The REIV has updated its residential leasing and managing authority, code 005a, in conjunction with the Property Management Chapter Committee. The hard copy version has been on sale for some months and the online version has recently become available.
Why the update?
The outcome of recent coronial inquests into deaths of tenants and members of their families in rented residential accommodation led to the latest revision of the code 005a authority.
A major concern was the varied degree to which members set out their services in their management authorities. While some members specifying the services they provide many do not, simply stating “lease and manage the property” or words to the same effect.
The inquests showed members who do not specify their management services with certainty leave themselves exposed to unnecessary concern and, perhaps, legal proceedings when regulators come knocking or there is a falling out with their landlords.
What has been updated?
The major change appears in the “Level of Service” section of the code 005a. A suite of letting, managing, and property management accounting services have been added.
The services previously appeared on the cover of the hard copy 005a as suggestions which members could choose from and include in former editions of the authority.
So far as management goes, the authority now distinguishes between various types of inspections and makes it plain that inspections of smoke detectors, plumbing, electrical, gas items, and swimming pool safety barriers should be undertaken by people with appropriate experience and training, which the vast majority of property managers will not possess.
Given the potential liability an agent may incur as a result of inspecting and reporting on items which they have do not have the requisite knowledge and ability to deal with, it is important agents confine their property inspections to matters within their area of expertise.
Allied provisions allow a landlord to appoint appropriate people at the agency to arrange inspections as their attorney under power thus ensuring there is an appropriate form of appointment for engaging contractors and also allows the agency to provide contractors with the landlord’s details for contact and billing.
How do you include the updated services in the code 005a?
The authority provides flexibility, so far as services to be provided are concerned.
When completing the “Level of Service” the form asks the person doing so to make various choices.
First, which of the suite of management services apply? If the agency has its own, this is indicated by putting an “x” in the appropriate box.
If this choice is made, none of the letting, property management or property management accounting services set out in the code 005a are chosen and they do not apply and neither does the limited power of attorney. The agency’s suite of services is then attached to the authority, before signing.
If, on the other hand, all or some of the services set out in the code 005a are to be provided, an “x” is put in the appropriate box and also in each box alongside the services chosen. If a service is not chosen no “x” will appear in the box beside it, indicating it is not being provided. This provides a useful checklist, if there is a future disagreement over the extent of an agent’s management.
The Vicforms version
This version of the code 005a is currently being reviewed with the view of providing members with a shorter version of the document, if a member wishes to attach their agency’s own suite of services instead of choosing some or all of those included.
If this choice is made, the aim is to have the services in the form and power of attorney drop out so when the form is printed it will simply indicate the agency’s suite of services applies and is attached.