CPPREP4123 Manage Tenancy

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Western Sydney University *

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CPPREP

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Feb 20, 2024

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PROJECT 1 A Schedule 1 of the Regulation includes the Rules of Conduct applicable to all agents, Schedule 2 Part 2 covers property management rules set out from Section 10-19. These can all be found on the fairtrading nsw website as well as https://legislation.nsw.gov.au/view/whole/html/inforce/current/sl-2022-0501#sch.1 and https://legislation.nsw.gov.au/view/whole/html/inforce/current/sl-2022-0501#sch.2 b Residential Tenancies Act 2010 and Residential Tenancies Regulation 2019 - This act and regulation sets out the standard residential tenancy agreement that layouts the rights and obligations to both landlord and tenants alike. Competition and Consumer Act 2010 - Ensures that the agent is acting in a fair and reasonable manner, prohibits misleading or deceptive conduct Privacy Act 1998 - regulates the collection and use, disclosure and maintenance of personal information collected by Real Estate Agents from people attending open homes, enquiries or are clients or clients to be Anti-discrimination Act 2010 - Ensure that the agency is treating everyone in a fair and honest manner Work Health and Safety Act 2011 - Provides a balanced framework to ensure the workplace is safe and its staff protected from dangers. c. - Act as the landlord's representative in all dealings with tenants; The agent is the landlord's point of contact and middleman between them and the tenant and is responsible for communicating the landlord's expectations and requirements within confinement of the laws and regulations. The agent can also represent the landlord in any legal proceedings, such as eviction proceedings. - Negotiate leases and rental agreements on behalf of the landlord. The agent will work to negotiate terms with the tenant. This includes setting a price, length of lease and other possible special conditions that may apply - Collect rent and keep accurate records of payment

- Handle maintenances and repair requests from the tenants in a timely manner - Conduct regular inspections of the property to ensure it is being well-maintained - Handle any legal issues that may arise, such as eviction proceedings or bond claims. d. When dealing with landlord and tenant personal and private information, it is important it is handled and meets the requirements of the Privacy Act. This means ensuring that personal information is only used for the purpose for which is is collected for only and kept in a secure and confidential manner. This information is not to have access to anyone outside of the agency for any reason unless that person has provided authority to provide it. Landlords and tenants should be made aware of how their personal information will be used and stored and that should be required they can opt to have their information removed from the database. PROJECT 2. a. i. Under Section 55(2)(a) the agent cannot inspect a property for more than four times a year, but only if the tenant has been provided 7 days written notice on each occasion. The property and stocks agent act 2002 states that a property managed by a real estate agent must be inspected at least once a year. ii. The need for routine inspections - set out the purpose of the inspections and what they are supposed to achieve - minimum number of inspections - number of planned inspections that will be completed in a 12- month period Details of periodic inspections, every 3 months, 6 months, 12 months etc Details of what could cause an inspection to be organised The handling of urgent repairs Periods of notice to be given to the tenant prior to inspecting Providing information that an inspection can be completed with the spare key if the tenant cannot be there Preparation of the report of the inspection Correspondence regarding the results of each inspection.

iii. To arrange a routine inspection, the agent must give 7 days notice as per the Act and the notice must include - The names of the tenants - The Address of the property - Name and details of the person issuing the notice - The reason for the inspection - The expected time and date of the proposed inspection - Signature of the agent and date B Once notice has been given, and the inspection date comes up the agent should give the tenant a reminded prior to the day of the inspection just to ensure they are aware of what is going to happen. The agent should bring the standard routine inspection form, which will normally have a list of each room with opportunity to make notes and comment on the condition of various items in the property The agent should: - Check for any repairs/maintenance required - Check on what might be considered fair war and tear that is within normal range - Ensure the tenant is following its obligations under the agreement - Ensure the security of the property, are the main doors able to be shut properly - Information the landlord and tenant of any repairs that are responsible to either party to be completed c. SEE PDF ii. - Overgrown Garden - Under clause 59.4 The tenant is responsible to ensure that the gardens are maintained - Broken Windowpane - unless damaged by the tenant, assuming it isnt as it is not stated it was shown in the ingoing inspection report, the landlord is responsible under clause 19.1 Note 2 (a) - Stains on the Carpet - this is tenants responsibility to recitfy as the stains were not there as stated in the ingoing report per clause 59.9

