CPPREP4121 - Assessment Task 3: Case Studies

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ASSESSMENT TASK 3 – Case Studies

Case Study A

You have just listed a new management property for your agency’s rent roll. It has taken you a few weeks to secure the listing, as this is the first time this owner has been a landlord and they are nervous about the whole process. You are keen to ensure that the hard work that you laid down with effective communication when listing the property continues on after your agency begins managing the property.

You must develop a schedule for communication with this new landlord. This plan will provide a guide to the new client about when and how your agency will communicate with them.

You can use hypothetical details about the property and the landlord in creating your communication plan.

Your communication plan needs to cover:

  1. How frequently you will communicate with the landlord (outline the points at which you intend to communicate) and details to be provided in the communication.
  2. Explain the communication protocols in the agency for handling repairs and maintenance, including urgent maintenance (remember this landlord has no experience as a landlord).
  3. How you will deal with landlord’s expectations for tenant selection and ongoing tenancy management.
  4. Timeframes for conducting and reporting on routine inspections.

Case Study B – Finalising a New Rental Listing                                                                  

Note: Case Study B has three (3) parts.

You have made a successful listing presentation to another prospective new client, and they are keen to proceed.

Part 1

  1. Explain how you will confirm the identity of the landlord.
  2. Complete and submit a copy of the Exclusive Managing Agency Authority (Residential) in your resources, using the details provided below.

Submit a completed management agency agreement using the Exclusive Managing Agency Authority (Residential) supplied in your resources and the details supplied below.


  • You need to use the information provided in the case study to complete the document.
  • All areas of the form must be completed.
  • Do not use ‘not applicable’ to complete areas of the form. If an area of the form is not relevant, write ‘nil’ if appropriate.
  • If you require information that is not provided in the case study, you can insert hypothetical information.
Case study details for completion of Exclusive Managing Agency Authority (Residential)
Date of agreementuse date you are completing your assessmentLandlord details

Landlord names: Joan Newman and Warren Newman

Landlord address: 10 Ross St Smithville 2121

No ABN, not registered for GST

Email address for service of notice: j&w.newman@gmail.com

Agency details

Excellence Real Estate

101B Pope St Smithville 2121

ABN: 24561

Licence number: 123456

Phone: 1234 5678

Property details

Rental property address: 19 Rental Street, Smithville 2121

The property is a two-bedroom villa with a single lock up garage. The property is in good condition and includes Holland type window blinds throughout.

Inclusions in the rental:

Clothes dryer and dishwasher.

The Agent will transfer rent received from the Agent’s Trust Account to the landlord on a monthly basis.

Rent will be paid into the landlord’s bank account:

Name of account: J&W Newman

BSB: 1234

Account: 12345678

The repairs and maintenance budget that the landlord has agreed to is $500. The agent is authorised to pay accounts for repairs and maintenance.

Lease advertising will be via For Lease sign and internet listing at a cost of $350 each per listing.

The landlords would like the agency to pay their outgoings from the rent. This includes council rates, water rates, strata levies and landlord insurance.

The landlords have no information/material facts that need to be disclosed to the tenant.

Additional instructions are: No smoking inside the property.

No pets will be permitted in the property without approval.

The client is happy to have a cat or dog on the premises but would like the agent to seek the landlord’s final approval first.

Number of occupants permitted will be 4.

No special conditions.

Agent’s authority

Term of tenancy: 12 months. Seek landlord instructions if alternative term is offered.

Rental price: $660 per week.

Bond is to be as per maximum statutory requirement, lodged with the Victorian Residential Tenancies Bond Authority (‘RTBA Online’).

End of tenancy: Seek instructions from landlord prior to extending or terminating the lease.

References are to be obtained by the agents and verified.

Keys are not to be handed out to prospective tenants and all prospective tenants must be personally accompanied by the agent at all times.

Duties of agent

The landlord has authorised the agent to undertake all duties associated with the leasing and management of the property.

The Agent is to seek the landlord instructions to lease the property whenever the property becomes vacant.

Agent fees for services

Management fee: 8.8% including GST

Letting fee: equivalent to 2.2 week’s rent including GST

The office charges $8.80 per month Administration Fee including GST

Document preparation: $55.00 including GST

Attend Tribunal: $88.00 per hour including GST

Agent’s disclosure of rebates/discounts/commissions: Agent receives $30.00 per renewal for insurance

Lease renewal fee: equivalent to 1.1 week’s rent including GST

Routine Inspections: $55.00 per inspection including GST

All other services are included in the management fee

Landlord insurance

Landlord Insurance is through ABC Insurance

Policy number: XYZ35B

There are no warrantees or maintenance contracts that apply to the property.

Part 2

You have now presented your completed Exclusive Managing Agency Authority (Residential) to the landlords for signing.

  1. Explain how you will serve this agreement to ensure that it is legally valid.

Part 3

With the return of the Exclusive Managing Agency Authority (Residential) from the clients, you need to make sure that it is stored securely so you can locate it again.

  1. Explain why this document is so important and how you will store it securely, considering privacy standards.

Case Study C

After delivering an impressive listing presentation and gaining the new Newman listing, you have been showing their vacant property for the last few weeks. You are more than a little embarrassed that you haven’t been able to deliver a great tenant in the timeline that you predicted to the Newmans. You have been holding off communicating with them, in the hope that you will have some better news.

Today you received a call from Warren Newman. He expresses concern over the property still being vacant after nearly 4 weeks on the market. He asks you why you think a tenant has not been located, and you tell him that feedback from attendees at the Open for Inspections has been that the property needs re painting and generally ‘sprucing up’ as it looks tired for the amount of rent being asking for. This information only seems to make Warren seem angrier. You must get off the phone as you have a new listing appointment to go to. You think to yourself that you will worry about this later. 

When you get into the agency the following morning, the agency manager has received an email from the Newmans expressing their strong dissatisfaction with the way the management of their property has been handled. “You told us you were going to do so much for us, but reality has not met your promises”. It is time to re visit what has gone wrong and try to recover this situation before the Newmans go elsewhere! Your agency manager asks you to prepare a short report analysing what went wrong (including what risk this involves for the agency) and what actions could be taken to fix the issue and prevent this from reoccurring.


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