It may be necessary for an owner to be a jack of all trades and a master of all. You are responsible for many aspects of maintenance and even property management. You have to make sure everything is going well and that your tenants are happy campers. You must know the rights and obligations of your role as owner.
Some of these rights include the obligation to guarantee, the increase in rent or the termination of a lease. However, you can not do all this simply because you want to. There are established rules and regulations that you must follow.
Registration of the bond
As the owner, you usually take a deposit from your tenants as a security deposit. If the tenant does not maintain the area well maintained or causes damage to the property, or does not pay rent, you can claim all or part of the deposit at the end of the rental to compensate for this.
Be sure to forward the bond to your home rental surety authority in your state, which will keep the bond for the renter and the owner during the rental. This is something your property manager can do for you. The deposit is usually equivalent to one month's rent, but may be higher than some expensive properties.
You can not claim the bond at the end of the lease simply because your property is not in the same condition as at the beginning of the lease.
For example, the appliances you provided to your tenants may not be brand new, but unless they have been damaged, you can not require them to be replaced. They still work and, even if you want them to look new for your next tenants, you can not ask for the bond because the appliances are not damaged.
In general, you can only claim bail for:
Damages caused by the tenant or his visitors
Cleaning fee
The tenant abandoning the premises
The tenant leaves the landlord to pay the bills that he should have paid
Loss of the property of the landlord
Unpaid rent
For more information on lease obligations in your state or territory, visit the following Web sites:
Rent and Increase
Rent can be paid by the week, the fortnight or the month. However, if the rent is paid weekly, the landlord can not request an increase greater than 14 days at the beginning of the tenancy.
You can not raise the rent at any time. If you have a standard lease, you must wait until the end of the specified period to increase the rent, unless otherwise specified in your contract.
In general, you can not increase the rent more than once every six months and you must give your tenant at least 60 days' notice of any proposed rent increase.
For more information on rent increases, check out the following resources:
Ending Leasing and Discrimination
The end of a lease varies from state to state. Even if a contract has a fixed date, you must always give your tenant a notice period to terminate the lease.
If you wish to terminate the tenancy, you must check:
The reasons allowed in your state to give notice to terminate a rental.
If notice must be given on an official notice or form.
How many notices you must give before the end of the agreement.
You also have the right to choose the right renter for your property. However, equal opportunities legislation in each state prohibits discrimination or harassment of persons. In general, you can not choose your tenant based on age, race, religion, gender, etc.
To learn more about the Anti-Discrimination Act in Australia, you can visit the Australian Government website.
You may also want to check the following web sites for more information on termination of a lease in your state or territory:
Obligations
As the owner, you must ensure the security of the leased property and its contents. Some of your responsibilities may include:
Maintain the structure and the exterior of the house
Make sure all facilities work like gas, heating and electricity
Maintain the installation and appliances, if the appliances belong to the owner
Deal with potentially dangerous health issues
All that is specified in the rental agreement
Each state or territory of the country also has various requirements that owners must follow:
Territory of the Australian Capital
In ACT, the landlord is required to provide tenants with a copy of the Office of Fair Trading booklet "The Renting Book". The landlord is also required to issue a receipt when a tenant pays for the bail money. The money is then deposited with the Regulatory Services Office within two weeks. The landlord is also responsible for giving tenants two copies of the "Report on Premises Conditions" within one day of moving in. Renters will be required to return the form within two weeks, including their agreement or disagreement with the report.
To learn more about renting in ACT, you can refer to The Renting Book.
New South Wales
In NSW, homeowners are required to provide tenants with the "checklist for new tenants". Owners must be aware of the latest methods of direct and indirect discrimination, fair trade laws and good practices. A 90-day notice is required if a new lease is not signed after the expiry of the fixed-term contract.
For more information on renting housing in NSW, visit the NSW Fair Trading website.
Northern Territory
In the Northern Territory, an owner is required to provide new tenants with "a rental guide in the Northern Territory". The owner is also responsible for the preparation of the lease provided to the tenant. A condition agreement must also be prepared and given. Once examined and signed by the tenant, the landlord must also sign it and give a copy to the tenant within seven days.
For more details on your landlord role in NT, contact NT Consumer Services.
Queensland
In QLD, the landlord must ensure that the property is clean and in good condition. The security of the property must also be of a reasonable level. When the lease is taken care of, no other person or their property should be in the premises. The landlord must also ensure that the tenant's use of peace and property is not interrupted.
To learn more about homeowner obligations in QLD, visit the Queensland Government website.
South Australia
In South Africa, a homeowner must provide and maintain a proper property for his tenants. The landlord must also give proper receipts and keep records of all transactions related to rental, municipal rates and taxes. The landlord must maintain the locks to ensure the security of the property. The bond with the Office of Consumer Affairs and Enterprises must also be set up.
More information on launching a rental in South Africa can be found on the Government of South Australia website.
Tasmania
In Tasmania, the landlord is required to provide tenants with a copy of "Rental in Tasmania" before moving in. The landlord must complete, in writing, a rental agreement with a state report, a security deposit and an advance of rent. To terminate the lease, the landlord must give tenants notice of 14 and 28 days.
The Tasmanian Tenant Union (TUTAS) presented everything you might need to know about renting in Tasmania.
Victoria
In Victoria, there is a strict guideline when an owner can enter his rented property. The owner and the renter must agree on the date and time, within seven days before the entry.
The landlord can give the tenant a 24-hour notice of intent to enter the property to perform tasks in the lease, evaluate the property, show prospective buyers or tenants the property , confirm the reasonable belief that a tenant has breached the rent agreement and inspect the property during a six month period.
To learn more about renting in Victoria, visit the Consumer Affairs Victoria website.
Western Australia
In Washington, the landlord must provide tenants with a copy of "Schedule 2 – Information for Tenants" and a lease agreement. The landlord must also read the guide carefully. The form gives a practical knowledge of the owner's responsibilities regarding the use of the premises, discrimination, urgent repairs, fixtures, payment and rent increases. It also indicates the entry fee of the owner, as well as duties and taxes.
Here is an information sheet describing your responsibility as the owner of the Government of Western Australia.
Being an owner, this is not a walk in the park, it takes time and effort to get your property up and running. These rules and regulations are in place to guide you and help you manage your rental a little more easily. Think of talking to a professional to discuss any concerns regarding the management or maintenance of a property. An expert such as a property manager can help you make better decisions for your real estate investment.
