If, after much consideration, you opt for a private rental agreement rather than leasing your property via a real estate agency or property manager, there are a number of factors to consider.
Before you rent out your investment property or home, it's important that you have access to all the relevant landlord information and ensure you adhere to tenancy laws. In addition, there's compulsory documentation landlords must provide to prospective tenants before signing a tenancy agreement - not doing so may result in fines.
Make sure you're aware of anti-discrimination and fair trading laws before meeting with prospective tenants so you don't breach your obligations under this laws, for example, misleading people about your property or the services included in your lease.
Typically a tenancy agreement legally binds you and your tenant. It gives your tenant the right to inhabit your property in exchange for an agreed upon sum of rent. Tenancy contracts include fixed-term agreements and periodic agreements. Fixed-term agreements typically cover six to 12 months on residential properties (commercial properties may be longer) with a set end date. Periodic agreements typically follow on from a fixed-term agreement. They have no set end date and the rules of the original agreement for the most part still apply. However, stipulations regarding tenancy termination and rent increases differ between fixed-term and periodic agreements. A standard tenancy agreement can include over 40 clauses.
A Condition of Premises Report is, typically, a compulsory part of landlord information to be passed on to tenants. A room-by-room account of the property's standard, the condition report is vital should a dispute arise at the end of a tenancy.
Regardless of whether your tenant is on a fixed-term or periodic agreement, it's wise to collect a rental bond prior to them moving into the property to protect you from tenancy agreement breach. Landlords must lodge all bonds with the relevant Government department or authority. You can then make a claim against the bond once the tenancy ends.
While most tenants will respect your property and therefore receive their bond back in full, it's worthwhile considering landlord insurance for instances when the bond is not sufficient to cover both damages and outstanding rent.
The information contained in TenancyCheck.com.au website is general information only and does not constitute legal, financial or compliance advice. As the laws relating to tenancy agreements may have changed we recommend you check with the relevant State or Territory government department. We also recommend that you obtain your own independent legal advice about matters relating to landlord obligations, tenant rights and any legal disputes you may have with a tenant(s).