CPPDSM4050A
Lease industrial, commercial and retail property

This unit of competency specifies the outcomes required to lease listed industrial, commercial and retail properties. It includes qualifying lessees, conducting property inspections, negotiating the terms and conditions of leases, coordinating completion of lease documentation and reviewing leasing arrangements.The unit may form part of the licensing requirements for persons engaged in real estate activities in those States and Territories where these are regulated activities.

Application

This unit of competency supports the work of licensed real estate agents and real estate representatives involved in arranging the lease of listed industrial, commercial and retail property.


Prerequisites

Nil


Elements and Performance Criteria

ELEMENT

PERFORMANCE CRITERIA

1Qualify lessees.

1.1 Enquiriesfrom potential lessees regarding lease of property are handled promptly to enable high quality service delivery in line with agency requirements.

1.2 Appropriate rapport is established with potential lessees.

1.3 Enquiries from potential lessees are qualified to determine their preferences, needs, financial limits and capacity to pay in line with agency practice, ethical standards and legislative requirements.

1.4 Factors likely to influence the lease of properties are identified and potential lessees' intentions are clarified.

1.5 Discussions with potential lessees are undertaken using promotional materials and effective interpersonal communication techniques to identify and match stated requirements with known listings.

1.6 Strategies for assisting potential lessees to decide to view properties are implemented in line with agency practice, ethical standards and legislative requirements.

1.7 Agency records associated with prospective lessee enquiries are completed in line with agency practice.

2Undertake property inspection.

2.1 Appointments are made for property inspections in line with agency practice, ethical standards and legislative requirements.

2.2 Preparations are made for property inspection in line with agency practice.

2.3 Procedure for property inspections is implemented in line with agency practice.

2.4 Promotional material on the property is used to describe main features of the property and lease terms and conditions.

2.5 Effective questioning techniques are used to clarify prospective lessee interest in the property.

2.6 Agency documentation associated with inspections is completed in line with agency practice.

3Negotiate terms and conditions of lease.

3.1 Terms and conditions of lease are negotiated with lessee in line with lessor instructions, agency practice, ethical standards and legislative requirements.

3.2 Negotiation approach is established in line with lessor instructions, agency practice and legislative requirements.

3.3 Negotiation is conducted in a professional manner, including showing respect for lessor and lessee in line with agency practice, ethical standards and legislative requirements.

3.4 Effective negotiation techniques are used to persuade and reach agreement with lessor and lessee.

3.5 Possible solutions are discussed and their viability assessed.

3.6 Effective techniques are used for dealing with conflict and breaking deadlocks where required.

3.7 Final position is confirmed, ensuring agreement and understanding of lessor and lessee.

3.8 As necessary, follow-up communication or reports are provided to lessor and lessee to confirm any adjustments required to conditions of agreement.

4Arrange lease agreement.

4.1 Lease agreement is arranged in line with agency practice and legislative requirements.

4.2 Appropriate interpersonal techniques are used to facilitate an accurate and relevant exchange of information with legal advisers.

4.3 Lease documentation is reviewed for accuracy and to ensure it meets client instructions, agreements with lessee, legislative requirements and agency practice.

4.4 Necessary amendments to documents are arranged prior to execution in line with legislative requirements and agency practice.

5Formalise lease arrangements.

5.1 Lease arrangements are implemented in line with client instructions, agency practice and legislative requirements.

5.2 Lease documentation is distributed to relevant people to enable necessary stamping and registration to occur.

5.3 Copies of lease contracts are distributed to contracting parties to confirm respective obligations in line with legislative requirements and agency practice.

5.4 Leasing documentation is completed in line with legislative requirements and agency practice.

5.5 Lease records and relevant information are securely stored in line with legislative requirements and agency practice.

6Review leasing arrangements.

6.1 Leasing arrangements and documentation are reviewed in line with client instructions, legislative requirements and agency practice.

6.2 Variations to leasing requirements are identified and negotiated with relevant people and amendments are made in line with client instructions, legislative requirements and agency practice.

