CPPDSM4007AIdentify the legal and ethical requirements ofProperty Management to complete agency workMRT Training Pty LtdRTO Registration Number 41529CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 2 of 65OverviewThis unit of competency specifies the outcomes required to meet the core legaland ethical requirements associated with property management.This includes awareness of the legislation dealing with the leasing andmanagement of property, the role and responsibility of agency personnel inproperty management, the recording of property management transactions andthe completion of property management documentation.The unit may form part of the licensing requirements for persons engaged inreal estate activities in those states and territories where these are regulatedactivities.This Unit of Competence (CPPDSM4007A) is one of the core units in theCPP40307 – Certificate IV in Property Services (Real Estate) qualification andan elective unit in the CPP30207 – Certificate III in Property Services (Agency)qualification.These participant notes also provide underpinning knowledge for other PropertyManagement Units in these qualifications.AssessmentAssessment for this unit includes tasks to be marked by your Assessor, whichmay include multiple choice questions, short answer questions, case studies,projects, role-plays and / or demonstrations.Assessment activities for this unit are provided in a separate assessmentdocument, which has been customised to meet the legislative requirements inyour state or territory.You may apply for assessment through MRT Training’s recognition processwhereby you demonstrate your current competence through prior learning(RPL) by compiling a portfolio of evidence to demonstrate your skills andknowledge. Your RPL will be supported by interview questions and / or thirdparty reports to confirm your skills and abilities.Competence in this unit will be demonstrated when you are able to show thatyou can meet the Elements and Performance criteria, shown on the followingpage. These have been extracted from the full Unit Descriptor which isavailable upon request.Tutorial AssistanceShould you require help, assistance or tutorial support at any time duringyour study, a course facilitator is available to assist you. To request supportsend an email to tony@myrealestatetraining.com.au with a brief outline ofyour query.CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 3 of 65IntroductionProperty Management is the backbone of most real estate agencies.In terms of assets, the rent roll will, in most cases, represent the bulk of theassets of the business.The income produced from the rent roll often supports the operation of thebusiness as a whole. What this means is that very often the rent roll income andthe profits from the rent roll provide the cash-flow necessary to keep thebusiness open, and at the least, be sufficient to cover the rent (or finance) forthe office, and the office overheads (electricity / water / copier / stationery etc).The main difference between the income from the Property Management andthe sales operation is that the rent roll income is stable, and varies little frommonth to month.The other benefits to the business from the rent roll are that the businessbenefits from an ongoing source of:[ Potential sellers (owners who are selling their investment properties) and[ Potential buyers (tenants who become buyers)The sales department, however, is subject to fluctuations, from month to monthand year to year, and there is limited stability.There are many more factors that influence the market for sales than there arein property management. This can lead to fluctuations in income and profit forthe sales department and business owners.Property Management Legislation in VictoriaProperty management is a highly regulated industry sector – not only is propertymanagement a Real Estate discipline, it also has a set of laws and regulationsestablished to protect tenants who are living in rented accommodation.The main acts that apply to Property Management in Victoria are as follows:1. The Estate Agents Act 1980, which is supplemented by the Regulation.This is an act to regulate Real Estate Agents.2. The Residential Tenancies Act 1997 (and Regulation 2008) relates toresidential tenancies and occupancy agreements, and regulates theoperation of residential tenancy agreements.CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 4 of 65One further Act that applies to all Real Estate agents is the Fair Trading Act1999, which regulates trading practices in the Victoria. This act mirrors (to anextent) the Commonwealth Competition and Consumer Act 2010, and regulatesthe way in which businesses and business people interact and fee relate toconsumers – the agency’s clients and customers.Income from Property ManagementMany people underestimate the value of a rent roll, and just how valuable it is tothe business.Let’s take the example of a medium size rent roll of 200 properties.This would typically be managed by a Property Manager, possibly with theassistance of a Property Officer. Often, there may also be a part-time accountsclerk to supervise