Successful Renting For Tenants And Landlords

Successful Renting is a basic guide for tenants and owners. It contains information and steps to follow, which can set the basis for a trouble-free tenancy relationship.

Although tenants and owners have different rights and responsibilities, they have interests in common so this publication has been written to be read by both.

This guide covers:

• Tenancy relationships
• The rental marketplace
• Matching tenants and owners
• Getting ready to rent


• The Tenancy Agreement
• Length of tenancy
• Entry costs
• Rent
• Tenant privacy and owner access
• Water and sewerage
• Repairs
• Damage
• Insurance
• Renovating, Iterations or adding fixtures
• Locks and security
• Ending the tenancy
• Ray White Property Management Services
• Investing in property
• Ray White Services

Successful Renting is not a legal document and should not be relied on or quoted to support one point of view against another. The resolution of any dispute over a tenancy agreement will depend on the terms of the agreement itself and the particular laws and statutes that apply in each State and Territory.

As the publisher of Successful Renting, Ray White intends the booklet to be an informal but important part of the service it offers to tenants and owners. As such, the booklet sets a background for the formal agreements that have to be signed and helps both parties understand what the other needs and expects.

Ray White's highly qualified and experienced property management staff manages the interests of the owners and tenants of over 180,000 properties throughout the Ray White network.

The Ray White group has been involved in the largest private home accommodation program ever to be held. As part of our role as the Official Residential Accommodation Manager for the Sydney 2000 Olympic Games, Ray White sourced private home accommodation for around 3,000 international and domestic visitors in around 1,000 properties during the Games period.

With such high recommendations, you can be assured you are dealing with a group of well-trained professional property managers.

Should you have any questions relating to this subject, please feel free to contact Ray White Port Douglas.

Tenancy relationships

When a property is rented by one person to another they enter into a binding agreement, which sets out their legal rights and responabilities for each party. The exact terms of these agreements, often called tenancy agreements, vary from state to state depending on the Government Department which administers the laws governing the agreements. The Legislation also provides the process of dispute resolution through mediation and if this is unsuccessful, then the case can be heard in the Tribunal if necessary. This ensures that all parties are protected.

The tenancy agreement actually ensures that each party gets what they want, rent on the one hand and a place to live on the other; but the owner is required to provide more than just a place to live and the tenant more than just the rent. The place to live must meet certain standards and contain certain amenities. The rent must be paid on time as agreed and the property must be maintained to a satisfactory standard.

As a tenant or owner, you should normally benefit from your tenancy agreement as it protects your rights and sets the basis of a productive relationship, one that can be harmonious. Indeed both parties will benefit if the relationship is harmonious. For this to occur, it is vital that both parties carefully read the agreement and take advice if in doubt about any aspects of it.

The rental marketplace

An indication or the rental marketplace can be discovered in city, suburban and local newspapers, in the windows of real estate agents and with the greatest of ease, on the Ray White website, www.raywhite.com. As an owner or tenant, surf it now to get an idea of its scope. Alternatively you can request a current list of available rental properties.

If you have an inquiry about a particular property or local suburb, email or telephone Ray White Port Douglas for more information. It is the agents' job to match owners with tenants and as a market leader Ray White, through its extensive agency network, has a huge cross section of rental properties available at a range of prices to suit most people.

At times of high demand Ray White offices will open their rental properties for inspection at regular times usually on Saturdays and by appointment during the week. This is for the convenience of all concerned, so that those looking can spend a day on the hunt seeking accommodation. Many agents will have a rentals list and open for inspection lists, which will be available prior to the Open Day. These lists can save you time and give you price and availability indications, you can call or email the agent ahead of time to obtain a copy contact Ray White Port Douglas.

The Ray White website www.raywhite.com is a great resource as more and more rental properties are advertised on it and there are direct email facilities to the rental agent in high demand areas, it is advisable to provide your contract details and requests, so you can be contacted should a property become available that suits your needs. In the case of Port Douglas contact the Property Manager direct.

