This module covers customer services, procedures and practices involved in the management of property under an agency contract. This means not only tenanting the property, but also seeing to the maintenance of the property’s value as an investment. To ensure, this occurs, a property manager must manage all forms of risk which may affect the property and monitor all financial aspects of the property as per the Management Agreement.
From the moment the tenant takes possession of the rental property your agency must ensure the correct procedures and processes are in place to’ ensure proper practice. The services you provide to both landlords and tenants will have a direct bearing on the agency’s reputation. Your responsibility is to ensure the procedures and practices are followed in line with all legislative requirements and your agency code of conduct.
Once you have secured an agreement to manage a property on behalf of an owner (landlord) you are responsible for supplying the services listed in the Management Agreement.
By now you can see that you have to act in the interests of the landlord, the tenant and your agency. This is not an easy task but setting up procedures and processes will certainly mainstream most daily chores. If you fail in your duty to provide the services the agency has agreed to perform, you run the risk of losing clients and possibly causing undue strain on the business financially and its reputation.
The service that you offer will:
• Determine the level of customer satisfaction.
• Influence the profitability of the property in the long-term, both for the agency and the owner.
• Potentially bring in more listings by word of mouth.
If you wish to achieve these things, and perhaps more, then there are no short cuts. You must take care of every aspect of every property as though it was your own investment. Now is your opportunity to build a reputation for business integrity, ethics and professionalism for both yourself and your agency.
When you have completed this module you will know how to:
• Operate trust accounts for managed property clients.
• Undertake risk management for managed properties.
• Ensure security of managed properties.
• Maintain and protect condition of managed property.
• Plan for tenancy renewals.
• Ensure landlord’s legal rights are protected.
• Obtain vacant possession of managed properties.
Final Assessment Tasks
Outline a simple Trust Accounting Procedure.
Refer to 4 “area’s of risk” that can occur in the Property Management department on
Page 9. Outline in detail what could go wrong.
The terms of the Management Agreement will set out the extent to which the agency
accepts risk management responsibilities. While the owner is ultimately responsible
for the wellbeing of the property, the property manager acts on behalf of the owner.
As the ‘guardian’ of the property, the property manager therefore needs to ensure:
• Appropriate leasing procedures – advertising, interviewing,
• Reference checking of prospective tenants.
• Completion of documentation.
• Collection of rent payments.
• Arrears management.
• Lodgment of bond.
• Maintenance inspections and reporting.
• Overseeing maintenance repairs as instructed by owner.
• Issue of breach notices to tenant/s in accordance with Legislative
• Monthly accounting – payment of accounts, preparation of Statements,
disbursement of funds.
• Any other services as listed on the management agreement.
In some instances, the property manager may agree to take responsibility for other
items which the owner may request. If an owner requests that the agent organise
and pay for maintenance work from their account and it is not written into the
An invoice for the work completed must be produced to enable the property manager
to draw payment from the trust account. A receipt would be kept on file and a copy
sent to the owner for their records.
Always check the owner’s instructions set out in the agreement prior to conducting
any activities, and if in doubt contact them and obtain their written authority to act on
Outline 5 circumstances where a tenant could breach a lease agreement.
You are responsible for appointing a tradesperson. Select 5 of the most important
points you consider your landlord would be most concerned with.
How would you ensure the maintenance costs be kept to a minimum for your
In which areas do most disputes occur for landlords, tenants and agents?
In your own words, how could you assist landlords and tenants with these issues
before they arise?
What should occur when a tenant gives notice to vacate a property?
What information would be given to the landlord and tenant?
Attached is a Maintenance Order Form. (Appendix 2, Page 34) Complete an order to
repair a faulty power point which keeps tripping the electrical safety switch. You are
the property manager. Make up any information not given.
Certificate IV in Property Services (Real Estate) CPP40307
Real Estate Education & Training (NSW) Page 31
On a routine inspection of a property, you test the smoke alarm and find it is nonoperational.
The tenant tells you that it kept beeping so they removed the battery
about 6 months ago. What do you do?
Refer to the “Smoke Alarm Legislation” at the following link on page 35.
How could you ensure the tenant does not allow this to happen again?
Smoke Alarm & Residential Premises