the trust account (or an accountant may do this)If we assume that the average property on the rent roll is rented for $458 perweek and the management fee that the property owner pays is 7%, then everyweek each property brings in about $32 (not much you may be thinking..).Over a year, that equates to about $1600 income per property, and the wholerent roll brings in about $320 000.That is without adding any income for letting fees and re-letting fees, or otherfees and charges payable by clients. Additional fees that may be charged by theProperty Management department include:1. Letting fees (where a landlord pays a fee to find a new tenant).For a new rental this is often one week’s rent.Where a tenant vacates, typically a re-let fee of a half week’s rent ischarged. Assuming that 50% of all property changes tenants every 12months, this could bring in $40 0002. Administration Fees (Postage and Petties)Admin fees of between $5 and $10 per month are charged to homeownersas an administration charge to cover sundry expenses such as postage andstationery. Annually these could be worth $18 000 (at $7.50 per month)The Value of the Property Management Rent RollEvery management agreement that the agency has in force represents anincome to the business – from management fees and the other charges detailedabove.The rent roll (the total of management agreements) represents a significantincome producing asset. Rent rolls are bought and sold regularly, and areadvertised in the business section of major newspapers and Real Estatepublications.CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 5 of 65Currently, rent rolls are selling for about $3.00 per dollar of management feeincome, which means that the value of this example rent roll is in the region ofabout $960 000.However, the final value could vary from this figure, depending on the quality ofthe managements, and the quality of the tenants.Agencies also buy and sell small tranches of managements. Let’s assume thatthe agency above has 20 managed properties in a suburb 15km away, whichthey find expensive and time consuming to manage. They may decide to sellthese and offer them to a more local agency to manage.Factors affecting the value of a rent rollLength of ManagementIf a property has been managed by the same agency for a number of years,then the potential value of that property within the rent roll may be higher.Conversely, new managements that have been managed for a short periodwould have a lower value. Long term agency agreements would increase thevalue, whilst on the other hand agreements that have 12 months or less to runwill be less favourably considered.Quality of the PropertyThe same applies to the quality of the property. Good quality properties, in goodcondition, require little intervention from the property manager in theirmaintenance and management. These will be more valuable assets to thebusiness, whilst a problem property that requires considerable maintenancewould not be considered the same way.Length of TenancyLooking at the length of tenancy is another indicator of the value of a rentalproperty within the rent roll. Properties where there are long term tenants, andthose within a fixed term tenancy, will be considered less of a potential liabilitythan where there is a regular 6 month change of tenant, or where many tenantsare renting outside the fixed term on a month – month basis.Landlords with Multiple PropertiesA portfolio with a significant number of landlords with multiple properties, asopposed to single properties may be considered a risk. Should such a landlorddecide to move his business to another agency this could have a significanteffect of the value of that portfolio.CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 6 of 65To summarise, the value of the rent roll is affected by:[ How potential landlords are advised[ How landlords’ properties are managed and maintained,[ The way in which vacancy rates are managed effectively,[ How tenants are selected and managed throughout their tenancy,[ The way in which the financial operations are managedAll these factors can have a bearing on the value of the rent roll – the value ofthe real estate agency itself.The Property ManagerThe quality of the person managing the rent roll can also have a significanteffect on the value of the business. Generally, the Property Manager is thepoint of contact for landlords, and will be responsible for the operation of aportfolio of properties.Professional Property Managers are:[ Loyal – have a commitment to their landlords, clients and customers,[ Ethical – in their dealings with clients and customers[ Focussed on providing a great property management service[ Great communicators and have excellent conflict resolution skills[ Demonstrate a thorough knowledge of procedures, policies andlegislation[ Recognise and take advantage of business opportunities[ Have an eye for detail[ Display sound time management skills[ Aware of and respond to changes in their local property market[ Effective risk managers, minimising risks to owners and the agencyProperty management is a specialist discipline within a Real