Property Management Questions: Cluster 4 Assessment, CPPDSM4007A

This document contains a comprehensive set of answers to questions from a property management assessment, likely for a course focusing on property management principles and practices. The questions cover various aspects of property management, including building a rent roll, marketing properties, handling tenant inquiries, understanding legislation, managing lease agreements, and dealing with financial aspects like bond money and rental payments. Specific topics addressed include discrimination, advertising strategies, the use of RTA forms, tenant obligations, lease renewals, and the responsibilities of property managers in relation to both landlords and tenants. The answers provide practical advice and demonstrate an understanding of relevant legislation and best practices in the field. The document emphasizes the importance of clear communication, adherence to legal requirements, and effective management of the landlord-tenant relationship. It addresses fixed-term and periodic leases, including options for termination, and details the processes involved in handling maintenance issues and accessing rental bonds. The document also covers agency accounts, and the recording of rental payments.

 There are just a few questions that need a little clarification so that we can be
satisfied of your overall competency and understanding of the topics covered in
the Assessment. Can you please re-attempt the following questions?
 Question 6(i) – refusing to rent a property to a person because of that
person’s marital status is a potential breach of what legislation?
6. i) New advertisement is to be made indicating that only single persons
and no families will be allowed as tenants. However, this will attract the
provision of direct discrimination given under section 10 of the Anti-
Discrimination Act 1991. Here the landlord or the property owner is showing
discrimination against the proposed tenant due to his marital status.
 Question 6(ii) – can you think of another way to market the property so that it
will attract more single persons? HINT: What are some features of a property
that you can highlight in order to attract single tenants?
By using social media, community interaction, the marketing of the property
can be done again. Further, it can be highlighted in the advertisement that
cooking is not allowed inside the property. Hence, food has to be eaten either
outside or brought inside. Two people are going to share each of the rooms.
Further, the property is actually a low maintenance property and located near
to CBD.
 Question 9 – this question is asking about how you (as the property manager)
can minimise the amount of time a property stays vacant between rentals. For
example, finding out the tenant’s intentions well before the rental expiry date.
Can you please re-answer the question? HINT: refer to the learner materials
for 4016 page 17.
The property manager can made the existing tenant sign a paper whether
option will be present whether the tenant is eager to continue after the
existing contract gets over or may terminate the existing agreement. Further,
the manager can allow the tenant to get some reduction in the agreement
cost or the rental if he renews the existing agreement before it gets expired.
Further, screening tenant applicants can be done beforehand.

 Question 10 – what is the RTA Form (name and number) you would issue to
a current tenant before bringing a potential tenant to inspect the property?
Form 9 called the Entry form can be used in this regard which could
be issued to the current tenant prior to bringing a potential tenant for
inspecting the property.
 Question 11 – can you please provide more information about the
issues under the tenancy agreement you would cover with a new tenant?
Please list at least five (5) specific issues you would cover. HINT: Some
examples of issues could include tenancy start and end dates, tenant
obligations, how to pay rent, default of lease terms etc. Refer to the
PowerPoint slides for this Cluster
The new tenancy agreement must include the following that must be
covered in it. They are starting and ending dates of the tenancy, the duties required to
be fulfilled by the tenant while in tenancy, the process of paying the rent either by postal
payment or by online payment, remedies to be sought by the landlord or the manager
when the tenant fails to fulfil his duties or violates his duties.
 Question 17 – how would you respond to the landlord’s demand to hold the
bond moneys directly? Also, what would you say to the landlord to justify the
property management fees you charge?
In general, the Residential Tenancies Authority is authorised to hold all the
tenancy bonds and not the landlord or any agent. The bond moneys if intended to be
held by the landlord, he must communicate about it with the project manager. However
the project manager may not allow holding the entire bond money as the manager also
has some shares in it. This is because he has the main role of bringing the prospective
tenants to rent the property. Further the manager causes the management of the
property. If any damage occurs to the property or the tenant fails to pay the rent, then
the manager can reimburse such cost from the bond money. Hence, landlord must not
seek the entire bond money but allow it to be kept with the manager.
Usually the bond is retuned when the lease ended. If it is agreed by all the parties, RTA
Form 4 is filled up and signed and lodged with RTA. If they do not agree, it is sihned by
one party and lodged with RTA. Other party must claim any dispute or agree to it within
14 days.
 Question 18 – can you please advise where rental moneys paid by tenants to
the agency should be deposited (in other words, which agency account)?
Also, what document would be used to record the arrangements for paying
the rental moneys over to the landlord?

