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Landlord Rights and Responsibilities - Property Update

Property investment remains i of the best ways to create wealth just success depends on much more than merely property choice and location.

You meet... property investment as well involves people – namely landlords (that's you) and tenants.

Throughout the residential tenancy, you every bit the landlord accept diverse responsibilities which must be upheld.

Across the country, at that place is country-specific legislation that protects landlord rights as well as the tenant's.

As this legislation is often amended, especially at times of tighter rental markets,  information technology's imperative that landlords understand what their responsibilities are as investment property owners, equally they are obligated to abide by state police.

This article will aid all landlords meliorate understand their tenant'south responsibilities as well every bit their own landlord rights when it comes to collecting, holding and returning a bond, collecting rent, increasing rent, inbound their holding, maintenance, repairs and catastrophe a tenancy.

Of course, we'll also discuss how using a professional property director can make your property investment journey simpler and more enjoyable, too!

How do y'all choose a tenant?

Every bit a landlord, y'all have the right to choose the tenant you consider the most suitable for your property but nether the  Equal Opportunity Act you must not discriminate against whatsoever of the applicants based on their:

• Gender
• Age
• Race
• Religion
• Marital status
• Sexuality
• Having children
• Pregnancy
• Mental illness
• Disabilities
• or a whole host of other discriminatory reasons.

If you do, you could be liable to pay damages or fines.

The Bail

Rental bonds are paid past tenants at the first of their tenancy and are a goodwill payment held in trust by the specific state authorities rental authority, which is used as financial protection for the landlord in case the tenant breaches the terms of the tenancy agreement.

This protects you if the tenant does not pay all the rent owed, amercement your property or fails to continue information technology in a satisfactory status, equally you will then exist eligible to claim some or the entire bail once the tenancy is over.

At the commencement of a new lease, yous are expected to provide a bond lodgement form to be filled out by both parties and are responsible to ensure that information technology is lodged with the relevant state authorisation within the correct time menstruation.

The amount of bond is usually about four weeks' worth of rent, even so, it tin vary depending on the blazon of dwelling.

At the end of the tenancy, damage to the property may be paid for out of the bail, but only if both parties agree.

However, landlords cannot charge tenants for any off-white wear and tear of property that may have occurred during the tenancy.

Examples of off-white and wearable include faded curtains or a worn kitchen bench-tiptop.

Conversely, missing curtains or burns or cuts to the bench-top would likely be considered damage, and so the tenant would be responsible to pay for these to be repaired.

At the finish of a tenancy, if your holding is left in good status and is clean, then both the landlord and the tenant tin agree to have the bond repaid to the tenant in total.

If there is any impairment, then the process becomes a little more than complicated as both parties have to agree that damage has occurred during the tenancy as well as the costs of the repairs.

For instance, the landlord may brand a claim on the bond for:

• Rent non being paid
• Impairment caused past the tenant or their visitors
• Cleaning expenses
• Abandonment of the premises by the tenant
• Landlord being forced to pay tenant'southward bills
• Loss of landlord's goods

The Rent

Equally the landlord, you lot have the correct to request rent on a weekly, fortnightly or monthly footing. With both the bond and rental payments received, yous should provide detailed and signed receipts stating the engagement, amount received, belongings address, name of tenant and duration for which it has been paid.

I of the keys is to ensure you lot have the all-time tenants in your properties who accept the financial capability to pay the rent also as the desire to await after your property well.

Successful tenant selection is a skill and is one where a professional holding manager can aid you.

They'll likewise assist you with all the necessary paperwork and post-obit up if the tenant does not pay their rent on fourth dimension.

As a landlord, you have the correct to await that the rent for your belongings to exist paid by the due date in the style that was agreed on the lease.

While the legislation does vary across the country, if tenants have non paid their rent by the due engagement, they are considered to be in "deficit".

If they are more than 14 days in arrears, then landlords have the right to consequence the tenants with the relevant notices to vacate.

Landlords need to keep in heed that if their tenants practise not pay their hire, or are tardily paying their rent, that the mortgage notwithstanding needs to exist paid, which e'er remains the landlord'southward responsibility and should be approaching for accordingly.

Utility and service charges

When it comes to utility and services charges, there are varying rules around this beyond the country so it's important to cheque your relevant state authority.

