Real Estate Assignment — Queensland Australia Essay Example
CPPDSM4010A: Lease property
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1. Discuss the factors that make a property more, or less, attractive to a prospective tenant, providing reasons in your response.
Price of a property will determine whether a prospective tenant will go for it or not. They usually work within a tight budget and will go for property that offers the features they want.
The property’s location will impact on the rental price. Proximity to essential amenities and the type of environment will dictate the property’s attractiveness.
The type of property being offered will appeal differently since tenants have different special needs.
The general presentation of the property will affect its attractiveness because tenants look for property that would resemble their own property.
Tenants judge a property’s desirability based on the terms and conditions of lease. The duration of the lease is the major deciding aspect of whether the prospective tenant will take it up or not.
2a. Why is it important for the property manager to carry out inspections with prospective tenants instead of handing them the key to vacant properties?
< Accompanying tenants to the property during inspection is very important to property managers because litigations against incidences that occur at the property can be avoided. It also avoids breaching the Code of Conduct which is an offence. The property manager also has the opportunity to convince prospective tenants to buy the property, answer the prospective tenant’s questions, point out the features and benefits, and make comparisons with alternative properties. The property manager is be able to take important information from the tenant to the landlord and the prospective tenant can also check on the maintenance and security of the
2b. Describe what policies and procedures could be implemented into a property management department to ensure that the agency did not breach the Anti Discrimination legislation.
< The department should inform property applicants that only one application will be successful. This should also be explained on the forms that they will be filling. The department could also be prompt in informing unsuccessful prospective tenants of the results so that they are able to start looking for other properties as soon as possible. In case the prospective tenant passes the property manager’s selection but fails in the landlord’s, the property management department can ask him or her to leave the application form so that he or she can be contacted the moment another property becomes available. >
3. A property manager is responsible for obtaining and reviewing the prospective tenant’s application for tenancy.
(i) Why is it important to be diligent when reference checking the prospective tenant application and ensuring that all the information is documented?
< Reference checking helps the property manager to demonstrate professionalism in managing property on the landlord’s behalf. Documenting such information may act as evidence in the event of potential litigation. Maintaining a record of this ensures that the property manager and the landlord offer tenancy to only those prospective tenants who meet and satisfy their tenancy application checklist. This will in turn helps avoid legal proceedings in case tenancy is denied without documents regarding the decision to deny a particular tenant tenancy. The property manager will also have an idea of who the prospective tenants are if enough information is gathered by them.
(ii) Describe what steps you would take in checking a prospective tenant’s application for tenancy and getting it approved by the landlord
< The first step would be to obtain the prospective tenant’s identity. This I would achieve by asking for any identification document he or she may have and verify its genuineness. The next step would be to check on his or her tenancy records to obtain past residential information. I would then look into his or her financial documents to get to know the prospective tenant’s financial ability to pay the rent after which I would contact both business and personal references he or she provided. Lastly, I would conduct a tenancy database check to access a financial risk if any.>
4. Prepare a checklist of all actions that you would need to take during a tenancy sign up appointment. Your checklist should cover both preparation for the appointment, what would occur during the appointment itself, as well as what follow up processes need to occur after the tenant has signed their tenancy agreement, for example, what information needs to be recorded and where.
Checklist during Preparation for the interview
Book the interview room.
Prepare all documents, double check them and keep in folder.
Prepare mode of rent payment.
Prepare folder containing copies of all documents, receipts, sets of keys etc.
Prepare all keys in advance and check if they are in working order.
Inform the management that new tenants will be introduced to them.
Prepare a “welcome kit” in advance.
Checklist during Interview
Enter tenancy details into agency computer.
Enter rent and bond payment to the computer.
Receipt the rent in advance and the rental bond to the trust account.
Print both records and reports for data entered in the agency’s computer. >
Your task is to prepare a tenancy agreement and a bond lodgement form for a new tenancy using a tenancy agreement and then to answer some questions below based on the case study.
You will need to download the relevant tenancy agreement and bond lodgement form from State Resources provided for this unit.
Once completed please follow the instructions for submitting for assessment.
PLEASE NOTE: YOU ARE ABLE TO USE YOUR AGENCY TENANCY AGREEMENT IF RELEVANT
Please use the information provided below to complete the tenancy agreement. Today’s date is the commencement of the agreement. No signatures are required.