Matching tenants and owners

Tenants and owners both need to satisfy themselves that they are getting what they want. You, the tenant, want your chosen property in good condition and an owner who acts promptly on any reasonable request based on the tenancy agreement. If the request cannot be met now, or in the future, you are also entitled to know the reasons why. You, the owner, want a tenant who will care, for the property, observe the terms of the agreement, and pay the rent regularly.

As a result, Ray White undertakes a comprehensive screening process. Tenants should not be surprised if owners or their agents require an interview with them and ask for evidence of capacity to pay and other lawful details such as references or employment history. The agent may check the tenant's details with a Tenancy Database Company that has a list of defaulting tenants.

Owners should expect their tenants to want to see the proposed tenancy agreement, as well as additional entry costs payable to begin the tenancy, which are applicable in some states, but not normally in Queensland. If necessary, fair minded negotiation should occur, including the terms and conditions outlining the rental amount and length of tenancy.

Getting ready to rent

Owners should:

• Decide how the property is to be rented, for example with or without furnishings and fittings. Remember, if you leave appliances in the property, you must maintain or replace them if they stop working.
• Consider and carry out, if appropriate, any renovations or improvements to painting, plumbing and included amenities.
• Consult a Ray White property manager on the terms of the tenancy agreement and if any work is required to bring the property up to standard. The property manager can then complete the necessary condition report and a list of all the inclusions, if applicable. It helps if photographs are available.
• Familiarise yourself with the applicable State or Territory regulations and remember that there are government regulatory bodies that act on your behalf where necessary.

Tenants should:

• Have thoroughly researched their accommodation needs as they related to their overall lifestyle pattern and those of any other people involved.
• Work out exactly what they can afford to pay in rent and have evidence of this capacity available together with references if asked to produce them.
• Have looked at an extensive range of rental rental properties before deciding.
• Examine the proposed tenancy agreement, the list of inclusions if any and satisfy themselves that the premises condition report is accurate. If you feel the need to take photographs, do so, but to be valid, they must form part of the agreed premises condition report before you take up occupancy. It is vitally important at this stage before signing any agreement that you are happy with its terms.

If there is any part of the agreement which you do not understand or agree with, then ask the agent managing the property to explain it and if necessary seek changes from the owner. Property management market leaders like the Ray White group, with a reputation for integrity and fair dealing, will have no problem with such requests.

Also, do not hesitate to seek independent advice from the relevant government organisation in your State or Territory set up to assist in these matters.

A lease agreement is a contract; therefore as a tenant, you must be aware of and in agreement with your obligations as noted in the agreement.

The Tenancy agreement

The terms and conditions set out in these agreements will be different in some essential details according to the laws that apply in the State and Territory where the property is located. The agreements must comply with such laws and will have been approved by the governing bodies in each State.

Then, they will also vary in particular detail to reflect the property being rented. Usually, the agreement will be in two parts or one part with annexure.

The terms of the agreement - that is what the owner and the tenant agree - are the terms and conditions under which the property is tented. Typically this will include the length of the tenancy, if it is renewable, how the rent is to be paid and the sort of notice required to increase it, the rights of the tenant to privacy and how often inspections are carried out, the giving of notices and so on.

An entry condition report, which accurately describes (and often illustrates with photographs) the condition of the premises and any furniture and fittings at the beginning of the tenancy is essential. This acts as an agreed record to assist in any discussion or dispute between the tenant and the owner which may arise during the tenancy.

This report is the document that determines whether the rental bond is returnable in full, or part, at the end of the tenancy. Any repairs to the property or cleaning, which the owner agrees to carry out, should be noted at the beginning of the tenancy.

Both parties sign the entry condition report when they agree it is accurate. Tenants in Queensland should note that there is a limited time during which the completed form must be returned to the agent after they move in.