By and large speaking, however, during a tenancy, tenants are responsible for the following utility charges if the property has a divide meter (i which the supply to i belongings only):

• All charges for the supply or use of electricity, gas or oil (including supply charges and reconnection fees).
• All charges based on the amount of h2o consumed (only not service charges or reconnection fees).
• All sewerage disposal charges.
• All charges for the employ of bottled gas (but not for the supply or hire of gas bottles).
• On the other paw, if a property is not metered separately, landlords are responsible for:
  • Initial connection fees
  • Usage charges for the utilities.

Responsibilities of the landlord to the tenant

During a residential tenancy, landlords accept a number of responsibilities to their tenants, which are enshrined in the relevant legislation.

Once again, many of these responsibilities tin can be managed by a professional holding manager on a landlord's behalf.

Some of the responsibilities which a landlord has to a tenant include:

• Give the tenant a copy of the relevant Country or Territory booklet outlining their rights. This needs to exist done before the tenants motion into the property or on the day that they do.
• The rental property must exist vacant, clean and prophylactic on the day that the tenant shifts in.
• The master living areas must exist kept in good status and all the appliances need to exist maintained.
• The condition expected will be dependent on how old the property is and how much the rent is.
• Y'all are obliged to take care of anything that may demand repairing on the holding and must respond to whatever requests in a timely manner.
• During a tenancy, the landlord is responsible for keeping the belongings in the same state that it was in when the tenant moved in. And then this ways maintenance and repairs need to be completed as they arise.
• Respect the rights of the tenant to quiet enjoyment of the holding.
• Comply with all health and rubber laws.
• Provide reasonable security with locks in good working order and supply keys for each lock.
• Pay all charges, levies, premiums, rates, and taxes for the property.
• Reimburse the tenant for money spent on emergency repairs (certain conditions utilize).
• Not enter the premises to carry out a full general inspection until after the cease of the first three months of the tenancy (depending on the relevant legislation) and even at this fourth dimension, follow the rules regarding proper notice periods.

When can a landlord visit their property?

While you lot may feel like checking on how your tenant is looking after your property, you can't just popular in whenever you experience like information technology.

Local legislation will stipulate how frequently y'all can do this and how to go about it.

For example, in Victoria, a landlord may enter the premises equally long as the tenant agrees to the fourth dimension and was consulted within the terminal seven days.

Occasionally you may need to enter your property on short notice.

In Victoria, a landlord has the correct to enter within 24 hours after having given written notice to the tenant in order to:

• Carry out duties under the Residential Tenancy Agreement, the 'Residential Tenancies Act 1997, or any other Act.
• To value the holding.
• Show prospective buyers or lenders through the premises.
• Show prospective tenants through the premises.
• Verify a reasonable belief that the tenant has non met their duties equally a tenant.
• Brand one general inspection in whatever half-dozen-month flow, but not within the first three months of the tenancy.

Under these circumstances, the landlord is immune to enter the bounds if the tenant is not home providing the requirements regarding written notices have been met.

The landlord does not take the right to enter in an unreasonable way or stay any longer than necessary unless it is with the tenant's permission.

Landlord rights regarding Repairs & maintenance

Occasionally yous volition be contacted by your tenant or holding manager advising that you are going to have to repair an item in your rental property. While some of these may not exist urgent, there are others than will need to be attended to promptly.

You volition demand to respond to urgent repairs without delay.

If nothing is done, your tenant has the right to arrange for these repairs to be done upward to the value of $yard – at your expense.

If you are unsure of what is classified every bit an "urgent repair", consult your belongings manager or your local Consumer Affairs function.

Examples of urgent repairs include:

• Burst water service
• Blocked or broken lavatory system
• Serious roof leak
• Gas leak
• A dangerous electrical fault
• Flooding or serious inundation impairment
• Serious burn or storm harm
• Failure or breakdown of gas, electricity or h2o supply to premises
• Any other damage which results in the property being dangerous or non secure

If they are non dealt with, the tenant has the right to organise a qualified professional to complete repairs, up to the amount specified in the tenancy understanding. Yous will then have to reimburse the tenant for the cost incurred.

Not-urgent repairs demand to be carried out inside a specified amount of time, which may vary from land to land, but must normally be carried out within 14 days, yet obviously I would recommend you do it sooner.

If not not-urgent repairs are not attended to, your tenant may use to the Tribunal for inspection and subsequent report.

After 60 days, the tenant can apply to the Tribunal for a repair order.

Even though they may feel like it, legislation prevents tenants from withholding rent while waiting for repairs to be done.