6.3 Lease arrangements are monitored to ensure they meet the obligations of the lease agreement and relevant legislative requirements and agency practice.

6.4 Business equipment and technology are used to maintain relevant documentation securely in line with legislative requirements and agency practice.

Required Skills

This section describes the essential skills and knowledge and their level, required for this unit.

Required skills:

ability to communicate with and relate to a range of people from diverse social, economic and cultural backgrounds and with varying physical and mental abilities

analytical skills to interpret documents such as agency and statutory forms associated with the lease of industrial, commercial and retail property

application of risk management strategies associated with leasing industrial, commercial and retail property

computing skills to access agency databases, send and receive emails, and complete standard forms online

decision making and problem solving skills to analyse situations associated with leasing industrial, commercial and retail property and make decisions consistent with legislative and ethical requirements

literacy skills to access and interpret a variety of texts, including legislation and regulations; prepare general information, papers, and formal and informal letters; and complete standard and statutory forms

negotiation skills to reach agreement with lessors and lessees on lease conditions

numeracy skills to calculate and interpret data, such as rents and security deposits

planning, organising and scheduling skills to finalise lease documentation

research skills to identify and locate documents and information relating to leasing of industrial, commercial and retail properties.

Required knowledge and understanding:

consumer protection and retail leases, including:

consumer protection principles relevant to retail leases

effect of consumer protection legislation on contracts

penalties and remedies available for breaches of consumer protection legislation

rights and obligations of estate agents under consumer protection legislation in relation to retail leases

contracts

ethical practices associated with leasing industrial, commercial and retail property

negotiation skills and techniques

property inspections, including:

agency documentation

benefits

conducting and following up property inspections

key control

planning property inspections

promotional materials

security of properties

relevant federal, and state or territory legislation and local government regulations relating to:

anti-discrimination and equal employment opportunity

consumer protection, fair trading and trade practices

employment and industrial relations

environmental issues

financial services

franchises and business structure

leases

OHS

privacy

zoning

rent, including:

calculation

rent increase

qualifying lessees, including:

capacity to pay

financial limits

marketing aids

matching suitable properties to lessee needs

motives

needs and preferences

strategies for assisting potential lessee to view property

leases, including:

condition report and disclosure statements

dispute resolution processes

format of agreements

key features and types of industrial, commercial and retail leases

legal obligations of agent, lessor and lessee

rents, security deposits and bond moneys

statutory and agency documentation

terms and conditions

risks and risk management strategies

trust accounts.

Evidence Required

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.

Overview of assessment

This unit of competency could be assessed through practical demonstration of arranging and completing the lease of industrial, commercial and retail property. Targeted written (including alternative formats where necessary) or verbal questioning to assess the candidate's underpinning knowledge would provide additional supporting evidence of competence. The demonstration and questioning would include collecting evidence of the candidate's knowledge and application of ethical standards and relevant federal, and state or territory legislation and regulations. This assessment may be carried out in a simulated or workplace environment.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

A person who demonstrates competency in this unit must be able to provide evidence of:

completing lease arrangements, including relevant agency and statutory documentation, in line with agency practice, ethical standards and legislative requirements

conducting inspections for prospective lessees in line with agency practice, ethical standards and legislative requirements

knowledge of agency practice, ethical standards and legislative requirements associated with the lease of industrial, commercial and retail property

knowledge of consumer protection principles and the rights and obligations of licensed real estate agents and real estate representatives in regard to retail leases

monitoring lease arrangements against lease agreement requirements, and safely and securely maintaining all relevant documentation

negotiating terms and conditions of industrial, commercial and retail leases in line with agency practice, ethical standards and legislative requirements

qualifying lessees in line with agency practice, ethical standards and legislative requirements

recording lease arrangements in line with agency practices.

Context of and specific resources for assessment

Resource implications for assessment include:

access to suitable simulated or real opportunities and resources to demonstrate competence

assessment instruments that may include personal planner and assessment record book

access to a registered provider of assessment services.

