How the Realworks version of Form 6 helps property managers

The Property Occupations Form 6 (PO Form 6) is a statutory form that can be downloaded from the Office of Fair Trading website.

You cannot act on behalf of the client until you're appointed on the PO Form 6, which must be signed by all the registered owners (or their legally appointed) representative. A copy of the fully signed document must be provided to the client/s. This statutory form contains 10 parts and 6 pages in total.

If you use the Realworks version of the PO Form 6, there are an additional 10 pages that contain a schedule and essential terms and conditions which have been drafted by a legal practitioner.

These additional documents have been drafted to ensure there are clear instructions provided to the agent and based on identified areas of risk in property management.

We look at three sections you need to consider when accepting instructions from a client.

PO Form 6 - Part 8.2

This section grants the agent authority to arrange maintenance for the property up to an authorised spend limit. This means all types of maintenance, routine and emergency. If you have a zero spend limit, this means you cannot arrange any maintenance on behalf of the client without first seeking their instructions in writing.

Best practice is to seek instructions to spend up to the equivalent of two weeks' worth of rent for any one maintenance item. Failing to receive such authority grants tenants the ability to arrange emergency maintenance up to the amount of two weeks rent if the Lessor/agent does not attend to the emergency repair within a reasonable time (Section 214 of the RTRA Act).

Many owners are reluctant to give the blanket instruction to spend up to this amount for any one maintenance item as they're nervous about losing control of their income/expenses.

Therefore, it's important you offer a service guarantee where you communicate to the owner when there's maintenance required on their property and confirm the action you've taken so they can anticipate the expense and budget for it accordingly.

It's also worth noting that some owners may prefer to use their nominated contractors rather than the tenant randomly choosing one and then seeking to be reimbursed.

PO Form 6 - Part 9

It's critical that you state the schedule and essential terms and conditions as an attachment in Part 9, so they form part of the Statutory Form. You may also need to list additional attachments such as the Pool Annexure Disclosure or an agreed marketing schedule.

Item I - Schedule

This section is specific to the client nominating their preferred contractors to be provided to the tenants for an emergency repair. This information must be included on Item 18 of the Form 18a General Tenancy Agreement. Advise your client to ensure their nominated repairers are suitably qualified and insured to complete the nominated repairs.

To avoid the ramifications and risk associated with unlicensed, uninsured, and inadequately qualified contractors performing work or not attending to repairs in a timely manner, our best practice advice is to seek instructions from the client to use the agency preferred contractors.

Any contractor the agent authorises to complete work on a property under their management must have a Contractor Appointment Form in place and provide evidence of their qualification(s), appropriate insurance(s) and workplace health and safety practices.

REIQ Members with more questions on the PO Form 6 can contact the property management support service on 1300 697 347 or by emailing pmsupport@reiq.com.au.

Got any questions about agency practice? We have the answers here.