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- Loose Ballast Rail - unless damaged by the tenant, assuming it isnt as it is not stated it was shown in the ingoing inspection report, the landlord is responsible under clause 19.1 Note 2 (a) - Mould - unless damaged by the tenant, assuming it isnt as it is not stated it was shown in the ingoing inspection report, the landlord is responsible under clause 19.1 Note 2 (b) as it could be a roof leak, if it is due to bad ventilation done by the tenant then it is their responsibility under clause 59.12 of the lease agreement iii. 31/01/2024 William and Maria Poulos 52 East Street, Eastlakes NSW Property: 2 Nyarra Street, Richmond, NSW RE: Routine Inspection Dear William and Maria Poulos, During our recent routine inspection completed on the 30th of January 2024, we discovered a number of issues that need to be resolved within your property. We have attached the condition report to this letter and wish to makes notes of the following The gardens are overgrown, and the lawns have not been mowed since the tenant moved in 3 months earlier, we have advised your tenant this is to be maintained under the clauses of the lease agreement •The home is been maintained in a reasonably neat and tidy condition •In the second bedroom one of the glass windowpanes has a crack in the bottom quarter of the pane. - This is a landlord responsibility to repair, we are able to provide assistance in organising quotes from our contractors or if you wish to use your own we can assist in expediting the matter. We will await your instructions •There are some stains on the carpet that were not shown on the in-going inspection report, we have advised your tenant this is to be rectified by them under the clauses of the lease agreement

•The tenant has reported that the balcony rail on the back stairs is loose - This is a landlord responsibility to repair, we are able to provide assistance in organising quotes from our contractors or if you wish to use your own we can assist in expediting the matter. We will await your instructions •You have noticed signs of mould on the ceiling in the second bedroom, which the tenant does not think is of concern, we will need to investigate if this is due to poor ventilations by tenant negligence or a possibility of a roof leak. We will investigate this matter and advise you further, in the meantime we will have to have the mould removed for the safety of your tenant and should be this the fault of the tenant we will seek reimbursement. •The tenant is paying their rent one week in arrears We believe that it is necessary to make these repairs and perform these maintenance tasks in order to keep the condition of the property in good standing order. We are hoping that you will give some thought to the recommendations we have provided. If you have any questions, please do not hesitate to contact me on 0435720515 to discuss this further. Sincerely, Bechara Taoum iv. 31/01/2024 John and Mary Stojinovic 2 Nyarra Street, Richmond NSW Property: 2 Nyarra Street, Richmond, NSW RE: Routine Inspection Dear John and Mary Stojinovic, During our recent routine inspection completed on the 30th of January 2024, we discovered a number of issues that need to be resolved within the property you are renting with us. We have attached the condition report to this letter and wish to makes notes of the following

The gardens are overgrown, and the lawns have not been mowed since you have moved in, we direct you to clause 59.4 of your lease agreement that indicates you are to ensure the gardens are maintains. We wish to remind you that if this continues to not be address you may be in breach of your lease. •You have the home in a well maintained and reasonably neat and tidy condition •In the second bedroom one of the glass windowpanes has a crack in the bottom quarter of the pane. - This is a landlord responsibility to repair and will reach out to get this organised promptly. •There are some stains on the carpet that were not shown on the in-going inspection report, under clause 59.9 of the lease agreement you are to ensure there are no damages to the property so please ensure this is organised promptly. • Balcony rail on the back stairs is loose - This is a landlord responsibility to repair, we will organise this with the landlord on our end. • Signs of mould on the ceiling in the second bedroom, we will have this matter investigated on whether it could be due to a roof leak or poor ventilation. in the meantime, please ensure that windows are opened after any showers to ensure no dampness settles on the walls and causes mould to grow. • You are currently one weeks in arrears and this needs to be addressed. If you have any questions, please do not hesitate to contact me on 0435720515 to discuss this further. Sincerely, Bechara Taoum PROJECT 3 a. We will request the tenant to log this issue into an email format and send it to us so there is a paper trail of the request otherwise either party can forget or act as if it never was requested. The agent should then document such request and keep an open file until the request has been handled and finalised.

