Property Management

There are lots of different things to know when renting a property.  A useful guide is available at Office of Fair Trading - http://www.fairtrading.nsw.gov.au/realestaterenting.html.

Here is a short summary of things you should know when you become a tenant.

Beginning the Tenancy

Before a tenant enters into an agreement or moves in to the property they must be given the following documents:

  1. A copy of the proposed tenancy agreement
  2. A list of all entry costs payable
  3. The Department of Fair Trading Renting Guide

The law now requires that there must be a written tenancy agreement between all landlords and tenants.  Each tenancy agreement must consist of two parts:

  1. The terms of the agreement - known as the 'lease agreement' 
  2. A premises condition report - known as the 'ingoing report'

It is essential that all parties read the tenancy agreement before signing it.  The length of the fixed term period of the tenancy is a matter to be agreed upon.  The most common fixed term periods are 6 months or 12 months. The parties can agree to have a tenancy agreement for any other length of time.

Condition Reports

Whenever a tenancy begins a premises condition report must be filled out.  It should be a true and accurate account of the condition of the premises.  The condition report may become the most important piece of evidence if a dispute arises over the condition of the premises at the end of the tenancy.

The steps needed to complete a condition report are:

  • The landlord or agent must fill out and sign the condition report noting the cleanliness, general condition and working order of each applicable item on the report.  Any comments should be written in the space provided, or on a separate page if there is no room.
  • If the property is furnished a list of all the furniture and the condition of each item should be attached to the report.
  • the tenant should then be given a copy of the filled out condition report at or before the time the tenancy begins.  This should be thoroughly read and checked by the tenant.  The signed copy must be returned to the real estate within 7 days.  The tenant should be given a copy of their signed report for their records.

Note: if the landlord or agent promises, prior to the start of the tenancy, to fix anything or do aother work this should be noted in the space provided at the end of the condition report.  The tenant will then have written evidence on which to take the matter further if the repairs or other work are not carried out by the agreed date. 

Entry Costs

A tenant may be asked to pay the following entry costs when or before signing the tenancy agreement:

  • Reservation Fee ( or deposit to hold the property)
  • Rental Bond (payment for security of breaches of the tenancy agreement)
  • Advance Rent

All tenants listed on the agreement must be given a set of keys and all other lock opening devices, swipe cards, remote controls, etc, so that they can enter and secure any part of the premises.  This includes keys to any door, window, garage, or letterbox locks.  Under no circumstances can any tenant be charged a separate fee, bond or deposit for keys.

Rent

From time to time rent may be increased after the fixed term period of the agreement has expired.  Before a landlord can increase the rent the tenant must first be given at least 60 days notice in writing.

If a tenant thinks that a proposed rent increase is too high they can:

  1. Negotiate
  2. Apply to the Consumer, Trader & Tenancy Tribunal

Water & Sewage Charges

Landlords are responsible to pay all service charges for water and sewerage issued by the local water supply authority.

In most cases a tenant may be asked to pay, to the landlord, the water usage part of the bill.  Under no circumstances can connection fees be passed on to the tenant.

Some water authorities also charge a fee for sewerage discharge or waste water.  This fee is usually based on the amount of water supplied to the premises and may be charged to the tenant.

Privacy & Access

Tenants have a basic right to privacy and quiet enjoyment of the premises that must be respected by their landlord or agent.

The landlord, agent, or other authorised person may enter the premises only in the following circumstances:

  • to carry out a general inspection of the premises
  • to carry out necessary repairs
  • to show the premises to prospective tenants
  • to show the premises to prospective buyers
  • if the property has been abandoned
  • in an emergency
  • if the tribunal orders that access be allowed
  • if the tenant agrees

Repairs

The landlord must then maintain the premises in a resonable state of repair considering:

  1. the age of the premises
  2. the amount of rent the tenant is paying, and
  3. the prospective life of the premises.

An urgent repair is any work needed to fix:

  • a burst water service
  • a blocked or broken lavatory system
  • a serious roof leak
  • a gas leak
  • a dangerous electrical fault
  • flooding or serious flood damage
  • serious storm or fire damage
  • a failure or breakdown of the gas, electricity or water supply to the premises
  • a failure or breakdown of any esential service on the premises for hot water, cooking, heating or laundering
  • a failure or breakdown of any essential service on the premises for hot water, cooking, heating or laundering
  • any fault or damage that causes the premises to be unsafe or not secure.

How to get repairs carried out:

The following steps are recommended when you want to have repairs or other work carried out:

  1. For urgent maitenance or repairs phone or speak to the landlord or agent in person, and explain what you think the problem is or what you would like done to the premises.  Write down somewhere the date of all conversations and what was said.  This will be important if the problem is not easily resolved.
  2. For non urgent maintenace or repairs, fill in a maintenance request form or send it in writing to the landlord or agent.  It is important that you keep a copy for your records.
  3. If the response is favourable write a letter to the landlord or agent confirming your view of what was agreed to in the conversation.
  4. if the response is negative, consider carefully if the problem is important enough to pursue the matter.  If you believe it is, write a second letter to the landlord or agent outlining what you want done.  Give a reasonable time limit in which you expect the work to be carried out.
  5. If the work has not been done within a reasonable time write a final letter to the landlord or the agent explaining that you intent to apply to the Consumer, Trader & Tenancy Tribunal or seek the help of an advisory service
  6. If all else fails you can apply to the Tribunal to have the work carried out.

Ending the Tenancy

Written notice must be given to the other party if a tenancy agreement is to be ended in the standard manner.

A notice of termination must:

  • be in writing
  • state the address of the premises
  • be signed and dated
  • allow the required period of time
  • give the date on which the tenant intends to, or is requested to, move out
  • give full details of all breaches or reasons for ending the agreement
  • and, if given to a tenant, include a statement that information about their rights and obligations can be found in the tenancy agreement

Final Inspection

At, or as soon as possible after, the end of the tenancy the landlord/agent must carry out a final inspection of the premises, it is advisable for the tenant to attend this inspection.  The original condition reports should then be completed by both parties.  However, if a reasonable opportunity is given to the other party to be there and they do not show up, the report may be filled out in their absense.

Bond Refunds

During the tenancy, the rental bond is held by the Department of Fair Trading.  At the end of the tenancy, after the final inspection, a claim form should be filled out by the landlord or agent and given to the tenant to sign.

 

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