Past the mode… landlords are not responsible for damage caused past tenants – such as a door ripped off its hinges – with the repair paid for by the tenant, past agreement, or deducted from their rental bond.

Professional property managers have well-developed systems for tenants to report any urgent repairs or damage, which can then exist remedied past whichever party is responsible by agreement.

When tin I increase the rent?

Tenants always think their rent is too high and of course, landlords want to take to maximise their investment returns.

The trouble is you just cannot increase the hire whenever you want to.

Again in that location is legislation well-nigh the timing of rental increases across the country, but mostly speaking, if a tenant is on a periodic lease the rent can be increased once every 6 months, after giving two months' notice to the tenant.

If the tenant is on a fixed-term tenancy, such as a 12-month charter, then the rent cannot be increased until the end of that tenancy.

If tenants find the proposed rental increment unreasonable they can challenge it and have a state regime inspector assess its fairness.

Information technology'due south important that landlords consider whether a higher hire will exist more beneficial than having tenants stay in their property for longer.

Changing tenancies is fourth dimension-consuming and has additional costs fastened such as loss of rent during the vacancy, reletting fees and marketing charges – the total of which could be more than the proposed extra hire would bring over six months or a year.

With this in mind, landlords should consider whether an extra $5 or $10 per week will make a big enough difference to their lesser line.

This is especially important during times when rental supply exceeds demand so tenants accept much more selection and may determine to only motility somewhere cheaper.

It may exist more than prudent to wait another six or 12 months before increasing the rent in such a circumstance.

Extended periods of vacancies are not what whatever landlord wants for their investment property and so always proceed in heed that long-term tenants who pay their rent on fourth dimension and look after your holding well are actually the type of people that yous desire.

What are your landlord rights when your tenant stops paying rent?

It's one of the worst nightmares for landlords - a tenant who hasn't paid rent for weeks and won't vacate the property.

Unfortunately, a good tenant can quickly turn into a bad tenant.

This can happen due to personal troubles, health issues, drugs, they lose their job or become divorced.

But the problem is, equally a property investor you not just stand to lose out on your rental income, which you're most likely relying on to help pay your mortgage, but you lot may not be able to admission your belongings or discover new tenants until your existing tenants go out.

And the stop result is that yous could be significantly out of pocket.

And then what are your rights as a landlord if this happens?

Well, it all starts before y'all have on a tenant.

Make sure your holding manager checks their past rental history using national rental databases and make sure your potential tenant doesn't overextend themselves.

At Metropole Property Direction we don't like the rental to exceed 30% of the tenants' combined income, otherwise, they're more than likely to detect themselves in mortgage stress.

I believe it'south important to have a skilful line of advice with your tenant by using a good belongings manager.

Hopefully, they'll have done regular inspections of your belongings and answered any tenant requests promptly.

This should make communication during challenging times a picayune easier.

Tenancy legislation is a Country-based law then it'due south critical that you have a proficient holding manager looking afterward your interests to stay within the laws when this type of unpleasant situation arises.

Detect out why your tenant is in deficit

Your holding manager should know the day your tenant is in deficit by checking their trust bank business relationship.

Their offset step should exist to find out why your tenant isn't paying rent and to brainstorm making polite enquiries and assist in minimising your loss.

The reason y'all oasis't received the rent could be something quite simple and easily stock-still, such as:

• simple forgetfulness
• temporary cash flow bug
• a misunderstanding betwixt joint tenants

Or it could be something more complicated and long-term, such as:

• your tenant has lost their job
• your tenants are a couple and take split
• your tenant is suffering from challenging personal issues (such as bereavement or piece of work-related stress).

What your property manager should practice next

If a tenant does not pay their rent past the due date, they are considered to be 'in arrears'.

In Victoria, if tenants become xiv days or more in arrears, they tin can be issued with an official observe to vacate.

The number of days in rental arrears earlier these notices can be sent varies around Australia, so it is of import to exist familiar with your local tenancy laws.

Merely a landlord or property director cannot evict a tenant, the proper procedures must be followed.

Firstly, the notice must be correctly worded and correctly delivered including, existence delivered past registered post.

Then the matter must be brought before the relevant tenancy authority such equally VCAT or the NSW Civil and Administrative Tribunal.

The tribunal may then issue a warrant of possession to evict the tenant.