Where applicable, physical resources should include equipment modified for people with disabilities.

Access must be provided to appropriate learning and/or assessment support when required.

Assessment processes and techniques must be culturally appropriate, and appropriate to the language and literacy capacity of the candidate and the work being performed.

Validity and sufficiency of evidence require that:

competency will need to be demonstrated over a period of time reflecting the scope of the role and the practical requirements of the workplace

where the assessment is part of a structured learning experience the evidence collected must relate to a number of performances assessed at different points in time and separated by further learning and practice with a decision of competence only taken at the point when the assessor has complete confidence in the person's competence

all assessment that is part of a structured learning experience must include a combination of direct, indirect and supplementary evidence

where assessment is for the purpose of recognition (RCC/RPL), the evidence provided will need to be current and show that it represents competency demonstrated over a period of time

assessment can be through simulated project-based activity and must include evidence relating to each of the elements in this unit.

In all cases where practical assessment is used it will be combined with targeted questioning to assess the underpinning knowledge. Questioning will be undertaken in such a manner as is appropriate to the language and literacy levels of the candidate and any cultural issues that may affect responses to the questions, and will reflect the requirements of the competency and the work being performed.


Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording in the performance criteria is detailed below. Add any essential operating conditions that may be present with training and assessment depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts.

Enquiries from potential lessees may be received through:

advertising

email

inspections

office

referral

telephone

website.

Lease may include:

business

commercial

industrial

retail.

Property may include:

commercial properties

industrial properties

retail properties

specialist business properties, such as marinas, hotels, open space, resorts and caravan parks.

Appropriate rapport relates to use of techniques that:

establish and build confidence and trust in the agency and its representatives

make the lessee or lessor feel valued

promote and maintain an effective relationship with the prospective lessee or lessor.

Legislative requirements may include:

relevant federal, and state or territory legislation and local government regulations relating to:

anti-discrimination and equal employment opportunity

consumer protection

employment

environmental issues

franchises and business structure

industrial relations

leases

OHS

privacy

trade practices

zoning.

Promotional materials may include:

agency email and website details

agent business card

agent and agency profile

brochures

description of property

list properties for lease

pamphlets

testimonials from past clients

website.

Effective interpersonal communication techniques may include:

active listening

providing an opportunity for the client to clarify their understanding of the sales process

soft questioning and seeking feedback from the client to confirm own understanding of their needs and expectations

summarising and paraphrasing to check understanding of client message

using appropriate body language.

Effective questioning techniques may include:

active listening

clear questions

different question types

reflection

using silences.

Terms and conditions of lease may include:

default provisions

dispute resolution process

duration

equipment and services

general rules that apply to all lessees in property

goodwill

gross or nett lease

GST

insurance

options for extending period of lease

outgoings

permitted uses and access, including:

car parking

competitors

expansion or sale of business

hours of operation

licences

rights to use common areas

zoning

personal guarantees

power of attorney

rent, including:

method of calculation

rent increases

renewal of lease or tenancy agreement, including:

exercise of option to renew

option to renew

renewal period

rent

repairs and maintenance

security

security bond or deposit

tenancy mix

termination of lease or tenancy agreement.

Effective negotiation techniques may include:

analytical skills

listening techniques

non-verbal communication skills

personal attributes

presentation techniques

questioning techniques

speaking skills.

Effective techniques for dealing with conflict and breaking deadlocks may include:

calling in a third party

clarifying the positions of both parties

deferring the decision

preparing a compromise

restating the position

summarising the progress to date.

Lease agreements may include:

acceptance and consideration

agreement to lease

heads of agreement

letters of intent

negotiations containing offers

relative lessee or lessor obligations.

Business equipment and technology may include:

computers and data storage devices

email

facsimile machines

internet, extranet and intranet

photocopiers

printers

scanners

software applications.


Sectors

Unit sector

Property development, sales and management


Competency Field

Real estate


Employability Skills

The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary of the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.


Licensing Information

Refer to Unit Descriptor