10 Nov 2017

Are Property Management Companies Regulated?

With the average investment property in Perth costing around half a million dollars, it is easy to understand why property management in Western Australia is heavily regulated.

With the average investment property in Perth costing around half a million dollars, it is easy to understand why property management in Western Australia is heavily regulated.

Property Managers work under legislation called The Real Estate and Business Agents Act 1978, which is administered by the Department of Mines, Industry Regulation and Safety.  This Act sets out clear guidelines on the licensing of agents. These guidelines include rules around fees and advertising, as well as the use of trust accounts.

The Real Estate and Business Agents Act, also states that real estate employees are bound by a Code of Conduct, The Real Estate and Business Agents and Sales Representatives Code of Conduct 2016.  This code, legislates how agents must conduct themselves, including acting with care, honesty and confidentiality.  The Department of Mines, Industry Regulation and Safety will discipline any agent who breaches these codes.

In WA, real estate property managers must be registered real estate sales representatives, operating under the supervision of a licensed real estate agent who is in charge of the agency.   To become a registered real estate sales representative, a person must have passed a sales representative course held by a recognised training organisation, be a fit and proper person of good character and have passed a police clearance.

As property managers collect vast amounts of money on behalf of clients, it is essential that money is strictly accounted for.  Real Estate agencies must have an independent auditor check their accounts annually.  These must then be submitted to the Department of Mines, Industry Regulation and Safety.

If you decide to engage a property manager, you will need to give the agent written authority to act on your behalf. The document, Exclusive Authority to Act as Managing Agent for Residential Premises, is generally used for this purpose. Without this document, a property manager cannot act on your behalf.

To find out how Blackburne can manage your property, contact Blackburne on 9429 5777 or pm@blackburne.com.au

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