However, at Metropole Holding Management we try and nip things in the bud past monitoring arrears daily, because if a tenant falls behind in their rent, the sooner yous know about it, the sooner yous tin effort to resolve the issue and mitigate whatsoever financial loss.

We call and email the tenants so send a alienation notice outlining that they have failed to pay their rent on time afterwards they've been in arrears for three days.

Going to the tribunal is the last resort.

Often the affair can be resolved by giving the tenant the option to make role rental payments or more than frequent payments such as weekly to become them through what is hopefully just a bad patch.

If the tenant must be evicted, you will almost likely be able to retain function or all of the bail to make upwardly for your loss.

And any boosted loss should be covered by your Landlord's insurance.

How do I end the tenancy?

Every landlord volition eventually face up a  situation in which they need to evict a tenant.

If you lot want your tenant to move on earlier than planned, withal, in that location are certain rules you must follow before showing them the door and these vary slightly from State to Country.

Even if an agreement has a fixed finish date, y'all will need to give the notice to end the tenancy.

Considering the tenants' rights to remain in the property are protected, if you lot want to cease the tenancy, you should check:

• The reasons allowed for giving notice in your Country to cease a tenancy agreement
• Whether the notice needs to be given on an official find or form
• How much notice you need to give before the end of the tenancy agreement

If this isn't done, they run the run a risk of causing an unnecessary delay in getting back possession of their property or having to commencement the process all over once more.

Here'due south what y'all need to know...

During 2020 all states amended their legislation due to Covid19 to protect tenants during this challenging menses.

Many of these measures will end in March 2021 simply you can read more nearly them in the following articles:

• Victorias freeze on evictions and rental hikes extended
• It's time to put a end to rorting the rent relief measures
• Hither's how the rental markets around Australia accept been affected by COVID-xix

The following information was written in March 2018 and all legislation referred to was relevant at the time of writing, but may change over time, simply it'due south likely this is what will be reverte to every bit nosotros movement into Covid normal.

New Due south Wales

A landlord is typically required to serve a signed written termination notice 14 days before the date of eviction.

This find must indicate the holding'south accost, the eviction date and the reason for termination.

This reason must exist valid.

If, for instance, a landlord claims non-payment and the tenant can provide proof that they accept complied with the tenancy understanding and paid their rent, the tenant will not exist required to vacate the property.

However, if the grounds for eviction are proven to be correct only the tenant does not go out by the specified date, the landlord has the correct to obtain a warrant of possession, which volition authorise officers to remove the tenant by force.

Victoria

As is the example in NSW, Victorian landlords must provide a signed written notice, which tin can either be sent by post or delivered by hand.

If the tenant does not lave, the landlord has thirty days to request an order of possession from the tribunal.

This gild includes instructions to vacate the home, the date of evacuation, and a alert regarding forcible eviction should the tenant fail to comply.

If there is no compliance, a landlord tin then obtain a warrant of possession to allow the authorities to remove the tenant.

Queensland

In the Sunshine State, the advisable grade must be used to create the notice, which must be presented within a reasonable period of time.

The reason for termination must exist indicated, along with the evacuation date.

If the tenant does non comply, the landlord must apply to the tribunal for a termination society and a warrant of possession inside two weeks of the date of handover.

Upon approval, the tribunal will then ship a notice regarding a hearing, as well as a re-create of the landlord'due south application, to the tenant.

One time the warrant of possession is issued, it must be carried out inside three days of the termination engagement.

The authorities have 14 days to enter the property and enforce the warrant unless the tribunal indicates otherwise.

Western Australia

In the west, landlords must issue a formal discover to the tenant regarding a breach of the tenancy agreement.

The tenant then has 14 days to right the breach. If they do non comply, this is when the termination find should be served.

The tenant is given seven days after receiving the detect to leave the property.

If the tenant does not vacate within this fourth dimension period, then the landlord should apply for an guild of possession from the Magistrates' Courtroom within 30 days.

The subsequent course of action is to request a property seizure and delivery social club.

A court-appointed bailiff will then be sent to evict the tenant on the landlord'due south behalf.

South Australia

In the issue that a tenant has breached the rental agreement, the landlord'south are required to serve written notice demanding a remedy; otherwise, the tenant must vacate the home.

The discover should item the breach, the suggested remedy and the observe period.

The landlord should exist conscientious to specify "all other occupants" aside from the tenant, and there should be two copies of this document – one to be kept for the landlord'due south records.

The tenant then has seven days to comply with the request; eight days if the offence in question involves rent arrears.