In usual cases, the tenant pays the rent amount into the trust account of the
agency. The trust account refers to the fiduciary arrangement which permits the third
party like property manager to hold property on behalf of the landlord or the property
owner. The tenant can deposit the rent amount into the trust account.
As per section 85 of the said Act, if the place for rent payment is mentioned in
the agreement, it must be followed by the tenant otherwise tenant may at a proper
place. It can be either paid to the bank account of the property agency but not to the
personal account of the property manager.
The rent agreement will record the arrangements made for paying the rental
money to the landlord. Further, for case payment, receipt must be issued and for
cheque payment, receipt can be issued if the tenant made a request.
 Question 19 – what documentation or other forms of communication would a
tenant use to report maintenance issues to the Property Manager or the
agency?
Form no 17a can be used by the tenant for reporting the maintenance issue to
the property manager or to the agency. This booklet contains the rights and duties of a
tenant and is generally given to tenants when they sign the agreement of tenancy at the
beginning of the tenancy. The tenant has a right of proper maintenance of the rented
property and when such right is breached by the landlord or manager. If repairs are not
made within reasonable time, the tenant may give Form 11 notice to remedy it. If it is
not solved still, tenant has an option to apply to QCAT.
 Question 21 – can you please provide more details about how you could
access the rental bond to restore the condition of the property after the
tenants move out? HINT: Please refer to the PowerPoint slides for this
Cluster
In this regard, Form 1a can be used. It acts as a support of any claim of
compensation made by the landlord or his agent in case the property is being
damaged beyond fair and normal wear and tear. It actually protects the tenant
from any claim which is unsubstantiated.
If the agency wants to claim money for the rental money, it can sign RTA Form 4
and file it with RTA which in turn processes it. RTA then refunds the undisputed
amount of money and the party is sent a Notice of Claim by it. This other party
has got fourteen days to dispute the claim, or agree to the claim by signing the
Notice of Claim and send it back to RTA. The other party may also take no
action, in such scenario the RTA will refund as claimed in the RTA form 4.

 Question 25 - can you please re-answer this question from the perspective of
a fixed term lease AND a periodic lease? Depending on the type of lease and
when the landlord intends to sell, there are different lease termination options
and consequences for the landlord and the tenant. This question requires you
to discuss the options the landlord and the tenant have. HINT: Please refer to
the Powerpoint slides for this Cluster
An agreement of tenancy terminates,
 at the end of a fixed term tenancy, or
 when the parties mutually decide to end the periodic tenancy, or
 when there is a breach that cannot be remedied, or
 if the rented property becomes destroyed or unfit to live in, or
 where there lies a mortgagee in possession,
 if it has been ordered by QCAT for ending the tenancy.
When a fixed term tenancy terminates before the ending date, it is known as
breaking the lease. If the tenancy is terminated by the tenant, he can be made
liable to compensate the landlord for the loss of rent until a new tenant is found
or the ending date is reached. The tenant can also be made liable for the price of
advertisement or re-letting. If the buyer buys the property which is leased, then
the tenant is entitled to stay in the property till the ending of the rental period.
When a landlord decides to terminate the lease early, they he is required tio
negotiate this with the tenant who may be given compensation by the landlord.
The tenant has no right to leave the property early even if the property is sold. If
he does, he will be liable for breaking the lease. However, the tenant may end
the tenancy if the property is advertised for sale within a period of first 2 months
of starting of tenancy and he had no information in writing about the proposed
sale when he signed the agreement. The tenant however can terminate the
agreement by giving Form 13 with 2 weeks- notice.
 Question 27 – can you please provide more information about how would you
monitor and stay current with lease renewals, and what communications you
would initiate with a tenant as the lease end date approaches?
The property manager can keep himself up to date with the lease renewal
policies by maintaining files and records both manually and in digital form. He
must be doing it every month so that he is well aware about each of the rentals.
Further, he can make a handbook where he can maintain notes about this
regularly.
Before the rental agreement ends, the property manager can communicate with
the tenant directly such whether he wants to renew the tenancy agreement or
want to terminate it. The manager may try to convince the tenant to continue the

tenancy by giving him some discounts. The discounts can be such that there will
be reduction in the rental bond if he renews the existing agreement.