Open for Inspection Requirements

I'm currently trying to get to the bottom of whether employees that aren't registered agents/agent's representatives can attend an open for inspection for prospective tenants by themselves. I've read the Estate Agents Act 1980 and can't seem to find any reference to this particular part of the process. Outside of this, they obviously aren't allowed to facilitate lease agreements or anything of the sort!

As far as I can see, the Act prohibits anybody but agents from 'letting', 'collecting rents' and 'negotiating for the ... letting or taking on lease of or any other dealing with or disposition of any real estate or business on behalf of any other person'.

Letting is then defined as 'every form of leasing or letting of or granting a licence to use real estate and the function or business of letting includes the collection or receipt of rents by an agent on behalf of his principal whether the agent has or has not let the real estate in question'.

If anybody could please clear this up or has any experience with this, that would be great! I've already tried calling the REIV but they were unable to provide any information. I'm calling Consumer Affairs tomorrow to see if they can assist.

 

Sounds like you're talking about Victoria? @Lil Skater is the go-to Property Manager in Melbourne and can probably assist.

 

Thanks D.T. - am indeed talking about Vic

Cheers

 

Dear Antoine,
I am sorry I cant answer this question for you, but I just want to tell you that I was impressed by your question!
thanks

 

When you say "attend an open for inspection for prospective tenants" what are you actually doing there? Will you be reporting back your findings or recommending they apply or should not bother applying? Will you be giving your opinion on asking rent? If so I think you should be licensed. (But that's just my opinion).

 

An open for inspection, for me, is an opportunity for prospective tenants to come and see the property, rather than a vetting/screening procedure for the PM (although, I acknowledge that some PM's may do this at the same time). So, in this scenario the employee attending the open for inspection would not be providing opinions or exercising any judgment. They would be effectively just opening the house and then closing it once all prospective tenants have vacated.

 

....and if the prospective tenants viewing the property ask legitimate questions, what will your response be? (defer to a licenced REA?) I don't think you are thinking this through fully.

 

I have always believed that in order to conduct any facets of property management or sales you must hold an agents rep certificate and be listed on the BLA site as employed by the agency. This would include holding open for inspections

Agents' representatives - Consumer Affairs Victoria

 

So long as the person is simply unlocking the property, relocking it and directing any questions to the PM I can't see a problem.

Sort of like years ago when prospective tenants were simply given the keys to go and have a look by themselves, then come back to the agency to discuss. No such thing as "open houses".
Marg

 

There's still agencies doing this, have seen them write 'keys avail from office with deposit' in their listing ads!

 

That's true @Marg4000 but as a prospective tenant who cannot receive an answer to any question while at the property, I'd be annoyed and likely to go elsewhere.
What's the problem with doing a 4-5 day course for <$500 and getting a Certificate and actually being some use to the public or your employer rather than just a door locker/unlocker.

 

An employee who is not a registered Agent's Representative or Licensed Estate Agent cannot conduct open for inspections.

Basically, you cannot send your receptionist with no Cert 3 to parade as an agent as they are not licensed to do so.

 

Yes, correct one needs a real estate agents licence.

Also for split level homes its good practice for two agents to be present on each level

 

Not many agents are aware that in Queensland this is actually permitted, provided the only function performed is inspections. People just assume that qualifications are required because it makes sense that they would be. Legislation is a funny thing...

Property letting (inspections particularly) is really a sales role. Anyone who does it shouldn't be standing in the corner on their phone and not know anything about the property or be able to answer any questions (which is unfortunately all too common). They should be friendly and engage with the potential tenants, have done their homework and answer questions and actually sell the property to anyone who walks in! This starts from when the person registers for the inspection. Anyone can open a door and turn some lights on...not everyone is good at conducting opens or private inspections. How this process is conducted contributes massively to whether or not people apply for your property, in addition to the normal best practices associated with marketing and inspections.

A quick call to the OFT in your relevant state will verify any queries (or assumptions as the case may be )