Estate Agency.It is not just an “add on”, but the backbone of the operation.It is a role that requires dedication and commitment. The available income perweek per property is very limited and it is easy to spend time and money onunproductive work if the landlord, property or tenant are of poor quality, anddemand excessive management intervention.Other staff roles in Property Management (depending on the size of theoffice / rent roll) may include:CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 7 of 65Property Management Assistant: is an assistant to the property managerand may well be the person who deals with tenants and tradespeople on aday to day basis.Leasing Manager: Prepares and executes tenancy agreements andmanages payments of bond at the commencement of a new tenancy.Bookkeeper: Manages trust account transactions and looks after thefinancial aspects of the property management department.Depending on the size of the rent roll there may be other specialistsundertaking specific functions, but generally, there will be teams of peoplemanaging identifiable portfolios of properties.The notes on the next pages have been designed to ‘walk you through’ aproperty management scenario, from the time that the new landlordenquires about leasing his property, through checking in the new tenants,managing the tenancy and finally obtaining vacant possession at the endof the tenancy.CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 8 of 65CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 9 of 65CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 10 of 65Prospecting for New ManagementsProperty managers must be aware to the opportunities to list new properties formanagement in order to maintain and build their business.In property management, similar prospecting techniques are applied as in thesales department, and typical prospecting activities could include:[ Leaflet distribution[ Advertising[ Following up visitors to open homes[ Prospecting private “To Lease” adverts[ Targeting vacant properties[ Targeting unsold properties[ Networkingo with the sales departmento within the local communityo with existing landlordso with their personal sphere of influence[ Building a referral base from existing customers[ Building and managing a database of prospective landlords[ Newsletters to existing and potential landlordsProspecting consistently is as important for the property manager as it is for thesalesperson. Properties are withdrawn from the rent roll for many reasons, suchas:[ The owner wanting to move back in to the property[ Renovations are to be carried out[ The owner wants to sellTherefore maintaining a constant flow of new managements is necessary just toovercome the drop off rate, as well as continue to build the roll.CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 11 of 65The Rental AppraisalAs a result of the prospecting activity that is undertaken by a property manager,potential clients will request a rental appraisal.This is the property manager’s opportunity to:[ Build a relationship with the prospective landlord[ Demonstrate their personal skills and knowledge[ Sell the benefits of their agency managing the propertyThe first step in initiating property management is to meet the owners of theproperty to be managed. The initial meeting may be held either at the owner’sresidence or at the agency.The purpose of this meeting is to obtain details about the property and to makean appointment for a full inspection of the property to be carried out.Details that should be discussed in the initial meeting include:[ Introducing the owners to the concept of the Leasing and ManagingAuthority[ Identifying when the property will be available on the rental market[ Identifying the period of agency, or how long the property will beavailable for rent[ Identifying any special conditions that the owners might impose onthe management of the propertyThe property should always be visited and inspected, and in most states aLeasing and Managing Authority would be invalid if the property had not beeninspected by the agent prior to obtaining the clients signature.The following steps should be taken prior to conducting a rental appraisal:-[ Title search (to confirm rightful ownership)[ Property inspection[ Compare property with similar properties currently leased[ Compare property with similar properties currently available for lease[ Research current vacancy factors using industry publications and bydiscussion with colleagues and industry associatesThere’s no set formula to use when conducting a rental appraisal, however it isoften approached in a similar way to sales appraisals and based upon analysisof comparable properties that are currently for lease and that have recentlybeen leased.CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 12 of 65When assessing comparable properties, the following factors should beconsidered:[ Location of the property[ Outward appearance[ Design[ Size and number of rooms[ Extent of entertainment areas[ Outdoor living space[ Number of bathrooms and toilets[ If the property is furnished, the extent and quality of furnishings[ Standard of construction and finish[ Age of the building[ Location of the property in relation to schools, public transport andshopsRental values can differ and fluctuate in response to the current market, as wellas varying with demographic and geographic areas.For example, a tidy new home in a lower priced suburb may rent for less thanan older, slightly rougher home which is close to the beach or CBD.Rentals close to universities, colleges and hospitals, or with access to goodpublic transport frequently achieve higher rental prices than properties thataren’t near these sorts of facilities.The market value for rental properties is also determined by the supply anddemand for an area or locality at any given time. This supply and demand isreflected in the locality’s occupancy rate:[ A low vacancy rate indicates a shortage of similar rental properties,and can lead to increased rent for properties in the area[ A high vacancy rate may result in reduced rents to attract or retaintenantsOther factors that can affect vacancy rates include significant changes tointerest rates and government assisted first homebuyer schemes.For example, government first homebuyer schemes give incentives to youngerpeople to become homeowners. These young people may otherwise make up alarge section of the rental market.CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 13 of 65The market value of the property does have some effect on the rental value, butit doesn’t necessarily have a direct effect.For example, if a $300,000 property rents for $300 per week, it doesn’t meanthat a $2,000,000 home will rent for $2,000 per week.Many people with $2,000 per week available would probably prefer to buy theirown home, so this may cause a decrease in demand for very expensive rentalhomes. The effect is that rental values may increase at a slower ratio than themarket values of properties.Determining Rental Value – The Pricing StrategyProperty owners may well have done their own research before calling an agentin for an appraisal, and may have a figure in mind for how much they expect fortheir property. Their figure may or may not be realistic in the market at thatmoment.When discussing the rental price of their property it is important for you to remainobjective, and discuss their property in comparison with others, and have facts,figures and evidence to substantiate your proposals.Being drawn into providing personal opinions should be avoided – that is not aprofessional approach and does not base strategy on factual evidence.However, within the acceptable rental range, landlords should be given everyopportunity to achieve their preferred or premium rental figure.If a premium rent is being asked, and the property does not achieve theanticipated level of enquiry or applications are not forthcoming, then the askingrent should be reviewed quickly. Every week a property remains unoccupiedrepresents a potential loss to the landlord.Occasionally, agents will have pre-qualified tenants on their database that theycan show the property to even before it comes available on the market or beforethe first open home.These people may have been unsuccessful applicants for another property, orperhaps employees that are part of a company sponsored corporate relocation.Existing good tenants of the agency that are leaving their present property andmoving to another home are clearly valuable to the agency and every effortshould be made to find suitable property for them.It is important to consider the legal position in regard to conducting appraisalsand advising clients.CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 14 of 65Negligence by a property manager in carrying out a rental appraisal can includethe following:[ Disregarding current rental values in the locality, which could serve asa guide to determine market rental value[ Failure to consider how any restrictions, lack of services or amenities,or problems with the accommodation can affect its use or the level ofrent for that property[ Failure to consider any interests that others may have in the propertythat could affect the rights of tenure of the tenants.[ Inadequate physical inspection of the premises which might haverevealed features that may enhance the potential for rent or theoptimal rental price[ Such features include air-conditioning, quality of fittings and fixtures,a swimming pool, the amount of space, and so onA property manager can be liable for damages in a court of law for failing toexercise reasonable skill, care or diligence when appraising the rental value of aproperty.Maximising Annual Rental Returns and MaintainingCapital ValueThere are many factors affecting a rental return that you must be aware of whennegotiating strategies with the landlord for maximising rental returns on aproperty.The primary consideration in most landlord’s minds is that they will want tomaximise the rental income from the property. Investors have many choices ofinvestment open to them other than property such as:[ Shares [ Art[ Investment trusts [ Wine[ Bank Deposits [ Other investmentsThe consideration here is not just the weekly rent, but also the length of tenancyand the quality of the tenant.Having a 6 month tenancy at $305 with two vacant weeks between tenanciesdoes not compare favourably with a single 12 month tenancy at $300 per week.