Landlord: Mr Walter Smith- address for landlord should be ‘care of agency address’
Agent: Insert your own agency name and address
Tenants: The tenants are Fiona and George Evans, and their three children Robin 14 years old, Sally 12 years old, and James who is 4 years old.
Property: 68 Fortune Street, Gilberton. The property is a 4 bedroom, with ensuite home. The house has a separate family room, outside entertaining area, a double lock up garage with air conditioning to the living and dining areas. The air conditioner is new, and is an AIRWELL Flow, serial number TF 34543. There are quality carpets and tiles throughout, as well as good quality blinds and curtains.
Rent: Rent is to be paid every week on a Friday. The amount of rent is $350 per week. Rent is to be paid by Internet into the agent’s account which is ‘ATA’ and BSB: 062564
Account No: 4536453738
Term: The tenancy is to be a fixed term tenancy for 12 months
Bond: The rental bond is to be an amount of $1,400
Tradespeople: The contact is to be “Work R’ Us” for all contractors. The contact number for this company is 04123546575
Pets: The family has a small dog. Council registration number is TY 564
Thetenants have requestedthat they be allowed to erect a children’s playground in the back yard. This will entail digging holes and cementing the uprights into the ground. The landlord has approved this request, with the proviso that at the end of the tenancy the cement is removed, the holes are covered in and the grass replaced.
Would the agent be able to write a “special condition” into a tenancy agreement that states: “The tenant acknowledges that the landlord will be inspecting the property on the last Sunday of every month?” In your answer explain why/why not.
< The agent would not be able to write this special condition statement. This is because it is the responsibility of the agent to ensure that the tenants enjoy their privacy as much as possible. The agent must give such notice of entry in writing using the Entry Notice (Form 9). Most important of all, according to the rule of entry under the Act, entries or inspections cannot be made during Sundays or public holidays unless there is an agreement. The rules of entry also state that a maximum of one routine inspection every 3 months is allowed, not every month. >
How would you handle the following situation? The Evans have signed up the tenancy agreement. You have signed off on behalf of the landlord and the Evans are ready to move into the new property. The landlord has just contacted you and advised you that:
a) He will require another $500 toward the bond, as the curtains and blinds are all brand new
I would approach the landlord and explain to him that I have already committed the Evans to the tenancy agreement. The agreement is binding and they were not informed that they would be paying for the new blinders and curtains. By me signing the agreement on his behalf does not relieve him of the responsibilities of the same agreement. The agreement stated that the Evans would be paying a bond of $1,400 only, for the duration they would be staying at the property and nothing more. This amount is equivalent to 4 weeks rent which is the legal bond the Evans are supposed to pay. >
b) At this stage he cannot give the new tenants remotes or keys to the garage doors as they are being serviced and will not be available until next week
< In this situation I will explain to the Evans the importance of having the garage keys or remote with them for security reasons. If I let them go, enter the property and start living there while they wait for the keys, then any incidences related to security or theft will be charged against me as I am the one who signed the agreement and acts on behalf of the landlord. I would thus ask the Evans to postpone their entry to the premises until the following week when the garage door keys will be available. This will help me avoid any possible litigation.
c) He has just appointed a collection agent and the collection of rent from the tenants will incur a fee
< This tenancy agreement states that the tenants would be paying their rent through the internet. The agreement is legally binding and the landlord cannot go against it. I would therefore ask the landlord to state the reasons for this change, and if they are genuine I will try to negotiate with the new terms with the tenants. If a new agreement is reached I would put it in writing to counter the previous one. In case the reasons given by the landlord are not genuine enough, I would seek the advice of the Dispute Resolution Service so that I can know what the law says with regard to the issue.
d) He has changed his mind about the children’s playground being installed in the yard
< The tenants have reached an agreement with the landlord on the setting up of the children’s playground. They have agreed to remove the cement, fill up holes and plant grass when they leave and so the landlord has approved their request. He cannot, thus, unreasonably withhold his agreement regarding this request. If he changes his stand after negotiation I would advise them to put the agreement in writing again. However, if he does not change his mind after such negotiation, I would ask the tenants to approach RTA’s Dispute Resolution Service to offer information about the law regarding the issue.>
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CPPDSM4010A: Lease property: Assessment Questions
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