tips for tenants


Tips for Tenants

Every State varies on the laws relating to renting a property. Therefore it is important to check specific information about renting a property in your state or territory, this may be obtained from the consumer affairs authority. Visit http://consumersonline.gov.au/content/links/FairTrading.asp for details of state and territory consumer affairs and fair trading websites.

Below are Tips for current renters and for those who plan to rent in the future:

Tenancy Agreement

A tenancy agreement is a legally binding agreement that you enter into. Before you sign anything, make sure you read and understand all the conditions of the agreement. If you are unsure or don’t understand anything, don’t sign, ask questions or seek external advice. At the time of signing the tenancy agreement, your agent must inform you either verbally or in writing that if you breach the agreement your personal information may be listed on a Tenant Database.

Tenant Databases

Tenant databases provide real estate agents with personal information about the previous tenancies of prospective tenants where there have been problems abiding by the tenancy agreement. This information helps agents to assess if a prospective tenant is likely to be a financial risk to the landlord’s rental property. You are only listed if the tenancy agreement is terminated.

The real estate agent must advise you in writing of their intention to list you and the reason(s) for doing so. The agent must give you a reasonable opportunity to respond, this includes time to review and correct the personal information about you that the agent intends to list on the database. Be sure to keep a copy of all communications.

The agent must quote your objection in the database if you disagree about any of the details they intend to list. You can still be listed if the agent fails to contact you but has made reasonable attempts. You can only be listed for specific reasons and you cannot be listed for minor breaches of a tenancy agreement.

What Reasons can I be listed on a Tenant Database:

  • Owing Money to the landlord for rent or damage caused intentionally or recklessly to the premises. Note: only if the amount owing exceeds the amount of the rental bond.
  • Failure to pay a sum of money to the landlord in accordance with an order of the Consumer Trader and Tenancy Tribunal.
  • Where the Tribunal has issued a termination and possession order for breach of the residential tenancy agreement.
  • Where the Tribunal has issued a termination and possession order for serious or persistent breach of the residential tenancy agreement
  • Where the Tribunal has issued a termination and possession order for serious damage or injury.

Source: NSW Office of Fair Trading

Rent and Bond

Real Estate Agents may require you to pay rent in advance and a security deposit of between 4 to 6 weeks’ rent (rental bond) when moving into a property. Before moving into the property ensure you discuss how much money is required and when payment is required, as agents usually require cleared funds.

Deposited Monies

You may be required to pay a deposit or reservation fee to secure the property. In some cases, if you decide to change your mind you may loose this deposit. You must understand the arrangement that you have with the real estate agency as to how the deposit may be handled, i.e. refundable or not.

Property Condition Reports

When move into the property, the real estate agent is required to complete a condition report, which documents the condition of the property when you take possession. It is important that you take the time to accurately complete this report to minimise disputes with the agent at the end of the tenancy, taking photos is a good idea to minimise disputes.

Insurance

Owner’s insurance does not cover the tenant’s possessions, therefore it is the tenant’s responsibility to insure their belongings and furniture. Find an Insurance broker here.

Preparation

Areas in high demand can be competitive for tenants. Therefore it is important to impress a prospective real estate agent and be well presented and prepared. You should try to obtain references from your previous real estate agent(s) and employer prior to inspecting properties, this will give you a competitive edge over other tenants and prove to the agent that you can afford the rent and properly maintain the property. Such items to obtain may be; a printout of your tenant ledger, copies of routine inspection reports, bond refund documents or even pay slips.

Paying Rent on Time

In the tenancy agreement it is a condition that rent must be paid on time and in accordance with the terms and conditions set out in the agreement. Paying your rent on time is your responsibility. Not paying rent on time could cost you a potential reference from an agent.

Keeping Records with Agents

In order to reduce the possibility of disputes or misunderstandings with the real estate agent you should consider keeping notes and records of conversations that take place with the agent once you have entered into the tenancy agreement. An easy way to do this is confirming your understanding with the agent by sending a signed letter of agreement.

Routine Inspections

Regular inspections by the real estate agent are generally a legal requirement as outlined in the tenancy agreement, they ensure that the property is being cared for properly and no damage has occurred.

Repairs

It is your responsibility to look after the property which should be maintained in good repair. If any problems arise it is important to report problems or concerns in writing to your real estate agent.

Rent Increases

Rental increases are a common occurrence when renting a property especially in areas of high demand. If a rental increase occurs the real estate agent must do so in accordance with any legislative requirements and issue tenants with the appropriate notice in writing.

Giving Notice

Terminating a tenancy must be done in accordance with the tenancy agreement and legislative requirements. You should discuss the notice requirements with the real estate agent when giving notice. Always submit your notice in writing.

Sub-letting

Before you can sub-let the premises you must have the written permission of the landlord of the property. A landlord can refuse permission for you to sub-let, even without reasonable grounds. The tenancy agreement you enter into with the sub-tenant should be for a shorter period than you entered into with the landlord. The sub-tenant has the rights and responsibilities of a tenant under the Residential Tenancies Act 1987. The sub-tenant pays rent to the tenant, therefore it is still the tenants responsibility to pay rent to the landlord. It is important to know there is no legal contract between the sub-tenant and the landlord, thus if a problem occurs with the sun-tenant, it is your responsibility.

Communicate

Open and honest communication is the best way to maintain a happy and professional ongoing relationship with your real estate agent. Always keep the lines of communication open with your agent to ensure a positive relationship.


Copyright 2006 owned by Australian Real Estate Agents Pty Ltd. All Rights Reserved.