($15250 gross income [less re-letting and re-advertising costs] vs. $15600)CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 15 of 65Asset ManagementA Property Manager is acting not only in that capacity or managing the tenancy,but also as an “Asset Manager”.The responsibility is not only to ensure the best possible level of rental incomebut also that the maintenance of the property is managed effectively so that theproperty retains its capital value.Certain property attributes may require specific or additional ongoingmanagement, and this should be brought to the property owner’s attentionbefore commencing management of that property. Some common attributesthat may require specific or additional forms of management include:[ Pools [ Furnishings[ Landscaped Gardens [ Polished floorboardsFor instance, if a property has meticulous gardens that the owner wantsmaintained, part of its management may include employing a gardener serviceto ensure that the gardens are well-maintained. The same would apply to aswimming pool or spa, as they both require specialist maintenance.Realistically, tenants are less likely to look after a property to the same standardas an owner occupier, and therefore it will pay the landlord to ensure that thesehigh value items are looked after to the highest possible standard.The cost of employing the gardener will need to be added to the managementbudget or rent of the property, but the landlord then has the assurance thatthese features will not be allowed to deteriorate through lack of attention, andbecome too much of an expense to rectify wear and tear or damage at a futuredate.A good quality property with additional benefits for the tenant will attract bettertenants who will pay higher rent and can be more reliable in their payments.On the other hand, if a property is run down or requires maintenance, thisneeds to be raised with the owner. The quality of the home will have an effecton the ability to attract a satisfactory rent level or an acceptable standard oftenants.Tenants will be reluctant to maintain a run-down home to the same extent as awell presented home, thinking – “it doesn’t really matter – it’s a dump anyway”If the owner is reluctant to improve the condition of the property, it may be moreappropriate to decline responsibility for the property and refuse the appointmentas its managing agent. Properties with excessive maintenance requirementscan become a drain on the agency’s resources, time and money.CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 16 of 65Often, however, some minor redecoration or tidying the home and gardens canassist in achieving not only a better rental income, but also a better qualitytenant, who will be more prepared to look after the property.When discussing a landlord’s options for improving rental returns, it is importantto ensure that what is eventually agreed to is documented accurately in theLeasing and Managing Authority and signed by the owner and the agent.Considerations are:[ The quality of the property and its maintenance[ Any immediate remedial work required[ The type of tenant you wish to attract[ The type of tenancy agreement[ The tenancy period and vacancy periods[ The type of advertising to ensure a quick rentalIn order to maintain the capital value of a property, ongoing maintenance is alsoimportant, so these factors should also be considered:[ Re-decorating the house every few years, for example repainting[ Ensuring the house is maintained by regular inspections[ Carrying out pest inspections annuallyIn the Leasing and Managing Authority, the landlord needs to agree to areasonable amount for the authorisation of repairs and outgoings and provideauthority for the agent to attend to emergency repairs where necessary.This ensures that minimal damage occurs when things go wrong and that thequality of the premises is maintained.Completing a property condition report at the beginning of the tenancy, followedup by regular property inspection reports, ensures that the property maintainsits condition and retains the rental and capital values.CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 17 of 65Risk Management for Managed PropertiesThere is responsibility on managing agents to ensure the property is safe andsecure and that procedures don’t expose either the owner to loss. If an ownersuffers a loss, he is likely to hold the agency responsible, whether or not theagency has fulfilled its responsibilities.The following are some of the precautions we should be recommending orundertaking to minimise risk to the owner:1. Identify any obvious safety and security issues with the premises,including:[ Broken Locks [ Damaged windows [ Insecure fencing[ Uneven Paving [ Damaged appliances [ Security glass2. Identify any obvious defects that could lead to future damage to theproperty, or a deterioration in capital value, and advise the owneraccordingly. As previously mentioned, one of the agent’s responsibilitiesis to protect the asset.