CPPREP4123 Manage Tenancy

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ASSESSMENT TASK 3 – Case Studies

Case Study 1

You start a new position as a property manager in a real estate agency that has a small rent roll. You have been hired as the rent roll is growing at a fast rate, and the agency licensee has told you that your role in the agency will include helping the agency set up effective practices and procedures that will stand the agency in good stead as it grows.

Your first job is to work on the implementation of routine/periodic inspections.

  1. Write out a step-by-step process for how to organise and conduct a periodic inspection. Don’t forget to include providing appropriate notice to the renter, documents that you will need to complete, etc.
  2. Use the property you currently live in to complete a routine inspection report. Write up a sample cover email to be sent with the report to the RRP. You can make up hypothetical information about RRP details. You may use the routine inspection report template provided, or you may use your own template.
  3. Explain how you will ensure that you follow up any issues noted in this routine inspection if the RRP does not contact you after receiving the report.

Case Study 2

You have done such a great job on the routine inspection procedures that your agency manager now asks you to turn your hand to the way the agency manages repairs and maintenance. Your agency manager asks you to write a step-by-step procedure around handling repairs and maintenance.

You and the agency manager decide that a good way of training the staff in handling repairs and maintenance is to take a request for repairs and maintenance and show step by step how it should be handled.

Repair request:

10 Smith Street

Tap is leaking in bath, started yesterday

Renter’s Name: Jill Snow

Access: Renter would like to be home, if possible. Can be home first thing in the morning.

Your steps for handling this repairs and maintenance request must cover:

  1. How to analyse the request to determine priority
  2. When/how to consult with RRP
  3. What records you will need to make in agency files.
  4. How you would select the appropriate tradesperson
  5. How you would engage the tradesperson to ensure the job is accurately specified
  6. How you would confirm the job is completed to specification/quote
  7. How you would communicate with both the RRP and the renter about the repair activities

Case Study 3

You are now working as a senior property manager in the real estate agency. The agency manager has received a complaint from a renter in one of your agency’s rental management properties. The renter has said that they have been complaining about the lack of maintenance on the property for some time yet has not heard anything back. In frustration, the renter has written a complaint letter to the agency manager, saying that they believe the RRP is in breach of the rental agreement as they are not adequately maintaining the property.

Upon checking the files, the agency manager has not been able to locate any communication with the RRP about these maintenance issues. The property manager for that property has said that the RRP reacted negatively whenever repairs and maintenance requests were made, so they only let the RRP know about their first request. After that, they stopped communicating with the RRP about the renter’s requests, as they didn’t want to lose the management.

The renter has agreed to you and the agency manager inspecting the property. Upon inspection, you see that there are some major issues that need addressing, these include:

  • the hot water service is leaking
  • two (2) elements on the stove are broken
  • carpet is torn in the upstairs hallway, where the stairwell is
  • window latch for main bedroom is broken
  • vertical blinds throughout property are quite old and tired looking, with broken beading

Since the RRP is reluctant to spend any money, your agency manager asks you to put together information on the RRP’s requirement to maintain the property and attend to repairs within a timely manner. The matter will be discussed in a meeting with the RRP.

  1. What legal and ethical responsibilities does the agency have in this situation? Consider the RRP’s obligations, as well as safety and security requirements.
  2. What are the risks to the RRP if they do not carry out this maintenance?
  3. Write a short report (one to two pages) to the RRP that recommends maintenance/improvements to the property and why you think the work needs to be done. Your report should prioritise the order of the work, and why.
  4. The RRP has now agreed to your maintenance plan. Describe what you will need to do to implement your maintenance plan (what type of tradespeople do you need, does anything need to be quoted/ordered?), including what communication you will need to have with both the renter and RRP throughout.

Case Study 4

As senior property manager, you want to ensure that you set a good example to the rest of the property management team when it comes to handling arrears. Your agency manager has asked you to run a short training session on handling arrears at your next property management team meeting.

Prepare a report on main points for handling arrears that you can provide to your property management team. Your report should cover:

  1. The role of producing arrears reports in managing arrears
  2. When considering the timing of issuing breach notices, outline how often you feel you should produce rental arrears reports and why
  3. How you should respond to late payment of rent as a breach of the rental agreement
  4. How you can negotiate to resolve the breach where the renter has temporary financial difficulties
  5. How to handle arrears if the renters have stopped paying rent because of outstanding repairs
  6. What action will you need to take if, despite your best negotiations, the rent is still in arrears?

Case Study 5

You have received a request from a renter asking to put a vegetable patch in the back yard.

  1. What parts of the terms and conditions of the rental agreement/legislation relate to this renter’s request?
  2. What information will you need to obtain from the renter about this request?
  3. Prepare an email that you could send to the RRP to communicate this request from the renter.
  4. The RRP has come back to you to give permission, provided that the renters pay for water usage and make good the area when they leave the rental, back to how it is now, a grassed area. Prepare an email to advise the renter of the outcome.
  5. What will you need to do to monitor this renter request moving forwards to keep both parties happy?

Case Study 6

You are managing a property that has a 12-month lease, which is due to expire in three (3) months’ time. The RRP is happy with how the renter is keeping the property and the renter wants to stay.

Explain how you would conduct a rent review for this property, including:

  1. Timing for this review
  2. What documents you need to keep on file for the rent review
  3. How you would negotiate the increase
  4. How you will conduct the rent increase according to legislative requirements.

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