Additionally some, or all of the following may accompany the agreement:

• A booklet issued by the relevant government authority setting out the rights and responsibilities of tenants and owners (this is required to be given to incoming tenants in some areas).
• An attachment adding some specific further conditions required by the owner to the basic agreement. In some States and Territories the scope of any additional conditions is tightly regulated and so care should be taken drawing them up. If in doubt, consult the local authority.

Length of Tenancy

The usual length of a fixed term tenancy is either 6 or 12 months, but different periods can be agreed upon. A tenancy agreement does not necessarily end when its fixed term expires, unless due notice has been given of an intention to terminate it. Due notice varies from area to area; for instance in Queensland it is 14 days prior to the expiry of the lease. If the agreement is not terminated, then it may be renewed for another fixed period if both parties agree on the terms and conditions. Alternatively it may suit both parties for the lease to continue on a periodic basis.

Tenants seeking long-term security should consider the fixed term option, as under normal circumstances, a notice to vacate cannot be issued unless there has been a breach of the agreement. Nor can the rental amount stated in the, agreement be increased during the fixed term unless written into the agreement period.

Those requiring flexibility should simply allow the lease to continue after the initial lease period is over from month to month though this is dependent on the owner's requirements and should not be taken for granted. In the case of the fixed term option, if a tenant decides to vacate prior to the full term of the lease then they will be liable for any costs involved in re-letting, and these can vary according to circumstances.

Long-term leases offer benefits to owners as well. They are assured of a definite income for a set period of time and they can plan future renovations or refurbishment. An owner will be more likely to maintain the rent at a fixed price in order to retain the tenant.

Entry costs

There are a number of costs, which an incoming tenant can expect to pay before taking possession of the rental property.

• Holding Deposit/Reservation Fee: money paid by a tenant to reserve a property while an application to rent the property is being considered. Bear in mind, this does not guarantee the tenancy will go ahead. The amount is generally one week's rent, which is either treated as the first weeks rent if the application is successful, or refunded if it is not. However if the applicant withdraws after the option period has expired, the owner may retain the holding deposit for the days the premises were reserved so long as the premises were not let or occupied during this period.
• Rental Bond: money paid by the tenant that can be claimed by the owner later if the tenant breaks the tenancy agreement in any way and or there are cleaning or damage expenses. The size of the rental bond may vary between States and Territories (normally equivalent to 4 weeks rent in Queensland) and may be increased at each lease renewal if there is a rental increase. The bond is typically kept by a special government agency that will also adjudicate over any disputes about who keeps it at the end of the tenancy.
• Advance Rent: a number of weeks' rent is paid in advance by the tenant.
• Agreement Costs: in some cases and areas the tenant may pay a part of the cost of drawing up the agreement. This is not the case in Queensland.

Tenants listed in the agreement should each receive keys, without the need to pay a key deposit.

Rent

Obvious enough, this is the sum of money paid on an agreed basis, either weekly or fortnightly, or monthy in advance by the tenant to the owner for the guaranteed occupancy of the premises. The amount of the rent will be stated in the tenancy agreement and will stay the same for the period covered by the agreement. Rent increases can occur after that period, depending on what new arrangements are put in place, but an agreed amount of advance notice must be given to the tenant of any increases - for instance in Queensland it is a minimum of 30 days.

Tenants should feel able to discuss the size of a rent increase with the owner or agent if it seems unduly large or out of keeping with rents in comparable local properties or if unaccompanied by an offer to fix up some reasonable wear and tear or fading paint work etc. As a final step tenants can apply to the relevant government tribunal for a ruling.

It is advisable that owners and tenants keep accurate records of rental payments, preferably for the length of the tenancy.

During a tenancy a situation may arise where you, the tenant, feel upset by the action, inaction or behaviour of the owner or agent. Do not fail to pay your rent on time. Withholding payments will not resolve the problem and indeed may well lead to you loosing your rights. Use all the available legel means of having the problem fixed including using the relevant government tribunals.