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B i. The email from the tenant requesting the repair will need to detail the nature of the repair and when they noticed it happened and images of the issue. Once this information is received, we open a request within our system detailing the request and save the tenants email into said ticket on the system. We will look into on our end who is responsible for the repair as sometimes it could be a tenant responsibility, should it be the owners responsibility to repair; - We will call the owner to inform them we received a repair request and detail what we have found. We will request if they wish to organise one of their own contractors or wish for us to have quotes organised - Should the owner wish for us to organise this on our end, we will organise contractors to attend to provide quotes on the repairs to present to the owner - We will then email the owner all quotes received pending approval, we will only accept in writing from the owner approval of the quote/repairs. ii. We will call and email/send a letter to the tenant to inform them of the approval for repairs to be taken place. We will request if we can provide their details to the contractor so a time and date can be discussed between both parties on what is suitable best for them to provide access. We will then follow up with the contractor and tenant until the repairs have been completed and inform all parties once it has been done with images of the repair. c. Our agency's policies and procedures will outline the process of how to appoint tradespeople to undertake repairs and works. In general, quotes will need to be obtained from qualified contractors for the appropriate work. The most appropriate one is then selected by the landlord based upon price, availability and expertise. To obtain the quotes, we will contact the tradespeople directly by issuing a work order and following up with a phone call. We will explain what is required and that we are seeking a quote and what charges may occur for them to visit the property in doing so. Once We receive the quotes from a variety of contractors, we can compare each and provide our opinion to the landlord on the more suitable option but ultimately it is their decision. Before a contractor can attend the property, the agent is to ensure that all relevant licences, insurances, SWMS are up to date and valid before they are able to go onsite to begin with. d.

We will always keep before photos prior to the contractors attending so we have a snapshot of what the repair to be completed looks like prior to their works commencing. Once the contractor has completed the job, the agent is to then inspect the quality of the works to ensure that it is completed to the right standard, for example, if there is a loose railing, is it now firm and sturdy or is there still any give in the railing etc. These are things that you cannot see on a visual photo and needs to be physically inspected. It is best not to rely on the tenants opinion and it may be satisfactory to their liking but not to the standard of the landlord or safety regulations. e. Tenant - We will contact the tenant and inform them we have attended the property and are satisfied with the works completed. We will ensure the tenant confirms they are also satisfied that the repairs have been completed, within reason. We will then send an email off to the tenant to confirm works have been completed and to confirm on their end all is settled so we can mark their repairs request as completed within our system. Once the final images are uploaded to the systems repairs request and notes from the property manager included, an email is sent to the tenant confirming this has been completed with a report. Landlord- We will contact the landlord and inform them we have attended the property and are satisfied with the works completed. A report with all images, videos, comments from the property are provided to the owner to review so they aware that everything has been completed to a satisfactory level and if they wish to attend the property to inspect themselves this can be arranged too. Once the invoice has been received, we will seek instructions from landlord on how they wish for this to be paid, whether they wish to pay for this on their end or have it paid from the rental account on our end. PROJECT 4 A. The actions that would need to be taken in order to formalise the sublease agreement would be as follows: Firstly, the tenant would need to provide written notice to the landlord of their intention to sublet the property, in accordance with the terms of their lease agreement. As per clause 35 of the lease, as long as both parties agree in writing the tenant is allowed to sublease as long as the owner approves. We would then seek from Blake all credentials of his friend as if completing a new tenancy application to be able to provide this information to the owner.

