PART A - Oral questioning and learning activities
Question 1: In your own words explain the purpose and legislative requirements relating to the following inspections conducted by a property manager:
- Form 1a Entry Condition Report
- Form 14a Exit Condition Report
- Routine/general inspection during a tenancy.
Question 2: Explain why the features and location of a property together with the tenancy history need to be considered when recommending proposed tenancy renewal terms to an owner.
Question 3: When handling a maintenance request from a tenant explain five (5) elements the property manager would need to consider before allocating a contractor to attend to the request.
Question 4: After conducting an exit inspection RTA Form 14a you note there are a number of items which you believe require additional cleaning. The quote indicates a cost of $250.00. Identify 6 qualities you must display as a property manager in dealing with a dispute.
Question 5: The tenant is not in agreement to the property manager claiming the $250.00 on the bond. Explain the RTA process the property manager would need to follow to protect the lessor's interests and make a claim on the bond.
PART B - Short answer section
Question 1: You are a property manager employed by REIQ Realty. You have received an email from an owner who isn't sure how to read the monthly rental statement. Explain one type of transaction that would be shown as a credit and one type of transaction that would be shown as a debit on the statement.
Question 2: Another owner contacts you in relation to insurance and their property. They have asked for your recommendation in relation to a Landlord Protection Policy they are considering. As a risk management strategy how would you handle this request?
Question 3: You have received an email from an owner seeking to clarify the agency requirement for the lessor to hold $10 million public liability insurance on each property. In your own words explain why the agency has adopted this risk management policy.
Question 4: You are currently in the process of selecting a third plumber to add to your list of agency preferred contractors used. Explain five (5) important considerations in your selection.
Question 5: Once you have chosen the third plumber, what best practice/risk management document would you have completed and signed by the new plumber? Briefly explain why you would have this document signed.
Question 6: REIQ Realty advise owners in advance of scheduled general/routine inspections on their properties and invite the owner to accompany the property manager on the inspection. Explain in your own words at least two reasons for REIQ Realty adopting this policy.
Question 7: You have been asked by the Licensee of REIQ Realty to develop a step by step system guide for scheduling and completing routine property inspections. Your steps should be listed in the order in which they would occur in practice, with any relevant timeframes identified and how and when communicating with the lessor would occur. Detail the step by step process you would recommend.
Question 8: REIQ Realty has built a reputation of offering quality property management services by maximising the owners' return on investment by minimising tenancy turnovers and aiming to achieve shorter vacancy periods. An owner has asked you to explain five strategies REIQ Realty utilise to achieve this.
Question 9: After reviewing REIQ Realty's systems you determine a step by step process needs to be developed for the tenancy renewals. In the order in which they would occur in practice, list a step by step process for an effective tenancy renewal system. The process must incorporate any relevant timeframes to ensure compliance with the RTRA Act and other relevant legislation.
Question 10: REIQ Realty receives a maintenance request from a tenant advising they have no hot water. List the steps you would take in handling this maintenance request. Your steps should be listed in the order in which they would occur in practice, from the time of becoming aware of the need for repair through to receiving the final invoice for completed work. Identify any relevant timeframes that you would adhere to in your system based on the meaning of emergency repairs contained in the IRTRA Act.
Question 11: An owner of a prospective new management is concerned about renting out the property and would like to know the strategies used by REIQ Realty to attempt to prevent tenant rent arrears. Give three (3) strategies with a brief explanation.
Question 12: On reviewing the computer software generated arrears list you have been assigned the task of following a step by step process for arrears management and control. List the steps you would take from the time rent is three (3) days in arrears through to lodging an application to MAT seeking to terminate the tenancy. Your answer must include the relevant RTRA Act minimum timeframes associated with each step of the process.
PART C - Case Study Section
Please read the following case studies and complete the questions.
During a routine property inspection, you observe that the tenants have caused serious damage to the walls in the living and dining areas of the property. You have counted 17 sizeable holes, ranging from 15 cm to 30 cm in diameter, as well as various stains and scratches. No other damage is observed throughout the property. The tenants have only resided in the property for three months and signed a 12 month tenancy agreement.
They are present at the inspection and explain they had a house-warming party when they first moved in and some of the guests got out of hand. They are extremely apologetic and express a willingness to pay for the necessary repairs. As the property manager, you now weigh up the facts and the possible actions that could be taken based on the provisions of the RTRA Act to handle this situation in the best interests of the client.
Question 1: Explain what Information you would now give to the lessor in relation to the situation, the options available for action to be taken and the possible benefits and risks of those options in the circumstances. Discuss all relevant considerations, including your recommendations regarding any future tenancy agreements for these tenants and the possible solutions regarding the physical maintenance issues and any formal processes that must be followed in your recommendations.
Your explanation must address all possible scenarios for this situation.
Question 2: Three months ago you secured a 12 month tenancy agreement between the lessor, Leticia Dawn, and the co-tenants, Natalie Brown and Yvonne Fleet. Both Yvonne and Natalie were named as tenants on the agreement. Today, Natalie has phoned you to tell you that Yvonne intends on moving out although she has a friend wanting to move in and take over the tenancy agreement.
What Information would you now provide to Natalie and Yvonne concerning their rights and obligations under the tenancy agreement, bond held at the RTA and the entry condition report.
Question 3: A tenant has issued a RTA Form 13 to REIQ Realty providing 2 weeks notice, without grounds, for the end date of the current tenancy agreement. The owner has instructed REIQ Realty the property is to be re-tenanted as quickly as possible on any tenancy changeovers. Describe the steps you would take from the time of receiving this notice through to the finalisation of the tenancy including the bond refund.