Tenant privacy and owner access

It is important to remember that there are two sets of “rights” here. You, the tenant, have a right to privacy in which to enjoy your occupancy of the rental premises in peace and quiet and without any unexpected interruptions.

You, the owner, have the right to enter your property to ensure it is being looked after according to the tenancy agreement and for some specified other reasons.

The balance between these two rights is kept by the tenant agreeing that the owner or their agent can enter the premises so long as an agreed amount of notice is given beforehand. For instance, seven days notice is required for a general inspection in Queensland, and four of them can occur in a year.

Entry must also be permitted with notice to allow necessary or urgent repairs to be made and to show prospective new tenants or buyers through the premises.

The amount of notice required and whether entry is permitted before and after certain times and on Sundays will vary between State and Territory.

Water and sewerage

The owner is responsible for water and sewerage service charges issued by the local water supply authority. In some cases, you as the tenant may have agreed to pay the water usage part of the bill. This should be stated in the tenancy agreement and only occurs where there is a dedicated meter for the premises. Connection fees should not be charged and you are entitled to a photocopy of the water account.

Repairs

It is the owner’s responsibility to maintain the rental premises in a reasonable state of repair relative to its age and the amount of rent being paid and in line with local health and safety laws.

Owners are required to carry out urgent repairs at their expense as soon as reasonably possible. The sorts of repairs that are defined as urgent should be known by the owner and tenant, but they include things like: a burst water service, broken or blocked lavatory system, a failure of essential services such as cooking and any fault or damage that causes premises to be unsafe or not secure.

Non-urgent repairs or repairs needed as a result of an accident such as broken window or doors should be notified to the owner in writing as soon as possible.

Damage

It is the tenant’s responsibility to keep the rental premises in a reasonable state of cleanliness and to keep any lawns, garden or yards neat and tidy (unless a professional garden maintenance company has been engaged). Any damage must be immediately notified and it is best to do this in writing. The tenant will be expected to pay for any damage/repairs caused by negligence on the part of the tenant or another person allowed on the premises by the tenant.

Insurance

As a landlord it is up to you to insure your property (i e. building and contents). It is not, however, your responsibility to insure the tenant's belongings. You might also consider insuring against loss of rental income following damage to your property; Ray White Insurance Services have constructed an innovative "protection package" that covers these, plus a number of other very good features.

The Insurance Council of Australia suggests approximately 43% of home occupiers are either not insured or are severely under insured and they are mainly tenants. Remember, as a tenant your landlord is not responsible for insuring YOUR contents and belongings. We recommend you insure your contents against theft and damage and obtain public liability insurance to cover accidents that may happen to friends and visitors whilst at your property.

Ray White Insurance offers: Contents Insurance (including specified valuables) plus public liability and Transit Insurance to protect your contents white in transit to your new address.

Renovating, alterations or adding fixtures

As a tenant, you are not permitted to carry out renovations alterations or add fixtures to the premises without the owner’s prior written permission. This can include very small changes such as picture hooks into walls or installing another telephone.

Locks and security

The owner must ensure that the rental premises are reasonably secure in terms of locks and security, but this does not mean making the place totally burglar proof. If you as the tenant feel the need for increased security then you must meet the cost of any additions and they can only be fitted after you have received permission for them from the owner.

Ending the Tenancy

A tenancy can be ended by the owner or the tenant for various reasons ranging from those, which are mutually agreed, like the simple expiry of the fixed term period stated in the agreement, to other more complex reasons, which may require adjudication.

In all cases, due notice must be given and a final inspection carried out. At the final inspection the overall condition of the premises will be considered, taking into account the original entry condition report, The concept that will be applied at the vacating inspection is that of ‘fair wear and tear', which inevitably will have occurred during the tenant's use of the premises, even if proper care has been shown. The result of this inspection will determine if the rental bond is returned to the tenant or kept in part or full by the owner.