B. Once the tenancy application has been received from Blake we will pass these details to the owner for review and have a discussion. Should the owner provide approval of the application and allow the tenant to sublet we will have to receive this approval in writing from the owner. c. The tenant would then need to prepare a written sublease agreement between themselves and their friend from England. This agreement would need to be signed by both parties and would need to detail the length of the sublease, the weekly rental amount that would be paid, and any other relevant terms and conditions. Once the sublease agreement has been signed, the tenant would then need to provide a copy of this agreement to the landlord for their records. d. The tenant would need to keep up to date with their rental payments, in accordance with the terms of their lease agreement and the sublease agreement. The landlord would need to be kept up to date with any changes in the occupancy of the property, in accordance with the terms of the lease agreement. The landlord would need to be kept up to date with any changes in the weekly rental amount that is being paid by the subtenant, in accordance with the terms of the sublease agreement. If the tenant falls behind on their rental payments, or if there are any other breaches of the lease agreement or the sublease agreement, the landlord would be within their rights to take appropriate action, in accordance with the terms of the agreements and the relevant legislation. PROJECT 5 2. i. RESIDENTIAL TENANCIES ACT 2010 - SECT 33 (1) - A tenant must pay the rent under a residential tenancy agreement on or before the day set out in the agreement. ii. Under clause 3(1) of the Residential Tenancy Agreement, the tenant agrees to pay rent on time. iii. No legal action can be taken until the tenant is in excess of 14 days of arrears. We would be issuing a lockout notice by the 10th day the tenant falls into arrears that the owner will take action against the lease should be request if the rent is not paid by the 14th day iv. We would contact the landlord and advise our findings. We will then seek the landlords instructions in writing how they would wish for us to proceed whether to go for an eviction or not, some owners do not wish to lockout so we will have to seek their desires.

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v. We would recommend that we have heard the tenant has lost their job and as such we do not feel comfortable they will pay their rent. The property is easily marketable and once we evict the tenant we could lease the property to someone who will pay the rent vi. We would issue a formal Notice to terminate tenancy agreement - https://www.fairtrading.nsw.gov.au/__data/assets/pdf_file/0011/972380/notice-to-terminate- tenancy-agreement-landlord-agent.pdf. This will be mailed to the property and emailed or however other method the tenant has nominated to receive correspondence. vii. We would closely monitor the tenant and keep pressure on them to ensure rent is paid on time. Reminders that their rent is coming up via text messages or phone calls will assist in keeping them reminded that the rent is due. 3. a. The tenant is in breach of Residential tenancies Act 2010 Sect 51, clause 1(b), 1(c) , 1(e), 2(a) b. The tenant is in breach of the Tenancy agreement under clause 16.2, 16.3, 16.5, 17.1 c. - We will issue a formal warning to correct the behaviour the tenant is exhibiting as well as if their partner is going to stay overnight everyday they will need to add them to the lease agreement and we will require their details - If behaviour continues Issue a breach of lease notice to the tenant - If the tenant does not rectify the breach, issue a notice to vacate - If the tenant does not vacate, apply to the tribunal for an eviction order d and e. We would recommend the landlord give the tenant the opportunity to correct the behaviour and we will monitor this over the course of a week. Should they not change then we will advise the owner we will hold the tenant in breach of the lease and evict. Causing issues with neighbours is against strata by laws and they will hold the owner liable for the way their tenants act as it is the owners property. To avoid any issues, it is best to have the tenant vacate/evicted if nothing changes. f. - Formal email and letter to the property advising of the issues - A breach of lease notice - A notice to vacate - An application to the tribunal for an eviction order g. We would check in with the neighbours on a daily basis to monitor the behaviour which will then spread out to a weekly/monthly basis until we feel the behaviour has been rectified. We would keep the owner up to date of this process as well.