If this is disregarded, and so the landlord may proceed to fill in an application form for eviction, which likewise covers a asking for vacant possession.

It must be accompanied past supporting documents, such every bit a copy of the lease agreement, rent records, and written notices if any.

These requirements must then be submitted to the tribunal, the only part that tin can affect eviction via a tribunal order.

Tasmania

On the Apple Isle, landlords must provide a notice to vacate either xiv or 28 days prior to the stated eviction date.

This detect indicates the appointment on which the document was issued to the tenant, the names of both parties, the address, the reasons for the evacuation find, and the effective date of the observe period.

If the tenant fails to vacate the property, the landlord tin can apply for an social club of possession from the Magistrates' Courtroom.

A copy of the awarding must be presented to the tenant on the aforementioned day.

The court volition then send a representative to enforce vacant possession of the property on the set engagement.

Australian Uppercase Territory

When faced with a problematic tenant, a landlord is required to first serve a discover to remedy.

If the tenant does not act on it inside seven days, and so the landlord can move forward with a written detect to vacate.

If, yet, the tenant has previously been issued 2 remedy notices, so a notice to vacate can be presented immediately.

In that location should be an adequate period of detect, and the document should point the legal grounds for termination too as the premise backside these grounds.

If the tenant does not budge, and then the landlord tin apply for a termination and possession club from the tribunal.

Subsequently, the landlord tin can asking a warrant for eviction.

Upon providing two days' notice regarding the eviction, the government tin then remove the tenant inside a set period unless there are infrequent circumstances.

Northern Territory

In the Meridian-end, a landlord must first seek out a rental officer to apply for an order for the tenant to go out.

An order for eviction tin exist made meantime, or at another fourth dimension.

The rental officer then bug the social club to the tenant, and an affidavit of service is generated.

If the tenant does not vacate, the landlord must file an order for a writ of possession with the Supreme Courtroom within six months.

This order should be supported by the affidavit of service for the eviction club and some other confirming that the eviction gild was disregarded.

The writ should then be issued to the sheriff, who would be granted the authority to remove the tenant and recover the belongings on behalf of the landlord.

In all cases, both parties will need to be prepared for the price of asking the authorities to hear a example.

Resources by State

Existence a landlord brings with it a raft of rights and responsibilities, which you must understand to be the best property investor that you can be.
As we've mentioned in this article, each state has its own specific legislation regarding this and then it's imperative that you become conversant with the relevant laws or improve yet utilise a professional property manager to navigate them for you lot!

• For landlords who have properties in Victoria, consider using this resources from Consumer Affairs Victoria.
• For landlords who accept properties in New South Wales, consider using this resources from Fair Trading NSW.
• For landlords who have properties in Queensland, consider using this resource from Residential Tenancies Authority.

This is only a short summary of landlord rights and responsibilities and that is why to maximise your investment returns and to minimise your headaches, yous should take a professional person property manager manage your avails.

That way, all contact with the tenant should exist through them shielding you from the day to mean solar day hassles finding tenants, completing agreements, organising maintenance, and if necessary, sorting out problems at the Tribunal.

Metropole Property Management – the smart option

At Metropole, we help you build your wealth by offering you the best property management services available because nosotros are a different breed of licensed estate agents.

We don't sell real manor.

We lease and manage residential properties throughout Melbourne and Sydney and Brisbane and concentrate all our resources on ensuring that your specific management needs are fulfilled.

This means we will look subsequently your property the way we look later on our ain, using our professional skills and the latest engineering to discover quality tenants, minimise vacancies and handle marketing, repairs, maintenance, accounting, and legal compliance efficiently and cost-effectively.

With then many different pieces of legislation regulating the landlord rights and responsibilities, it makes sense to accept a professional on your side who tin can assist your belongings investment journey be equally successful and stress-free as possible.

You deserve a property director who cares as much about your property as you exercise.

If you want to find out a little more almost how Metropole can help you maximise the returns on your investment property, please click here, leave us your details and we will exist in touch.

Editors Note: This article was previously published on Property Update and has been republished for the benefit of our many new subscribers

About Leanne is National Director of Property Direction at Metropole and a Property Professional in every sense of the word. With 20 years' feel in real estate, Leanne brings a wealth of knowledge and experience to maximise returns and minimise stress for their clients. Visit: Metropole Property Management

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Source: https://propertyupdate.com.au/landlord-rights-and-responsibilities/

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