Ray White hopes that the information contained in this booklet is useful to owners and tenants and invites you to consult a property manager from within the Group for further information.

Ray White Property Management Services

Although the owner engages the agent, both the owners and the tenants benefit form a well managed property. Ray White is the market leader in property management offering a complete service that is underwritten by a Service Guarantee. The owner and tenant benefit for basically the same reason.

• Ray White Property Management offers a high level of service that has been refined by extensive experience gained through the network.
• Ray White property managers are highly qualified hands-on managers, who know local regulations and conditions, operate to high professional and ethical standards and understand the value of satisfied owners and tenants alike.
• Ray White has an enormous number of premises on offer and that draws tenants into its agencies and therefore attracts more owners to place their premises with Ray White.
• Ray White's comprehensive and high profile property Internet site www.raywhite.com offers promotional opportunities for owners and search facilities for tenants for properties available for lease. The choices for both are ever increasing.

This means that every step in the process from the first advice an owner receives on presenting and advertising the property, to the attraction of reliable tenants the drawing up and signing of the tenancy agreement and the day to day management of the tenancy through to the vacating process is carried out in a hassle free and professional manner. Furthermore, if a problem arises for either the tenant or the owner, Ray White property managers have the experience to deal with it.

Investing in property

The appeal of real estate among investors is rising, partially due to the variety and quality of investment properties on the market which range from high rise city developments to quality individual properties in medium density areas. Investment in property is also a way of diversifying an investment portfolio. Before investing you should be satisfied that:

• The property will remain attractive to potential tenants in the long term.
• The property will show good capital gains over time, which are not unreasonably reduced by the need to carry out extensive renovations or the approval of adjacent developments such as freeways and railway construction.

For small investors looking to enter the real estate market, access to finance structures around a fixed rate can be attractive. As an investor, you can plan management costs against rental income. You can also benefit from negative gearing, which helps reduce your tax. Negative gearing allows a deduction for certain costs where the property income does not meet all the associated expenses such as interest charges, rates, maintenance, insurance and advertising. Ray White Financial Services can advise you about negotiating the most competitive investor loan available and most Ray White agencies offer high quality property management underpinned by a strong Service Guarantee. The fees for both these services can be claimed, which assists in the negative gearing process.

Ray White Services

Ray White offers a complete set of integrated residential and commercial real estate services based on its network of over 750 offices and 5000 staff in Australia, New Zealand and South East Asia. Apart from the core sales service where Ray White's sales exceeds $20 billion annually the following services are available:

• Ray White Financial Services: A free service that aims to match clients with the most suitable and affordable home loans available from a pool of major banks and lenders offering over 300 different home loan products from first home -buyers to experienced investors. Ray White Financial Services assist in the securing of finance for more than $1 billon worth of property each year.
• Ray White Insurance: Ray White Insurance offers comprehensive and competitively priced insurance packages, which are exclusive to Ray White Customers, and can be tailored to suit both individual Landlord and Tenant requirements. Landlords with their properties being managed benefit from the Ray White Preferred Landlord Protection policy; ask your property manager for more information. For those Landlords managing their own properties, peace of mind comes with a comprehensive Ray White CGU Landlords Insurance policy. Insurance can also be arranged for holiday rentals and private holiday homes. Ray White Insurance offers comprehensive insurance for Tenants. With Ray White Tenants Contents Insurance, select the level of comprehensive cover required for your contents and valuables.
• Property Management: Residential and commercial property managed by highly qualified and experienced practitioners who are in touch with local markets, attuned to legislative requirements and utilising the latest technology to keep clients informed and maximise their rental income.
• International Services: Offices in New Zealand, Port Moresby Singapore and Indonesia , strengthens the group’s ability to source international buyer’s of Australian property and liaise with expatriates wishing to return to the Australian market.