[ Damaged Gutters [ Trees overhanging roofs[ Peeling Paint [ Rusting railings / gates etc[ Rotten or decayed timbers [ Termite damage3. Ensure the security of any keys given to the agency by the landlord:[ Make sure that keys have been receipted, photocopied and enteredinto the key register[ Ensure that agency sets of keys are kept in a secure enclosure with adouble coding system used for identification. (This normally meansthat the tag on the key has a non-descript code on it which can onlybe linked to property address by use of key register that is kept in aseparate secure place)[ Record details of all prospective tenants that inspect the property atopen homes[ Do not allow tenants to inspect properties unaccompanied[ Ensure that keys are always accounted for by using a sign out / signin register whenever keys leave the office (ie, tradespeople andagency staff)Key management is discussed in more detail in the chapter on KeyManagement at the end of this unit.CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 18 of 654. Ensure that the make / model and serial numbers of all appliances andother equipment in furnished or part-furnished property are recorded.This can guard against tenants swapping new appliances in the propertyfor old, used appliances (yes, it has happened).5. Ensure all necessary insurances are in place on the property and have inplace a reminder system to advise the owner of any changes ininsurance requirements, and a system to ensure renewal of Insurancepolicies[ Buildings insurance[ Public liability insurance (usually included with buildings insurance)[ Contents insurance if the property is equipped or furnished[ Landlord Protection InsuranceAgency RisksProperty Management involves a number of potential risks for the agency aswell as the landlord / owner.The major risks that require active management by property managers include:[ Leases not being correctly authorised[ Breaches of the Estate Agents Act and the Residential Tenancies Actin VictoriaThere are enforceable regulations in the EAA Act that must be followed toensure that Leasing and Managing Authoritys are legal and binding on theclient.These factors should be discussed in the weekly property management teammeeting and in the quarterly business meeting.Lapsed Leasing and Managing AuthoritiesWhen a property management is secured, the landlord is required to sign aLeasing and Managing Authority.This authority may state the time period for which it is valid – once that dateexpires, the agent must obtain a new property management authority if thelandlord wishes to continue with the agency managing the property.Management fees cannot be collected if a current agency agreement is not isplace.Note: some management agreements may be open ended – that is theycontinue until either the landlord or agency terminates the agreement inaccordance with the terms and conditions.CPPDSM4007A – Identify the legal and ethical requirements of property management to completeagency work© MRT MRT Vic Learner Guide CPPDSM4007A – 01042015.docx4 Page 19 of 65Poor property management database managementProper maintenance of the property database and the property managementsoftware system, together with effective training and supplier support andupgrades are essential.Poor Tenant SelectionHaving a comprehensive tenant application form and procedural checklist thatincludes the confirmation of identity and reference checks can help avoid risksin this area.Tenants not paying rent and poor Arrears ManagementHaving a checklist and implementing strict procedures in the event of nonpayment of rent will help ensure that the client’s (landlord’s) interests are notcompromised.Poor File ManagementLoss of paperwork can lead to errors and omissions. Having a foolproof filingsystem, as well as a method to secure paperwork in the hard copy files isessential.Leasing and Managing AuthorityThe Leasing and Managing Authority establishes the understanding that aparticular property will be managed by an agent or agency on behalf of theowner/s.It is a legally binding contract that determines all terms and conditions on whichthe management will operate. It must, therefore, be negotiated among allparties and be in the form of writing.The authority authorises the agent to find and secure a tenant, to prepare alldocumentation relating to the tenancy and to manage the property on anongoing basis.As the Leasing and Managing Authority is quite a complex form that coversmany aspects relating to the overall management of the property it shouldalways be fully discussed with the owner, and make sure that they are aware oftheir rights and obligations under the agreement.It is important to be aware of agency guidelines and the legislation. In Victoriathe Residential Tenancies Act 1997 and Regulation 2008 as well as the EAAAct 1980 outline the conduct of agents and the terms and conditions applying toAuthorities and Tenancy Agreements.There is a duty of care when negotiating with landlords and tenants to informthem of any relevant legislative guidelines. Additionally you must disclose anyguidelines
