Act. There is no legal definition for fair wear and tear. It is important to consider and take into account what will occur at the property with normal living conditions. The property of course will not be kept in the same condition as it was when it was first rented and as you have last seen it as over a period of time usual aging and deterioration will occur. Our reports will keep you informed of the properties natural progression and any matters that are deemed damage and not wear and tear will be discussed with the landlord, negotiated and managed by us with the tenant on your behalf.

37 Condition premises must be left in – s 188(4)

At the end of the tenancy, the tenant must leave the premises,

as far as possible, in the same condition they were in at the

start of the tenancy, fair wear and tear excepted.

Examples of what may be fair wear and tear –

 wear that happens during normal use

changes that happen with ageing

o   Negotiating any outstanding items such as cleaning with the tenant that may be required to be undertaken to return the property in accordance with the entry condition report.

o   Negotiating and coordinating the bond refund with the tenants in liaison with the lessor.

(C) Real Estate Excellence www.realestateexcellence.com.au

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