PROJECT 6 ai. The owner will now have the ability to be in line with market value to assist in covering any expenses they may be facing for their property. The rent increase can provide the landlord with the chance to find new tenants who are a better fit for the rental if they cannot afford the increase as well. The disadvantage is if the tenant is a good tenant and the increase is too high, you could potentially lose them and the cost to re-let the property, potential vacancy, fees may not be worth the increase itself. It is always a risk when changing tenants as you are not sure how the next one will be. ii. The advantage to the landlord would be that they are secure in having a tenant for the fixed term thus the likelihood of unplanned vacancies. The advantage to the tenant would be knowing that the rent is fixed for the term of the agreement and also that they have the security of not being terminated for any reason other than them breaching the agreement. The disadvantage is now the owner is locked in to a lease with this tenant so if they wish to sell it could reduce what the property can sell for if someone is wanting to buy to move in immediately themselves. If the owners living situation changes and they need to move into the property they can no longer do so as well. b. It is possible in most property management software, but you could use a 12-month diary or book and include the reminder as soon as the lease is signed. If your routine inspection is planned for 2 months prior to expiry then you can report to the owner the condition of the property, ask if they are willing to offer a new lease and under what terms. When a lease expiry date approaches you can give the 60 day notice of a rent increase and sign the lease upon expiry. c. communication between all parties should be in writing and recorded on the management system according to office policies and procedures. We would conduct market research of what properties that are of similar nature in the same area have been leased for and present this data to the landlord so we can visually show the landlord what the current market trends are. We would also provide this data to the tenant to ensure both parties are made aware of current market rent. Once negotiations are completed the agent should confirm with both parties the final agreement to renew, including any terms and conditions, and then proceed to drawing up new leases and having the tenant sign, following the normal procedures when signing a lease. d. - Identify tenancy agreements about to expire in 70 days. This provides plenty of time to negotiate terms prior to the lease expiry date

- Complete a market rent review and make suggestions to landlord and seek instructions on how they wish to proceed - Contact landlord and tenant re lease renewal, and if the owner is willing to provide another lease and discuss if the tenant is seeking a new one thereafter - Record correspondence with both parties - Action the rent increase/lease renewal by giving the correct notices to both parties informing them of this - If lease being renewed, obtain updated Material Fact information and new Landlord declaration to ensure you are covering yourself and the owner is complying with the regulations - Prepare new lease documents to provide to both parties - Prior to the expiry of the lease undertake property inspection and complete updated inspection report to ensure the tenant is not in breach of the lease agreement - Have tenant execute new lease agreement - Advise landlord and tenant that new agreement and rent in place PROJECT 7 a. Check PDF named PROJECT 7 – Question 1 b. Regular inspections - Conducting the regular inspections is essential to identify any issues that need to be addressed such as leaks, cracks, or damages. The property manager attending should keep an out for the roof, walls, floors, windows and doors to ensure everything is safe and secure as these are prone to wear and tear the most. Preventative maintenance - There should be plans in place to ensure things like cleaning is being done, pest control is being kept up to date, smoke alarms, the HVAC is being serviced, any appliances the landlord has provided is being checked and inspected. The plumbing and electrical are inspected as well to ensure functionality. These will assist in keeping large repairs at bay for neglecting down the track. Upgrades/Improvements - We would assist in recommend to the landlord certain upgrades that would assist in maximising rental returns as well for items such as updating the current fitout of the house i.e new kitchen drawers, bathroom upgrades, installation of solar panels, upgrading water heater etc. By completing the above, the landlord can expect greater returns on the rent as the property value is increased by being more appealing than competitive houses on the market by creating a greater demand for the property. As well as ensuring that major repairs can be avoided by ensuring that everything is being maintained to optimal running capacity. C. Check PDF named Project 7 – Question 3

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d. We would communicate to both landlord and tenant in writing at all times whenever undertaking the maintenance schedule. It is vital to ensure there is a record of all conversations and notices given when attending to these matters so that everyone is understanding of what is required and when it will take place. We will provide all details to both parties of who will be attending, when they will be attending, the works that will happen and all other details required about the maintenance. Under the Residential Tenancies ACT 2010 - Sect 55 (1) If it is an urgent repair, the landlord may enter without consent from the tenant and not give notice If it is not an urgent repair and just maintenance/ non urgent repairs Under the Residential Tenancies ACT 2010 - Sect 55 (2)(b) the landlord must provide no less than 2 days notice each time access is required to carry out, inspect or assess. e. - Inspect the property every 3-6 months - Prepare to carry out any maintenance required as authorised by the landlord - Place notes in the system of all correspondence relating to the maintenance schedule with approvals - Manage contractors and tradespeople to attend - Schedule notices to tenant of when maintenance items have been scheduled for - Review completed work by inspecting to ensure it is completed and providing images/videos to the landlord - Closing off task in system end and providing notice of completion to both tenant and landlord