We rarely see agency operators regularly sell auditing the property managed files to check if the files are up to date and information in the files complies with the industry regulations and Acts.
A quick check of the following may safeguard you against a government audit or check;
- Are all your managing agency authorities current and signed?
- Some agencies update their managing agency authorise annually.
- Are all leases in the files and signed by landlords and tenants?
- Most agencies operators are backing up on servers, filing services or the cloud.
- Do you have a current completed routine/condition & inspection report?
- Do you have adequate back up of photos to support the condition reports?
- Are all the bonds lodged with the Bond board and do you have reconciled records?
- Make sure when you transfer management to and from an agent you have informed the RTBA.
- Ensure that what is in the file matches with the computer records?
- Often agents negotiate or adjust their rates of commission without updating the agency authority in the file
It’s too late to do update your property management files if you have embarked on the sale of the property management portfolio or worst still after you have sold your rent roll. We often see vendors having to tidy up their property management files after the rent roll sale due to the requirement of a buyer post due diligence. The landlord will be easier to obtain information if it becomes your normal annual practice to maintain these records.